Category / Users

After the slide presentation I posted about “The Secret Psychology of Snapchat” received such a warm response from readers, I decided to create another set of slides. This presentation is about how to win over your competition’s customer habits. I hope you enjoy it.

For a deeper analysis, see this previous article I wrote on the topic: http://www.nirandfar.com/2015/01/competitions-customers.html

If you are among the 19 million people Apple predicts will buy an Apple Watch, I have some bad news for you — I’m betting there is an important feature missing from the watch that’s going to drive you nuts.

That doesn’t mean you shouldn’t buy one. In fact, I’m ordering one myself. However, this paradox illustrates an important lesson for the way companies design their products.

Rarely are v.1 products very good. How is it, then, that some products thrive despite flagrant shortcomings?

Meet Mr. Kano

To find out why you’ll likely be disappointed by the Apple Watch, meet Professor Noriaki Kano. In the 1980s Professor Kano developed a model to explain a theory of customer satisfaction.

Kano believes products have particular attributes, which are directly responsible for users’ happiness. He discovered that some qualities matter more than others. Kano describes three product attribute types — (loosely translated from Japanese as) delightful, linear, and hygienic features.

You’ve undoubtably heard of Snapchat, the habit-forming messaging service used by over 100 million people monthly. This week, I teamed up with Victoria Young and Dori Adar to help explain what makes the app so sticky.

We decided that instead of writing a long blog post, we’d share our insights in a slide presentation. Let us know what you think of the format and the content in the comments section below!

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Fitness apps are all the rage. An explosion of new companies and products want to track your steps and count your calories with the aim of melting that excess blubber. There’s just one problem — most of these apps don’t work. In fact, there is good reason to believe they make us fatter.

One study called out “the dirty secret of wearables,” citing that “these devices fail to drive long-term sustained engagement for a majority of users.” Endeavour Partners’ research found “more than half of U.S. consumers who have owned a modern activity tracker no longer use it. A third of U.S. consumers who have owned one stopped using the device within six months of receiving it.”

While the report mentioned several reasons why people don’t stick with these tracking devices, my own theory is simple, they backfire. Here are three surprising reasons why fitness apps may be making us less happy and more flabby.

Nir’s Note: This post was co-authored with Ximena Vengoechea. Ximena is a design researcher at Twitter and will be speaking at this year’s Habit Summit

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In his famed experiments, Ivan Pavlov trained his dogs to associate mealtime with the ring of a bell. Pavlov found he could elicit an involuntary physical response in his dogs with a simple jingle. Every time his bell rang, the dogs began to salivate.

Today, the beeps, buzzes, rings, flags, pushes, and pings blasting from our phones prompt a similar response. They are the Pavlovian bell of the 21st century and they get us to check our tech incessantly.

However, as powerful as these psychological cues are, people are not drooling dogs. Your product’s users can easily uninstall or turn off notifications that annoy them.

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You are unconsciously paying more. (Photo credit: Digital Dispatch)

My taxi pulled up to the hotel. I got out my credit card and prepared to pay for the ride. The journey was pleasant enough but little did I know I was about to encounter a bit of psychological trickery designed to get me to pay more for the lift. Chances are you’re paying more, too.

Digital payment systems use subtle tactics to increase tips, and while it’s certainly good for hard-working service workers, it may not be so good for your wallet.

A new report by the tech research firm Software Advice discovered that digital point-of-sale terminals, like the one in my cab, increase the frequency and amount of tips left by customers. What’s the secret behind how these manipulative machines get us to pony up?

Hooked user“I’m endlessly loyal,” my wife said, staring straight into my eyes. But she wasn’t talking about our marriage — she was pledging her allegiance to a piece of software.

“I’ll never quit Microsoft Office,” she told me. “It does too much for me to leave it.” For a moment I wondered if her husband had engendered the same reverence, but then I remembered things at Microsoft aren’t all wine and roses. In fact, the conversation with my wife was sparked by a debate over switching from Office to Google Docs for our home business.

Apparently, we aren’t the only ones considering other options. Industry analysts say Google Apps has already beaten Office as the top choice for smaller businesses and is in a “dead heat among companies with more than 1,000 employees.”

Let’s say you’ve built the next big thing. You’re ready to take on the world and make billions. Your product is amazing and you’re convinced you’ve bested the competition. As a point of fact, you know you offer the very best solution in your market. But here’s the rub. If your competition has established stronger customer habits than you have, you’re in trouble.

The cold truth is that the better product does not necessarily win. However, there’s hope. The right strategy can crowbar the competition’s users’ habits, giving you a chance to win them over.

To understand how to change customer habits, we first need to understand what habits are and how they take hold. Simply put, habits are behaviors done with little or no conscious thought. Research shows almost half of what we do, day in and day out, is driven by these impulsive behaviors.

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Have you noticed all the startups raising massive sums of money recently? Perhaps you’ve scratched your head wondering how a company like Buzzfeed, known for its website full of animated gifs, listicles and quizzes, just raised $50 million dollars, valuing the company at a reported $850 million. Snapchat, the messaging app known for helping teenagers sext one another, reportedly received a $10 billion valuation from its investors. Has the world gone mad?

Some industry watchers see the recent boom in seemingly trivial apps and websites as foretelling tech bubble 2.0. However, there’s much more to the story.

Our knee-jerk reaction to classify innovation as either important or frivolous is exactly why many are left aghast when previously dismissed companies reveal shocking valuations in ridiculous investment rounds.

Vitamins and Painkillers

Most people, including many professional investors, tend to put new products into one of two categories: vitamins or painkillers.

Today, there’s an app for just about everything. With all the amazing things our smartphones can do, there is one thing that hasn’t changed since the phone was first developed. No matter how advanced phones become, they are still communication devices — they connect people together.

Though I can’t remember the last time I actually talked to another person live on the phone, I text, email, Tweet, Skype and video message throughout my day. The “job-to-be-done” hasn’t changed — the phone still helps us communicate with people we care about — rather, the interface has evolved to provide options for sending the right message in the right format at the right time.

Clearly, we’re a social species and these tech solutions help us re-create the tribal connection we seek.  However, there are other more hidden reasons why messaging services keep us checking, pecking, and duckface posing.