Gamification design matters #2
“Near-win” effect: Designing losing experiences in gamification
How to turn losing in “gamified” systems into user/consumer motivating experiences.
You’re on the brink of defeating the final boss in a game. Your heart is racing, your palms are sweating, and you’re practically teetering off the edge of your seat. You land the final hit, and the screen fades to black. Did you emerge victorious? Did you fall short? The suspense is killing you, isn’t it?
Integrating game results — winning or losing — in the systems can generate a sense of competence and accomplishment that keeps players engaged and motivated. Whether you’re battling it out against other gamers or striving to beat your personal best, the challenge and the gratification that comes with it make the experience all the more rewarding.
But, what happens if you lose? Remember that feeling of disappointment, frustration, and perhaps even a little bit of anger? Losing a game can be a tough pill to swallow, particularly when you’ve put in a great deal of effort and time. Losing can also be interpreted as a lack of recognition for the player’s hard work, ultimately hindering their engagement and satisfaction.
Gamification design matters.Simply adding gamification to a service or product doesn't automatically lead to increased satisfaction or engagement. In fact, the effectiveness of gamification depends heavily on how it's "designed" (Köse et al., 2019; Rapp et al., 2019).In my upcoming collection of posts, I'll be sharing short readings about science-backed game design mechanics and strategies that can help businesses and organizations create successful "gamified" experiences for their customers. Whether you're new to gamification or an experienced designer, I believe that these insights will be valuable for anyone looking to enhance the engagement and satisfaction of your target customers.
Integrating “game results” can make gamified services more exciting
At the core of any exceptional “gamified” service lies the exhilaration of the challenge, coupled with the euphoria of achieving one’s goals. But what if there was more to the game than mere success? What if experiencing defeat and bouncing back added an extra dimension of excitement and engagement to the adventure?
Enter game results integration. By incorporating a clear distinction between victory vs. defeat — or win vs. loss, gamified services become more dynamic, more challenging, and ultimately more enjoyable for players. Whether you’re pitted against other players, pushing yourself to surpass your own high score, or simply striving towards a goal, the prospect of both outcomes elevates the gameplay, adding an extra layer of thrills and immersion.
However, it’s not just about the adrenaline rush of the competition — there’s also something inherently playful about games that integrate clear-cut results. When players have a clear understanding of what they’re striving towards — be it a record-breaking high score, reaching a new level, or earning bragging rights — they’re more invested in the experience and more likely to remain engaged for longer.
But the real enchantment of game results stems from the sense of accomplishment that arises from surmounting adversity. When players have the opportunity to fail and then emerge stronger than before, they experience a heightened sense of achievement and pride in their success. By encompassing both the possibility of triumph and the possibility of failure, gamified services offer a more well-rounded and fulfilling experience for players.
A caveat: What if your customers keep losing?
“Ah, the thrill of victory and the agony of defeat.”
Adding game results can really spice up the user experience and inject some much-needed fun into mundane tasks. But, let’s not forget that with great fun comes great frustration. Continuous defeat can be discouraging for individuals who consistently struggle to succeed in gamified platforms.
Losing can make users or customers feel like they just don’t have what it takes to win the game. It’s like their gaming mojo has gone missing, leaving them feeling dissatisfied with the service they paid for. No one likes to feel like they’ve wasted their hard-earned cash on a disappointing experience. This dissatisfaction can lead to negative word-of-mouth, complaints, and even service failure actions. It does not present a favorable image for any business that aims to maintain customer satisfaction.
When it comes to gamified services, losing can be especially discouraging since the end goal isn’t just winning the game, but rather reaching a specific outcome outside of the gameplay itself. For instance, the end goal in some gamification contexts may be to incentivize consumers to purchase more goods or services or to encourage them to complete a particular task.
“Near-win” effect
Have you ever come so close to winning a reward, only to have it slip away at the last moment? Whether it’s losing an auction, missing out on a job offer, or narrowly missing a jackpot in a game of chance, the experience of a near-win can be frustrating and demotivating. But what if I told you that it could also be a powerful source of motivation?
Recent research has identified a phenomenon known as the “near-win effect.” This effect suggests that the experience of nearly winning a reward, even if it ultimately results in failure, can have a positive impact on motivation and future behavior.
At first glance, this may seem counterintuitive. After all, isn’t it more motivating to actually win a reward than to come close and miss out? While it’s true that winning is more motivating than losing, the near-win effect suggests that the experience of almost winning can be more motivating than a clear loss.
“Almost there… almost there… ah Fxck!”

The reason for this is that a near-win creates a sense of “almost there.” When we come close to winning a reward, we can imagine ourselves actually winning it. This creates a sense of anticipation and excitement that can be powerful motivators. We want to experience that feeling of success and accomplishment, and we believe that if we just try a little harder, we can achieve it. Another theory that explains this effect is that it creates a sense of “self-efficacy,” or the belief in one’s ability to achieve a goal. When we come close to winning a reward, we see evidence that we are capable of achieving it. This can boost our confidence and motivate us to continue pursuing our goals.
This idea is supported by research. In Drs. Daugherty and MacLin’s study, participants played a game of chance where they had the opportunity to win a prize. Some participants were told they had missed out on the prize by a wide margin, while others were told they had come very close to winning. The researchers found that those who had experienced a near-win were more motivated to continue playing the game than those who had experienced a clear loss.
According to another study, Drs. Wadhwa and Kim have found that experiencing a near-win can motivate us to put in extra effort and resources toward future tasks, even if they are unrelated to the original task. The study showed that participants who came close to winning a game walked faster to obtain a chocolate bar, salivated more for money, and put in more effort to earn cash in a card-sorting task. Additionally, those who nearly won a lottery were more inclined to spend money on desirable products later on. If the intention of gamification is to increase consumer engagement or promote the purchase of products or services, incorporating near-winning into the design could be a viable option.
Conclusion
The near-win effect is a fascinating phenomenon with significant implications for motivation and goal pursuit in gamification contexts. It has the potential to be a powerful motivator, but it’s crucial to recognize that it’s not a universal solution. Each person is distinct, and their responses to the allure of a near-miss may vary. While some individuals may feel invigorated and inspired by almost achieving their goal, others may become still demotivated and disheartened. As such, it’s essential to consider individual differences and tailor motivational strategies accordingly. By utilizing this approach, we can leverage the potential of the near-win effect to boost the motivation of users/customers and help accomplish our business objectives.
References
Daugherty, D., & MacLin, O. H. (2007). Perceptions of luck: Near win and near loss experiences. Analysis of Gambling Behavior, 1(2), 4.
Kassinove, J. I., & Schare, M. L. (2001). Effects of the” near miss” and the” big win” on persistence at slot machine gambling. Psychology of addictive behaviors, 15(2), 155.
Lee. W, L. Lu (accepted). Designing gamified interactions with self-service technology at restaurants. International Journal of Hospitality Management.
Wadhwa, M., & Kim, J. C. (2015). Can a near win kindle motivation? The impact of nearly winning on motivation for unrelated rewards. Psychological science, 26(6), 701–708.
Author’s note:
I — Wangoo Lee — am a PhD behavioral researcher in the field of travel and hospitality experiences, including understanding hospitality tech-mediated services and “gamified” experiences.