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How to Hook Customers
with Habit-Forming
Products
An Interview with Hooked Author Nir Eyal
Engaging products don't happen
by mistake. Facebook, Instagram,
Pinterest, even spectator sports,
all have an underlying
methodology behind it making
them engaging and ultimately
habit-forming.
We interviewed Nir Eyal, author of Hooked:
How To Build Habit-Forming Products. His
background in advertising and gaming led
him to write about consumer psychology
principles that change customer behavior.
He explains how to create engaging
products using his Hook model.
A hook is a 4-step process that
connects the user's problem to a
company's solution, frequently
enough to form a lasting habit.
With successive cycles of hooks,
customer preferences are
changed, tastes are formed, and
habits take hold.
What is a Hook?
Because habits are big business.
Addictive products depend on
unprompted user engagement. No
advertising, no spammy messages.
If you can increase user engagement
to the point where people turn to
your product out of habit, then you've
gained customers for life.
Why are Habits
Crucial?
The idea is to create a mental link
with internal triggers -— most
frequently these are negative
emotions. So when we feel lonely,
what product do we reach for?
When we’ve got a question, what
app do we use?
How Does a
Product
Become a
Hook?
A hook has four phases: a trigger,
an action, a variable reward, and
an investment.
The 4 Phases
of a Hook
A trigger tells us what do next.
This can be internal ("I'm feeling
bored") or external (an email
from the company).
Trigger1
An action is something a user
does in anticipation of a
reward.
The less effort it takes to get
the reward, the more
frequently customers will
complete the action.
Action2
This is the payoff. But because
it's variable, it doesn't always
come when or how the user
expects it. Like a slot machine,
this keeps the user endlessly
searching for the next reward.
The variability of the reward
creates mystery. If the mystery
is gone and the product
becomes predictable, then the
user stops engaging.
Variable
Reward3
This increases the likelihood your
users will come back to your
product.
e.g. When you like or comment on
something, the system sends you
an external prompt like an email
saying “you might like these other
things,” which brings you back
into the “hook” again.
Investment4
User investment can take several forms such as:
A. DATA: The more a user gives the company data, the better
the service becomes over time. (e.g. Amazon, Pinterest)

B. REPUTATION: The more a user engages, the better his
reputation becomes. (e.g. Upwork, eBay, AirBNB)

C. FOLLOWERS: The more a user increases followers, the
easier it is to communicate with more people. (e.g. Twitter)

D. CONTENT: The more content a user uploads, the more it
becomes the only destination for cloud storage. (e.g.
Google Drive, Dropbox, Flickr)

E. SKILL: The more a user spends time learning a tool/
service/software, the less likely they are to switch to a
newer tool. (e.g. Photoshop)
Watch THE video
where Nir Eyal explains
his Hook model in detail.
What a lot of entrepreneurs sometimes fail to realize is that it's not
necessarily the best product that wins. Frequently, it's the product
that's at the top of customers' minds that succeeds. Making your
product a habit is key to its success.
Launching Your Startup?
Check out our infographic checklist on the 22
steps to launching your startup successfully.
Click to read!
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How to Hook Customers with Habit-forming Products

  • 1. How to Hook Customers with Habit-Forming Products An Interview with Hooked Author Nir Eyal
  • 2. Engaging products don't happen by mistake. Facebook, Instagram, Pinterest, even spectator sports, all have an underlying methodology behind it making them engaging and ultimately habit-forming.
  • 3. We interviewed Nir Eyal, author of Hooked: How To Build Habit-Forming Products. His background in advertising and gaming led him to write about consumer psychology principles that change customer behavior. He explains how to create engaging products using his Hook model.
  • 4. A hook is a 4-step process that connects the user's problem to a company's solution, frequently enough to form a lasting habit. With successive cycles of hooks, customer preferences are changed, tastes are formed, and habits take hold. What is a Hook?
  • 5. Because habits are big business. Addictive products depend on unprompted user engagement. No advertising, no spammy messages. If you can increase user engagement to the point where people turn to your product out of habit, then you've gained customers for life. Why are Habits Crucial?
  • 6. The idea is to create a mental link with internal triggers -— most frequently these are negative emotions. So when we feel lonely, what product do we reach for? When we’ve got a question, what app do we use? How Does a Product Become a Hook?
  • 7. A hook has four phases: a trigger, an action, a variable reward, and an investment. The 4 Phases of a Hook
  • 8. A trigger tells us what do next. This can be internal ("I'm feeling bored") or external (an email from the company). Trigger1
  • 9. An action is something a user does in anticipation of a reward. The less effort it takes to get the reward, the more frequently customers will complete the action. Action2
  • 10. This is the payoff. But because it's variable, it doesn't always come when or how the user expects it. Like a slot machine, this keeps the user endlessly searching for the next reward. The variability of the reward creates mystery. If the mystery is gone and the product becomes predictable, then the user stops engaging. Variable Reward3
  • 11. This increases the likelihood your users will come back to your product. e.g. When you like or comment on something, the system sends you an external prompt like an email saying “you might like these other things,” which brings you back into the “hook” again. Investment4
  • 12. User investment can take several forms such as: A. DATA: The more a user gives the company data, the better the service becomes over time. (e.g. Amazon, Pinterest)
 B. REPUTATION: The more a user engages, the better his reputation becomes. (e.g. Upwork, eBay, AirBNB)
 C. FOLLOWERS: The more a user increases followers, the easier it is to communicate with more people. (e.g. Twitter)
 D. CONTENT: The more content a user uploads, the more it becomes the only destination for cloud storage. (e.g. Google Drive, Dropbox, Flickr)
 E. SKILL: The more a user spends time learning a tool/ service/software, the less likely they are to switch to a newer tool. (e.g. Photoshop) Watch THE video where Nir Eyal explains his Hook model in detail.
  • 13. What a lot of entrepreneurs sometimes fail to realize is that it's not necessarily the best product that wins. Frequently, it's the product that's at the top of customers' minds that succeeds. Making your product a habit is key to its success.
  • 14. Launching Your Startup? Check out our infographic checklist on the 22 steps to launching your startup successfully. Click to read!
  • 16. Facebook Messenger App by Kārlis Dambrāns. https://flic.kr/p/noAL4E Untitled by Johan Larsson. https://flic.kr/p/9yBrLm Facebook Like by Owen W. Brown. https://flic.kr/p/8pfreV NodeXL Twitter Network Graphs- Social CRM by Marc Smith. https://flic.kr/p/7SGo1D Brain Lobes by Allan Ajifo. https://flic.kr/p/of4Z2o Images