Hooked by Nir Eyal


Nir Eyal

  consumer behavior, habits, marketing

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The Habit Forming loops

Hooked model - trigger, action, variable reward, investment

Triggers - internal or external
Action - ease of doing and motivation to do it
Variable reward- creates craving. Variable.
Investment - user does not of a work- time, money, data, social capital, effort

Difficult to wean customers away from a competition product that they are habituated with if yours is just marginally better. Tough to break habits.

Many innovations fail because consumers irrationally overvalue the old while companies irrationally overvalue the new. Harvard business school finding

More frequent the action, easier to form habit.

Habit zone - two factors - frequency and perceived utility. Ideally high on both.

Fogg behaviour model- motivation, ability, trigger
3 core motivations:
- seek pleasure and avoid pain
- seek hope and avoid fear
- seek social acceptance and avoid rejection

Identify steps that a customer has to go through to use or buy a product. Start removing steps. Find the shortest one that works.

Aspects of simplicity - time, money, effort, brain cycles, social deviance, non routine.

Motivation Vs ability. Which to increase first. Focus on ease of use first. Motivation building is costly.

- scarcity effect : product perceived value drop if it's starts as scarce and then becomes available
- framing effect - soldout artist performing in subway station. No one paid any attention
- Anchoring effect - People often anchor to one piece of information while making a decision
- endowed progress effect: people believe they are nearing a goal. Put in more efforts

Excitement not in the getting of the reward but it's anticipation. Craving for the reward. Stress of desire.

Products need to have novelty. To sustain interest.

Three types of variable rewards - the tribe, the hunt, the self.
Need to acquire physical objects that aid our survival is part of our brains operating system
.. rewards of the hunt.
Rewards of the tribe.. acceptance, social status.
Self - sense of competency.

Ending bus fare request with - you are free to accept or refuse- increased collected funds. Disarms from feeling we are being told what to do. Reactance.

To change behaviour products must ensure users feel that they are in control.

Experiences with finite variability become less engaging because they eventually become predictable. Eg games played solo Vs others. When playing with others there is infinite variability.

Don't add variability if the process is already variable eg online search or Uber ride. In such cases give users a sense of control. Sense of agency.

Escalation of commitment - the more users invests time n effort in a service or product, the more they value it. IKEA effect

Small sign at yard and then a big ugly sign. Higher acceptance rate . Rather than just the big sign as the first choice. Already committed with small investment or pain.
- the more effort we put into something the more likely we are to liking it.
- we tend to be consistent with our past behaviour.
- We change our preferences to avoid cognitive dissonance

Investments are about anticipation of long term rewards.not immediate gratification. Investment phase increases friction. Only ask for investment once they have received variable reward. Not before.

Reciprocating works even in interactions between humans and machines. Not just between humans.

Stored value .. users put into the product increase likelihood of future usage.
Stored value in form of content, data, followers, reputation, skill,

Stage investment into small chunks of work.

Ideal is to get the investment to load the next trigger. Forms a loop.

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