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Hooked

Chapter 1

  • Aim: unprompted user engagement, bringing users back repeatedly

  • Hook Model:

    1. Trigger: External or Internal
    2. Action: Behavior done in anticipation of reward
      • Make it easier to do X
      • Psych. motivation to do X
    3. Variable Reward:
      • Variability in reward: activates parts associated with wanting and desire.
    4. Investment:
      • User puts something into the product: time, data, effort, social capital, money - increases odds that they will come back again

  • Paul Graham:

    • The world will get more addictive in next 40 years than it did in the last forty

  • Def. of Habit:

    • Behaviors done with little or no conscious thought

Chapter 1: Habit Zone

  • Customer Life Time Value:

    • Amount of Money spent by customer before they switch to customer, die, stop using product
    • Habits increase CLTV
    • Credit card CLTV --- very high

  • How to exploit?

    • Provide Flexible Pricing:
      • First form habit (say free-to-play video game) and then charge

  • Why Hook?

    • Hooked users evangelize, bring other users into the product

  • More is more principle:

    • more frequent usage drivers more viral growth

  • Viral Cycle Time:

    • Amount of time it takes a user to invite another user

    • QWERTY designed to keep commonly used characters apart as to prevent jamming of keys. Dvorak keyboard better.

  • Building New Habits

    • Sometimes = Replacing some Past Behaviors/Habits
    • Habits are last in, first out
      • Habits learned last, first to go

  • Get people to do same thing more frequently to form habit

    • Floss twice a day perhaps for 1 month? versus once a day for a month
    • Infrequent behaviors may never become habitual

  • Investors ask

    • Are you building a vitamin or a painkiller?
    • Painkillers solve an obvious need, relieving a specific pain
    • Vitamins appeal to users' emotional/functional needs

  • Habit

    • when not doing an action causes pain (really closer to an itch that needs to be scratched)
    • by that def., FB is creating a painkiller. you are selling crack to a crack addict whose addiction you created.

Chapter 2: Trigger

  • External Triggers:

    • Paid Triggers: ads
    • Earned Triggers: press mentions etc.
    • Relationship Triggers: one person telling other
    • Owned Trigger: App placement on the phone home screen

  • Internal Triggers:

    • Feeling bad etc.

  • Goal of habit forming product:

    • association between pain and product/service as source of relief

  • People want to do things they have always done. (Evan Williams)

    • For business opportunities look for difference between Declared preferences and revealed preferences. Focus on revealed

  • How to get to the basic of what people want ---

    • Ask Why --- '5 Whys Method' --- Taiichi Ohno of the Toyota Production System

    • Why would Julie want to use email?

      • Send and receive messages.
        • Why would she want to do that?
          • Share and receive information quickly
            • Why?
              • To know whats going on lives
                • Why?
                  • to know if someone needs her
                    • Why?
                    • Fears being out of loop

    • Instagram internal trigger

      • Fear of losing a 'special moment'
      • Fear of missing out (FOMO

Action

  • What Drives Action (Fogg): B (behavior) = MAT

    • Motivation
    • Ability to complete desired action
    • Trigger

  • Motivation:

    • All humans motivated to seek pleasure, avoid pain, seek hope, avoid or overcome fear, seek social acceptance and avoid rejection
    • Sex sells
    • Beer ad showing friends cheering for win:
      • postive association with friendship

  • Ability

    • Technology that makes it easy to accomplish a task will enjoy high adoption rates by people it assists (Hauptly)

    • Take a human desire --- preferably around for a long time --- identify that desire and use technology to take out steps (Evan Williams)

    • Six elements of simplicity:

      • Time
      • Money
      • Physical Effort
      • Brain Cycles
      • Social deviance --- how accepted is behavior by others
      • Non routine --- action matches or disrupts existing routines

  • Behavioral Econ. insight:

    • Appearance of scarcity affected perceived value
    • Framing Effect
      • Price of wine caused people to enjoy wine more (fmri)
    • Anchoring Effect
    • Endowed Progress Effect
      • Both loyalty punch cards --- 8 car washes for free. But one came with 10 dots + 2 free punches --- 82% higher completion rate
      • Linkedin uses -- X% complete
    • Stephen Anderson (Seductive Interaction Design)
      • Created Mental Notes --- each card contains description of cognitive bias

Chapter 4: Variable Rewards

  • What draws us to act is the need to alleviate the craving for the reward

    • Not the reward

  • The stress of desire

  • Three types of variable rewards:

    • Tribe --- social rewards
      • validation from others
    • Hunt ---
      • for something valuable, interesting tidbit etc.
      • potential job lead in an email
    • Self
      • Conquer obstacles, completing stuff, gain a sense of competency (Deci and Ryan) --- become better at video game, for instance
      • email also gives you sense of accomplishment --- tasks that need

  • Fun examples:

    • Quora --- offer social rewards to build up content. Mahalo offered money but failed.
    • Points, badges, leaderboards can be effective

  • Increase compliance by adding the phrase:

    • "But you are free to accept or refuse"
    • Remind people of their freedom to choose
    • Place where you can offer advice to others, receive validation
      • anonymous can work for fitness

  • Don't ask people to learn new things, make old routines easier/fulfilling existing needs

  • Experience taking:

    • People who read a story about a character actually feel what protagonist is feeling

  • Finite Variability

    • An experience that becomes predictable after use
    • Infinite variability ---> greater the chances person hooked

  • Tangible Things to do:

    • What do customers find enjoyable or encouraging? Are there moments of surprised?

Chapter 5: Investment

  • Attitude change important for habit

    • Escalation of commitment can be used to manipulate

      • Putting up Drive Carefully signs
        • Previously asked to put up a much smaller sign

    • Rationalization

      • The more time and effort users invest -> more they value
      • More likely to be consistent with past behaviors
      • We change our pref. to avoid cognitive dissonance

    • We value our efforts at a high rate:

      • Those who made their own origami valued it as much as made by experts
      • IKEA Effect --- asking people to build their furniture causes them to love it

    • Example of stored value that cause people to return:

      • Putting a song in iTunes
      • People who put more info. on Linkedin -> more likely to return
      • Collected followers
      • Reputation --- stored value
      • Skill learning stuff

  • Practical Tips:

    • What work are users doing to increase likelihood of returning
    • Adding small investment into product:
      • Load the next trigger
      • Store value data, content, followers, reputation, skill
      • Identify how long it takes for a 'loaded trigger.' How can we reduce delay.

Chapter 6: What are you going to do with this?

  • Five fundamental questions for building effective hooks:

    • What do users really want? What pain is your product relieving? (Internal Trigger)
    • What brings users to your service? (External)
    • Simplest action users take in anticipation of reward. How can you make it simpler? (Action)
    • Are users fulfilled but want more (Variable rewards)
    • Bit of work that users invest?

  • Manipulation Matrix

    • Materially improves user life/doesn't improve * Maker uses it/doesn't use it
    • Facilitator: someone who uses it and useful for people
    • Peddler: doesn't use it/but useful for people
    • Dealer: doesn't use it, doesn't help people
    • Entertainer: uses it but doesn't help people

Chapter 7: Use Case

  • Bible App:
    • Should look into creating apps for indian religious crap
    • Mobile --- a device people always have
    • Which verse is chosen for the day --- becomes god's way of cuing
    • Share the verse of the day
      • Humblebrag
      • Spread it socially
    • annotation etc. people make on the app -> stored value

Chapter 8: Habit Testing and Where to Look for Habit Forming Opp.

  • Habit Testing

    1. Identify

      • Who are the product's habitual users
      • Define what it means to be a devoted user

    2. Codify: -- 5%

    3. Modify:

      • Revisit your product and identify ways to nudge new users

  • Discovering Habit-Forming

    • Scratching your own itch
    • Making progress on a problem you face
    • Nascent Behavior
      • stuff only few people use can help predict future
    • Enabling Technologies
    • Interface change