How to Build Habit-Forming Products - Nir Eyal

Summary

In 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

• 🎯 The importance of making products habit-forming is emphasized, as it is crucial for retaining users and ensuring they return to the product repeatedly.
• 🔗 The concept of a 'hook' is introduced, which is a four-step process embedded within products that keeps users coming back.
• 🔔 The first step of the hook is the 'trigger', which can be either external (environmental cues) or internal (emotional states like boredom or loneliness).
• 💡 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.
• 🛠 The second step is the 'action', which should be the simplest behavior done in anticipation of a reward, such as scrolling or clicking.
• 📈 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.
• 🔑 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.
• 🏆 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.
• 🎲 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.
• 💼 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.
• 🔒 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?