In the battle for user attention, product rewards play a crucial role. But have you ever wondered how companies decide what rewards to offer and how much they vary?
The answer lies in understanding three key categories:

1. Finite Variability: Predictable, but Can They Get Stale?
Remember the joy of collecting loyalty points on your favorite supermarket card? That's a classic example of finite variability. Users earn predefined rewards for specific actions, like discounts or freebies. It's simple, predictable, and easy to manage.

Zomato Gold Membership: A 1+1 on food or 2+2 on drinks at participating restaurants, no delivery charges etc.

Amazon Prime India: Subscribers pay an annual fee to enjoy a well-defined set of benefits, including free one-day delivery, exclusive access to Prime Day deals, and a vast library of movies and TV shows on Prime Video.

Starbucks loyalty program: Customers earn stars for every purchase and know exactly how many stars they need to earn a free drink or food item.

But the downside? Predictability can breed boredom.

2. Infinite Variability:  The Personalization Powerhouse
Imagine movie recommendations tailored to your taste or fitness challenges with dynamic rewards. That's the allure of infinite variability. Rewards adapt to individual users based on preferences and behavior.

CRED: Users earn CRED coins for each bill payment, which can be used to unlock various rewards ranging from exclusive offers and discounts with partner brands to entries in mega jackpots.

Uber: Users earn points for rides and Uber Eats orders. Users can unlock a range of rewards, including flexible cancellations, price protection on a route etc. The program's levels (Blue, Gold, Platinum, Diamond) offer progressively better rewards.

3. Inherent Variability:  The Thrill of the Chase
Ever snagged a limited-time discount or scored early access to a sale? That's the excitement of inherent variability. Rewards fluctuate based on factors like perceived value, time periods, or events, creating a sense of urgency and exclusivity.

Netflix has experimented with gamification and personalized recommendations to add an inherent variability in rewards. While the primary reward is access to its vast library of content, Netflix personalizes user experiences by recommending shows and movies based on individual viewing habits.

Nykaa Loyalty Program, Myntra Insider Program, Flipkart Coins: Members accumulate points for their purchases, which can be redeemed. And there are unexpected rewards such as early access to sales, birthday surprises etc.