I hope you find it useful!
Part 1 here:
Part 2 here:
(note: there was a brief break when some content was not recorded)
The truly great consumer technology companies of the past 25 years have all had one thing in common: they created habits. This is what separates world-changing businesses from the rest. Apple, Facebook, Amazon, Google, Microsoft, and Twitter are used daily by a high proportion of their users and their products are so compelling that many of us struggle to imagine life before they existed.
But creating habits is easier said than done. Though I’ve written extensively about behavior engineering and the importance of habits to the future of the web, few resources give entrepreneurs the tools they need to design and measure user habits. It’s not that these techniques don’t exist — in fact, they’re quite familiar to people in all the companies named above. However, to the new entrepreneur, they largely remain a mystery.
I’ve learned these methods from some of the best in the business and put together an amalgamation of them that I call “Habit Testing.” It can be used by consumer web companies to build products that users not only love, but are hooked to.
Habit Testing fits hand-in-glove with the build, measure, learn methodology espoused by the lean startup movement and offers a new way to make data actionable. Habit Testing helps clarify three things: 1) who your devotees are; 2) what part of your product is habit forming, if any; and 3) why those aspects of your product are habit forming.
Note: This post originally appeared in TechCrunch
Here’s the gist:
In advertising, marketers reinforce a behavior by linking to the promise of reward. “Use our product,” they claim, “and you’ll get laid”; it’s the gist of many product pitches from soap to hamburgers.
But online, feedback loops aren’t cutting it. Users are increasingly inundated with distractions, and companies find they need to hook users quickly if they want to stay in business. Today, companies are using more than feedback loops. They are deploying desire engines.
Desire engines go beyond reinforcing behavior; they create habits, spurring users to act on their own, without the need for expensive external stimuli like advertising. Desire engines are at the heart of many of today’s most habit-forming technologies. Social media, online games, and even good ol’ email utilize desire engines to compel us to use them.
Note: This post originally appeared in Techcrunch. I’m proud to have co-authored this post with Katy Fike, PhD. Dr. Fike is a gerontologist, systems engineer and Partner at Innovate50, a consulting firm helping companies create products and services for the 50+ market
As web watchers, entrepreneurs, and investors search for the next big thing, they’d be wise to focus on innovations that can be easily adopted by technology novices. A recent string of companies, including Groupon and Pinterest, have found success outside the early-adopter digerati by building products simple enough to be used by just about anyone. Designing with tech novices in mind can mean the difference between staying niche and going mainstream. Here are three principles for designing software for people Silicon Valley too often disparagingly calls “normals.”
Don’t tell them “how it works” or “what it is” and certainly don’t tell them how wonderful your company is. Just tell them in big, uncluttered, blatantly obvious terms what your service is for. Novice users need to know when your service would be useful in their lives.
Take a look at Twitter’s homepage for new users. It says simply, “Welcome to Twitter. Find out what’s happening, right now, with the people and organizations you care about.” Same story at Facebook. “Facebook helps you connect and share with the people in your life.” Brilliant! Now the tech novice knows, in no uncertain terms, when and why these sites would be useful. Twitter is for knowing what’s happening and Facebook is for connecting and sharing.
Note: This post originally appeared in TechCrunch
Here’s the gist:
Type the name of almost any successful consumer web company into your search bar and add the word “addict” after it. Go ahead, I’ll wait. Try “Facebook addict” or “Zynga addict” or even “Pinterest addict” and you’ll soon get a slew of results from hooked users and observers deriding the narcotic-like properties of these web sites. How is it that these companies, producing little more than bits of code displayed on a screen, can seemingly control users’ minds? Why are these sites so addictive and what does their power mean for the future of the web?
We’re on the precipice of a new era of the web. As infinite distractions compete for our attention, companies are learning to master new tactics to stay relevant in users’ minds and lives. Today, just amassing millions of users is no longer good enough. Companies increasingly find that their economic value is a function of the strength of the habits they create. But as some companies are just waking up to this new reality, others are already cashing in.
Recently, my mom came for a visit. She read my blog and discovered her son has a crazy habit of running barefoot. After some convincing, she begrudgingly accepted my rationale, especially after I showed her that a nice Jewish professor at Harvard said it’s ok.
But on one morning, as I was about to walk out the door, my mom stopped me with a tight grab to the arm reminiscent of my childhood. “It’s bad enough you run outside with bare feet but you look ridiculous running with these cheap shmatte gloves.” She always had an eye for spotting the quality of apparel and she correctly identified my Wal-Mart bargain bin gloves, which I bought for $2 per dozen.
“Why are you wearing these things?” she exclaimed. “You must be cold! Let me get you a nice pair of warmer gloves. You’re cold, right? Is that the reason?”
“No,” I said. “It’s not.”
She tried again. “It must be a fashion thing then. The kids are not wearing shoes on their feet but they’re wearing gloves on their hands.” This time she was sure she’d deduced the reason. “So at least let me buy you some nice quality gloves from Bergdorf. You want to be in with the times, I get it. Is that the reason you wear gloves when you run?”
“No,” I said again. “It’s not.”
Note: This article was first published in Forbes
Last week, I sat down for drinks with a few friends. “Have you heard of this Pinterest website?” said Jonathan, “My wife is totally addicted.” “Yes! Molly is hooked too,” said Ben, “She even has her grandmother into it, who, by the way, still can’t figure out Facebook.” “What’s Pinterest?” said Colin, the unmarried engineer.
My friends, the very definition of tech-savvy, couldn’t understand Pinterest’s astounding success. For one, the idea of capturing photos on a virtual wall is nothing new. The Facebook newsfeed is 5 years old and searching for pretty pictures on Google Images is ancient.
And yet, the Pinterest juggernaut is growing faster than Facebook when it was this size. Investors recently plowed in$27 million only five months after the company raised its previous round of financing. But even those who believe Pinterest is onto something big may not really understand why.
Here’s the gist:
Is this it? Really? Facebook wins, cashes in its chips, and we all go home?
Of course, there is more to come and it’s a future filled with sheer awesomeness. Within the next few years, technology will improve your life in ways you can scarcely imagine. But if you’re looking for where we’re headed, it’s useful to know where we’ve been and most importantly, we should know the catalyst driving us from one phase to the next.
Though tech types tend to focus myopically on the laws of hardware innovation, including those written by Moore, Metcalfe and Kryder, these principles focus on infrastructure, which is only the first phase of a rising technology wave. After infrastructure, technology waves enter a platform and finally an application phase. It is during the platform phases in particular that entrepreneurs build world-changing companies without much initial capital, a la Gates and Zuckerburg. How do companies change user behavior so profoundly and produce massive growth, seemingly overnight?