Nir Eyal, author of Hooked: How to Build Habit-Forming Products, sits down with Americus to discuss the premise behind his book and the four ways companies can capture their competitions’ customer habits.
Nir begins by giving us a little background behind his research that led to his 4 Hook Model that serves as the foundation of his book. He dug into decades old proven research and applied it to factors we see today. What we get is a four step process companies can use to encourage customer behaviors that lead to habit building. Nir notes that he views habit building as a positive action and separates it from the negative connotations that the word addiction brings. He focuses on positive habits that bring joy and delight into consumer’s lives.
Nir and Americus discuss an example from his book, the Bing vs. Google search engine example. When you strip away the brand names, research has proven that Bing is just as good as Google. So, how does Bing get customers to break the Google habit? Nir says it is tough, but there is a way. First, companies must provide a way through the hook with faster velocity. For example, Netflix helped us break our Blockbuster habit many years ago by providing easier and quicker access to movies. It was easier to order movies or stream them than to run to the video store. Secondly, you must provide greater frequency to the hook. You need to provide opportunities to interact more than the original habit. Third, your reward must be significantly more rewarding that the original habit. Nir notes a fact from Harvard Business Review that states the replacement must be 9 times more rewarding than the original habit. Finally, you need to provide easier entry into the hook. Nir references how Google Docs has taken market share from MS Office because it is easier to start using. It is accessed online for free and there is no software and licenses to purchase.
Nir concludes the opportunity to break a consumer habit is rare and tough, but nothing is impossible (ending with a note of positivity).
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