Nir’s Note: This guest post is by Ryan Hoover. Ryan blogs at ryanhoover.me and you can follow him on Twitter at @rrhoover.
When Snapchat first launched, critics discounted the photo-messaging app as a fad – a toy for sexting and selfies. Their judgements were reasonable. It’s impossible to predict the success of a product on day one, let alone its ability to change user behavior. But hindsight is beginning to prove critics wrong.
Snapchat boasts 5 million daily active users sending 200 million photos and videos daily. That’s an average of 40 snaps a day per user! But why are users so engaged? After all, what real need is the company solving anyway?
Snapchat popularized a new form of expression, using photos and videos as a communication medium. For many, Snapchat is a daily routine – the go-to app for interacting with friends in a playful way. This habit is not a happy mistake but a conscious effort driven by several subtle design choices.
As Nir Eyal describes, habit-forming products must have two things – high perceived utility and frequency of use. In Snapchat’s case, as with most communication services, each individual message isn’t particularly valuable in isolation. But through frequent use, Snapchatters enter the “Habit Zone”, instinctually turning to the product to solve their desire to communicate and feel connected with others. This key insight has enabled the company to craft an experience tailored for high engagement.
Here are five ways Snapchat drives habitual engagement with their product:
Nir’s Note: An edited version of this essay appeared in The Atlantic. Below is my original.
It’s not often an app has the power to keep someone out of a strip club. But according to Bobby Gruenewald, CEO of YouVersion, that’s exactly what his technology did. Gruenewald says a user of his app walked into a business of ill repute when suddenly, out of the heavens, he received a notification on his phone. “God’s trying to tell me something!,” Gruenewald recalled the user saying, “I just walked into a strip club — and man — the Bible just texted me!”
YouVersion recently announced its app hit a monumental milestone — placing it among a rare strata of technology companies. The app, simply called “Bible,” is now on more than 100 million devices and growing. Gruenewald says a new install occurs every 1.3 seconds.
On average, some 66,000 people have the app open during any given second, but that number climbs much higher at times. Every Sunday, Gruenewald says, preachers around the world tell devotees, “to take out your Bibles or YouVersion app. And, we see a huge spike.”
The app was funded and built by LifeChurch.tv of Edmond, Oklahoma. Though Silicon Valley digerati rarely heed lessons from churches in red states, in this case, Gruenewald and his team have something to preach about.
Imagine walking into a busy mall when someone approaches you with an open hand. “Would you have some coins to take the bus, please?” he asks. But in this case, the person is not a panhandler. The beggar is a PhD.
As part of a French study, researchers wanted to know if they could influence how much money people handed to a total stranger using just a few specially encoded words. They discovered a technique so simple and effective it doubled the amount people gave.
The turn of phrase has been shown to not only increase how much bus fare people give, but was also effective in boosting charitable donations and participation in voluntary surveys. In fact, a recent meta-analysis of 42 studies involving over 22,000 participants concluded that these few words, placed at the end of a request, are a highly-effective way to gain compliance, doubling the likelihood of people saying “yes.”
What were the magic words the researchers discovered? The phrase, “but you are free to accept or refuse.”
The “but you are free” technique demonstrates how we are more likely to be persuaded when our ability to choose is reaffirmed. The effect was observed not only during face-to-face interactions, but also over email. Though the research did not directly look at how products and services might use the technique, the study provides several practical insights for how companies can influence customer behavior.
Interested in boosting customer desire? A classic study reveals an interesting quirk of human behavior that may hold a clue.
In 1975, researchers Worchel, Lee, and Adewole wanted to know how people would value cookies in two identical glass jars. One jar held ten cookies while the other contained just two stragglers. Which cookies would people value more?
Though the cookies and jars were identical, participants valued the ones in the near-empty jar more highly. Scarcity had somehow affected their perception of value.
There are many theories as to why this was the case. For one, scarcity may signal something about the product. If there are less of an item, the thinking goes, it might be because other people know something you don’t. Namely, the cookies in the almost empty jar are the num-numier choice.
It’s About Context
Classical economic theory starts with two key assumptions: First, consumers are armed with “perfect information.” Second, people behave rationally. However, in the real world, these two conditions are more the exception than the rule. In fact, marketers do their best to trigger cognitive quirks, like the scarcity heuristic, to influence behavior.
Even though it may make no objective difference regarding what is actually being sold, marketers know context matters just as much as the product itself. The near-empty jar with just two cookies left in it conveys valuable (albeit irrelevant) information.
A funny thing happens when you lie to people: they tend to believe. Why shouldn’t they? They lie to themselves all the time. Our minds are wired to respond in predictable ways–among them is perceiving the world the way we want to see it, not necessarily the way it is.
Perhaps no other phenomenon demonstrates our brain’s ability to make believe better than the placebo effect. Long known for its ability to improve a patient’s health, the practice of giving people an inert treatment they believe will make them better has been proven to be highly effective. In fact, in recent studies, researchers have found the placebo effect may be much more potent than previously thought. So strong is the expectation that a pill will provide relief, that even patients who are told beforehand that the medication is a placebo and has no medicinal properties, still show significant signs of improvement. When it comes to fooling ourselves, the brain can’t help itself.
How a sugar pill could be as effective as an FDA-approved drug, backed by millions of dollars in research, is a central mystery of the placebo effect. But the brain’s predilection to fool itself is not only evident in the medical field. The cognitive trick is a central trait of how the products we use every day become part of our lives.
How do products tempt us? What makes them so alluring? It is easy to assume we crave delicious food or impulsively check email because we find pleasure in the activity. But pleasure is just half the story.
Temptation is more than just the promise of reward. Recent advances in neuroscience allow us to peer into the brain, providing a greater understanding of what makes us want.
In 2011, Sriram Chellappan, an assistant professor of computer science at Missouri University of Science and Technology, gained unheard of access to sensitive information about the way undergraduates were using the Internet. His study tracked students on campus as they browsed the web. Chellappan was looking for patterns, which not only revealed what students were doing online, but provided clues about who they were.
“We believe that your pattern of Internet use says something about you,” Chellappan wrote in the New York Times. “Specifically, our research suggests it can offer clues to your mental well-being.” Chellappan concluded that there was, in fact, predictive power in the data. He found students with early signs of clinical depression used the Internet differently and he could identify students most likely to face mental health issues simply by looking at how they clicked.
“We identified several features of Internet usage that correlated with depression,” wrote Chellappan. “For example, participants with depressive symptoms tended to engage in very high e-mail usage.”
Chellappan developed the technology in hopes of creating an early-warning system to identify struggling students. But his study raised another question, why do people with depression check email more?
Nir’s Note: This post is a little different from my normal writing. For one, its much shorter. You’ll notice I provide fewer citations and the ideas are less developed than my previous essays. This is intentional and I need your help. I’m considering writing a chapter on this topic in a forthcoming book but wanted to test the ideas with my most loyal readers first. Give it a quick read and tell me what you think. —
Habits are good for business. In fact, many industries could not survive without them. The incentive systems and business models of the companies that make habit-forming products require someone gets hooked. Without consumer habits, these enterprises would go bust.
While most of us think of cigarettes or gambling as habit-forming products, the fact is, a much wider swath of industries rely on consumer’s using their products without thought or deliberation.
These companies have no secret agenda or nefarious ambitions. They are in business to give people what they want, even if at times, what the consumer wants isn’t necessarily good for them.
But like every other company, habit-forming businesses are run by well-intentioned people. Hard-working folks with families and dreams of their own. So how then can these two realities coexist? How can companies seek to hook their customers, while also being run by decent people who have just as visceral of an aversion to manipulation as the rest of us?
A Checklist for Online Disruption
On November 13, 2012, Bill Gurley, a partner at Benchmark Capital, posted a remarkable essay on his blog. In it, he described the, “10 factors to consider when evaluating digital marketplaces.” Given the tremendous value marketplaces create and how hard they are to get right, I found this essay to be a goldmine of insight.
I teamed-up with my friend and blogger Sangeet Paul Choudary, to digest Bill’s post into a more memorable format. The result is this brief checklist we hope will help take some of the luck out of evaluating marketplace businesses.
As Bill wrote, “It is unlikely that you will find a marketplace opportunity that would score ten out of ten with respect to this list.” But according to Bill, the odds of success improve the more of these characteristics the business exhibits.
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