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Editor's Notes

1. WC Swimmer – Phellps WC Investor – Warren Buffett WC Cook – you call Magda Gessler… If we want to become the best in business and change habits for the better.. Changed billions lives and generate billions of revenues… Partly because they mastered the art of creating habit-forming products.
2. to make inroads, e.g. people continue to use the QWERTY keyboard despite better keyboards available But people are creatures of habits, and creating new ones requires them to forget certain old ones. This means that for new types of behavior to really become ingrained into our decision-making systems, they need to be reinforced again and again. The benefit is that once you have succeeded in turning your product into a habit, another competing product will find it tougher to displace your product, e.g. Google’s ubiquity and synonymity with Internet search has meant that products that are not particularly bad, like Bing, have failed to become as popular.
3. Use the frequency-vs.-perceived utility plot. If the product falls in the Habit Zone, i.e. is used often and has a high enough utility compared to competing solutions, then using it can become default behavior for a consumer. In one of the two examples marked in the figure, a single search result on any engine other than Google is not noticeably poorer than what you would get on Google, but Google is used so frequently that it is the option most of us turn to. On the other hand, purchasing on Amazon is nowhere as frequent as much of our other online activity, but its perceived utility is higher because we know that every time we log on to Amazon, the likelihood of finding the product we are looking for is high and it is also going to be available at a competitive price. The position of a product on this chart is not static - many habit-forming products start off as vitamins, but with repeated use, turn into painkillers that satisfy the itch to use them. Vitamins are products that do not solve an obvious problem, but feel nice to have, while painkillers are products that cater to a very obvious need. Many products that are habits for us now because of their perceived utility to us might have been less important to begin with.
4. But how do successful companies actually go about creating habit-forming products? Is this all chance, or is there a technique to it? This book covers some of the key aspects that any designer or seller of a habit-forming product would do well to keep in mind.
5. Trigger – External or internal cues that prompt certain behavior Action – Use of the product, based on ease of use and motivation Variable Reward – The reason for product use, which keeps the user engaged Investment – A useful input from the user that commits him to go through the cycle again We will look at these four phases in greater detail in chapters after the next one, and also explore some ideas related to this whole field of user manipulation.
6. Habits, much like pearls, need a foundation and layer upon layer (of continued behavior change) to be completely formed. Triggers are the cue or the foundation for this behavior change. Triggers can be of two types: external and internal.
7. The information on what to do next is informed through an association in the user’s memory For a product to truly become a habit, its triggers need to move from the external forms to the internal. Internal triggers are driven by users’ emotions and associations stored in their memory. … and particularly negative emotions.
8. Trying to rid oneself of negative emotions like boredom and loneliness are powerful triggers for using a particular product. As a product relieves these negative emotions repeatedly, our mind subconsciously begins to associate it with this relief. This gradually strengthens the bond with a product, resulting in the formation of a habit, e.g. our reliance on Facebook or Twitter for instant social connection. Designing a habit-forming product requires an understanding of the emotions that are tied to these internal triggers, as well as knowledge of how external triggers can be used effectively to urge a user to perform a certain action.
9. Habits, much like pearls, need a foundation and layer upon layer (of continued behavior change) to be completely formed. Triggers are the cue or the foundation for this behavior change. Triggers can be of two types: external and internal.
10. The Behavior Model developed by Dr. B.J. Fogg of Stanford University says that the user’s action depends on three prerequisites (B = MAT): M – sufficient motivation A – ability to perform a certain action T – a trigger to prompt the action Therefore, for a clear trigger to be effective, the user should be motivated enough and should be able to perform the action with minimal effect.
11. Trying to rid oneself of negative emotions like boredom and loneliness are powerful triggers for using a particular product. As a product relieves these negative emotions repeatedly, our mind subconsciously begins to associate it with this relief. This gradually strengthens the bond with a product, resulting in the formation of a habit, e.g. our reliance on Facebook or Twitter for instant social connection. Designing a habit-forming product requires an understanding of the emotions that are tied to these internal triggers, as well as knowledge of how external triggers can be used effectively to urge a user to perform a certain action.
12. Even when there is a successful trigger and a compelling enough motivation, a person needs to be able to perform an action. The easier it is to perform it, the greater is the likelihood of it becoming a habit, e.g. the boom in blogging in the 2000s after Blogger made it possible to open a blogging account within minutes or the ease of taking photos with an iPhone. The lower the time, money, physical effort or mental labor involved, or the more socially acceptable it is, or the least deviation it requires from a user’s existing routine, the easier it is for him to perform an action. Consequently, the greater is the likelihood of the product becoming a habit.
13. Between motivation and ability, it is easier to target the latter. Design your products such that it reduces the effort involved for the user, instead of trying to build motivation levels. Both motivation and ability can also be increased using counter-intuitive methods called heuristics. These are mental shortcuts that all of us employ to make quick decisions. Examples include: The scarcity effect – the scarcer a product is, the higher is its perceived value, e.g. the ‘limited stock’ tag on Amazon products ends up increasing sales for those products The framing effect – context can alter the desirability of a product, e.g. the same wine is reported to be tastier if the price is increased The anchoring effect – one aspect of a product is given undue importance over other features, e.g. people end up buying more products of a brand that has a discount sticker on it, even if its quality and the effective cost might be no different than other competing products in the vicinity The endowed progress effect – in case of reward programs, the closer users feel they are to the goal the more motivated they become, e.g. the ‘Improve Your Profile Strength’ step in LinkedIn has a completion bar that starts off all users with part of the bar already filled, strengthening their belief that a full profile is not far away.
14. Habits, much like pearls, need a foundation and layer upon layer (of continued behavior change) to be completely formed. Triggers are the cue or the foundation for this behavior change. Triggers can be of two types: external and internal.
15. Activated when we crave Not pleasure Stress of desire Our reward system activates with anticipation… and calms when we get what we want That’s the itch we seek to scratch
16. Variable rewards, and not just any rewards, make users come back to a product again and again by reinforcing the motivation. Finite variability can become boring after a while, while infinite variability sustains user interest. Thus, variable rewards should not only satisfy one or more user needs, but also keep them interested in engaging again (and again) with the product. There are three types of variable rewards: Rewards of the tribe – those that satisfy our social needs by making us feel more important and accepted, e.g. Likes, shares and comments on Facebook Rewards of the hunt – those that satisfy our basic survival instincts by helping us acquire things we consider important, like cash and information, e.g. the mix of mundane and relevant content on Twitter entices users to Rewards of the self – intrinsic value, not coming from others or cash/information
17. But gamification, or the introduction of rewards, cannot be used blindly to drive user engagement. It is extremely important for product designers to figure out the kind of reward that will motivate their intended users, e.g. Mahalo, a Q&A forum gave monetary rewards to answerers, but bombed, while Quora, a similar service, only provides upvotes, and is very successful. It is also important to provide users with a sense of autonomy or choice – a reward when they feel constrained might not work. If they feel that they are being forced to adapt a certain behavior, they can rebel – a phenomenon known as reactance.
18. habit-forming products is that they build an anticipation of future benefits in the mind of the user. Whatsapp: open invitation for an external trigger to be returned
19. • There are three common tendencies that can lead to this commitment, all involving a process known as rationalization: › Our tendency to irrationally overvalue our work, e.g. IKEA products elicit an irrational following because users assemble the furniture themselves › Our tendency to seek consistency with past behavior – having made a small commitment eases the path to make bigger ones › Our tendency to avoid cognitive dissonance through reconciliation of conflicting ideas, e.g. people conditioning their bodies to like alcohol or spicy food because everyone else seems to derive pleasure from these
20. Habits, much like pearls, need a foundation and layer upon layer (of continued behavior change) to be completely formed. Triggers are the cue or the foundation for this behavior change. Triggers can be of two types: external and internal.
21. We live is time in which the majority of the people are being manipulated by some simple concepts we learned today. But … But the tools and knowledge we have, can also be use for the good.