Increasing App Engagement Behaviors via Goal-Enabling Technology Features: The Role of Goal Difficulty Dimensions

Little is known, however, about how the difficulty of goals chosen during GETF adoption affects subsequent app behaviors. This study examines whether customers who set more versus less difficult end goals and subgoals show greater engagement and retention, and whether firms can nudge customers toward goal-difficulty levels conducive to sustained engagement.

Using behavioral data from an investment app that introduced GETFs, the authors employ hierarchical modeling with staggered synthetic control and instrumental variable regression to address self-selection and endogeneity. Results reveal substantial heterogeneity: Many adopters show no or negative engagement changes, whereas those selecting moderately challenging goals and subgoals significantly increase in-app investment actions, though not sign-ins.