#290 Episode Summary:
In this Episode, you’ll Discover How to Build Habit Forming-Products, How To Create Desire, Engagement and more with Nir Eyal.
Nir Eyal is a best-selling author and writes, consults, and teaches about the intersection of psychology, technology, and business. He’s the founder of two tech companies, an active investor in habit-forming technologies, and taught at the Stanford Graduate School of Business and the Hasso Plattner Institute of Design at Stanford.
Here’s a glance at what you’ll discover in this episode:
- How Twitter, Instagram, and Facebook build addictive products and services
- Nir explains the 4 steps you need to build habit-forming products
- How to get people so hooked on your product that they won’t stop using it even if a “better” product comes along
- Put these 3 types of rewards into your products to make them irresistible
- The Power Of The Unknown: How to manufacture desire and engagement
- We’ve all seen how the products we use can have a profound impact on our day to day lives.
- Habits are things we do with little to no conscious thought. 40% of things you do every day are based on habits. (1:11)
- Companies use the “Hook” to get consumers to form habits. “The hook is an experience designed to connect the consumer’s problem with the company’s product with enough frequency to form a habit.” (1:44)
- “It is through successive cycles through these hooks that customer preferences are shaped, that our tastes are formed, and that these habits take hold. “(1:53)
- “Hooks have 4 basic steps; a trigger, an action, a reward, and an Investment.” (2:03)
- Triggers
- External triggers are something that tells us what to do next, like “buy now”, “click here”. (2:09)
- Internal triggers are things that tell the user what to do next, but where the information for what to do is stored as a memory or an association inside the user’s head. (2:37)
- Negative emotions are the most powerful triggers. “People suffering from depression check email more.” (3:09)
- Action
- The simplest behavior is done in anticipation of a reward. It’s as easy as a scroll on Pinterest, pushing play on YouTube. (4:44)
- B.J. Fogg’s rule of behavior: When there is sufficient motivation + sufficient ability + a trigger = predictable behavior. Every action requires these three things. (5:13)
- “The easier something is to do, the more likely we are to do it.” (6:08)
- Reward starts in the brain. How do we manufacture desire? The unknown is fascinating. B.F. Skinner says a variable reward causes increased focus and engagement. (6:23) Three types of rewards:
- Rewards of the tribe come from other people – social media.(7:56)
- Rewards of the hunt: having to do with the search for resources or information – slot machines, online feeds, twitter. (8:23)
- Rewards of the self: things that feel good, but don’t come from other people or have information attached. Things that are intrinsically pleasurable such as the search for mastery, consistency, competency and control – Gameplay, Candy Crush, email, to-do list, app notifications. (9:21)
- Investment is something the user does to bring them back. Increases the likelihood of the next pass through the hook through storing value. (10:31)
- Habit-Forming Products appreciate in value – they get better with use. Google drive, Mint, Pinterest, Twitter all get better the more you put into them or use them. (11:03)
- “ Reputation is a form of stored value that users can literally take to the bank.” (11:25)
- Reputation dictates what you can charge, makes it less likely that people will leave, EVEN if a better product comes along. (11:31)
- “It’s the product that can capture a monopoly of the mind that can hold on to the market.”(12:06)
- Key: How can we take the lessons from these “best of breed” companies to apply to our own businesses? (13:23)
- I think that if we’re smart, we can apply these very same tactics to all our businesses; to help our customers and users live happier, healthier, more productive, more connected lives. (13:55)
- “I truly think that we can use habits for good.” (14:07)
by Joe Polish
Founder of Genius Network
P.S. I've created a resource page as a central guide with access to valuable resources available to you right now. Check it out at www.GeniusNetwork.com/Vision-Insight. Bookmark this page. This is where I will post every new update.
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- Discover the 10x Multipliers to grow your business exponentially… Amplify your opportunities and reveal the untapped potential in your business: www.10XTalk.com/Vision
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- I'm often asked what books I recommend. So, I've put together a collection of books and products in 9 specific categories. These are resources we've shared in Genius Network to help improve life and business... To check them out visit www.JoePolish.com/Books-Vision
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