Hooked
Nir Eyal
20 min
8 Key Points
4.5 RateWhat's inside?
Discover the secret to creating products that captivate and engage users, turning them into loyal customers through the power of habit.
You'll learn
1. Why do we get hooked on certain products?2. The 4-step 'Hook Model' businesses use to make us regular customers3. Real-life examples of companies using the Hook Model successfully4. Tips for creating user habits5. The do's and don'ts of making habit-forming products6. How to use these tips for your own business or startup.Key points
01Habits rule our world. Make your product a part of them
"Imagine a world where everything we do is a habit. Sounds familiar, right? That's because we're already living in it! Our daily lives are a series of habits, many of which are shaped by the products we use. Take our smartphones, for example. The first thing most of us do when we wake up is check our phones. We scroll through emails, social media, and news updates. This isn't just a random act, it's a habit. We're essentially 'hooked' to our phones. But how did we get so hooked? This is where the idea of 'hooks' comes in. Hooks are experiences that companies design to influence our behavior and make their products a part of our daily routine. The 'Hook Model' is a four-step process that companies use to create these habit-forming products. It's a concept developed by Nir Eyal, a researcher in psychology and behavioral economics. The first step is the 'Trigger'. This is anything that prompts us to use a product. For example, a notification on our phone is a trigger that makes us check it. The second step is 'Action'. This is what we do in response to the trigger. So, when we see the notification, we pick up our phone and check the message. The third step is 'Variable Reward'. This is the satisfaction or pleasure we get from the action. The content of the message, like a like on a social media post or a message from a loved one, gives us this reward. The final step is 'Investment'. This is what we put into the product, like time, data, or money. The time we spend on social media or the personal data we share with these platforms is our investment. This cycle of Trigger-Action-Reward-Investment is what forms habits. Companies use this model to make their products a part of our lives, influencing our behavior and shaping our experiences. But don't worry, the Hook Model isn't all bad. When used ethically, it can help create products that solve real problems and bring about positive change. So, when we say "We live in a world of habits", we're talking about the influence of habit-forming products in our lives. Understanding the Hook Model can help us become more aware of these influences and make better choices. So, let's be mindful of our habits and make them work for us, not against us!"
02Make your product a daily routine, it'll boost your company's worth
Ever wondered why you reach for your phone first thing in the morning? Or why you can't resist checking your social media feeds every few hours? It's all about habits. Our brains are wired to save energy by automating certain actions. Once a habit is formed, we don't need to think about each step, we just do it. It's like driving a familiar route without consciously thinking about each turn. Now, imagine if your product could become a part of your customers' daily or weekly routines. They'd use it without thinking, boosting their engagement with your product. This increases the customer lifetime value (CLTV), which is basically the total profit you can make from a customer while they use your product or service. The more a customer uses a product, the more likely they are to spend money on it, either by buying it more often or by purchasing additional features or services. Take the QWERTY keyboard for instance. This keyboard layout was designed in the 19th century to stop typewriter keys from jamming. Even though there are more efficient keyboard layouts out there, most people stick with QWERTY simply out of habit. This shows that once a product becomes a part of a customer's routine, they're likely to keep using it, even if better alternatives are available. But here's the catch: creating a habit-forming product isn't a walk in the park. It requires a deep understanding of your customers' needs and behaviors. The product must be useful enough for customers to want to use it regularly, and it must be easy to use so that customers can incorporate it into their routines. Think about your product as either a 'painkiller' or a 'vitamin'. Painkillers address a specific problem or 'pain' that the customer has, and they can't go on with their day without it. Vitamins, on the other hand, are nice to have but not essential. They're taken because they're supposed to be good for us, not because we feel an immediate effect. Habit-forming products start as vitamins - they're nice to have, but customers can live without them. However, once customers start using the product regularly and it becomes a part of their routine, it turns into a painkiller. It addresses a specific need or 'itch' that the customer has, and they can't go on with their day without it. Creating a habit-forming product does require a certain level of manipulation, but it's not about creating an addiction. Habits can be healthy and beneficial, while addictions are destructive. The goal is to create a product that customers love and use regularly, not one that they're addicted to. In a nutshell, making your product a part of customers' routines can significantly boost your company's value. It increases customer engagement and CLTV, and it makes customers more likely to choose your product over competitors. But remember, creating a habit-forming product requires a deep understanding of your customers' needs and behaviors, and it requires careful design to ensure that the product is both useful and easy to use.
03Understand why your customers use your product to make it a habit
04Make your product easy to use and inspire action
05Keep users hooked with unpredictable rewards
06The more effort users put in, the more they'll love your product
07Be mindful of how your product impacts your customers
08Conclusion
About Nir Eyal
Nir Eyal is an entrepreneur, author, and expert in behavioral design. He has taught at the Stanford Graduate School of Business and Design School. Eyal co-founded and sold two tech companies since 2003 and is known for his work on the psychology of habit-forming technology.
