…k on loss aversion highlights that we’re more likely to act to avoid a loss than to acquire a gain. Encouraging a user’s investment of time, data, effort, social capital, or money within a product boosts retention because leaving the service would entail a ‘loss’ of the commitments already made. The social capital built up from receiving ‘likes’ from a growing network of friends on uploaded Instagram photos creates non-transferable value that prevents users leaving Instagram. As Nir Eyal, the creator of the Hooked model, says:
…s can compete to win a 1 million yen prize, Japanese English-language learning app Mikan encourages students to focus their efforts on learning English. By fostering competition in this way, the students’ motivation to learn English is boosted as they’re driven to help their school reach the top rank.