Tag / engagement

Nir’s Note: This guest post is by Ryan Hoover. Ryan blogs at ryanhoover.me and you can follow him on Twitter at @rrhoover.

snapchat-iconWhen 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.

Nir’s Note: An edited version of this essay appeared in The Atlantic. Below is my original.
Stairway to Heaven

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.

5318665531_b62722f817Imagine 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.”


Cookie jar
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.

Nir’s Note: A few weeks ago, I wrote a brief post summarizing some thoughts for a potential book chapter. I asked my readers for help and you delivered! The comments were fantastic and I received several insightful emails. Therefore, I’ve decided to continue with the experiment with the article below. This week’s post is much shorter and less developed than my previous essays and is intended to solicit more of your thoughts and feedback for a potential book chapter. Give it a quick read and tell me what you think. 

kids on techThe world has become harder to resist. Products are getting better at giving people what they want and – for the most part – that has been good thing. Yet, the historical trend-line shows products are also becoming more habit-forming.

All products alleviate customers’ pain. Even products used to gain pleasure must first generate desire, a unique form of discomfort, which the customer will pay to satiate.

1458972393_166f2d7ea7Recently, MessageMe announced it had grown to 1 million users in a little over a week’s time. The revelation captured the attention of envious app makers throughout Silicon Valley, all of whom are searching for the secrets of customer acquisition like it’s the fountain of youth. “Growth hacking” has become the latest buzzword, as investors like Paul Graham profess it’s functionally that matters.

Clearly, everyone wants growth. To someone creating a new technology, nothing feels better than people actually using what you’ve built and telling their friends. Growth feels validating. It tells everyone the company is doing things right. At least that’s what we want to believe.

Good Growth, Bad Growth

Sometimes viral loops drive growth, because the product is truly awesome, while in other cases growth occurs for, well, different reasons. As an example of good growth, it’s hard to top PayPal’s viral success in the late 90s. PayPal knew that once users started sending money to each other, mostly for stuff bought on eBay, they would infect one another. The allure that someone just “sent you money” was a huge incentive to register.

2924868770_3caa81a1fdWe are a species that depend on one another. Scientists theorize humans have specially adapted neurons that help us feel what others feel, providing evidence that we survive through our empathy for others. We’re meant to be part of a tribe and our brains seek out rewards that make us feel accepted, important, attractive, and included.

Many of our institutions and industries are built around this need for social reinforcement. From civic and religious groups to spectator sports, the need to feel social connectedness informs our values and drives much of how we spend our time. Communication technology in particular has given rise to a long history of companies that have provided better ways of delivering what I call, “rewards of the tribe.”

The CES swarm.

This week, thousands of people swarmed the annual Consumer Electronics Show in Las Vegas. Looking from above, the scene resembled an insect infestation of scampering masses in a hive of the latest must-haves.

When considering our complex relationship with technology, perhaps it is useful to reflect upon the plight of one particular bug, the male julodimorpha beetle, who like us at times, can’t get enough of a bad thing. His misplaced desire is so powerful that it threatens the survival of his species.

While in flight, the male scans the dry ground of the Australian outback, looking for love. He seeks out the largest, reddest female he can find because these two traits, size and color, impart instinctual cues about the genetic fitness of his mate. Suddenly, the sight of his dream girl stops him mid-air. He composes himself and approaches the sultry beauty.

The first thing Don Draper does when he gets to his office is give his busty secretary a suggestive wink. The second thing he does is take off his fedora. Finally, depending on the severity of the previous night, he completes his morning routine with a stiff drink.

What can we learn from Don’s habits? First, that scotch and submissive secretaries always equal drama. But what of that fedora? There’s a lesson there too.

As any Mad Men fan knows, it was once popular for men to wear hats everywhere they went — except that is, when they stepped indoors. When a gentleman went inside, he removed his hat and placed it on the nearest rack. It was a required social norm, a sign you were ready for business.

Note: I’m pleased to have co-authored this post with Sangeet Paul Choudary, who analyzes business models for network businesses at Platformed.info. Follow Sangeet on Twitter at @sanguit.

If there is one altar at which Silicon Valley worships, it is the shrine of the holy network effect. Its mystical powers pluck lone startups from obscurity and elevate them to fame and fortune. The list of anointed ones includes nearly every technology success story of the past 15 years. Apple, Facebook, Microsoft, eBay, and PayPal, have each soared to multi-billion-dollar valuations on the supreme power of the network effect.

But today, the power of the network effect is fading, at least in its current incarnation. Traditionally defined as a system where each new user on the network increases the value of the service for all others, a network effect often creates a winner-takes-all dynamic, ordaining one dominant company above the rest. Moreover, these companies often wield monopoly-like powers over their industries.