Reward timing in prize contests: instant vs long-term motivation

How reward timing shapes motivation in prize contests

A chance to win a holiday to Bali is enticing, but so is one to win an instant gift card to your favorite store. Both strategies are effective when creating a contest reward strategy, but they are quite different, as they cash in on varying psychological responses.

This means that when creating your promotion, you need to analyze the psychology of instant vs delayed rewards in contests and compare it with the goals of your campaign.

Instant rewards: the power of now

Instant rewards are quite popular in contests, and the reason is that they reward our brain’s craving for immediacy. The participant knows that if they complete the required actions, they get a chance to win on the spot through a spin-to-win or scratch card. The excitement generated by this is undeniable, as you don’t have to wait, and it actually makes even small prizes feel more rewarding than they are.

Here are some of the contest psychology principles these rewards trigger:

• The fact that the participant can claim their reward right away motivates them to take part (immediate gratification)
• The process of spinning the wheel or scratching a card triggers a strong emotional response. If the contest allows, users are likely to take part again.
• Knowing the outcome right away feels fairer and more satisfying than waiting a month.
• You can win or not, and the prizes vary. The unpredictability keeps participants engaged.

These types of rewards can be quite effective in giving your campaign traction in the early stages.

Long-term rewards: anticipation & the big win

In the types of rewards, people are more drawn by the anticipation of what could be. Even though the prize is delayed, it’s bigger and therefore triggers a “daydreaming” effect.

If it’s a contest with bonus entries or one that requires repeat participation, users will be willing to do more to increase their chances of winning big. Every single point they collect is part of the bigger picture, and the sense of progress is enough motivation on its own.

Here are some of the contest psychology principles these types of rewards rely on:

• The extended timeline builds anticipation, so people will actually spend weeks or months imagining themselves winning. Your brand is now a part of their fantasies (anticipation bias)
• Since a person is building towards a larger prize, they’ll have a reason to keep going.
• We are wired to always imagine the grand, life-changing opportunities, and the big prize here usually feels more valuable than many small ones.
• As the big announcement draws near, people will increase their effort and engage more with your campaign (goal-gradient effect)

The design of these rewards makes people more emotionally invested in the brand and can therefore generate more loyalty.

Which contest psychology is better?

Well, contest psychology shows that people respond effectively to both strategies. However, some people are more drawn to the instant wins, as they feel they have a better chance of winning, while others are only interested in the bigger prizes.

The best way to look at instant vs delayed rewards in contests is to consider your goals and the audience. If you are looking to build a quick email list of potential customers for your e-commerce business, instant wins can work better. If you want to build a loyal community and long-term buzz, a delayed, large prize will be more effective.

The same also applies to the audience. If you are targeting a younger audience, they’ll likely respond better to the gamified feel of instant wins. But if you are in tech or travel, your audience will likely be more drawn to the long-term prize.

However, in most contests, you don’t really need to choose between the two. You can set up a hybrid model where you take advantage of both. Use quick wins to keep clients coming back to your platform during the contest, then have a large prize at the end to sustain interest and build loyalty.

If you are planning your next campaign, Promosfera can help you create the best balance between instant and long-term rewards. Reach out and connect with our experts!