Tag: Ikea Effect

Hooked — How Companies Create Habit Forming Products

The Hook Model — Hooked: How to Build Habit-Forming Products
The Hook Model — Hooked: How to Build Habit-Forming Products

How do companies create habit forming products? It's simple: They manufacture them.

In 2008 Nir Eyal was part of a team of Stanford MBAs starting a company backed by “some of the brightest investors in Silicon Valley.” They wanted to build a platform to place ads into online social games. Eyal wondered how mind manipulation worked — how do products change our actions, and create compulsions. How do you engineer user behaviour? Are there moral implications? Could these forces be used for good (nudging). So he looked around for a guide. He couldn't find anything that satisfied him so he documented his experiences, reading, and observations of hundreds of companies “to uncover patterns in user experience designs and functionality.” He wanted to know what was common between the “winners” and determine what was missing from the “losers.”

The result of this effort is his book Hooked: How to Build Habit-Forming Products and the creation of the Hook Model: a four-phase process that companies use to form habits.

Through consecutive hook cycles, successful products reach their ultimate goal of unprompted user engagement, bringing users back repeatedly, without depending on costly advertising or aggressive messaging.

That sounds like a growth hacker's dream.

Let's take a look.

1. Trigger

A trigger is the actuator of behavior — the spark plug in the engine. Triggers come in two types: external and internal. Habit-forming products start by alerting users with external triggers like an email, a website link, or the app icon on a phone.

For example, suppose Barbra, a young woman in Pennsylvania, happens to see a photo in her Facebook newsfeed taken by a family member from a rural part of the state. It’s a lovely picture and since she is planning a trip there with her brother Johnny, the external trigger’s call-to-action intrigues her and she clicks. By cycling through successive hooks, users begin to form associations with internal triggers, which attach to existing behaviors and emotions.

When users start to automatically cue their next behavior, the new habit becomes part of their everyday routine. Over time, Barbra associates Facebook with her need for social connection.

2. Action

Following the trigger comes the action: the behavior done in anticipation of a reward. The simple action of clicking on the interesting picture in her newsfeed takes Barbra to a website called Pinterest, a “pinboard-style photo-sharing” site.

This phase of the hook, as described in chapter three, draws upon the art and science of usability design to reveal how products drive specific user actions. Companies leverage two basic pulleys of human behavior to increase the likelihood of an action occurring: the ease of performing an action and the psychological motivation to do it.

Once Barbra completes the simple action of clicking on the photo, she is dazzled by what she sees next.

3. Variable Reward

What distinguishes the Hook Model from a plain vanilla feedback loop is the hook’s ability to create a craving. Feedback loops are all around us, but predictable ones don’t create desire. The unsurprising response of your fridge light turning on when you open the door doesn’t drive you to keep opening it again and again. However, add some variability to the mix — say a different treat magically appears in your fridge every time you open it — and voila, intrigue is created.

Variable rewards are one of the most powerful tools companies implement to hook users; chapter four explains them in further detail. Research shows that levels of the neurotransmitter dopamine surge when the brain is expecting a reward. Introducing variability multiplies the effect, creating a focused state, which suppresses the areas of the brain associated with judgment and reason while activating the parts associated with wanting and desire. Although classic examples include slot machines and lotteries, variable rewards are prevalent in many other habit-forming products.

When Barbra lands on Pinterest, not only does she see the image she intended to find, but she is also served a multitude of other glittering objects. The images are related to what she is generally interested in — namely things to see on her upcoming trip to rural Pennsylvania — but there are other things that catch her eye as well. The exciting juxtaposition of relevant and irrelevant, tantalizing and plain, beautiful and common, sets her brain’s dopamine system aflutter with the promise of reward. Now she’s spending more time on Pinterest, hunting for the next wonderful thing to find. Before she knows it, she’s spent 45 minutes scrolling.

4. Investment

The last phase of the Hook Model is where the user does a bit of work. The investment phase increases the odds that the user will make another pass through the hook cycle in the future. The investment occurs when the user puts something into the product or service such as time, data, effort, social capital, or money.

However, the investment phase isn’t about users opening up their wallets and moving on with their day. Rather, the investment implies an action that improves the service for the next go-around. Inviting friends, stating preferences , building virtual assets, and learning to use new features are all investments users make to improve their experience. These commitments can be leveraged to make the trigger more engaging, the action easier, and the reward more exciting with every pass through the hook cycle. …

As Barbra enjoys endlessly scrolling through the Pinterest cornucopia, she builds a desire to keep the things that delight her. By collecting items, she’ll be giving the site data about her preferences. Soon she will follow, pin, re-pin, and make other investments, which serve to increase her ties to the site and prime her for future loops through the hook.

Hooked: How to Build Habit-Forming Products goes on to explore external and internal triggers, why some people eventually lose their taste for certain experiences, the impact of variability on retention, and how investments encourage users to cycle through successive hooks.

Betty Crocker: Why You Need to Add Ingredients to Your Cake Mix

Here's a great example of how our minds are wired in a way that can have some interesting impacts.

In Shop Class as Soulcraft: An Inquiry into the Value of Work Matthew Crawford writes:

Back in the 1950s, when the focal practice of baking was displaced by the advent of cake mix, Betty Crocker learned quickly that it was good business to make the mix not quite complete. The baker felt better about her cake if she was required to add an egg to the mix. So if the Warrior were to be christened with a street name, an apt one might be the Betty Crocker Cruiser, forged as it is in the Easy Bake Oven of consumerism.

This must be a derivative of The IKEA Effect, whereby we value things more if we have to work for them.

How a little pain makes something more attractive

These findings do not mean that people enjoy painful experiences, such as filling out their income-tax forms, or that people enjoy things because they are associated with pain. What they do show is that if a person voluntarily goes through a difficult or a painful experience in order to attain some goal or object, that goal or object becomes more attractive.

Source: Mistakes Were Made (But Not by Me): Why We Justify Foolish Beliefs, Bad Decisions, and Hurtful Acts

The Ikea Effect: Why Doing Things Ourselves Makes us Happier

The IKEA effect is a super-interesting part of our psychological wiring that has all sorts of implications.

Basically, people who voluntarily undergo a great deal of pain, discomfort, or effort to get something will be happier than if it came to them easily.

IKEA uses this to their advantage. So did Betty Crocker, who always required that you at least add one ingredient to her cake mixes. And, interestingly, perhaps this is why we consume so many calories. What if we get less pleasure from food that's prepared for us, so we eat more of it. When we cook at home, we get more pleasure and not only do we eat healthier but we get more pleasure.

Not only does “assemble yourself” furniture save IKEA money and increase efficiency, but you value that Billy Bookcase even more because you had to put it together.

From an interview with Dan Ariely:

The Ikea effect is kind of simple: You build something and you fall in love with it. When marketers do sell you a product, their theory is about preference fit. You like pink and I like orange and I like this a little higher and everyone knows their preference. That's important. But I think the more important issue is not the preference fit but the investment in the product. Say you like orange and pink. Imagine that in one universe you found shoes that are orange and pink and in other you had to invest five minutes of effort and attention and care to choose the exact shades. What we show is that when you've invested into it, you would appreciate them more and you would think about them more. You might talk about them more, you might be more likely to buy them again from the same vendor, your connection would be much higher. It takes very little investment to make something your own. … It's sometimes surprising how little that is.

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Still Curious? Dan Ariely is the best-selling author of The Upside of Irrationality: The Unexpected Benefits of Defying Logic at Work and at Home and Predictably Irrational, Revised and Expanded Edition: The Hidden Forces That Shape Our Decisions.