You’ll learn
- How to develop habit-forming with the Hook Model
- The IKEA effect
- Why habit-forming products draw in a large user base
- What motivates users to keep using a product
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first KEY POINT
Cell phones are a massive part of our lives. Most check them at every opportunity. You probably check yours within 15 minutes after waking up. We are addicted, in other words, hooked.We can’t get enough social media because companies that produce apps know how to make them our habit. They affect the user’s behavior with hooks — carefully designed experiences that help form habits.Secrets to building habits have been guarded for years since it’s such a powerful tool. Nir Eyal studied related topics in psychology and behavioral economics and published his observations in his blog. With the help of his readers, he got many examples and found a pattern. He came up with the Hook Model, consisting of four steps:1. Trigger — a cue, like a notification or an email, that sets off an action.
2. Action — a behavior; for example, clicking a link.
3. Variable reward — a pleasant result that feels new every time.
4. Investment — the user’s input: time, money, data, etc.Companies have been forming habits in customers, significantly affecting their life experiences. The Hook Model can bring positive change when used correctly. It describes linking a user’s problem to a company’s solution.
In this summary, we’ll discuss this model in detail, so you can apply it to build a successful habit-forming product.
second KEY POINT
At their core, habits are a tool your brain uses to automate specific actions, so you don’t waste more energy contemplating every step, which can benefit your business massively. Of course, this strategy applies to products customers use constantly.Increasing the company's value means maximizing customer lifetime value (CLTV) — profits customers bring while using the product or service. Customer habits increase engagement and, therefore, CLTV.

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