Nir Eyal on Building Habit-Forming Tech | #ProductSF 2016 | Summary and Q&A

TL;DR

Understanding habit-forming technologies and user engagement for sustainable growth.

Key Insights

• 👤 Understanding internal triggers and external triggers is crucial for shaping user behavior.
• 👤 The action phase of a hook involves defining the simplest behavior for users to take.
• 👤 Rewards should provide fulfillment and an element of unpredictability to keep users engaged.
• 👤 Investment phases where users contribute to the product's improvement are essential for ongoing engagement.
• 🤩 Finding the keystone habit and focusing on it is key to building sustainable user habits.
• 👤 Varied rewards and ongoing investments are important for maintaining user engagement.
• 👤 Products should balance predictability and unpredictability to keep users interested.

Transcript

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Questions & Answers

Q: What distinguishes a habit from an addiction in product design?

Near explains that habits are behaviors done with little conscious thought, while addictions involve dependency and harm to the user. Products should aim to form habits, not addictions.

Q: How do internal triggers contribute to habit-forming products?

Internal triggers prompt users to take action based on emotional needs, making these triggers critical for building habits and ongoing engagement in products.

Q: Why is variability important in rewarding users in habit-forming products?

Variable rewards, whether intrinsic or extrinsic, enhance engagement by providing a mix of predictable and unpredictable outcomes, keeping users interested and coming back for more.

Q: How can companies leverage investment phases to improve user retention?

Encouraging users to invest time, data, or content into the product can enhance its value over time and incentivize continued use, creating a cycle of increasing user engagement.

Summary

In this video, Nir Eyal discusses habit-forming technologies and how companies can build products that create user engagement. He introduces the concept of the "hook" – a four-step process that includes triggers, actions, rewards, and investments – that helps shape consumer habits. Eyal emphasizes the importance of understanding user psychology and developing products that address users' needs and provide satisfying experiences. He also differentiates between habits and addictions, emphasizing the responsibility of product designers to create products ethically.

Questions & Answers

Q: What is the hook model and how does it help shape consumer habits?

The hook model is a four-step process that includes triggers, actions, rewards, and investments. It works by creating associations and patterns in users' minds, forming habits over time. Triggers can be internal or external cues that prompt users to take action, while actions are the simplest behaviors users perform to get a reward. Rewards should provide relief and a sense of mystery or surprise to keep users engaged. Finally, investments are actions that users take to improve the product and make it more valuable with use.

Q: How can product designers create internal triggers for their products?

Internal triggers are associations stored in users' minds that prompt them to take a specific action. To create internal triggers, product designers need to understand the psychological needs and emotions of their users. They should identify common negative emotions or situations that occur frequently and design their products to provide a solution or relief to those needs. For example, if boredom is a common internal trigger, designers can create a product that offers entertainment as a solution.

Q: What is the role of rewards in habit-forming products?

Rewards play a crucial role in habit-forming products by providing relief and satisfaction to users. However, it is not enough to simply provide the expected reward – there should also be an element of surprise or unpredictability. This element of the unknown keeps users engaged and coming back for more. It is important to find the right balance between fulfilling the user's needs and leaving them wanting more. Rewards can take different forms, such as rewards of the tribe (social connection), rewards of the hunt (achieving a goal), or rewards of the self (personal achievements or improvements).

Q: How can product designers create investment opportunities for users?

Investment is the phase where users put something into the product, such as data, followers, content, or reputation, in anticipation of future benefits. Product designers can create investment opportunities by making the product better and more valuable with use. This could involve allowing users to customize or personalize the product, giving them a sense of ownership, or offering ways for users to contribute and improve the product themselves. By providing opportunities for users to invest in the product, designers can increase user engagement and create a sense of loyalty.

Q: Can habit-forming products become addictive?

There is a difference between habits and addictions. Habits are behaviors done with little or no conscious thought, while addictions involve compulsive dependency that harms the user. Ethical product designers aim to create habit-forming products that enhance users' lives and provide value, rather than creating addictive products that harm users. It is important to differentiate between habit formation and addiction and to be responsible in creating products that provide satisfaction without causing harm.

Q: How can companies address the issue of addiction in their products?

Companies have a responsibility to address addiction if they know that users are addicted to their products and it is causing harm. By identifying users who may be addicted and offering resources or support, companies can help users overcome addiction and promote healthy use of their products. Companies should also design their products ethically, avoiding techniques that exploit addictive behaviors or manipulate users. It is important to prioritize user well-being and consider the impact of the product on users' lives.

Q: Are there different types of triggers that can be used in habit-forming products?

There are two types of triggers that can be used in habit-forming products: internal triggers and external triggers. External triggers are cues in the environment that prompt users to take action, such as notifications or recommendations. Internal triggers are associations stored in users' minds that prompt them to take specific actions. Internal triggers are powerful in habit formation because they occur frequently and address users' psychological needs. Product designers should focus on creating internal triggers that address common negative emotions or situations that users experience.

Q: How can product designers create variable rewards in their products?

Variable rewards are an effective way to create engagement in habit-forming products. Companies can create variable rewards by introducing elements of surprise, unpredictability, or variability in the user experience. This can be achieved by offering different types of rewards, such as rewards of the tribe (social connection), rewards of the hunt (achieving a goal), or rewards of the self (personal achievements or improvements). It is important to strike a balance between providing rewards that fulfill users' needs and leaving them wanting more to maintain engagement.

Q: What is the role of skill acquisition in habit-forming products?

Skill acquisition is an important aspect of habit-forming products. When users invest time and effort into learning how to use a product, it creates a sense of ownership and improves the product with use. Companies can design their products in a way that encourages skill acquisition, such as offering opportunities for users to learn and improve their abilities within the product. Skill acquisition can also foster a sense of community and credibility among users, as they share their expertise and help others.

Q: How can product designers find the right balance between the interesting and mundane in their products?

Finding the right balance between interesting and mundane experiences in products can be challenging. Product designers should constantly iterate and test their products to understand what engages users the most. This may involve analyzing user behavior, conducting user research, and seeking feedback to identify which features or experiences are most engaging. It is crucial to strike a balance that keeps users interested and satisfied while avoiding overwhelming or boring them.

Takeaways

Building habit-forming products requires an understanding of user psychology and a thoughtful approach to product design. The hook model, with its four steps – triggers, actions, rewards, and investments – provides a framework for creating engaging experiences that shape user habits. Product designers should focus on addressing users' internal triggers, making actions simple and effortless, providing satisfying rewards with an element of surprise, and encouraging investments that improve the product with use. It is important to differentiate between habits and addictions and build products ethically. Finding the right balance between interesting and mundane experiences and continuously testing and iterating based on user feedback are key to creating successful habit-forming products.

Summary & Key Takeaways

• Near AI discusses habit-forming products and the importance of user engagement for growth.

• He explains the four fundamental steps of the hook: trigger, action, reward, and investment.

• Companies need to focus on creating habits in users through internal triggers, simple actions, fulfilling rewards, and ongoing investments.