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Why Duolingo turns streaks into addictive habits while Amazons badges gatherdustThe habit loop uses rewards to drive engagement and retention, helping users stay consistent and achieve theirgoals.Drumroll, please! I recently sold an item on Vinted for the first timefinally, a win! To be honest, I originally downloaded the app to sell things, but well, lets just say I got very good at buying instead. So yes, this was a proudmoment.But just as I was basking in my small victory, surprise! Up pops a screen telling me about an award I could winAfter I sold my first item, Vinted prompted me to sell another four to get an Star WardrobeAwardRewards have spread across every app over the past few years, driven by the growing popularity of gamification. In an attempt to boost engagement and retention, many apps have introduced reward systems. Usually, thats how they work: you do something tied to engagement or retention and receive a reward inreturn.Its no surprise this approach is boomingthe gamification market is projected to grow from USD 15.43 billion in 2024 to USD 48.72 billion by 2029, at a staggering CAGR of25.85%.And it makes sense that apps are trying to leverage this mechanism!Every habit building framework such as the habit loop described in Hooked or the Atomic Habits framework, highlights the importance ofrewards.Although these framework are all different, their core remainssimilar:1. I do the action that I want to form a habit around or that participates to thathabit2. I get arewardThe four steps of building a habit according to Atomic Habit from JamesClearResearch shows that reward plays a crucial role in habit formation by reinforcing the behavior and increasing the likelihood that it will be repeated. It operates on psychological and neurological principles, driving motivation and habitloops.The problem is that apps are trying to recreate this in an artificial way. When I go for a run, I usually then treat myself to a delicious smoothie and my body releases endorphins. Together, this forms a great reward and makes me want to do itagain.But its really hard to recreate that digitally..B2C apps started to introduce rewards also called achievements or badges.They are little gratifications that are the equivalent of school merit medals when you do a good action. Duolingo gives you an unexpected amount of gems and has a section called Achievements, Amazon gives some Badges, Nike celebrates Milestones.Here are examples of rewards from Duolingo, Amazon, and Nike. As you can see, they share many similarities.Gradually, as I accumulated various rewards across multiple apps over time, I started to seriously question whether they actually provided value tousers.In many cases, they didnt feel very genuine, were childish and therefore didnt act as a greatreward.If rewards are key to building habits but getting them right is tricky, what makes a reward truly effective?And how do you use them strategically?Ill break it down with real-world examples from apps and websites that nail it (or didnt..).What Makes a GoodReward?A good reward feels meaningful, authentic, and tied to the users motivation. It doesnt just nudge them towards an action; it increases the sense of satisfaction they feel when completing it.In contrast to some of the superficial gratification provided by digital badges or arbitrary milestones, effective rewards connect deeply to what the uservalues.To create a good reward system, keep these principles inmind::1. Align rewards with intrinsic motivationExtrinsic rewards, like points or badges, can be fleeting unless they tap into something deeper.For example, Stravas year in review works because they connect to a runner or cyclists desire to compete and improve. The reward isnt just about the badge; its about social proof and personal achievement.On the other hand, I find Stravas Trophy case quite dull and meaningless. It feels like Im being rewarded for putting up with irrelevant ads from their partners, and it lacks any sense of personalisation.Stravas Year in Review made me feel proud and rewarded because it focuses on the things I care about: progress. On the other hand, the Trophy case feels irrelevant and is disconnected from my specific goal of long-distance running.2. Tie rewards to actualoutcomesA reward should reflect a tangible benefit from the action. If a language app congratulates me for completing a lesson, Im more likely to feel rewarded if I can now recall phrases in conversation than if I just earned another badge. Rewards should remind users of their progress or accomplishments in ways that matter tothem.Duolingo makes the reward tangible by letting me know how many words I learnt during the lesson thatday3. Keep It Unexpected (Sometimes)Psychology tells us that variable rewards can be even more motivating than expected ones. Think about apps like Headspace, which sometimes surprises users with delightful animations or a streak celebration when theyve meditated for several days in arow.The unexpected reward and the promise of earning more by returning daily help me build a habit around language learning.4. Avoid Over-RewardingWhen rewards become too frequent or predictable, they lose their impact. This is a common pitfall for gamified systems. If every small action results in a shiny badge, the novelty quickly wears off. Reward systems should strike a balance between recognition and scarcity.Amazon badges are listed in a predictable way, and the actions arent very user-centric or personalized to myneeds.Examples of Reward Systems ThatWorkLets dive into a few examples from successful apps and platforms that have struck the rightbalance:1. Duolingos StreakSystemDuolingo has leveraged gamification to grow its Monthly Active Users to over 103 million (a 40% increase from 2023) by integrating rewards into language learning.While its badges might feel childish to some, the streak system stands out by tapping into users intrinsic motivation to stay consistent. Pride in maintaining a streak encourages users to go the extra mile, ensuring they dont break it. The brilliance of this system lies in its alignment with a meaningful goal: mastering a new language.2. LinkedIns Profile Completion MeterWith over 1 billion users and more than 13,000 connections made every minute, LinkedIn has mastered subtle gamification to drive engagement.By using a progress bar to encourage action completion, LinkedIn offers an intrinsic reward: the more engaged you are, the better your chances of making connections or finding opportunities. This approach taps into completion biasthe human tendency to prioritize finishing tasks simply for the satisfaction of completing them, even when the tasks themselves may not feel immediately meaningful.It also taps into completion bias, the tendency for people to prioritize finishing tasks or goals, even if theyre not inherently meaningful, simply because they want to complete what theyvestarted.LinkedIns progress bar subtly encourages engagement, with a clear outcome and achievable steps.Questions to Ask Before Designing RewardsBefore implementing a reward system in your app, consider these questions:What does the user value most about this experience?The reward should amplify the core value of your app rather than distract fromit.Is this reward reinforcing the desired habit or behavior?A good reward strengthens the connection between the action and the users motivation to repeatit.Does this feel authentic?Rewards should resonate with your audience. A playful badge might work for a fitness app geared toward teens but could feel out of place in a professional productivity tool.The Future ofRewardsAs apps and digital platforms continue to evolve, so too will reward systems. Were likely to see a shift away from generic badges and points toward more personalized and context-aware rewards. For instance, AI could enable apps to offer hyper-relevant rewards tailored to a users goals, habits, and progress.In the end, the most effective rewards are the ones that feel natural and genuinely motivating. They dont just gamify; they amplify the core experience, turning everyday actions into meaningful achievements.If your apps reward system doesnt serve that purpose, it might be time to ask the same question we did: is it really addingvalue?For instance, last year at my previous company, we decided to test removing badges. These badges had been introduced before I joined, and I never fully understood if they were actually benefiting our users. We ran an A/B testone group kept the badges, while the other didnt. Can you guess theoutcome?Surprise nothing changed. The metrics stayed the same, with no drop in engagement. Meanwhile, we cleared up a lot of space and significantly simplified theapp.Sometimes, less really is more! Curious about how small changes can make a big impact? Lets connect anddiscuss!Sources: Gamification Market Size & Share AnalysisGrowth Trends & Forecasts (20242029) Motivation in UX/UIDesign AI-Driven Gamification: Unlocking Personalized User Experiences with MachineLearningHere are some topics/websites I recommend goingthrough:Gamification gone wrong: stop the streaks from the brilliant Ben Davies-RomanoLennys podcast with Jackson ShuttleworthFollow me on LinkedIn for more deep divesHow Duolingo, Nike, and Amazon use rewards to keep you hooked was originally published in UX Collective on Medium, where people are continuing the conversation by highlighting and responding to this story.