"Hooked" by Nir Eyal

Dear Ambitious Founder,

This week, I’m diving into "Hooked" by Nir Eyal - your blueprint for building products that create genuine user habits.

In the next 5 minutes, you'll learn how to design products that users not only love but can't stop using.

Who's Nir Eyal?

• Behavioural design expert

• Stanford Graduate School of Business lecturer

• Angel investor and startup founder

• A leading expert on habit-forming technology

The Hook Model Explained

1. The Hook Cycle Core Framework: Successful habit-forming products run users through four phases: Trigger, Action, Variable Reward, and Investment. 5-Minute Action: Map out your product's current hook cycle. Where are the gaps in these four phases?

2. External & Internal Triggers Key Understanding: While external triggers (notifications, emails) initiate behavior, internal triggers (emotions, routines) sustain habits. 5-Minute Action: List the emotional triggers that could drive users to your product. What uncomfortable internal experiences could your product resolve?

3. Making Actions Easier Behavioral Principle: Reduce friction to increase the likelihood of action. Use the Fogg Behavior Model: B=MAT (Behavior = Motivation + Ability + Trigger). 5-Minute Action: Identify three points of friction in your user experience. How can you make desired actions easier?

4. Variable Rewards Critical Element: Unpredictable rewards create stronger desire than predictable ones. Think slot machines vs. vending machines. 5-Minute Action: List your product's rewards. How could you make them more variable and engaging?

5. The Investment Phase Strategic Component: Users value products more when they invest time, data, effort, social capital, or money into them. 5-Minute Action: Design one new way users can invest in your product to make it more valuable with use.

The Bottom Line

Building habit-forming products isn't about manipulation - it's about understanding human psychology to create genuine user value that becomes an automatic part of users' lives.

Your 5-Minute Challenge: Draw out your product's complete Hook cycle. Share it with me - the most insightful analysis could be featured in our next issue!

Should I Buy This Book?

"Hooked" is a must-read if:

• You're building a product that requires repeated user engagement

• You want to increase user retention and engagement

• You're interested in behavioral design

• You need a framework for product psychology

Consider skipping if:

• Your business doesn't require repeat customer interaction

• You're looking for general business strategy

• You're already well-versed in behavioral design

• You're seeking marketing or sales tactics

My take

"Hooked" provides a clear, actionable framework for building habit-forming products. While particularly relevant for digital products, its principles can be applied to any business seeking to create customer habits.

Expert's Corner: The Ethics of Habit Formation

Eyal introduces the "Manipulation Matrix," a tool for ethical habit design. Before building habit-forming features, ask yourself:

1. Would I use my own product?

2. Does my product help users materially improve their lives?

3. Am I treating users' time and attention with respect?

This creates four categories:

• Facilitator: You would use it and it helps users (Best)

• Peddler: You wouldn't use it but it helps users (OK)

• Entertainer: You would use it but it doesn't materially help users (Be careful)

• Dealer: You wouldn't use it and it doesn't help users (Avoid)

Example: Duolingo uses the Hook Model by creating habits around language learning. The triggers (daily reminders), action (quick lessons), variable rewards (streaks, levels), and investment (learning progress) combine to create a positive habit that genuinely improves users' lives. (Works on my kids too).

Coming Up Next Week: I’ll be exploring "Traction" by Gabriel Weinberg and Justin Mares. Get ready to learn how to choose and master the right marketing channel for your business!

Stay sticky,

Daniell, Founder, 5-Minute Founders