[Script Info] Title: [Events] Format: Layer, Start, End, Style, Name, MarginL, MarginR, MarginV, Effect, Text Dialogue: 0,0:00:00.23,0:00:01.39,Default,,0000,0000,0000,,Hello, I'm with Nir Eyal, Dialogue: 0,0:00:01.39,0:00:05.47,Default,,0000,0000,0000,,the author of Hooked,\NHow to Build Habit Forming Products. Dialogue: 0,0:00:05.47,0:00:06.36,Default,,0000,0000,0000,,Thank you for joining us. Dialogue: 0,0:00:06.36,0:00:07.91,Default,,0000,0000,0000,,>> My pleasure.\NGood to be here. Dialogue: 0,0:00:07.91,0:00:10.18,Default,,0000,0000,0000,,>> So,\Ntell me a little bit about the book. Dialogue: 0,0:00:10.18,0:00:10.70,Default,,0000,0000,0000,,>> Sure. Dialogue: 0,0:00:10.70,0:00:15.31,Default,,0000,0000,0000,,So, my book is really about\Nhow do products engage users? Dialogue: 0,0:00:15.31,0:00:16.69,Default,,0000,0000,0000,,How do we build products and Dialogue: 0,0:00:16.69,0:00:21.71,Default,,0000,0000,0000,,services To keep people coming back, not\Nevery business needs to form a habit. Dialogue: 0,0:00:21.71,0:00:25.40,Default,,0000,0000,0000,,But every business that forms a habit\Nneeds a hook, and so that's what Dialogue: 0,0:00:25.40,0:00:29.40,Default,,0000,0000,0000,,the book is really about, it's about\Nthis pattern that I call the hook model. Dialogue: 0,0:00:29.40,0:00:33.17,Default,,0000,0000,0000,,This four step process of trigger,\Naction, reward, investment Dialogue: 0,0:00:33.17,0:00:37.28,Default,,0000,0000,0000,,that keeps people coming back and using\Nthese various products and services. Dialogue: 0,0:00:37.28,0:00:41.25,Default,,0000,0000,0000,,And my hope here is that we\Ncan use the psychology of Dialogue: 0,0:00:41.25,0:00:44.74,Default,,0000,0000,0000,,what makes products engaging to help\Npeople live happier, healthier, Dialogue: 0,0:00:44.74,0:00:48.88,Default,,0000,0000,0000,,more productive, more connected\Nlives by using habits for good. Dialogue: 0,0:00:48.88,0:00:51.98,Default,,0000,0000,0000,,>> And now,\NI as an entrepreneur use this model? Dialogue: 0,0:00:51.98,0:00:52.81,Default,,0000,0000,0000,,>> Right.\NSo Dialogue: 0,0:00:52.81,0:00:55.13,Default,,0000,0000,0000,,if you're building a product\Nthat requires a habit, so Dialogue: 0,0:00:55.13,0:00:56.21,Default,,0000,0000,0000,,if you think about products. Dialogue: 0,0:00:56.21,0:00:58.81,Default,,0000,0000,0000,,Some of the most successful companies\Nover the past several years. Dialogue: 0,0:00:58.81,0:01:02.57,Default,,0000,0000,0000,,Companies like Facebook, and Google, and\NInstagram, and WhatsApp and Snapchat, Dialogue: 0,0:01:02.57,0:01:06.35,Default,,0000,0000,0000,,and Slack these companies have\Nall formed habits in users. Dialogue: 0,0:01:06.35,0:01:09.40,Default,,0000,0000,0000,,Now that's not a requirement lot's of\Nbusinesses can do just fine without Dialogue: 0,0:01:09.40,0:01:13.78,Default,,0000,0000,0000,,forming a habit, but if you're the type\Nof company who's business model relies Dialogue: 0,0:01:13.78,0:01:17.29,Default,,0000,0000,0000,,upon a habit just like those companies\NI just mentioned they would go out of Dialogue: 0,0:01:17.29,0:01:21.43,Default,,0000,0000,0000,,business if they had to send advertising\Nevery time just to bring people back. Dialogue: 0,0:01:21.43,0:01:22.91,Default,,0000,0000,0000,,So if you're that kind of company, Dialogue: 0,0:01:22.91,0:01:26.15,Default,,0000,0000,0000,,if you're an entrepreneur building\Na product that requires people to Dialogue: 0,0:01:26.15,0:01:30.89,Default,,0000,0000,0000,,come back on their own, you can use this\Nframework to figure out, hey do I have Dialogue: 0,0:01:30.89,0:01:36.12,Default,,0000,0000,0000,,the fundamental elements that I need to\Nform, to build a habit-forming product? Dialogue: 0,0:01:36.12,0:01:38.99,Default,,0000,0000,0000,,>> Is this only for consumer products? Dialogue: 0,0:01:38.99,0:01:41.46,Default,,0000,0000,0000,,>> No.\NSo whether it's enterprise products or Dialogue: 0,0:01:41.46,0:01:42.83,Default,,0000,0000,0000,,consumer products, doesn't matter. Dialogue: 0,0:01:42.83,0:01:45.79,Default,,0000,0000,0000,,What matters is,\Nis the product something that people use Dialogue: 0,0:01:45.79,0:01:48.48,Default,,0000,0000,0000,,throughout their day with little or\Nno conscious thought? Dialogue: 0,0:01:48.48,0:01:50.84,Default,,0000,0000,0000,,So if you're building an enterprise\Napplication that, you know, Dialogue: 0,0:01:50.84,0:01:54.15,Default,,0000,0000,0000,,might be some piece of software that's\Nput into some server farm somewhere and Dialogue: 0,0:01:54.15,0:01:56.62,Default,,0000,0000,0000,,nobody actually uses that piece\Nof software, that's fine. Dialogue: 0,0:01:56.62,0:01:58.49,Default,,0000,0000,0000,,That's a great business, you know,\Nyou should keep doing that, Dialogue: 0,0:01:58.49,0:02:02.37,Default,,0000,0000,0000,,but you just don't need to have it for\Nthat, because that's not used regularly. Dialogue: 0,0:02:02.37,0:02:05.14,Default,,0000,0000,0000,,On the other hand if you're building an\Nenterprise product like a communication Dialogue: 0,0:02:05.14,0:02:09.62,Default,,0000,0000,0000,,tool, like Slack, or GitHub, or\NStack Overflow, or Sales force. Dialogue: 0,0:02:09.62,0:02:12.91,Default,,0000,0000,0000,,All of these are enterprise facing\Nproducts that necessitate habits. Dialogue: 0,0:02:12.91,0:02:15.27,Default,,0000,0000,0000,,They require people to\Ncome back on their own. Dialogue: 0,0:02:15.27,0:02:17.78,Default,,0000,0000,0000,,And for those types of products,\Nyou need a hook. Dialogue: 0,0:02:17.78,0:02:20.65,Default,,0000,0000,0000,,So these hooks, this four step process, Dialogue: 0,0:02:20.65,0:02:25.48,Default,,0000,0000,0000,,starts with a trigger to an action and\Na reward and then an investment. Dialogue: 0,0:02:25.48,0:02:27.01,Default,,0000,0000,0000,,So every hook starts with a trigger. Dialogue: 0,0:02:27.01,0:02:31.09,Default,,0000,0000,0000,,A trigger prompts the habit and\Nwe have these two types of triggers, Dialogue: 0,0:02:31.09,0:02:34.12,Default,,0000,0000,0000,,an external trigger or\Nan internal trigger. Dialogue: 0,0:02:34.12,0:02:36.97,Default,,0000,0000,0000,,External triggers are things in\Nour environment that tell us Dialogue: 0,0:02:36.97,0:02:37.67,Default,,0000,0000,0000,,what to do next. Dialogue: 0,0:02:37.67,0:02:39.60,Default,,0000,0000,0000,,They give us some piece of information. Dialogue: 0,0:02:39.60,0:02:40.37,Default,,0000,0000,0000,,Click here. Dialogue: 0,0:02:40.37,0:02:42.95,Default,,0000,0000,0000,,Buy now.\NA friend telling you about this great Dialogue: 0,0:02:42.95,0:02:44.36,Default,,0000,0000,0000,,new app through word of mouth. Dialogue: 0,0:02:44.36,0:02:46.56,Default,,0000,0000,0000,,All examples of external triggers. Dialogue: 0,0:02:46.56,0:02:48.69,Default,,0000,0000,0000,,These external triggers\Nprompt us to action. Dialogue: 0,0:02:48.69,0:02:50.16,Default,,0000,0000,0000,,That's the habit itself. Dialogue: 0,0:02:50.16,0:02:54.57,Default,,0000,0000,0000,,Open an app, scroll through pinterest,\Nsearch on google, Dialogue: 0,0:02:54.57,0:02:56.00,Default,,0000,0000,0000,,push the play button on YouTube. Dialogue: 0,0:02:56.00,0:02:58.48,Default,,0000,0000,0000,,These are these actions\Nthat we do with little or Dialogue: 0,0:02:58.48,0:03:01.65,Default,,0000,0000,0000,,no conscious thought that\Nare these very simple behaviors Dialogue: 0,0:03:01.65,0:03:05.95,Default,,0000,0000,0000,,these very small behaviors\Nthat we do seeking a reward. Dialogue: 0,0:03:05.95,0:03:09.24,Default,,0000,0000,0000,,Which brings me to the third step\Nof the hook the reward stage. Dialogue: 0,0:03:09.24,0:03:13.02,Default,,0000,0000,0000,,Is where the user's itch is scratched,\Nwhere they get what they came for. Dialogue: 0,0:03:13.02,0:03:15.90,Default,,0000,0000,0000,,And yet there's a bit of mystery\Naround what they might find Dialogue: 0,0:03:15.90,0:03:18.12,Default,,0000,0000,0000,,next time they engage with the product. Dialogue: 0,0:03:18.12,0:03:19.49,Default,,0000,0000,0000,,So it's not just a reward. Dialogue: 0,0:03:19.49,0:03:22.24,Default,,0000,0000,0000,,It turns out that habit-forming\Ntechnologies integrate what's called Dialogue: 0,0:03:22.24,0:03:23.84,Default,,0000,0000,0000,,a variable reward. Dialogue: 0,0:03:23.84,0:03:25.45,Default,,0000,0000,0000,,So this comes from\Nthe classic work of B.F. Dialogue: 0,0:03:25.45,0:03:27.81,Default,,0000,0000,0000,,Skinner, the father of\Noperant conditioning. Dialogue: 0,0:03:27.81,0:03:30.59,Default,,0000,0000,0000,,Skinner found that when he gave\Nrewards to his pigeons and Dialogue: 0,0:03:30.59,0:03:32.92,Default,,0000,0000,0000,,these little boxes on a variable basis. Dialogue: 0,0:03:32.92,0:03:35.38,Default,,0000,0000,0000,,So, sometimes the pigeons\Nwould peck at the disk, Dialogue: 0,0:03:35.38,0:03:36.73,Default,,0000,0000,0000,,they wouldn't receive a reward. Dialogue: 0,0:03:36.73,0:03:38.55,Default,,0000,0000,0000,,The next time,\Nthey would receive a reward. Dialogue: 0,0:03:38.55,0:03:40.98,Default,,0000,0000,0000,,What Skinner observed was,\Nat the rate of response, Dialogue: 0,0:03:40.98,0:03:44.84,Default,,0000,0000,0000,,the number of times his pigeons\Npeck at the disk, increased Dialogue: 0,0:03:44.84,0:03:49.03,Default,,0000,0000,0000,,when the reward was given on an\Nintermittent schedule of reinforcement. Dialogue: 0,0:03:49.03,0:03:52.04,Default,,0000,0000,0000,,And so in all sorts of products\Nthat we find most habit-forming, Dialogue: 0,0:03:52.04,0:03:55.70,Default,,0000,0000,0000,,most engaging, we find this bit of\Nmystery, this bit of variability. Dialogue: 0,0:03:55.70,0:04:01.33,Default,,0000,0000,0000,,So searching, and scrolling and\Nscrolling on a newsfeed, or what makes Dialogue: 0,0:04:01.33,0:04:06.30,Default,,0000,0000,0000,,sports fun to watch is the uncertainty\Nof will our team win the game. Dialogue: 0,0:04:06.30,0:04:08.72,Default,,0000,0000,0000,,Or what makes for\Na great TV show or a movie? Dialogue: 0,0:04:08.72,0:04:12.48,Default,,0000,0000,0000,,The uncertainty about how the happy\Nending is going to unwind. Dialogue: 0,0:04:12.48,0:04:15.46,Default,,0000,0000,0000,,All these are examples\Nof variable rewards. Dialogue: 0,0:04:15.46,0:04:20.01,Default,,0000,0000,0000,,And finally, the investment phase,\Nthe last step of the hook. Dialogue: 0,0:04:20.01,0:04:23.62,Default,,0000,0000,0000,,The investment phase is where the user\Nis prompted to put something into Dialogue: 0,0:04:23.62,0:04:29.53,Default,,0000,0000,0000,,the product, to invest in the product\NIn anticipation of a future benefit. Dialogue: 0,0:04:29.53,0:04:32.76,Default,,0000,0000,0000,,So, the purpose of investments\Nis to increase the likelihood fo Dialogue: 0,0:04:32.76,0:04:33.82,Default,,0000,0000,0000,,the next pass. Dialogue: 0,0:04:33.82,0:04:37.36,Default,,0000,0000,0000,,That's what the investment phase is for,\Nand it does this in two ways. Dialogue: 0,0:04:37.36,0:04:40.37,Default,,0000,0000,0000,,The investments load the next trigger. Dialogue: 0,0:04:40.37,0:04:43.46,Default,,0000,0000,0000,,So, loading the next trigger, an example\Nof that would be, when I send someone Dialogue: 0,0:04:43.46,0:04:46.45,Default,,0000,0000,0000,,a message on WhatsApp I don't\Nget any immediate rewards. Dialogue: 0,0:04:46.45,0:04:48.66,Default,,0000,0000,0000,,Right?\NThere's no leader boards, Dialogue: 0,0:04:48.66,0:04:51.54,Default,,0000,0000,0000,,there's not badges, there's no points,\Nnothing really happens. Dialogue: 0,0:04:51.54,0:04:54.73,Default,,0000,0000,0000,,What I'm doing is I'm loading the next\Ntrigger because I'm likely to Dialogue: 0,0:04:54.73,0:04:55.55,Default,,0000,0000,0000,,get a reply. Dialogue: 0,0:04:55.55,0:04:58.07,Default,,0000,0000,0000,,>> Right.\N>> And that reply comes coupled with Dialogue: 0,0:04:58.07,0:04:59.17,Default,,0000,0000,0000,,an external trigger. Dialogue: 0,0:04:59.17,0:05:02.58,Default,,0000,0000,0000,,Hey, here's a message from your friend\Nwhich prompts me to use the hook Dialogue: 0,0:05:02.58,0:05:03.88,Default,,0000,0000,0000,,once again. Dialogue: 0,0:05:03.88,0:05:06.90,Default,,0000,0000,0000,,The second way that investments\Nincrease the likelihood of an x-pass Dialogue: 0,0:05:06.90,0:05:09.56,Default,,0000,0000,0000,,is by storing value,\Nand this is a big deal. Dialogue: 0,0:05:09.56,0:05:13.91,Default,,0000,0000,0000,,Storing value is when the product\Ngets better and better with use, Dialogue: 0,0:05:13.91,0:05:15.57,Default,,0000,0000,0000,,it appreciates in value. Dialogue: 0,0:05:15.57,0:05:18.91,Default,,0000,0000,0000,,And it does this by storing data,\Nfollowers, Dialogue: 0,0:05:18.91,0:05:20.62,Default,,0000,0000,0000,,reputation, content\N>> Photos. Dialogue: 0,0:05:20.62,0:05:23.08,Default,,0000,0000,0000,,>> Right.\NAnything that I'm putting into the app Dialogue: 0,0:05:23.08,0:05:25.80,Default,,0000,0000,0000,,that gets better and better over time. Dialogue: 0,0:05:25.80,0:05:27.68,Default,,0000,0000,0000,,And so it's through successive cycles, Dialogue: 0,0:05:27.68,0:05:30.14,Default,,0000,0000,0000,,through these hooks trigger\Naction reward investment Dialogue: 0,0:05:30.14,0:05:34.02,Default,,0000,0000,0000,,that now an association has built\Nwith that second type of trigger. Dialogue: 0,0:05:34.02,0:05:36.53,Default,,0000,0000,0000,,Remember I told you there was two types\Nof triggers: external triggers and Dialogue: 0,0:05:36.53,0:05:37.72,Default,,0000,0000,0000,,internal triggers. Dialogue: 0,0:05:37.72,0:05:41.45,Default,,0000,0000,0000,,The internal trigger\Nare these things in our life Dialogue: 0,0:05:41.45,0:05:45.93,Default,,0000,0000,0000,,that prompt us to action like a place, a\Nsituation, a routine, a certain person. Dialogue: 0,0:05:45.93,0:05:50.85,Default,,0000,0000,0000,,And most frequently, emotions that\Nprompt us to do this next action, Dialogue: 0,0:05:50.85,0:05:52.50,Default,,0000,0000,0000,,this next habit with little or Dialogue: 0,0:05:52.50,0:05:55.87,Default,,0000,0000,0000,,no conscious thought, but\Nwithout any explicit information. Dialogue: 0,0:05:55.87,0:05:56.55,Default,,0000,0000,0000,,So over time, Dialogue: 0,0:05:56.55,0:06:00.81,Default,,0000,0000,0000,,through successive cycles through\Nthese hooks, now we use the product. Dialogue: 0,0:06:00.81,0:06:04.32,Default,,0000,0000,0000,,Not with a message that tells us,\Nhey click here, but Dialogue: 0,0:06:04.32,0:06:04.92,Default,,0000,0000,0000,,>> With a need. Dialogue: 0,0:06:04.92,0:06:05.83,Default,,0000,0000,0000,,>> With a need, exactly. Dialogue: 0,0:06:05.83,0:06:07.32,Default,,0000,0000,0000,,We internally trigger ourselves. Dialogue: 0,0:06:07.32,0:06:10.88,Default,,0000,0000,0000,,We have these associations, so,\NI'm lonely, I check Facebook. Dialogue: 0,0:06:10.88,0:06:12.64,Default,,0000,0000,0000,,I'm uncertain, I Google. Dialogue: 0,0:06:12.64,0:06:15.57,Default,,0000,0000,0000,,I'm bored and\NI'm on YouTube or Reddit or Dialogue: 0,0:06:15.57,0:06:17.62,Default,,0000,0000,0000,,checking stock prices or\Nsports scores, right? Dialogue: 0,0:06:17.62,0:06:22.11,Default,,0000,0000,0000,,We do these things instantaneously\Nbecause of the successive cycles Dialogue: 0,0:06:22.11,0:06:22.80,Default,,0000,0000,0000,,through these hooks.