In competitive industries, reward systems can be a major differentiator between businesses. Consumers have so many options through digital platforms that they are increasingly looking to use the companies that make them feel valued through various forms of rewards.
It is no longer just about which company offers the best products or services, consumers have come to expect more than a transactional relationship. They shop around for the companies that offer the best loyalty rewards and discounts for members.
Digital entertainment has also become increasingly focused on reward systems, with more competitors coming into the market, effective reward systems help to retain customers and give them a competitive edge.
Across video games, streaming channels and online casinos, the reward language has the same philosophy underpinning it all. Even online learning apps like Duolingo have built their product around rewards. Streaming channels often offer rewards packages that can be customized around the subscriber’s interests, such as free or discounted tickets through a network of partners.
Psychology Behind Reward Systems in Digital Entertainment
Let’s look deeper into the psychology of reward systems in digital entertainment:
Feeling Valued
Video games used to be designed around the contentment that players would feel through achieving progress. However, players would often get bored or become frustrated when they could not overcome the final boss or get to the end of the mission.
Reward systems keep players motivated and deliver another type of psychological boost. Receiving rewards that are free gives players a sense of feeling valued for the time they have spent playing, even if they have not progressed through challenges.
Battle passes are a much revered reward in games like Fortnite, allowing players to unlock rewards like skins by completing actions within games to earn XP (Experience Points). The psychology around battle passes involves players getting dopamine loops by receiving small, regular rewards.
Motivation By FOMO
By obtaining these rewards, players feel a sense of achievement and it gives them an added reason to continue playing. There is also an element of FOMO (Fear of Missing Out), as there are often time limits for claiming the rewards, driving urgency.
Another form of digital entertainment that heavily revolves around reward systems is online casinos. Before casino players sign up with a new casino, one of the deciding factors in the one that they choose will be how good the bonuses are.
Casino Reward Systems
Welcome bonuses are usually the biggest draw, with casinos offering massive deposit matches of up to around 300% the amount the better deposits. However, retaining players can become more difficult when they have used up their welcome bonus.
This is where more creativity is required from the game designers to find innovative types of rewards to keep players coming back to the platform. Casino game designs are already loaded with psychological reward systems, from flashing lights and sounds to trigger excitement to the unpredictability of wins.
Many casino games include bonus rounds and features that provide an added dimension to rewards. This could involve choosing a box that multiplies winnings, the player feels like they have received a good reward for their playing time and then chooses to carry on playing longer.
Another type of reward that casinos typically offer is loyalty schemes, which are usually tiered. The more you play and deposit, the faster you progress through the loyalty scheme tiers, with bigger and better rewards given the higher you get.
This means that bettors are rewarded for how much they play and spend, with rewards ranging from free spins to VIP rewards with exclusive event invitations or high value gifts. By rewarding players’ loyalty, casinos are more likely to retain their custom and the players will not be tempted to try out other casino platforms.
How the Rewards Speak the Same Language
These reward types appear to be quite different in terms of their design but the fundamentals are exactly the same. Digital entertainment consumers enter a loop where they participate, anticipate, receive a reward and are motivated to repeat the cycle again.
While rewards are an effective marketing tactic for businesses, in highly competitive industries, reward systems can also add significant value for customers, so it is a win-win situation.
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