Incentives and Behavioural change (To be graded)

Incentives are powerful tools for driving behavioural change, influencing how people act and make decisions. They serve as motivators, encouraging individuals to adopt certain behaviors by offering rewards or benefits. These encouragements  can take various forms, such as financial rewards, social recognition, or real satisfaction, and are often used in systems, products, and services to align user actions with desired outcomes.

For example, offering discounts or loyalty points can motivate customers to purchase more frequently, while gamified elements like badges or leaderboards encourage participation and engagement. The underlying principle is simple: people are more likely to engage in a behavior when they perceive a clear benefit or reward.

Behavioural change through encouraging is not just about rewards; it's also about reducing barriers to action. Simplifying a process, providing clear instructions, or making an activity enjoyable can act as implicit encouragement. For instance, apps that encourage fitness might use streaks or progress trackers, subtly rewarding users for consistency while making the experience enjoyable.

However, effective incentive design requires an understanding of human psychology. Overly complex rewards or those that feel manipulative can backfire, causing disengagement. Similarly, reliance on external rewards may diminish real motivation over time. Striking a balance between external and real motivation ensures sustainable behavioural change.

Ultimately, motivation is a way to nudge users toward positive actions, fostering habits that align with their goals while improving engagement with the system. When applied thoughtfully, they create meaningful, lasting impacts on behaviour.