The Science Behind Habit-Forming Products

Discover the science behind habit-forming products, including the psychology of habits, the power of feedback loops, the Hooked Model, variable rewards, cohort analysis, gamification, A/B testing, and the importance of cue and reward placement, all illustrated with real-world examples from Facebook, Instagram, Duolingo, Twitter, Headspace, and Amazon.

Blake Bassett
Nudge Notes
5 min readSep 30, 2023

--

The Science Behind Habit-Forming Products: Unveiled

In a world where our daily lives are becoming increasingly intertwined with products and services that aim to capture our attention, the understanding of how these entities keep us engaged has never been more critical. This article will unfold the cognitive machinery that governs habit formation and how businesses can utilize this knowledge in creating appealing products.

1. The Framework of a Habit

Habits constitute an essential part of our existence — they automate routine tasks, freeing up mental resources for other activities. A habit is “a behavior done with little or no conscious thought”, per psychology professor Wendy Wood in her book ‘Good Habits, Bad Habits’.

To create products that garner habitual use, we first need to understand the fundamental components of a habit. According to BJ Fogg’s Behavior Model, three elements must converge simultaneously for a behavior (B) to occur: motivation (M), ability (A), and prompt (P). Thus, B = MAP. In product design and development stages, those ingredients become indispensable considerations.

A Contemporary Example: Facebook’s Habit Cycle

Facebook offers an excellent demonstration of this cycle at work:

Motivation: Users are driven by the deep-seated desire to stay connected with others and share personal experiences.

Ability: Facebook has streamlined its interfaces diligently over the years for ease of use across devices.

Prompt: Regularly sent push notifications serve as cues leading users back into usage cycles.

2. Understanding Feedback Loops

A key player in fostering user habits includes feedback loops. The engineering term transformed into psychology signifies repeating patterns which reinforce behaviors (“Introduction to systems thinking”, Daniel H Kim).

Feedback loops in product design can result in usage compulsion when properly executed. They are commonly classed into two main types — positive and negative. Typically, positive feedback loops enhance or reproduce the behavior they follow, feeding on themselves to grow exponentially. In contrast, negative feedback loops suppress actions to help a system maintain stability.

Real-world Showcase: Instagram’s “Like” Mechanism

Instagram’s iconic double-tap “like” scheme embodies a powerful positive feedback loop stimulating user activity. Users post photos and receive “likes”. These likes provide gratification, thus encouraging them to post more content.

3. Hooked: The Habit Design Model

Nir Eyal’s ‘Hooked Model’ is a mechanism constructed specifically for developing habit-forming products. It comprises four stages:

Trigger: External or internal cue initiating the behavior. — Action: Behavior performed in anticipation of reward.

Variable Reward: Users gain a reward which prompts next cycle engagement.

Investment: User’s contribution (time, data, effort), increasing the effect of future triggers. To glean how your product fits into your user’s life, consider their motivations for usage and parse out the external triggers that could cue them to action.

Showcasing: Duolingo’s Implementation of Hooks

Language-learning app Duolingo brilliantly applies this model:

‘Trigger’: Daily reminders stimulate users to engage with lessons.

‘Action.’: Users take short, interactive language practice sessions.

‘Variable Reward.’ : Users earn incentives like points and badges, which change daily.

‘Investment.’ : Users invest over time, eventually moving up in the game-like progression levels.

4. Harnessing The Power of Variable Rewards

The fascination of variable rewards lies within their ability to stimulate dopamine release in our brains, intensifying desire and motivation. This science from B.F. Skinner’s work on operant conditioning laid foundations for understanding user behavior in modern digital ecosystems. The key strategy is to reward users unpredictably at intervals to sustain their engagement over time.

Industry Illustration: Twitter’s Use of Variable Rewards

On Twitter, every feed refresh might yield a favorite retweet or an interesting tweet — an inherently variable reward system that keeps people scrolling.

5. Cohort Analysis and User Behavior Patterns

Cohort analysis dives into user behavior by segmenting them based on shared characteristics across a defined period (“Lean Analytics”, Benjamin Yoskovitz).

Armed with this insightful data, product managers can tailor strategies for distinct user groups, heightening the likelihood of habitual usage. For instance, segmenting users by acquisition channel might illuminate stark differences amongst derived behavior patterns.

6. Product Stickiness through Gamification

Gamification serves as a powerful tool in creating repetitive behavior and driving engagement through rules of play (“Gamify”, Brian Burke. These rules typically include goal-setting elements — points, badges — the sense of progression compelling continuous participation.

An Excellent Example: Headspace’s Journey Feature

Headspace has successfully gamified meditation by incorporating streaks and levels — gamifying primarily un-game-like actions cultivating return engagements.

7. The Art and Science of Habit Testing

The A/B test (split testing) method allows continual optimization of habit-forming elements in your product. It contrasts multiple versions of a feature or process to see which performs better in terms of user engagement and retention.

Strategically, ensure you define success metrics clearly — whether it’s click-through rates, time spent on platform, or conversion ratios. Deploy analytics platforms like MixPanel to extract insightful data about users who exhibit habitual behaviors versus those who don’t.

Case Study: Amazon’s A/B Testing

Amazon often conducts A/B testing for website features — e.g., testing different call-to-action phrases on their ‘Add to Cart’ button — an approach instrumental to its enormous success.

8. Placement and Influence On Habit

Often overlooked but significant is how well you present your cues and rewards. For cues, Fogg’s Behavior Model suggests placing them where they coincide with established routines, increasing the probability of behavior conversion. Regarding rewards, highlighting the anticipated payoffs can motivate initial action requisites for habit formation.

The Uber Advantage: Cue Placement Precision

Uber mastered cue placement by dispatching reminders just when people are considering transportation options — timing aligned impeccably with user day-to-day patterns. The intricate science behind habit-forming products encompasses a rich blend of psychological models mixed with effective theorems from behavioral economics and decision science.

Knowledge of these theories combined with application insights can yield compelling products that not only entice but also retain users in cycles of perpetual engagement. Remember — the aim should always be creating habits that truly serve our users; Value-driven engagement over exploitation. Take this wisdom home: Create responsibly. Test incessantly. Iterate relentlessly.

--

--

Blake Bassett
Nudge Notes

Director of Product at Tubi. Interested in product development, leadership, strategy, and entrepreneurship in tech.