Tag / Habits

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.

“You teach best what you most need to learn.” – Richard Bach

editorial portrait of Nir Eyal | Engage MagazineI don’t usually write about personal and revealing matters, but recently I’ve noticed something I don’t like about myself–I check email too often.

This confession doesn’t come easily, because, ironically, I am the author of a book titled Hooked: How to Build Habit-Forming ProductsIt is a guidebook for designing technology people can’t put down. There’s just one problem–I can’t put my technology down.

I ritually check email when I wake up in the morning. If I’m out to lunch, I’ll sneak a peek on my way to the restroom. I even look at my email when stopped at a red light. Most troubling, I catch myself emailing instead of being fully present with the people I love most. My daughter recently caught me scrolling on my iPhone and asked, “Daddy, why are you on your phone so much?” I didn’t have a good answer.

habits

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.

Nir’s Note: This guest post is written by Max Ogles. Max writes at MaxOgles.com about behavior change, psychology, and technology. Sign up for a free copy of his upcoming e-book, “9 Ways to Motivate Yourself Using Psychology and Technology.”

6273266577_c37d3fec72_zA commonly quoted and incredibly scary stat reveals that 9 out of 10 people who undergo heart bypass surgeries as a result of poor health are unable to change their habits, even with their lives on the line.

We’ve all failed at something, though luckily most of us don’t face death as a consequence. Here’s a short list of some of the habits I started, only to eventually fail:

  • For two months, I went running 3 to 4 times each week. (I even ran a half marathon!) Then I quit running and didn’t run again for over a year.

Nir’s Note: In this essay, Ryan Stuczynski and I discuss the relationship between habits and user satisfaction. Ryan was the Director of Analytics at Fab and today leads growth for theSkimm. Follow Ryan on Twitter or Medium.

Here’s the Gist:

  • People have limited bandwidth when it comes to mobile app usage and habits matter for long-term engagement.
  • Usage frequency helps explain whether a company is successfully creating user habits.
  • Companies able to create more frequent usage habits enjoy higher user satisfaction as measured by Net Promoter Scores.

In the company’s first quarter earnings call, Facebook CEO Mark Zuckerburg told Wall Street investors, “almost 63% of people who use Facebook in a month, will use it in a given day.” He continued, “another stat that I think is actually quite interesting is we track how many people use Facebook not just every day … but what percent of people used it 6 days out of 7 days of the week. And that number, for the first time in the last quarter, passed 50%. So, that’s pretty crazy, if you think about it … more than 50% of people have used it 6 days out of 7 days of the week, almost every single day of a week.”

Help techAddiction can be a difficult thing to see. From outward appearances, Dr. Zoe Chance looked fine. A professor at the Yale School of Management with a doctorate from Harvard, Chance’s pedigree made what she revealed in front of a crowded TEDx audience all the more shocking. “I’m coming clean today telling this story for the very first time in its raw ugly detail,” she said. “In March of 2012 … I purchased a device that would slowly begin to ruin my life.”

At Yale, Chance teaches a class to future executives eager to know the secrets of changing consumer behavior to benefit their brands. The class is titled “Mastering Influence and Persuasion,” but as her confession revealed, Chance was not immune from manipulation herself. What began as a research project soon turned into a mindless compulsion.

Nir’s Note: This guest post is written by Max Ogles. Max is an editor for NirAndFar.com and heads marketing for CoachAlba.com, a mobile health startup. Follow him on Twitter and read his blog at MaxOgles.com.

Screenshot 2014-05-14 11.39.14Weight gain happens pound by pound, over many years, and that’s how Dave Haynes found himself sixty pounds away from a healthy BMI. In his career, Dave was immersed in the startup world; he helped start Soundcloud, which allows anyone to share and produce music and has over 10 million users. So when he ultimately resolved to reverse this disturbing weight trend, he naturally looked to technology for the solution; he downloaded the popular fitness apps and bought an Internet-connected Withings scale. But could these online apps help him achieve real-life behavior change?

Nir’s Note: This guest post is written by Max Ogles. Max is an editor for NirAndFar.com and heads marketing for CoachAlba.com, a mobile health startup. Follow him on Twitter and read his blog at MaxOgles.com.

rehabLast year, The Huffington Post published some fascinating statistics about the U.S. prison population. The headline for the article blared, “America Has More Prisoners Than High School Teachers.” It’s no secret that the United States has a high rate of incarceration, not to mention a recidivism rate of nearly 60% for serious criminals.

These stark facts put into perspective the incredible work of the Delancey Street Foundation, a drug and rehabilitation center based in San Francisco. Delancey Street accepts the most hardened criminals and drug addicts; most have multiple felony convictions. But despite the difficulty associated with overcoming a criminal past, over 14,000 Delancey residents have returned to society as productive citizens. Perhaps Delancey’s most impressive accomplishment is the fact that over 90% of its graduates never return to prison.

Nir’s Note: This guest post was authored by Lisa Kostova Ogata, one of the first product managers at Farmville and a VP of Product at Bright.com (sold to LinkedIn). While at Zynga, Lisa learned how to shape user behavior, but in this essay she describes her surprise when she found herself unexpectedly hooked.

3316432769_6fcd31e674I don’t consider myself a gambler. I’m the person who places a minimum bet at the roulette table with the specific intent of getting a free drink — after all, it’s cheaper than buying one at the bar. Yet, there I was on a Monday night, glued to my computer screen for over an hour as I watched an online auction. I couldn’t resist.