Tag / retention

After the slide presentation I posted about “The Secret Psychology of Snapchat” received such a warm response from readers, I decided to create another set of slides. This presentation is about how to win over your competition’s customer habits. I hope you enjoy it.

For a deeper analysis, see this previous article I wrote on the topic: http://www.nirandfar.com/2015/01/competitions-customers.html

You’ve undoubtably heard of Snapchat, the habit-forming messaging service used by over 100 million people monthly. This week, I teamed up with Victoria Young and Dori Adar to help explain what makes the app so sticky.

We decided that instead of writing a long blog post, we’d share our insights in a slide presentation. Let us know what you think of the format and the content in the comments section below!


Fitness apps are all the rage. An explosion of new companies and products want to track your steps and count your calories with the aim of melting that excess blubber. There’s just one problem — most of these apps don’t work. In fact, there is good reason to believe they make us fatter.

One study called out “the dirty secret of wearables,” citing that “these devices fail to drive long-term sustained engagement for a majority of users.” Endeavour Partners’ research found “more than half of U.S. consumers who have owned a modern activity tracker no longer use it. A third of U.S. consumers who have owned one stopped using the device within six months of receiving it.”

While the report mentioned several reasons why people don’t stick with these tracking devices, my own theory is simple, they backfire. Here are three surprising reasons why fitness apps may be making us less happy and more flabby.

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.

User using Slack on phoneSlack 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 online collaboration tools.

Nir’s Note: Parts of this article are adapted from Hooked: A Guide to Building Habit-Forming Products.

Game Over screen in Flappy Bird On February 8, 2014, an app called Flappy Bird held the coveted No. 1 spot in the Apple App Store. The app’s 29-year-old creator, Dong Nguyen, reported earning $50,000 a day from the game.

Then, the Vietnamese developer sent a shocking message. In a tweet many dismissed as a publicity stunt, Nguyen wrote, “I am sorry ‘Flappy Bird‘ users, 22 hours from now, I will take ‘Flappy Bird‘ down. I cannot take this anymore.” And as promised, Flappy Bird disappeared the next day.

This is not the way success typically ends.

Flappy Bird was downloaded over 50 million times and unleashed a digital tsunami of players and pundits dissecting what turned into a global fixation. Players’ only goal in the game was to pilot a pixelated bird through gaps of pipes. Yet Flappy Bird seemed to have a mysteriously seductive power. In a TechCrunch article titled Confessions Of A Flappy Bird Addict, Josh Constine wrote, “It humiliates me, but I like it. It’s the dominatrix of mobile games.”

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

TinderTinder, a hot new entrant in the world of online dating, is capturing the attention of millions of single hopefuls. The premise of Tinder is simple. After launching the Tinder 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 Tinder 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: This guest post is by Ryan Hoover. Ryan blogs at ryanhoover.me and you can follow him on Twitter at @rrhoover.

SnapchatWhen 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 to Snapchat? After all, what real need is Snapchat 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 Snapchat through several subtle design choices.

Nir’s Note: An edited version of this essay appeared in The Atlantic. Below is my original.
Bible app notification

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 Bible app 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 Bible 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.