How to Build Habit-Forming Products - Nir Eyal

Startup Grind
10 Mar 201722:51

Summary

TLDRIn this engaging talk, the speaker delves into the psychology behind habit-forming products, highlighting the four-step 'hook' model that keeps users returning. Starting with triggers that prompt action, the speaker explains how simple actions in anticipation of rewards, like scrolling on social media, can create a cycle of engagement. The talk also emphasizes the importance of variable rewards and the investment phase, where users invest in the product, enhancing its value and their attachment. The speaker challenges the notion that the best product always wins, urging the audience to focus on capturing the 'monopoly of the mind' through user habits.

Takeaways

  • ๐ŸŽฏ The importance of making products habit-forming is emphasized, as it is crucial for retaining users and ensuring they return to the product repeatedly.
  • ๐Ÿ”— The concept of a 'hook' is introduced, which is a four-step process embedded within products that keeps users coming back.
  • ๐Ÿ”” The first step of the hook is the 'trigger', which can be either external (environmental cues) or internal (emotional states like boredom or loneliness).
  • ๐Ÿ’ก The significance of internal triggers is highlighted, as they are often linked to negative emotions and prompt users to engage with products to modulate their mood.
  • ๐Ÿ›  The second step is the 'action', which should be the simplest behavior done in anticipation of a reward, such as scrolling or clicking.
  • ๐Ÿ“ˆ BJ Fogg's formula for behavior is mentioned, stating that for any action to occur, three elements must be present: motivation, ability, and a trigger.
  • ๐Ÿ”‘ The focus should be on making the action as easy (in terms of time, money, effort, etc.) as possible to increase the likelihood of the user performing it.
  • ๐Ÿ† The third step is the 'reward', which should not only fulfill the user's desire but also leave them wanting more, often using variable rewards to maintain engagement.
  • ๐ŸŽฒ Variable rewards are explained as being of three types: rewards of the tribe, rewards of the hunt, and rewards of the self, each catering to different human desires and motivations.
  • ๐Ÿ’ผ The final step of the hook is the 'investment' phase, where users invest time or data into the product, which increases the likelihood of their return and deepens their engagement.
  • ๐Ÿ”’ The investment phase is crucial as it builds value and customization into the product, making it harder for users to leave, even if a better product comes along.

Q & A

  • What is the main topic of the speaker's presentation?

    -The speaker's presentation is focused on how to make products habit-forming, drawing on the principles outlined in his book 'Hooked: How to Build Habit-Forming Products'.

  • What is a 'hook' according to the speaker?

    -A 'hook' is a four-step process embedded within a product's user experience that encourages users to return to the product repeatedly. It includes triggers, action, reward, and investment.

  • What are the two types of triggers mentioned in the script?

    -The two types of triggers are external triggers, which are environmental cues that tell us what to do next, and internal triggers, which are negative emotions that prompt us to take action.

  • Why are internal triggers considered critical for forming habits?

    -Internal triggers are critical for forming habits because they are linked to negative emotions that frequently occur and prompt users to turn to the product or service with little or no conscious thought.

  • What is the 'action' phase in the context of a hook?

    -The 'action' phase is defined as the simplest behavior done in anticipation of a reward, which is a small, immediate action the user can take to get relief from their internal trigger.

  • What does the speaker mean by 'variable reward'?

    -A 'variable reward' is a reward that is not always predictable, which creates a sense of wanting and desire in the user's brain, making the product more engaging and habit-forming.

  • What are the three types of variable rewards?

    -The three types of variable rewards are rewards of the tribe (social interactions), rewards of the hunt (search for information or material possessions), and rewards of the self (intrinsic pleasure from mastery, consistency, or control).

  • What is the purpose of the 'investment' phase in the hook model?

    -The purpose of the 'investment' phase is to increase the likelihood of the next pass through the hook by loading the next trigger and storing value, making the product more personalized and harder to leave.

  • Why is frequency important when it comes to habit-forming products?

    -Frequency is important because if the desired behavior does not occur within a week's time or less, it becomes almost impossible to change consumer habits and form a habit with the product.

  • What are the five fundamental questions the speaker suggests answering to build a habit-forming product?

    -The five fundamental questions are: 1) What's the internal trigger? 2) What's the external trigger? 3) What's the simplest behavior in anticipation of a reward? 4) Is the reward fulfilling and leaves the user wanting more? 5) What bit of work is done to increase the likelihood of the next pass through the hook?

Outlines

00:00

๐ŸŽ‰ Welcoming the Speaker and Introduction to Habit-Forming Products

The speaker is introduced with enthusiasm, highlighting his experience in building and scaling companies, and his success with his book 'Hooked: How to Build Habit-Forming Products'. The speaker aims to address how technology impacts daily life and the strategies behind habit-forming products. He emphasizes the importance of engagement over growth, noting that retaining users is crucial for a product's success. The talk will cover a four-step process known as 'the hook', which is embedded in habit-forming products, and invites the audience to a Q&A session for further discussion on engagement challenges.

05:00

๐Ÿ” The Role of Internal and External Triggers in Habit Formation

This paragraph delves into the concept of triggers, distinguishing between external triggers that prompt actions through environmental cues and internal triggers that stem from negative emotions. The speaker discusses how negative emotions like boredom or dissatisfaction often lead to the use of technology to modulate mood. He stresses the importance of identifying the internal trigger for a product, as it is key to forming habits. The speaker also introduces the idea that habits should ideally form within a week for the behavior to be sustained, and that frequency of use is critical for a product's habit-forming potential.

10:01

๐Ÿ›  The Action Phase: Simplicity and the BJ Fogg Behavior Model

The speaker explains the 'action' phase of the hook, which involves the simplest behavior a user can perform to anticipate a reward. He references BJ Fogg's model, stating that behavior occurs when motivation, ability, and a trigger are present simultaneously. The focus is on making the action as easy as possible, discussing factors that affect a user's ability to perform an action, such as time, money, physical effort, brain cycles, social deviance, and routine. The speaker argues that reducing the difficulty of an action is more effective than trying to increase motivation.

15:02

๐ŸŽฐ The Reward Phase: Variable Rewards and Their Impact on User Engagement

The paragraph discusses the 'reward' phase, where users receive a variable reward that not only satisfies their desire but also leaves them wanting more. The speaker explains the concept of variable rewards, drawing from B.F. Skinner's operant conditioning experiments. He outlines three types of variable rewards: rewards of the tribe (social interaction), rewards of the hunt (searching for information or material possessions), and rewards of the self (intrinsic pleasure from personal achievements). These rewards are integral to maintaining user engagement and forming habits.

20:03

๐Ÿฆ The Investment Phase: Storing Value and Encouraging Future Interaction

The final paragraph of the script focuses on the 'investment' phase, where users invest time or effort into a product with the expectation of future benefits. This phase is crucial for loading the next trigger and storing value, which can be in the form of data, content, followers, or reputation. The speaker argues that as users invest in a product, it becomes increasingly personalized and valuable to them, making it harder to leave, even if a better product comes along. The investment phase solidifies the habit by increasing the likelihood of future engagement.

๐Ÿ“ Conclusion and Call to Action for Ethical Habit Design

In conclusion, the speaker challenges the notion that the best product always wins, emphasizing instead the importance of capturing the 'monopoly of the mind'. He encourages the audience to consider the five fundamental questions related to habit-formingไบงๅ“่ฎพ่ฎก, including identifying internal and external triggers, the simplicity and rewarding nature of the action, and the investment made by users. The speaker ends with a call to action, asking the audience to participate in a survey for feedback and reminding them of the upcoming Q&A session, while also promoting his SlideShare for further insights.

Mindmap

Keywords

๐Ÿ’กHabit-forming

Habit-forming refers to the process by which a product or service becomes integral to a user's routine, eliciting a consistent response or action. In the video, the speaker discusses how companies create products that users return to repeatedly, like Facebook and Twitter, by embedding 'hooks' within their user experiences.

๐Ÿ’กTriggers

Triggers are stimuli that initiate a behavior or action. The video distinguishes between external triggers, such as notifications or ads, and internal triggers, which are emotional states like boredom or loneliness that prompt users to engage with a product. The speaker emphasizes the importance of understanding these triggers to build habit-forming products.

๐Ÿ’กEngagement

Engagement, in the context of the video, is the measure of how much interaction a user has with a product. The speaker argues that while growth is important, engagement is equally crucial because it ensures that users continue to return to the product, which is a key aspect of habit formation.

๐Ÿ’กAction

Action, as discussed in the video, is the behavior performed by a user in anticipation of a reward. It is the simplest behavior that a user can do to 'scratch the itch' caused by a trigger. The speaker uses examples like scrolling on Pinterest or a quick search on Google to illustrate simple actions.

๐Ÿ’กReward

A reward in the video is the outcome or satisfaction that a user receives after performing an action. The speaker explains that the most effective rewards are variable, meaning they are unpredictable and keep the user engaged and wanting more, as seen in social media platforms and games.

๐Ÿ’กInvestment

Investment, in the context of the video, is the phase where users put something into the product, such as data or content, with the expectation of future benefits. This phase is crucial for habit formation as it increases the likelihood of the user returning to the product, thus reinforcing the habit loop.

๐Ÿ’กVariable Reward

Variable reward is a concept from the work of B.F. Skinner, where the reward is given on an unpredictable schedule, increasing the frequency of the behavior. In the video, the speaker describes how apps like Facebook and slot machines use variable rewards to keep users engaged due to the element of surprise and anticipation.

๐Ÿ’กBJ Fogg

BJ Fogg is a researcher from Stanford who developed a model for behavior change, often referenced in the video. His model states that for a behavior to occur, three elements must be present: motivation, ability, and a trigger. The speaker uses Fogg's model to explain how to make actions more likely to happen by focusing on the user's ability to perform the action easily.

๐Ÿ’กNegative Emotion

Negative emotions, as mentioned in the video, are internal triggers that often prompt users to take action. The speaker explains that emotions like boredom, loneliness, or dissatisfaction can drive users to seek relief through habit-forming products, such as social media or gaming apps.

๐Ÿ’กProduct Design

Product design, in the video, involves creating products that not only address a user's needs but also incorporate elements that encourage habitual use. The speaker discusses how product designers should focus on identifying internal triggers and designing actions that are easy to perform, leading to rewarding outcomes.

๐Ÿ’กQ&A Session

A Q&A session, as referred to in the video, is a part of the presentation where the speaker invites questions from the audience. It is an interactive component that allows for a deeper exploration of the topic and addresses specific challenges or queries related to habit-forming products.

Highlights

Introduction of the speaker, N AAL, as an experienced entrepreneur and author of 'Hooked: How to Build Habit-Forming Products'.

The importance of making products habit-forming to ensure user retention, which is as crucial as growth hacking.

The concept of a 'hook', a four-step process embedded in user experiences of successful products.

Differentiation between external and internal triggers, with a focus on the role of negative emotions as internal triggers.

The revelation that people use products primarily to modulate their mood and feel something different.

The significance of identifying the internal trigger for building a habit in customers' lives.

The necessity for a habit to occur within a week's time or less for it to form effectively.

The action phase of the hook, emphasizing the importance of simplicity in user actions to anticipate rewards.

BJ Fogg's formula for behavior, requiring motivation, ability, and a trigger to occur.

The six factors of ability that make a behavior more likely to occur, including decreasing time, cost, physical effort, and brain cycles.

The role of variable rewards in creating desire and maintaining engagement with a product.

Three types of variable rewards: rewards of the tribe, rewards of the hunt, and rewards of the self.

The investment phase of the hook, where users invest in the product for anticipated future benefits.

Investments increase the likelihood of the next pass through the hook by loading the next trigger and storing value.

The myth that the best product always wins is debunked, emphasizing the importance of capturing the monopoly of the mind.

The five fundamental questions to answer for building a product that requires unprompted engagement.

Invitation for feedback and a reminder of the upcoming Q&A session, showcasing the speaker's engagement with the audience.

Transcripts

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I'm really much excited to introduce the

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next speaker n AAL is amazing and as

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many of you know some of the best

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tactics and strategies for

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entrepreneurship comes from experienced

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entrepreneurs who've been through the

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grind and the hustle just like you NE

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roel is no Foreigner to this experience

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he has built and scaled companies one

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that has been Venture backed one that

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has been acquired and has since

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transitioned into helping other

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entrepreneurs like all of you in the

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room succeed with his pop selling book

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called hooked how to build and scale

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productive products that make people

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love you so please join me in a ReSound

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and welcome get up on your feet and

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introduce near iel thank

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[Applause]

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[Music]

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you thanks every much louder thank you

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thanks very much hey

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everybody thank you so much uh it's it's

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a pleasure to be here and I just want

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you to know by the way that uh there is

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an army of people back here uh that is

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making this conference happen they're

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all over the place so can we just take a

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a quick minute to thank those folks that

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have put in so much work to making this

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conference thank you very

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much so um today I want to talk about

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for just a few minutes about how to make

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your product habit forming you know when

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we think about the technologies that

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we're carrying around with us every day

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these these amazing devices in our

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pockets these products have had a

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profound impact on our day-to-day lives

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and so what I want to answer today today

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is this question around how do they do

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it how do companies like Facebook and

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Twitter and Instagram and WhatsApp and

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slack and Snapchat how do they bring

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people back time and time again not just

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in the consumer space but also in the

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Enterprise space these products that

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form consumer habits so I have just a

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few minutes with you this morning but

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what we're going to do right after my

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talk actually at 10 o'cl there going to

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be a Q&A session where we I would love

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to take your questions uh come ready

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that that's my favorite part is is kind

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of this open-ended questions and answers

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to try and figure out uh any kind of

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Engagement challenges you have because a

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lot of people today V focus on growth

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and growth hacking and that's super

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important but remember that's only a

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piece of the puzzle that if you can't

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retain users if you can't keep them

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coming back you've got nothing so I

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would argue that engagement is is as

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important if not more important than

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growth so what we want to try and do

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today is to try and understand what is

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it about these companies that keeps

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people coming back and through my

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research I would argue that all of these

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world changing companies who are

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touching the lives of hundreds of

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millions if not billions of users and

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making hundreds of millions if not

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billions of dollars all have embedded

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within their products what I call a hook

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now a hook is a four-step process it's

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it's it's built into the user experience

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I describe a lot more of it in my book

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but what I want to do today is to kind

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of walk you through the four steps of a

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hook to kind of give you a 30,000 ft

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view of this basic pattern that we see

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repeated again and again and again in

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all sorts of products that keep us

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coming back on our

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own hooks have these four basic parts

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every hook starts with a trigger

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triggers are these things that tell us

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what to do next now there are two types

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of triggers we have external triggers

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and we have have internal triggers

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external triggers are things in our

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environment that tell us what to do next

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with some piece of information in the

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trigger itself click here buy now play

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this these are things in our environment

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right that we see that tell us what to

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do they give us the information for what

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to do next right we as product designers

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we know all about these external

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triggers we see them every single day

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but what product people don't think

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about enough and what turns out to be

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absolutely critical to forming these

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long-term habits is creating an

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association with what's called an

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internal trigger internal triggers are

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things that tell the user what to do

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next but the information for what to do

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is stored as a memory inside the user's

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head now these internal triggers are

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most frequently emotions but not just

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any emotion they are specifically

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negative emotions negative emotions are

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these most oftenly occurring internal

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triggers so what we do when we're

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feeling bored or Lonesome or uh

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dissatisfied or fatigued or uncertain

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what we do when we experience these

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negative emotions prompts us to action

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prompts us to turn to these apps to

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these devices with little or no

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conscious thought in fact there was a a

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study a few years ago that found that

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people suffering from depression from

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clinical depression check email more

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often I actually just saw like three

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people put away their phones not anyway

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what this study found was that people

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suffering from depression experience

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what psychologists call negative

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veilance States they feel down more

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often than the rest of the population

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and what are they doing to boost their

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mood to get out of those negative

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veilance States they were turning to

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their devices they were going online

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they were checking email more often

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than the rest of the

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population and if we're honest with

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ourselves we all do this right we all do

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this Let Me Tell You Folks there is only

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one reason that people use your product

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there's only one reason that people use

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any product and that one reason is to

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modulate our mood to make us feel

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something

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different let me ask you what um what

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website or app do we go to when we're

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feeling the emotion of loneliness where

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do we go Facebook right somebody said

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Tinder

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also also true different kind of

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loneliness but also

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true what what about uh when we're

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feeling uncertain before we scan our

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brains to see if we know the answer what

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are we doing we Google it of course and

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what about when we're bored you know

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between two and 4:00 in the afternoon

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you have that big project you don't feel

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like working on right now where do you

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go you check YouTube you check red you

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check stock prices you see what's

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happening in the news right all of these

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products cater to this painful internal

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trigger of bordom we don't like that

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sensation and we turn to these products

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and services with little or no conscious

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thought before we even understand why

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we're using these products we already

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online so what does that mean for you

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how can we help people improve their

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lives how can we help them live richer

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lives by knowing about the importance of

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these internal triggers if you want to

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build a healthy Habit in your customer's

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life you have got to be able to tell me

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what is your internal trigger it's

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amazing when I I work in my Consulting

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practice and I I talk to folks uh

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product teams they bring me in for these

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big expensive design reviews and they

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tell me all the amazing technological

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features of their product and when I ask

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the team okay that's terrific but what's

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the internal trigger what's the

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frequently occurring itch that your

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product is

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addressing they haven't a clue so you've

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got to be able to tell me what that

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internal trigger is and does it occur

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with sufficient frequency to form a

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habit let me talk about this word

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frequency it's incredibly important when

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it comes to these habit forming products

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the data shows us that if your behavior

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if the Habit that you want to create in

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your user's day-to-day life if that does

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not occur within a week's time or less

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you have a problem it is almost

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impossible to change consumers habits if

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the behavior does not occur within a

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week's time or less now more is always

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better when you think about products

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like Facebook and slack and Instagram

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and WhatsApp and Snapchat how often are

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these products used how often right more

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more than daily these are intad daily

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behaviors the stats are showing us that

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people check their home screens 150

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times a day so these products have a

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very very high habit forming potential

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because they're used so frequently so

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the minimum bar has to be for your habit

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to take hold that that key Behavior

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opening the app scrolling a feed

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checking something that has to occur

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within a week's time or less okay and

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you have to be able to tell me what is

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that internal trigger that prompts them

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to action that itch that emotional that

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that negative veilance state that

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prompts them to

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action the second step of the hook is

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the action phase the action phase is

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defined as the simplest Behavior done in

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anticipation of a reward the simplest

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thing the user can do to scratch that

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itch to get relief it's as something as

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simple as scrolling on pinest or a quick

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search on Google or what could be

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simpler than just pushing the play

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button on YouTube these incredibly

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simple actions done in anticipation of

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an immediate reward now there's a great

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formula that that I like to share with

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folks that comes from a researcher at

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Stanford by the name of BJ fog and fog

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tells us that for any singular Behavior

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Behavior any singular Behavior we just

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need three things at the same time for

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any Behavior to occur any click any

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action anything you want the user to do

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they have to have sufficient motivation

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motivation is the energy for Action how

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much we want to do a particular Behavior

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they have to have sufficient ability

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ability is the capacity to do the

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behavior how easy it is to do and the

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trigger must be present right we just

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talked all about triggers now we know

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the trigger has to be there that's a

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precondition let's talk about motivation

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and ability nine times out of 10 when I

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work with product teams they're trying

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to figure out how to motivate people to

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do the behavior right let's show them a

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video let's give them testimonials let's

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talk at them let's prove to them why

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they should be more motivated to do the

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thing we want them to

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do 90% of the time that's the wrong

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approach the better approach the better

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Roi for your time money and and brain uh

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brain Cycles is to worry about ability

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that it turns out that the harder

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something is to do the less likely

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people are to do it so there are six

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factors of ability six factors of

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ability six things that you can do to

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make the behavior you want done more

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likely to occur you can decrease how

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much time something takes how much money

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something costs how much physical effort

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is required brain Cycles brain Cycles

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are very important when it comes to

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technology products because the harder

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something is to understand the less

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likely that behavior is to occur social

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deviance is number five social deviance

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has to do with the fact that people are

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less likely I'm sorry are more likely to

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do something when they see other people

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like them doing it and finally non

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routine is number six n non routine says

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that we become more likely to do

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something simply for the fact that we

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have done it before in the past and this

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is why habits are so important because

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the more we do a particular Behavior the

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easier it becomes and the more likely we

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are to do it in the future what do we

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call that that's called practice the

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more we do it the easier it becomes the

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more likely we are to do it in the

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future so habits have this repeater

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effect the more we do something the

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easier it becomes and we become more

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likely to do it now we've talked about

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internal triggers we talked about

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external triggers we've talked about

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making the action as easy as possible to

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do now it come comes the time to give

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users what they came for to give them

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the reward to scratch their itch and

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that's the third step of the hook the

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reward phase I argue that it's not good

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enough to just give people what they

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want it's not good enough just to give

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people what they want what all of the

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products all the companies that I

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mentioned earlier all do they give

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people what they want they scratch the

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itch but they leave them wanting

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more and here's how they do it they all

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use a variable reward a variable reward

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comes from the work of BF Skinner BF

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Skinner was a father of operant

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conditioning if you took psych 101 back

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in college you'll know the name Skinner

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took did these very famous experiments

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where he took pigeons and he put them in

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a little box and he gave them a disc to

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Peck at

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and at first every time the pigeon would

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Peck at the disc they would receive a

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reward they would get a little food

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pellet they were all hungry pigeons by

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the way they had to have the internal

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trigger of hunger to begin with for this

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experiment to work so basically Peck at

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the disc get a food pellet terrific

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that's called operant conditioning he

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could train these pigeons to know to

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Peck at the disc whenever they wanted

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the food

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pellet but then Skinner did something a

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little bit different Skinner introduced

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a variable reward so sometimes the

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pigeon would Peck at the disc and no

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food pellet no reward would come out the

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next time the pigeon would Peck at the

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disc they would receive a reward and

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what Skinner observed was that the rate

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of response the number of times these

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pigeons pecked at the disc

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increased when the reward was given on a

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variable schedule of

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reinforcement why does this happen

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because variability spikes this reward

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system in our brain it creates this

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wanting this desirous response and so in

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all sorts of products that you find most

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engaging uh most habit forming the

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things that capture your attention and

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won't let go by the way both offline and

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online you will find these variable

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rewards there are three types of

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variable rewards let me describe these

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for you briefly three types of variable

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rewards rewards of the

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tribe rewards of the hunt and rewards of

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the self and when you start looking for

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these you will see them in everything

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that holds on to your attention rewards

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of the tribe are things that feel good

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that have this element of variability

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this bit of uncertainty and come from

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other people cooperation competition

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romance empathetic Joy feeling good

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because someone else feels good all are

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things that feel good come from other

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people and have this bit of mystery this

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bit of uncertainty

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around what might happen next of course

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the best example online is social media

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right when you think about when you open

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up your Facebook Newsfeed you're never

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quite sure what you're going to see

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right what videos did people post or

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photos or what does the comments say how

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many likes does something get high

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degree of variability when it comes to

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using a social media product next is

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rewards of the hunt rewards of the hunt

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have to do with our Primal need for food

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and material possessions and in modern

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society we buy these things with money

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right so when you think about um slot

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machines for example right when I play a

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slot machine what's fun exciting what's

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interesting about playing a slot machine

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is the variabilities the uncertainty

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around what I might win when I play

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these games of

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chance consider for a

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moment the

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feed right what is it about the feed

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that makes it so effective think about

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about how everything today on your

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mobile device seems to have a feed take

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LinkedIn for example there was AC quied

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recently by Microsoft you opened up

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LinkedIn it's no longer the company it

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used to be LinkedIn is no longer about

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finding jobs and resumes that's not what

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LinkedIn is about LinkedIn is a Content

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company so when you open up your your

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feed on LinkedIn and you start scrolling

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through that feed you'll see one story

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that's n not that interesting but the

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next story might be interesting and to

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find more of that interesting content

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what do you have to do what do you have

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to keep doing got to keep scrolling and

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that's scrolling and scrolling and

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scrolling used the exact same psychology

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as pulling on a slot machine searching

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and searching and never done searching

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for that next interesting piece of

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information the rewards of the

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hunt finally the third type of variable

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rewards is rewards of the self rewards

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of the self are things that feel good

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that have this element of variability

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but don't come from other people and

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aren't about the search for material or

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information rewards these are things

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that feel good in and of themselves

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they're intrinsically pleasurable the

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search for Mastery competency

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consistency control best example online

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is gameplay when you think about Angry

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Birds or Pokรฉmon go or the Kardashian

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game what makes these experiences these

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games so engaging is getting to the next

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level the next uh completing completing

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the next accomplishment right even if

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there's no material rewards you're not

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really playing with other people there's

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something exciting about finishing that

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next accomplishment now I know we're

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very serious business people here none

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of us play games right but I bet if

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you're anything like me you play this

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game of checking email all the time

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right I think email is probably the

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mother of habit forming technology that

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mechanic of finishing those unread

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messages clearing them uh finishing your

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to-do list or the thing that always gets

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me is that one notification that I have

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on my home screen that I have to open to

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clear it away

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these are all examples of variable

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rewards of the self searching for

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Mastery consistency competency and

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control now we've talked about triggers

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we've talked about action we've talked

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about rewards there's one more step

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there's one more step and this is

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probably the most overlooked of the four

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steps of the hook the last step of the

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hook is called the investment phase the

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investment phase is where the user puts

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something into the product

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in anticipation of a future benefit it's

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not about immediate gratification it's

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about a future

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benefit Investments the the purpose of

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the investment phase is to increase the

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likelihood of the next pass through the

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hook and Investments do this in two ways

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the first way that Investments increase

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the likelihood of the next pass through

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the hook is by loading the next trigger

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loading the next trigger so for example

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when you use a WhatsApp or slack or any

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number of other messaging services when

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you send that message there's no

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immediate reward you don't get points

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you don't get badges there's no

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leaderboard you don't get anything when

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you send that message but what you're

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doing is you are loading the next

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trigger because you will eventually if

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the person replies you will get an

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external trigger when you get that

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reply and that external trigger prompts

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you through the Hook Once Again starts a

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cycle over again the second way that

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Investments increase the likelihood of

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the next pass is by storing value now

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storing value is a really big deal

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storing value is why I love working in

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the technology industry as opposed to

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physical Goods if you think about things

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made out of atoms right they depreciate

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with wear and tear things in the

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physical world your clothing these

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chairs everything in the physical world

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loses value with use habit forming

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products do the opposite habit forming

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products appreciate with use they get

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better and better the more we engage

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with them by putting data into a product

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by you putting content by uploading

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content into a product by acre uh

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followers and finally through reputation

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all of these things make the product

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better and better to use they customize

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the product for us and they make it

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harder to

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leave here's the message I want to leave

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you with

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when these habit forming products get us

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to invest in them it doesn't matter if a

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better product or service comes along

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this is a really important Point why

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because it shatters the myth that the

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best product wins that is a Lie the best

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product there's no promise that was ever

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made there's no 11th Commandment that

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says the best product win Silicon Valley

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graveyards are full of companies that

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had the best technology

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it's not the best product that wins it's

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the product that captures the Monopoly

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of the Mind the thing that we turn to

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First with little or no conscious

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thought that's what captures the market

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so if you're building a product that

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requires unprompted engagement requires

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people to come back on their own you

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have to be able to answer these five

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fundamental questions of number one

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what's the internal trigger what's the

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itch that your product is addressing and

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does it occur with sufficient frequency

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number two what's the external trigger

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that prompts your user to action what's

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the simplest Behavior the user can do in

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anticipation of a reward is the reward

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fulfilling and yet leaves the user

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wanting more and then finally what's the

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bit of work done to increase the

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likelihood of the next pass through the

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hook now I know this was a quick talk I

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only had about 20 minutes what I want to

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do is give you an entire slide

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presentation with lots and lots of

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examples so here's what I'd like you to

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do can everybody hold up their phones

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for me for a second hold your phones up

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for me

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this is for two reasons hold up your

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phones hi hi hi number one I want to get

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a picture for my Instagram page of you

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of you it's a great crowd two I just

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made the action remember the action fade

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I've just made that behavior easier to

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do the phone's in your hand all you have

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to do is to go to this URL ww. opinion

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to. us very short survey take you 30

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seconds just five questions would love

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to know what you thought of the

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presentation if you have any feedback

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I'm constantly tweaking it based on your

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uh your feedback as soon as you click

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submit you will be taken to a link to my

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SlideShare page where you can have a

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much more detailed explanation of all

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the concepts I just discussed Now

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reminder at 10 o'clock I'm going to be

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doing a Q&A would love to start

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addressing some of your questions and

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with that I hope you will use these

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habits for good thank you very

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[Applause]

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much

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Related Tags
Habit FormationProduct DesignUser EngagementBehavioral PsychologyGrowth HackingCustomer RetentionVariable RewardsTriggersIntrinsic MotivationTech Industry