Why do most goal-setting apps fail? And how do you set smarter targets so you can stay engaged and continue making progress? Research by Senior Lecturer Jake An identifies how you can set more achievable goals.
Learn how to set better goals
Every year, millions of Australians download finance, fitness and productivity apps determined to improve their lives. They set savings targets, promise to run three times a week, or commit to daily language lessons. Yet within weeks, most people stop logging in and disengage with their goals.
It’s tempting to blame willpower. However, research suggest the problem may not be motivation. Jake and his research team from the UTS Business School found that simply setting goals did not guarantee better engagement. What matters is how you set goals.
Setting the right target
Jake’s research demonstrates that the difficulty of goals users choose can determine whether they stay motivated or disengage.
In a large study analysing behaviour in an Australian investment app, his team examined what happened when users engaged with an in-app goal setting feature. The feature allows people to set long-term savings targets, add a recurring weekly contribution or subgoal and track their progress.
“Simply setting a goal did not guarantee better engagement. In fact, a sizeable share of users showed no improvement, and some became less active after adopting the feature,” Jake said. “The difference lay in how ambitious the goals were.”
Jake’s team found that setting moderately challenging goals significantly increased meaningful activity in the app. In contrast, those who set extremely easy goals saw little change, while those who chose highly ambitious targets often reduced engagement over time.
Simply setting a goal did not guarantee better engagement. In fact, a sizeable share of users showed no improvement, and some became less active after adopting the feature.
Interestingly, setting moderately challenging targets also affected real behaviour, not just surface activity. Logging into the app didn’t necessarily increase success. What changed was whether users followed through with tangible actions, such as making actual investments.
Users who set their subgoal difficulty at 15% of their weekly income (e.g. for someone who earns $75,000 a year or $1440 a week, this equates to saving $216 a week as a moderately difficult subgoal amount) invested the highest amount of money during the twelve months after setting the goal.
Goal setting for the long-term
Jake’s team also found that users who showed stronger engagement after setting moderately challenging goals were more likely to remain active one year later.
“Understanding how goal difficulty shapes behaviour can help consumers make smarter choices and encourage tech companies to design digital tools that genuinely support long-term wellbeing instead of short-term churn,” Jake reflected.
“The lesson extends beyond investing. Whether you’re setting a fitness streak, a study target or a weekly savings plan, the “moderate challenge” principle appears crucial,” he said.
“Goals that are too easy don’t inspire effort. Goals that are too extreme can trigger frustration and disengagement.”
The lesson extends beyond investing. Whether you’re setting a fitness streak, a study target or a weekly savings plan, the “moderate challenge” principle appears crucial.
So, before you blame yourself for abandoning a goal, consider that the problem may not be your discipline. It might be that your goals were either too small to matter or too big to sustain.