Variable Reward in Marketing

What Is It?

The principle of Variable Reward, popularized by author and behavioral designer Nir Eyal in his "Hooked" model, describes a powerful psychological mechanism where the anticipation of an unpredictable reward drives human behavior and fosters habit formation. Rooted in B.F. Skinner's work on variable ratio reinforcement schedules, the core idea is that a reward delivered intermittently and unpredictably is far more compelling and addictive than a reward delivered every time. When a reward is certain, the brain's activity focuses on the reward itself. However, when the reward is variable, the brain's activity spikes during the anticipation phase, creating a powerful craving loop. This uncertainty keeps the user engaged, constantly performing the action in the hope of receiving the next, potentially greater, reward.

This principle is the engine behind many of the world's most engaging digital products and marketing campaigns. Consider the act of checking a social media feed: you don't know what you will see—a funny meme, a personal update from a friend, or a piece of breaking news. The reward (the content) is highly variable, which makes the act of scrolling an almost automatic, habit-forming behavior. In marketing, this translates to keeping customers coming back, not just for the product, but for the experience of the unknown reward.

The power of Variable Reward lies in its ability to tap into the brain's natural desire for novelty and surprise. It transforms a simple transaction into a game of chance, where the customer is motivated by the potential for a delightful, unexpected outcome. This psychological loop is what drives continuous engagement, turning a one-time buyer into a loyal, habitual customer.

How It Works

Quote from a Popular Marketer

"Variable reward is the third phase of the Hooked Model, and there are three types of variable rewards: the tribe, the hunt, and the self. Rewards of the tribe are things like social validation, rewards of the hunt are things like information or money, and rewards of the self are things like mastery, competence, and completion."

10 Tips on How to Use It in Marketing

1. Implement Gamified Loyalty Tiers: Instead of a simple points-for-discount system, introduce "mystery boxes," "spin-the-wheel" rewards, or random bonus points that customers can earn at unpredictable intervals, making the loyalty program feel more like a game.
2. Use Personalized, Unpredictable Content Feeds: Mimic the addictive nature of social media by curating email newsletters or website homepages that mix expected content with surprising, highly personalized, and high-value offers or articles.
3. Introduce "Surprise and Delight" Discounts: Instead of announcing a fixed sale, randomly select a small percentage of customers at checkout to receive an unexpected, higher-than-normal discount (e.g., "Congratulations! You've been selected for a bonus 20% off!").
4. Create "Mystery" Product Bundles or Boxes: Offer a product where the exact contents are unknown but guaranteed to be of a certain value. This taps directly into the "Reward of the Hunt" and the excitement of the unknown.
5. Employ Variable Response Times in Customer Service: While fast service is key, a variable element can be introduced by occasionally providing an unexpectedly rapid, personalized, and over-the-top response to a routine inquiry, creating a memorable moment.
6. Use Progress Bars with Variable Outcomes: For multi-step processes (e.g., onboarding, a multi-part quiz), ensure the final step's reward is not explicitly stated, or that the value of the reward is variable, to leverage the Zeigarnik Effect.
7. Run Limited-Time, Random "Flash Sales": Announce sales with very little notice and short duration. The unpredictability of when the sale will happen encourages customers to check your site or app more frequently.
8. Offer Variable Social Validation: On user-generated content platforms, vary the type and intensity of social feedback (e.g., sometimes a simple "like," sometimes a "featured" badge, sometimes a personalized comment from a brand representative).
9. Implement "Scratch-Off" or "Unwrap" Digital Rewards: After a purchase or a sign-up, present a digital element that the user must interact with (like a scratch-off card) to reveal a variable reward, adding a moment of suspense and fun.
10. Leverage "Drip-Feed" Content with Unpredictable Drops: For educational or subscription content, release new modules or bonus materials at irregular intervals rather than a fixed schedule. This keeps subscribers engaged and anticipating the next "drop."