Day 20: Be a rational person - e

A very good book called <Hooked>.

THE HOOK MODEL

We’re hooked! Most smartphone owners check their phone within 15 minutes of waking up. Such an automatic behaviour, done with little or no conscious effort, is called a habit. Habitual actions include brushing your teeth – or checking with Google when you have a question. Our world is becoming a habit-forming place, mainly due to 3 factors:

The increased online connectivity.

The ability to collect, mine, and precess customer data.

The faster & more reliable internet connecton speed

Companies that create strong customer habits gain a significant advantage against their competition, as well as other business benefits.

Higher Customer Lifetime Value (customers stay around longer)

Pricing plasticity (users become dependent and less price-sensitive)

Increased usage (people use the product or app multiple times a day)

Reduced promotion costs (users return to the product on their own)

Viral growth (a happy customer/user is likely to spark word-of-mouth)

Habits can only be formed inside the Habit Zone, where a behaviour occurs with frequency and a high degree of perceived utility. 

To provide a deeper understanding of how certain products get us hooked, the author has created the Hook Model, a four-phase process companies use to forms habits through the services we use daily. The 4 phases of this model are:

Trigger

Action

Variable

Reward

Investment

The Hook Model describes an experience designed to connect the user's problem to a solution frequently enough to form a habit. In the next chapters, we’ll break down this model, as well as the ethics and opportunities around it.