42 pages • 1 hour read
Nir EyalHooked: How to Build Habit-Forming Products
Nonfiction | Book | Adult | Published in 2013A modern alternative to SparkNotes and CliffsNotes, SuperSummary offers high-quality Study Guides with detailed chapter summaries and analysis of major themes, characters, and more.
Summary
Background
Chapter Summaries & Analyses
Key Figures
Themes
Index of Terms
Important Quotes
Essay Topics
Tools
BetaIntroduction-Chapter 2Chapter Summaries & Analyses
Introduction Summary
Nir Eyal borrows cognitive psychologists’ definition of habits, emphasizing that they are actions which feel “automatic” and therefore do not require conscious thought (1). He ponders why some apps are more “habit forming” than others, and claims that a technology’s best hope for success is to be as addictive as possible (1). Companies compete for total numbers of users, and profit more when their users form a consistent habit of using their product. Eyal argues that by understanding human psychology companies can integrate their products into their users’ “daily routines and emotions” (3). They can make use of users’ “internal triggers,” which prompt users to open their apps regularly (3).
Eyal offers an overview of his experience in the industry. He recalls being intrigued by how online social games made their content so appealing and addictive to users. Eyal claims that many companies keep their methods private. To learn more about user habits he reviewed products from a variety of companies, and also performed academic research on consumer psychology and people’s relationship with technology. Eventually Eyal became a consultant and taught a class at Stanford. In doing this work, Eyal developed his approach to designing habit-forming products: the “Hook Model” (5).
The first step is the “trigger,” which might be internal or external, such as a website link, an app icon, or an email (7). For instance, someone might see a family photo on Facebook. This prompts them to engage with more pages of the site, increasing the chance that the next time they want to socialize they will go back to Facebook. Over time, this behavior becomes a daily habit which is automatically prompted, or “triggered,” by the user’s own mind. Once triggered, the user will engage in an “Action,” the next step of the process, by opening the company’s product. Next, the user encounters a “variable reward” in the app’s content; for instance, they might see pictures of a favorite vacation place or other appealing images (8). Finally, the user reaches the “investment phase” in which they invest something into their use of the technology (9). This could consist of “time, data, effort, social capital, or money,” all of which increase the probability that the user will return to the site (9).
Eyal says that understanding user behavior is like a “superpower” which can create powerful addictions in users; he argues that this knowledge should not be used in unethical ways (11). Eyal claims that habit-forming products can help people create positive habits in their lives, and that his book is meant to be a “practical tool” for web designers (12).
Chapter 1 Summary: “The Habit Zone”
Eyal explains that the brain forms habits, or automatic responses, in its basal ganglia; this frees up the rest of the brain to focus its conscious attention on other tasks. Eyal argues that this aspect of human psychology should be of particular interest to companies whose products can be used routinely, rather than products that are purchased once or infrequently like life insurance. By hooking customers to form habits around their products, companies can increase their “Customer Lifetime Value,” which is the total profit they can make from that customer before they stop using the service or pass away (19).
Consumer habits allow companies to raise the prices of their products, as customers who have formed routines around using certain services are unlikely to leave even if costs go up (20). Another advantage of having habitual customers is the tendency of these customers to tell others about the product, providing free word-of-mouth marketing for the company and attracting new users. The length of this process is called “Viral Cycle Time”; habitual engagement shortens the Viral Cycle Time, attracting more users to the product.
Habits are so powerful that even new companies with better products or services often struggle to coax customers away from their habitual routines. Online companies maximize these habits by encouraging users to “store value” in their sites: For instance, Gmail saves all email exchanges, and Instagram functions as an online scrapbook (24). Stored value incentivizes users to continue using the same services.
Eyal repeats the cliché—“Old habits die hard”—and claims that most new companies struggle to persuade users to change their existing habits (26). Companies can help users form habits by catering to their interests in the form of algorithms which predict their preferences. Customers often build spending habits through frequency and “perceived utility,” or how useful they consider the product (30). For instance, looking something up on Google is a very frequent activity with a high perceived utility for most users; thus it becomes an entrenched habit.
Eyal explains that traditionally, the marketing industry has seen products as “painkillers”—functional products which solve a specific problem—or “vitamins,” which are products that cater to people’s emotional needs (32). Eyal challenges this dichotomy by pointing out that people can form habits around using products such as Twitter or Facebook, making their engagement feel like a need, since without it they are uncomfortable. Eyal argues that habit-forming tech represents a mix of both “painkiller” and “vitamin” products (34). He differentiates between habits and addictions, noting that addiction requires dependence and is inherently unhealthy, while habits can be positive or negative (34).
Chapter 2 Summary: “Trigger”
Eyal reiterates that triggers are “actuators of behavior” and the first step of habit formation (40). External triggers contain information prompting the viewer or user to do a certain action. For instance, if someone sees a vending machine poster with a smiling man holding a Coca-Cola, they are prompted to buy one themselves. Eyal claims that users are more likely to form habits around following simple, obvious cues rather than weighing multiple choices which require them to think consciously about what they are doing. Eyal lists four main external triggers used by corporations: “paid triggers” in the form of advertisements, “earned triggers” such as popular videos or good reviews, “relationship triggers” such as social media likes or friend requests and real-life recommendations, and “owned triggers” such as app icons or company newsletters.
According to Eyal, “the ultimate goal of all external triggers is to propel users into and through the Hook Model so that, after successive cycles, they do not need further prompting from external triggers” (47). Internal triggers are governed by the user’s mind. Once a product becomes linked to a particular routine or feeling, people’s own brains cue them to use that product to relieve emotional pain and discomfort they feel without it. This discomfort, which Eyal compares to an “itch,” could range from uncertainty to boredom, loneliness or anxiety (48-49).
Eyal coaches the reader to consider why people really use the Internet in the way that they do, and what needs they are trying to meet, consciously or subconsciously, in doing so. Designers can further understand user motivation by creating “[u]ser narratives” by inventing characters and considering how and why they may use a certain product or approaching the problem with the “Five Whys” method of questioning. Eyal notes that negative emotions are usually the source of internal triggers. For example, people are afraid of missing out on community news or personal messages and so open their Facebook accounts.
Introduction-Chapter 2 Analysis
In these chapters, Eyal raises the questions he addresses throughout his work, inviting the reader to discover the answers. By explaining his credentials Eyal hopes to lend his argument gravitas and show that he is a successful player in the tech industry. He employs real-life anecdotes to illustrate his points and make his work more relatable and engaging. For instance, he relays a story about one of his own habits, going for a morning run and greeting his neighbors with “Good morning,” to show how simple, repeated actions can easily become automatically performed habits. Eyal’s anecdotes also involve other individuals and real-life stories of corporate success. For instance, Eyal marvels at the success of the online products Candy Crush Saga and “Evernote,” both of which have converted their customers’ interest into habitual use and, ultimately, profits.
These passages explore a key theme of the text, Psychology and Successful Product Design, and why a product’s habit-forming potential is so important. Eyal links a user’s time spent engaging with a product with the revenue earned from that user. He notes that this business model is standard among tech companies. Eyal argues that businesses cannot afford to neglect user engagement; they should focus on enticing users to return to their product as much as possible to maximize their profits. Eyal claims that companies must have a solid understanding of human psychology to effectively market their products. He explains:
Companies increasingly find that their economic value is a function of the strengths of the habits they create. In order to win the loyalty of their users and create a product that’s regularly used, companies must learn not only what compels users to click but also what makes them tick (2).
Eyal believes that companies who better understand how people think will outcompete others; he concludes that the “[f]irst to mind wins” (2).
These chapters raise the issue of Habit Formation, Addiction, and Ethics, and the morality of encouraging people to form habits around certain products. Eyal admits that the success of advertisers and online games is “dependent on mind manipulation” (4). He acknowledges that most “internal triggers” are generally negative emotions such as uncertainty, boredom, fear, stress, or loneliness. Eyal encourages the reader to consider their customers’ negative emotions in order to find a way to provide relief, creating a positive reward for the user and ensuring their return to the product. He does not dwell on the fact that this relief is very temporary and may make the user feel their negative “internal trigger” more frequently as their habitual use intensifies. He writes: “Fear is a powerful internal trigger and we can design our solution to help calm Julie’s fear […] Now that we have an accurate understanding of the user’s pain, we can move on to the next step of testing our product to see if it solves his problem” (55).
A potential critique of the text is that Eyal doesn’t explore the ethical implications of creating and then exploiting negative emotions in product users. He also does not address the impact that habitual use of tech products may have on users’ mental health or time management. For instance, he summarizes a study which showed a correlation between depression and Internet use. Eyal ponders whether the study participants are using the Internet to alleviate their sadness, hinting that designers could use these negative emotions to fuel engagement with their products. He does not consider a reverse in causality, and entertain the idea that perhaps increased Internet use is causing the participants’ depression to worsen. This would mean that habit-forming products are actively harmful to these users.
Eyal makes a distinction between “addictions” and “habits,” noting that addictions are always negative and, for ethical reasons, should not be encouraged. However, he does not explain how a designer can encourage a user to form a habit but prevent it from developing into an addiction. He acknowledges that many people already feel addicted to their devices and struggle to regulate their relationship with technology. He writes: “The technologies that we use have turned into compulsions, if not full-fledged addictions […] How do companies, producing little more than bits of code displayed on a screen, seemingly control users’ minds?” (1).
Eyal’s discussion about manipulation and mind control shows that he is aware of the exploitative potential of advertising and online media. While Eyal acknowledges that designers should be aware of the ethical implications of their work, he hints that people should not worry about habit-forming products causing individual or societal problems since people are “threatened but ultimately more powerful” than the machines they use (12).
