How to build habit-forming products

Lessons from "Hooked" and "The Power of Habit"

It costs less to keep a customer than it does to acquire a new one.

Unless you get people addicted, you’re going to have to play the customer acquisition game (where costs keep rising).

But if you build something that becomes part of people’s daily routine, it’ll help your business in 3 ways:

1. Increasing customer lifetime value

2. Freedom of greater price flexibility

3. Free marketing from word of mouth

That’s what Nir Eyal discusses in his book “Hooked” as well as Charles Duhigg in “The Power of Habit”

Let’s take an example of the popular dating app Tinder…

Finding triggers to remind the user

Every habit begins with a trigger that signals a behavior.

There are two types of triggers:

1. External triggers - ads, content, CTA’s on websites.

2. Internal triggers - Boredom (so they go on social apps), uncertainty (so they search on Google), and loneliness (so they open up Tinder)

Internal triggers are much more powerful than external. Over time, it becomes part of their subconscious to take an action whenever they feel the trigger.

Easy, repeatable behaviors

When someone experiences the trigger, the action they take must be done with little to no effort.

What we don’t want is to have people drastically change their current routine. We’re just trying to subtly implement ourselves into their lives to fill any voids.

Sticking with our Tinder example:

The swiping action became addicting because it’s much easier to swipe on your phone than it is to get ready, go outside, and physically go up to someone and talk to them.

You didn’t have to face any rejection or embarrassment. Just keep swiping until someone likes you back.

Reward them for their actions

The most important part of developing a habit is your product keeping its promise.

There needs to be some type of reward or good feeling after using your product. To the point where they feel something is missing if they don’t.

Imagine if people swiped all day on Tinder, but never found a match. They would feel that it’s useless, and look for another fix whenever they feel the “lonely” trigger.

So they must be rewarded in finding matches to hopefully become their dating partner.

But it goes deeper than that…

The reward needs to be variable and have some mystery to it.

When people swipe on Tinder because they’re feeling lonely, they’re not really looking to find their perfect match to be with forever. That would end the thrill of their reward for swiping.

The reward of simply matching with someone is what they’re seeking.

A new experience every time they match, not knowing how the next person will come in and affect their lives keeps them coming back to keep swiping and look for the next match.

It’s the same with social apps, you never know what’s coming up next in your feed.

Bonus example

In the early 1900’s, before Claude Hopkins advertised for Pepsodent, only 7% of the population used toothpaste (gross).

After, over 65% used Pepsodent toothpaste.

He created a toothbrushing habit across America.

He found a certain trigger and reward to subconsciously build the habit into people by creating a craving.

1. Trigger - running your tongue across your teeth and if you felt any film.

2. Action - Brushing your teeth with Pepsodent to get rid of the film.

3. Reward - Film is gone, plus a minty breath feeling that does nothing for your teeth’s health, but gives people that feeling that something is missing if they don’t have it.

So don’t be boring, build a habit into people’s lives.