What motivates people more: competition or rewards?

What motivates people more: competition or rewards?

Recently, we conducted a study among users of our ChallengeMe app, which helps people achieve personal goals through challenges. The results turned out to be unexpected and opened our eyes to the true nature of motivation.

Key finding

Competition turned out to be a stronger motivator than financial rewards.

Even when monetary prizes were offered, most participants stated that their main drivers were the spirit of rivalry and the desire to outperform others. When we launched challenges with rewards, we expected that money would be the main reason for participation. But the reality turned out to be completely different.

What the study revealed

Obsession with the leaderboard
Users actively monitor the progress of their competitors and constantly strive to get ahead. We noticed that participants check the rankings several times a day, tracking even the smallest position changes. This is not just curiosity — each glance at the leaderboard becomes a new impulse to take action.

The effect of prolonged motivation
Even after a challenge ends, many users continue using the app to stay active. The competitive spirit doesn’t disappear with the official end of the contest — it transforms into a lasting habit. Participants keep tracking their performance and comparing it with the results of other users.

A creative approach to goal achievement
When participants see they are falling behind the leaders, they don’t give up. Instead, they find new ways to increase their activity: they plan extra walks, choose hiking over staying at home, or go for evening runs. Competition awakens a creative approach to reaching goals.

One of our users shared:

‘When you see someone ahead of you, you immediately think: maybe I’ll walk to the store or take an evening stroll. You start looking for any opportunity to add some activity.’

The need for social interaction
Social interaction is becoming increasingly important among users. Participants don’t just want to see numbers on a leaderboard — they want to communicate with their competitors, cheer each other on, share experiences, and exchange friendly banter.

Why competition works better than money

Financial rewards are an external motivator that disappears once the prize is received. But the desire to be first — to prove one’s abilities to oneself and others — is an internal motivator that doesn’t fade away.

Competition also turns routine into an exciting game. Instead of a boring “I need to reach 10,000 steps,” it becomes a thrilling “I have to overtake the leader!” When we see others succeed, we automatically think: “If they can do it, so can I.” Each participant becomes a living example of what’s possible.

What this means for ChallengeMe

— Transparency and accessibility of other participants’ results are essential.
— Social features, such as chats or comments, increase engagement.
— Team challenges open new opportunities for motivation.
— Users want the ability to discuss their achievements directly in the app.

What do you find more interesting: individual challenges or team competitions?