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Hooked: How To Build Habit-Forming Products

Lesson 10 of 14

Bonus Video: Rewarding Users Hotseat with Anand Chhatpar

Nir Eyal

Hooked: How To Build Habit-Forming Products

Nir Eyal

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Lesson Info

10. Bonus Video: Rewarding Users Hotseat with Anand Chhatpar

Lesson Info

Bonus Video: Rewarding Users Hotseat with Anand Chhatpar

Now it's going to be your turn to reward your users and in this exercise what I want you to do is to review your flow is to ask yourself to go back to remember when we did this in the last exercise where we wrote down step by step by step in your new flow goto the revised version of of your flow and ask yourself where can you uh where can you insert a bit of variability? Where can you leave users wanting more or make an inherently variable situation? Uh give it give the user greater agency and control over inherently variable situation so what I want you to ask yourself is where can you brainstorm three ways too? To use these types of variable rewards were now very few products have all three types of variable rewards almost no products have tribe hunt itself. One of the few that I can think of is email which is kind of the mother of habit forming technology is right the technology we wish we could stop using but we can't part of it is because email has in it tribe hunt and self there ...

a few products khun do all three but what I want to do is to kind of ask yourself see what might it look like if your product utilized rewards of the tribe and you might be surprised that that product that you wouldn't imagine could utilize these variable reward types actually can for example venmo right a payment processing company was a payment app turned out you know nobody would send money before in a social way where venmo utilized these rewards of the tribe inside there and made sending money ah social experience something that people all of a sudden started broadcasting who would have thought that that that would work turned out they sold to papal like the company did quite well by thinking outside the box by asking themselves how might we utilize rewards of the tribe this gratification that comes from other people how might we use rewards of the hunt this variable reward from things money information and then finally how might you use rewards of the self how can you use this search for mastery complete should competency and control okay so let's take a few minutes we'll do this exercise for about five minutes uh and then we'll we'll keep moving onto the last step of the hook so on and you wanna come up and join me all right so first so we could get on the same page tell me again uh for folks who are watching what's your business and what's the habit uh network off marketers ok looking for revelation and feedback from the peers right um and what was the time of the narrative again? It was every time the user felt everything you felt unsure that what they were doing was the best way to do things right or if they've found alone there's nobody else to go to for feedback in their team okay, they would goto a network and and asked for ok and it's a it's a website you said or an apple you upstairs website okay, so they open the website okay terrific. So right off the bat we know you have rewards in the tribe because it's something around comparing absolute what you just you go get your tribe to give you free okay? Okay, so the idea so walk me through a bit of the flow from that last exercise so, uh, feeling unsure didn't make the right choice about using the right vendor? You know, I'm going to get the best bang of the body from my marketing buck yes, I open the website and then what happens? You click request feedback ok, once you go to the network to request feedback, upload something aah and you wash the feedback roll in but how have I entered in what I am doing or what I want you back on when you first sign up it would have a profile which allows youto decide what your role is and that connects you with other people like you I see so what I what I put in my project or what I put in just my roll your rule actually we're driving if you want to be more specific, we couldn't make it so that it's more project specific I'm just thinking what were the easiest behavior? So actually one of the earlier questions you asked his orders the most lacking resource what can you get rid off and actually thought uploading might be the hardest thing for them to do? So what if we actually feared a version where there's no applauding and you just get connected straight away with a screen shedding partner that you talkto just all sort of the same job that you do so we could come up with perhaps just give me somebody who has experience I just need the voice to talk to somebody to see what I'm about to send out this e mail campaign I know you sent a bunch of female campers are before what do you think of my five minutes to take a look at? Well, interesting. Okay, great. So I open the app I say connect me to somebody with one button and here or maybe or maybe even better maybe I see a screen of people who are ready right now. So there's this rewards of the hunt around searching oh my gosh, that person works at a at a big eight ad agency you know that we're on works at a big cpg company which one I'm gonna choose so that becomes rewards of the the hunt the searcher who do I want to talk to you? The tribe is of course communicating with people is definitely the conversation is reward to the tribe what about rewarding the self can we see anything around mastery competency maybe you're a petition goes up as you help other people okay, because in order for you to get fever from other people, you need to have enough credits which you get by actually reviewing work for your peers as well. So you develop in a position in the community but I wonder if that's tribe is only order the tribe you're repetition or is there a reward of the self? So I think its rewards of the tribe this validation that comes from other people I'm wondering if there's like a checkbox mechanic or hey you've you filled out something about your profile or the kind of project you're working on her or you've given us more information around you know how how much progress you've made in some way like I'm thinking about on linked in you know it's when you feel in your linked in profile yes, the first two things that moves you know, a ton within the light you never you never get to one hundred right? You're always ninety five percent to done but you can see your progress the more interesting this mastery and competence completion consistency also one night okay good I think we're on the same page no one of the things I was thinking is that your competency um as you get more and more company and you start seeing that the feedback you're getting more and more positive and actually start feeling like you mastered interesting okay so you can see you're you're more of a pro you've got maybe some kind of score that goes out the more you use the products and then we'll use a part of the less improvements are looking suggest maybe you can actually see his father's maybe you even have some kind of template or something that the user puts in that says here's the things that I'm working on a uh a student you start the chat it comes at you so you push it we don't make it too complicated but assumes you start to open the chat there's almost like a check box of did you ask this question did you ask this question and the mastering control is yes I did yes I did yes I did done it may be something to that effect gives you a sense of completion right maybe flow chart yeah that you can say okay there's done terrific still terrific so all these air you know the point of today's workshop is to come up with potential features potential ideas so that you can go off once you know the model once you know how the book works you can go off and and say okay, well, you know what? That idea that was kind of crummy that doesn't actually doesn't scratch the users it very well let's not do that one but you know, we never thought hey, you know this this rewards the hunt actually could be really satisfying could scratch the users it and give them greater certainty yes, just a variance for great fantastic we'll get man thank you. Thank you. Thank you. All right. So, uh, any questions about everyone's got something that came in from from the chat room here and for this example they say let's say you're a restaurant how do you fit in something like a variable reward? I find it hard to do when you have a product that needs to be consistent. For example, like, what variability is a company like starbucks offering? Yeah. That's a great question, let's let's. Ask folks what kind of variability is a company like starbucks offering frequent? Were you bored frequent rewards, right, there's all these bones so they gave you? Does anybody actually use the starbucks at border ahead? Then it'll be ready for you, right? Is the product ready? Is it not? Is the product not ready when you come by? What else? Yeah, who else am I going to see than actually going yeah, all right. At the howard chilled talks about how this is the third desk right? There's a home that was the office there's the starbucks there's he wants people to hang out and no other people who frequent starbucks that's a variable report as well the social connection. Fantastic, right? Absolutely anybody, anything else? Anything else that starbucks does david products? No right there constantly rolling out. What might I find? It's pumpkin spice lattes season it's limited time it might go away soon, right there's all these very bills and what you're offering the rewards of the hunt who you might see the rewards of the tribe on the rewards of the self reward in itself is a tricky one for starbucks. I'm not sure if they do that. Can anybody think of a reward in itself? Yeah, I think maybe one thing they're really good at is with their app. You get the free drink after like every fifteen. So there's kind of like this status of getting to fifteen then you get a reward of free drink. Interesting? Yeah, yeah, rewarding yourself, paying ten cents more and it's okay, excellent. Actually, yeah, there probably is that completion mechanic now that I think about it of you know how many people have said out loud, I can't start my day until I have my coffee yeah, you can it's in your head, right? It's an association your mind but there is this sense of completion. If I don't drink that cup of coffee, I can't start right. I can't go on unless I've checked that box. Alright, so yes, uh, how do you balance the need thio deliver a variable reward, but, uh, also capitalize on lowering the bill are making it easier to you. So the going off the ability, a lot of terrific question is a great question. So the question is, basically, look, you know, you told me that novelty is a liability in this action phase, that we want things to be simple, to be clear, to require low cognitive load. Now you're telling me to insert variability in the reward face what's going on where the answer is, where you put these things, so novelty is a liability in the action phase. If something is too difficult to hard to understand to non routine, it makes the key action harder to dio but novelty and the reward phase is an asset, so that's that's a differentiation. Great question.

Class Description

Customers who come back save you time and money. You don’t have to expend as much energy attracting them – they already know you and what you do – and they are a more predictable source of revenue. Learn the science of creating a repeat customer in Hooked: How To Build Habit-Forming Products.

Nir is a writer and thinker whose primary focus is helping businesses unlock the power of habits. In this class, he’ll teach you how to build products and experiences that are inherently “sticky.” 

You’ll learn:

  • The psychology of triggers and how to build them into your product/service
  • How to use variable rewards to increase engagement
  • The stages of habit formation and how to optimize them for better retention

Nir will teach you how habits develop and he’ll show you how to apply those insights to your business – no matter what kind of service or products you sell. You’ll also learn about the common design patterns of habit-forming products.

If you want to lower the cost of doing business by increasing the number of repeat customers you work with, don’t miss Hooked: How To Build Habit-Forming Products. 


a Creativelive Student

The information presented by Nir was excellent and pertinent to today's evolution of business development and success. This was beyond my expectation. There was great material that was stimulating and engaging.

Jason Casher

Loved it! Was thorough and gave a strong sense of direction, as well as clear methods to check to see if you are on right track.


Nir Eyal is great! Insightful, interesting course on how habits are created, established and reinforced.