By: Nir Eyal

Context: Describe's Nir's Hook Model (Trigger → Action → Variable Reward → Investment), and the psychology underpinning to today's habit-forming consumer software products.

Extra: the Do This Now section below Notes are Nir's exercises at each end of chapter.

Notes

Introduction

habits = "automatic behaviors triggered by situation cues"; things we do with no conscious thought
Companies attach their product to an internal trigger; a solution to an inherent itch
- When we feel bored we open Twitter; lonely and we open Instagram
- The first-to-mind solution wins
The more times users run through hooks in the product, the more likely they are to tie the product to the internal trigger. This creates unprompted user engagement.
Hook Model: Trigger (internal or external) → Action → Variable Reward → Investment
- Trigger: the actuator of behavior. An email, website link, or app icon on the phone
- Action: the behavior done in anticipation of a reward. Important: the ease of performing an action versus the psychological motivation to do it
- Variable Reward: feedback loops are everywhere, but predictable outcomes don't create desire. Lotteries & slot machines create desire.
- Investment: user does a bit of work by putting time, data, effort, social capital, or $$ into the product

The Habit Zone

By successfully creating user habits, you: increase CLTV, improve pricing power, grow users faster, improve Viral Cycle Time
- Viral Cycle Time: the amount of time it takes a user to invite another user
To become a habit, an action must deliver a much utility, by gaining pleasure or avoiding pain. 2 most important factors are: frequency vs. perceived utility
- Frequency: how often the behavior occurs
- Perceived utility: how useful and rewarding the behavior is to the user vs alternatives
Successful consumer products often start as vitamins, but become painkillers once they become the solution to cure the itch of an internal trigger (e.g. boredom, loneliness, sadness)