The FinLab Toolkit

BEHAVIOUR DESIGN | TOOLS

Hook Model

90-120 Min

The Hook Model is a tool used to design for frequent and engaged use of products, services and systems by users. The model focuses on identifying ways to make the user experience simpler, more engaging, and more rewarding so that users keep returning to a product or service. For a business, habit based products or services are more efficient, offer business predictability, and generate greater customer lifetime value. The model was put forward by Nir Eyal in his book, Hooked.

USE CASES

  • Identify a strategy to encourage users to come back to a product or service after they have used it for the first time.
  • Identify a strategy to encourage users to keep using a product or service over time.
  • Identify a strategy to encourage habits and repeated behaviour in any context.

LIMITATIONS

The Hook Model was developed based on learnings of user behaviour on online platforms and social networking sites. It may therefore come across as a limited framework in some contexts.

How to Build Habit-Forming Products | Nir Eyal

UNDERSTANDING THE TOOL

  • There are four major components of the HOOK Model - Triggers, Action, Rewards and Investment.
  • ‘Triggers’: Things that prompt users to interact with a product/service. There are two types - 1) Internal Triggers associated with basic emotions (such as boredom, loneliness, excitement), and routines (such as reading, budgeting, seeking a deal) that users are trying to address. If a product or service is closely associated with an emotion or routine, that association functions as the trigger 2) External Triggers: Triggers focused on marketing and communication that influence customers. There are four types of external triggers - A) Paid Triggers: Advertising, search engine marketing, and other paid channels B) Earned Triggers: Things like press mentions, awards, viral online stories, etc. that are not paid for C) Relationship Triggers: Recommendations from customers, communities, and partners D) Owned Triggers: Triggers that use the company's own channels once a user has signed up or made a purchase (like app icons, notifications, newsletters, etc.).
  • ‘Action’: Things that minimise users’ efforts and increase ease of use of a product or service, bring users back. There are six elements to minimising effort - 1) Time: Reduce the time it takes to start using a product or service 2) Money: Reduce the monetary cost for users 3) Physical effort: Reduce the amount of labour involved in use 4) Brain cycles: Reduce the level of mental effort and focus required to use 5) Social deviance: Reduce the resistance the use faces from the user’s personal network 6) Non-routine: Reduce the level to which the use disrupts existing routines.
  • ‘Variable Rewards’: Things that incentivise and engage users to use a product or service. Variable rewards are incentives that vary (are unpredictable) because variance tends to keep users engaged. There are three fundamental types of rewards - 1) Reward of the Tribe: Rewards that focus on social participation, and recognition 2) Reward of the Hunt: Rewards that focus on material, and informational benefit 3) Reward of the Self: Rewards that focus on self development, and personal growth.
  • ‘Investment’: Things that get users to invest time, resources and effort, and therefore associate value in a product and service. There are five main ways in which users can become invested - 1) Content: Users stay if they create and store content that they value 2) Data: Users stay if they share and link information (like KYC) that they would rather not share again if not essential 3) Network: Users stay if they become a part of a valued community; as a follower, a friend, as someone with followers. 4) Reputation: Users stay when they have a positive reputation within a community 5) Skill: Users stay if they develop skill or knowledge that they value.

STEP BY STEP

  1. Familiarise yourself: Read through the various boxes of the Hook Model and consider how these may apply to a current or proposed product or service.
  2. Map for first time/new users: Begin by considering how a first time or new user is being taken through the steps. Start by mapping the current journey, and then identify gaps.
  3. Map for existing users: Next, consider an existing user who can potentially stay with the product or service for a long time. Map the current journey, and then identify gaps.
  4. Brainstorm and discuss: Based on the gaps identified for new and current users, identify potential solutions to experiment with.

HOW TO FOR FACILITATORS

  1. At the start: Make sure participants understand the goal of the activity and the direction. Refer to facilitation questions if they are feeling stuck.
  2. During the exercise: Start with a discussion focused on why habit-forming products and services are important. Walk teams through the tool, and move along the four stage cycle. Ask teams to map what they do currently, identify gaps, and think of ideas that strengthen each phase of the cycle.
  3. At the close: Have participants walk you through the worksheet, and probe them on their mapping.

FACILITATORS QUESTION BANK

  • Why is creating a habit around your product or service important?
  • What is the fundamental need you are solving for? Is that important enough to be an internal trigger?
  • How are you thinking of creating stickiness for a new/first time user? How are you thinking of creating stickiness for an existing user?
  • What kind of triggers have you considered currently? What have you not considered? How have you used external triggers? How can you improve them?
  • How easy is it for first time and existing users to use your product or service? What can be eased, based on your understanding of what their needs are? Are there examples that you can learn from?
  • How are users being rewarded? Is the reward evident? Is there variability and unpredictability? Are you considering the three types of rewards?
  • How are you ensuring that users stay invested in your product/service? What kind of investments do you want them to make? Will asking users to invest impact ease and trust negatively?
  • Are you encouraging useful, positive habits for your users, or are you thinking only from your perspective?

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