Blog · Crowdsourcing and innovation contests
Engaging participants in innovation contests: key insights for success
Innovation contests have become an essential tool for companies that want to involve customers in product development. Ensuring a positive participant experience, which this research calls the innovation contest experience (ICE), is critical to attracting and retaining talented contributors. Salgado et al. (2020) offer a comprehensive framework for understanding ICE from the participant's perspective, examining how perceived challenge and intrinsic and extrinsic motivation shape satisfaction and long-term participation.
Designing the right level of challenge
Perceived challenge matters. Participants are most involved when the task is neither too easy nor too difficult. This “optimal challenge” lets them enter a state of flow, where they enjoy the task itself. A well-calibrated challenge draws participants in, makes them more likely to join future contests, and improves their perception of the sponsoring company.
A compelling, inspiring contest raises situational interest and strengthens the bond between participants and the sponsoring company.
Balancing intrinsic and extrinsic motivation
Intrinsic motivation, such as the joy of creating, and extrinsic motivators, such as money or recognition, both improve ICE, but they work best in balance. An overly extrinsic focus can crowd out intrinsic interest; when extrinsic incentives are framed as informative (for example, constructive feedback), they improve the overall experience.
Building long-term relationships
A positive ICE brings companies more than immediate ideas: it builds lasting loyalty. Participants who enjoy the contest see the company as more innovative and customer-oriented, which strengthens its brand reputation and contributes to long-term brand equity.
For managers, the takeaway is clear: design contests with the right level of challenge and a thoughtful blend of intrinsic and extrinsic motivation.