Tag / product management

enterprise habitSlack isn’t just another office collaboration app. The company has been called, “the fastest-growing workplace software ever.” Recent press reports claim that “users send more than 25 million messages each week,” and that the company is, “adding $1 million to its annual billing projections every six weeks.” Smelling an opportunity, investors just plowed $120 million into the company, giving it a $1.12 billion valuation.

“Our subscription revenue is growing about 8 percent monthly, before we add new sales,” says Slack’s business analytics lead Josh Pritchard. “This is, as far as I know, unheard for an enterprise SaaS company less than seven months after launch.”

Perhaps even more surprising, Slack’s user retention stands at an astonishing 93 percent. How does Slack get its users hooked?

On the surface, no single factor seems to set Slack apart from a plethora of other collaboration tools. However, a closer look using the model described in the book Hooked: How to Build Habit-Forming Product, reveals the user psychology behind the company’s success.

product psychology

I do quite a bit of research, writing, and consulting on product psychology — the deeper reasons underlying why users do what they do. I also frequently teach and speak on the topic. Invariably, after each talk, someone approaches me and asks, “That was very interesting. Now where do I learn more?”

I’m never sure what to say, since there’s so much great information available. What this person really wants to know (and I’m assuming you do, too) is where all the really good stuff is. They want to know the highlights, the takeaways, and the methods and techniques that can help them be better at their careers, build better products, and ultimately improve people’s lives.

That’s why I’m proud to announce a new online course called Product Psychology. This free course taps into the collective wisdom of some of the brightest minds in the field to help you better understand user behavior. They’ve taken the time to dig up their favorite articles, videos, and resources to get you up to speed quickly. Best of all, lessons are sent free via email.

Nir’s Note: This guest post comes from Marc Abraham, a London-based product manager. In this article, Marc reviews the recently published book Designing for Behavior Change by Stephan Wendel. Follow Marc on Twitter.

Designing for Behavior ChangeBehavioral economics, psychology and persuasive technology have proven to be very popular topics over the past decade. These subjects all have one aspect in common; they help us understand how people make decisions in their daily lives, and how those decisions are shaped by people’s prior experiences and their environment. A question then arises around what it means to change people’s behaviors and how one can design to achieve such change.

Stephen Wendel, a Principal Scientist at HelloWallet, has written Designing for Behavior Change, which studies how one can apply psychology and behavioral economics to product design. In this book, Wendel introduces four stages of designing for behavior change: Understand, Discover, Design and Refine (see Fig. 1 below):

Nir’s Note: This guest post comes from Marc Abraham, a London-based product manager at Beamly. In this article, Marc reviews the recently published book “Designing Multi-Device Experiences” by Michal Levin. Follow Marc on Twitter or check out his blog.

book coverWe live in a world where the number of connected devices is growing on a daily basis at an immense rate, with people constantly switching between these devices (PCs, smartphones, tablets, TVs and more). The question arises how we can design optimally for a device to be used together with other devices.

Michal Levin, a Senior User Experience Designer at Google, has created a framework which aims to capture the interconnections between different devices. Levin calls this framework an “ecosystem of multi-connected devices.’ The underlying goal behind this framework is to enable designers and product creators to “understand the different relationships between connected devices, as well as how individuals relate to them.” As a result, companies can create natural and fluid multi-device experiences for their users. Levin has written about the fundamentals of this ecosystem in her book Designing Multi-Device Experiences.

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.

Nir’s Note: In this guest post, Abhay Vardhan, discusses how to measure the strength of user habits with cohort analysis and retention rate. Abhay is a founder of Blippy.com and blogs at abhayv.com. Follow Abhay on Twitter @abhayvardhan.

Imagine an entrepreneur showed you the graph to the right for his new app called, “PinterestForDogs.”

You would think PinterestForDogs is doing quite well, right? Well, it depends.

A common mistake entrepreneurs make is to focus too much on user growth. Instead, it is often more important to ask: “Is the product creating a habit so users keep coming back?” and “How do we measure the strength of such a habit?” These questions are crucial because without establishing user habits, it is impossible to sustain a healthy user base. Eventually, all user acquisition channels saturate.

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: In contrast to last week’s post on the power of saying “no,” Eric Clymer shares how a creative attitude helped his team build a #1 ranked app. Eric was the lead developer of the “A Beautiful Mess” app and is Partner at Rocket Mobile.

In improv comedy, there are really only two words that matter: “Yes, and.” You share a premise, form a scene, create a character, and if everything works out right, kill the audience. Then, you try and do it again with another, “Yes, and.”

Before I began developing for iOS, I performed stand-up and improv as a hobby. I never thought “Yes, and” would apply to the development of software and how to work with clients. But, in my best Louis CK voice, “It TOTALLY did.” This essay is about what I learned working with the artists who hired my company to create “A Beautiful Mess,” an app that went to #1 in the App Store 15 hours after its release (it’s still near the top of the app store).

Nir’s Note: This guest post is by Max Ogles, a writer and entrepreneur based in Utah. Connect with him on Twitter at @maxogles.

Spotlight

In the beginning of 2010, when daily deals site Groupon was really hitting its stride and copycat businesses were popping up left and right, a small startup called Yipit was just getting off the ground. Yipit was involved in daily deals, too, but rather than creating the deals itself, Yipit simply aggregated the deals offered by the other companies to offer a nice tidy list in a daily email.

Like any startup, the Yipit team planned PR and marketing around their launch and hoped that the buzz would yield a nice base of users, who in turn would share with friends and create steady word-of-mouth growth. They managed to secure the spotlight from a major tech publication and then rode the wave. “After months of toiling away in obscurity, you feel like you’ve finally made it,” wrote Vinicius Vacanti, Yipit’s CEO, on his blog. “People know what you’re working on now. People all over the world are now using your product.”