Tag / investment

Nir’s Note: This guest post is written by Ali Rushdan Tariq. Ali writes about design, entrepreneurship, creativity and innovation on his blog, The Innovator’s Odyssey.

As I clicked the big green “Take This Course” button, I became acutely aware of an uneasy feeling. This would be the 22nd course I’d have signed up for on Udemy.com, one of the world’s leading platforms for teaching and learning classes online. I had become a binge-learner.

Or had I? After scanning my enrolled course list, I gathered the following stats:

And so the uneasy feelings inside bubbled to the surface. With 13 courses left virtually untouched since enrolling (the price ranging from free to $30 for each of them) I naturally started deriding myself. I thought I was a non-finisher, bad at commitments, and lacked focus. Perhaps even a compulsive buyer, financially carefree, or worse yet, a wanna-be learner. Perhaps it was some combination of the above?

image4-notes (2)A few minutes before his helicopter touched down in a covert military base just outside of Kabul, Afghanistan, Tommy Thompson reached for his secret weapon. He was about to meet with top Afghan officials and he needed to ensure he hit his mark. But Thompson’s mission to the war-torn region in 2004 did not involve delivering guns and bombs. As the U.S. Secretary of Health and Human Services, the diplomat was there to win hearts and minds.

To accomplish his directive, assigned to him by the President of the United States, Thompson relied upon information delivered at exactly the right time and place. Minutes before each meeting with dignitaries, he was handed a top-secret intelligence briefing.

The CIA-prepared binder contained the most vital, and at times trivial, information on who the Secretary was going to meet. A quick glance provided the context for the meeting, notes from previous encounters, and often times contained personal information.

Nir’s Note: Is “no” the most powerful word in the English language? In this guest post Chikodi Chima explores what happens when people say, “No.” Chikodi is a former VentureBeat staff reporter who helps startups with their public relations and marketing. His blog is PR Tips For Startups and he is @Chikodi on Twitter.

3981484909_260a1f184c_bSirens were beautiful creatures from Greek Mythology who lured sailors to their death.  The power of their song was so irresistible it would cause captains to steer their boats into the rocks and drown. We are  also seduced daily by ideas that sound great at first, but may leave us shipwrecked, unless we have the power to say no.

Nir’s Note: In this guest post, Ryan Hoover takes a look at Tinder, a red hot dating app. Ryan dives into what makes the app so popular and engaging. Ryan blogs at ryanhoover.me and you can follow him on Twitter at rrhoover.

tinder-screenshot-blurredTinder, a hot new entrant in the world of online dating, is capturing the attention of millions of single hopefuls. The premise is simple. After launching the mobile app and logging in with Facebook, users browse profiles of other men or women. Each potential match is presented as a card. Swipe left if you’re disinterested and right if someone catches your fancy. Once both parties express interest, a match is made and a private chat connects the two potential lovebirds.

The app has become a fixture in the U.S. App Store as one of the top 25 social networking applications, generating 1.5 million daily matches as more than 50 percent of its users login multiple times per day.

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.

Nir’s Note: This guest post comes from my friend Jules Maltz, a General Partner at Institutional Venture Partners (IVP), a late-stage venture capital firm based in Menlo Park. In this article, Jules admits something few people are brave enough to say here in Silicon Valley — that luck plays a huge role in success.

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I now understand why baseball players are superstitious. During a hitting streak, “hot” players rarely shower. They wear the same clothes and eat the same food. They follow the same routine to an exactness that would make someone with obsessive compulsive disorder proud. They’re trying to keep the magic alive.

But why?

If, as Billy Beane knows, baseball is all about numbers and probabilities, why all the nonsense? There are no “baseball gods” to appease.

This week, Baba Shiv and I taught a class at the Stanford Graduate School of Business called, “Using Neuroscience to Influence Human Behavior.” The course focused on the science behind how consumers make decisions.

During the class, we walked through my Desire Engine framework, a four-step cycle that creates preferences and usage habits. Readers of my blog will be familiar with the model but I wanted to share some slides regarding one particular part of the Desire Engine, the “investment phase”.

This phase involves customers doing a bit of “work”, which commits them to the usage of the product. Investment makes re-engaging with the product more likely, and with the slides below, I try to explain why.

Slides from the Investment Phase discussion are below and I apologize for not having a voiceover to go with them yet. I’ll be writing more on this topic in the coming weeks but wanted to share some of the research into the topic.

Video from my recent talk at the Designers + Geeks Meetup in San Francisco on August 1st, 2012.

Note: This talk is similar to my “Behavior by Design” talk but has approximately 20% new material.

If you’re reading this over email and the video does not appear, click the link below:

http://www.nirandfar.com/2012/08/designing-user-habits-video.html

Before you can change the world, before your company can IPO, before getting millions of loyal users to wonder how they ever lived without your service, people need to on-board. Building the on-ramp to using your product is critical in every industry, but few more so than in the ADD world of web and mobile apps. Distractions are everywhere, vying for user mindshare and threatening to pull them off the road to using your products like the donut shops and strip clubs at a trucker’s rest stop.

However, done correctly, the on-boarding process can be the first step in creating strong user habits. Products that create repeat behaviors tend to follow a consistent design pattern of a trigger, action, reward, and investment, which I’ve described as the Desire Engine. This pattern is effective when used to craft behaviors that the designer intends to be repeated regularly. The on-boarding process can be the first of several passes through the Desire Engine.