Engaging Participants in Innovation Contests: Key Insights for Success
By Stéphane Salgado
Nov 1, 2024
Innovation contests have become an essential tool for companies looking to engage customers in the product development process. However, ensuring a positive participant experience—what this research terms the innovation contest experience (ICE)—is critical for attracting and retaining talented contributors. The study by Salgado et al. (2020) offers a comprehensive framework for understanding ICE from a participant’s perspective, exploring the impact of perceived challenges and intrinsic and extrinsic motivations on customer satisfaction and long-term engagement.
Designing the Right Level of Challenge
One of the study’s standout findings is the importance of perceived challenge. Participants are most engaged when a contest presents a task that is neither too easy nor overly difficult. This “optimal challenge” enables participants to enter a state of flow, where they experience enjoyment and satisfaction through engaging with the task. A well-calibrated challenge not only draws participants in but also increases their likelihood of joining future contests and positively influences their perception of the sponsoring company.
A compelling and sufficiently inspiring innovation contest can enhance situational interest, fostering a stronger connection between participants and the sponsoring company.
The Balance of Intrinsic and Extrinsic Motivation
The study also highlights the interaction between intrinsic motivation—such as the joy of creativity—and extrinsic motivators, like monetary rewards or recognition. While both types of motivation independently boost ICE, they work best when carefully balanced. An overly extrinsic focus can reduce intrinsic interest, but when extrinsic incentives are framed as informative (e.g., constructive feedback), they enhance the overall contest experience, fostering a productive engagement that keeps participants motivated.
Building Long-Term Relationships through ICE
By creating a positive ICE, companies don’t just gain immediate insights and ideas; they also cultivate lasting loyalty. Participants who enjoy the contest are more likely to view the company as innovative and customer-oriented, strengthening the company’s brand reputation. As a result, the research suggests that innovation contests can contribute to long-term brand equity, positioning the company as a leader in innovation.
For managers, the takeaway is clear: innovation contests should be designed to offer the right level of challenge, blending intrinsic and extrinsic motivations effectively. With this approach, companies can turn innovation contests into powerful tools for building customer loyalty and enhancing brand reputation.