Nir’s Note: This guest post is by Auren Hoffman, the CEO of LiveRamp in San Francisco. This essay is a bit different from the normal subject matter on the blog but I hope it will stir some discussion about which of our personal habits are worth improving. Connect with Auron on Twitter at @auren or on Facebook.
To really differentiate yourself in this winner-take-all world, you should be focusing on improving your strengths, not your weaknesses.
Most people who set out to improve themselves focus on their faults. For example, here’s Bridget Jones’ list:
“Resolution number one: Obviously will lose twenty pounds. Number two: Always put last night’s panties in the laundry basket. Equally important, will find sensible boyfriend to go out with and not continue to form romantic attachments to any of the following: alcoholics, workaholics, commitment phobics, peeping toms, megalomaniacs, emotional wits or perverts.”
While I don’t deny that it’s good habit to place your undergarments in the laundry bin, it is not the best way to achieve greatness. People who focus on their faults can eventually improve them to a point where they are no longer obstacles, but doing so will not propel them to success. A better strategy is to focus on one or two of the things at which you excel and hone those skills or talents to the point of excellence. Working on your faults might help you make a living, but honing your talents may help you change the world.
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.
Nir’s Note: In this guest post, Ryan Hoover takes a look at how new behaviors are shaping tech opportunities. Ryan blogs at ryanhoover.me and you can follow him on Twitter at rrhoover.
Startups that build a product attached to nascent behaviors have an opportunity to form habits before anyone else. First mover advantage matters. Once a habit is formed, it’s difficult to change and often provides a sustained competitive advantage.
In order to mine for yet untapped opportunities, I began to observe my own behaviors and those of people around me:
How is my daily routine different than last year?
What new behaviors have I seen amongst my social circles (online and off)?
How are “normals” engaging with technology in new ways?
Here are some of the nascent behaviors I’ve observed:
- Gamification of Life – Have you noticed how different teens and pre-teens use social networks? From my observations following my younger cousins and other’s writing on the topic, younger audiences are in constant competition with one another, using Instagram, Facebook, and other platforms as a game. Teens perceive follower counts, likes, and other forms of social currency seriously, directly prompting others to reciprocate.
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.
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. —
The 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.
The engine driving the evolution of marketing and advertising for the past 125 years has been the increasing speed with which companies adapt products to better meet customer needs.
The Age of Scarcity (prehistory – 1930s): For the majority of human history, the basic necessities of life were expensive and rare. Human populations growth was mediated by the limitation of resources. Keynes formulation of Say’s law was that “supply creates its own demand” and in a time of scarcity, goods sold quickly to those who could afford them. Though commercial communication traces back thousands of years, the term “marketing” only made its debut in 1884. Prior to the industrial revolution, products attracted consumers mostly by being available. The limited supply meant high prices and only the well-off had any discretionary spending power.
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?
Nir’s Note: In this guest post, Ryan Hoover, Director of Product at PlayHaven, utilizes my thinking on the “Habit Zone” to shed light on where Turntable.fm fell short. Ryan blogs at ryanhoover.me and you can follow him on Twitter at rrhoover.
Remember Turntable? When it first launched in May of 2011, the music service seemed to own the internet, growing from zero to over 420,000 monthly active users (MAU) only two months later . Unfortunately, that growth didn’t last long as many of its early adopters ditched the service. It is now estimated to have only 20 – 50,000 MAU’s, a fraction of its early peak .
As I described nearly two years ago, much of Turntable’s success was due to its well-executed social engagement loop; however, that wasn’t enough. So what went wrong?
Turntable failed to create long-lasting habits , leaving it vulnerable to competitors who more quickly became a daily part of users lives. Nir Eyal, a researcher on habit design and blogger at NirAndFar.com, posits that habits form when users have a high perceived utility and use a product frequently. The most sticky products are used multiple times a day. How often have you checked your email or Twitter feed today? In other words, users need to value the product and use it often to form lasting habits and enter the “habit zone” as represented by the graph below.
One of the most common complaints about Turntable is its demand for attention. It is both its greatest strength and weakness.
We 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.”
However, it’s not only the reward we seek. Variability also keeps us engaged. From the telegraph to email, products that connect us are highly valued, but those that invoke an element of surprise are even more so. Recently, the explosion of Web technologies that cater to our insatiable search for validation provide clear examples of the tremendous appeal of the promise of social reward.
The endless search for rewards of the tribe, and the variability that often comes with it, are key components of the Web’s largest technical question and answer site, Stack Overflow. As with other user-generated sites like Quora, Wikipedia, and YouTube, all of Stack Overflow’s content is created voluntarily by its members. In Stack Overflow’s case, over 5,000 questions are posted and answered daily, all of which cost nothing to view. Many of these answers take hours to complete and require a high degree of technical expertise.