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#256 Nir Eyal - The Psychology Behind the World’s Best Products

Dec 18, 2024

Guest

Nir Eyal

Nir Eyal, author and expert in habit-forming products, shares his insights into what makes some products irresistibly engaging. He discusses the GEM framework for sustainable businesses, emphasizing retention over mere growth. Eyal explains the psychology behind the Hook Model and its components that create lasting user habits. He also explores the ethical dimensions of product design, the emotional connections that enhance loyalty, and the future of AI in crafting personalized experiences. Prepare to rethink how you create products that truly resonate!

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Building Sustainable Products

Build great products within great businesses for sustainability.
Use the GEM framework: growth, engagement, and monetization.

insights

INSIGHT

Startups and Retention

Startups need two of the three GEM components and a plan for the third.
Retention is key, as growth can be bought, but retention must be designed.

insights

INSIGHT

Retention over Acquisition

Many tech businesses fail because they prioritize customer acquisition over retention.
Focus on keeping customers, as retention yields higher ROI than acquisition.

Get the Snipd Podcast app to discover more snips from this episode

Engagement vs. Acquisition: The Future of Customer Loyalty

03:00 • 15min

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Emotional Connection in Product Marketing

17:45 • 3min

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Ethics and Sustaining Business Success

20:21 • 14min

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The Anatomy of Habit-Forming Products

34:23 • 5min

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The Hook Model: Understanding User Engagement and Habits

39:26 • 2min

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Beauty, Focus, and Productivity

41:18 • 14min

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Building Sustainable Businesses through Value Creation

Atomic Habits by James Clear provides a practical and scientifically-backed guide to forming good habits and breaking bad ones. The book introduces the Four Laws of Behavior Change: make it obvious, make it attractive, make it easy, and make it satisfying. It also emphasizes the importance of small, incremental changes (atomic habits) that compound over time to produce significant results. Clear discusses techniques such as habit stacking, optimizing the environment to support desired habits, and focusing on continuous improvement rather than goal fixation. The book is filled with actionable strategies, real-life examples, and stories from various fields, making it a valuable resource for anyone seeking to improve their habits and achieve personal growth.

Indistractable

How to Control Your Attention and Choose Your Life

Nir Eyal

In 'Indistractable', Nir Eyal delves into the root causes of distraction, arguing that it starts from within and is driven by the desire to escape discomfort. The book offers a four-step, research-backed model to help readers master internal triggers, manage time effectively, hack back external triggers, and prevent distractions with pacts. Eyal also discusses how distraction affects various aspects of life, including work, relationships, and parenting, and provides novel techniques to overcome these challenges and live a more focused life.

Hooked

How to Build Habit-Forming Products

Nir Eyal

In 'Hooked: How to Build Habit-Forming Products', Nir Eyal explains the Hook Model, a four-step process (trigger, action, variable reward, and investment) that successful companies use to create products that users engage with habitually. The book provides practical insights and actionable steps for building products that capture widespread attention and encourage repeated use without relying on costly advertising. Eyal draws on his research, consulting experience, and practical knowledge to offer a how-to guide that is accessible and valuable for understanding user behavior and designing engaging products.

The War of Art

Break Through the Blocks and Win Your Inner Creative Battles

Steven Pressfield

In 'The War of Art', Steven Pressfield identifies the internal force of 'Resistance' that hinders creative endeavors. The book is divided into three sections: 'Resistance: Defining the Enemy', 'Combating Resistance: Turning Pro', and a final section that discusses the role of the muses and the battle between the Self and the Ego. Pressfield provides practical advice on recognizing and overcoming resistance, emphasizing the importance of professionalism, discipline, and continuous work in achieving creative success.

Turning pro

tap your inner power and create your life's work

Steven Pressfield

In 'Turning Pro,' Steven Pressfield provides a practical and inspirational guide for entrepreneurs and creatives to shift from an amateur mindset to a professional one. The book is divided into three parts: the first describes the addictive nature of the amateur, the second paints a vision of what it means to be a pro, and the third focuses on cultivating professionalism. Pressfield emphasizes the importance of overcoming fear, self-doubt, and procrastination, and adopting habits such as discipline, regularity, and a constant striving for excellence. He also discusses the concept of 'shadow careers' and the need to align one's work with their true calling for authentic fulfillment.

Watch This NEXT: https://www.youtube.com/watch?v=HlK2P76_ZZs

Why do some products fail while others get you hooked for life?

It’s not just the technology or the marketing.

It’s the habits they create:
- Why do we check our phones 150+ times a day?
- How do businesses like TikTok and Duolingo dominate user attention?
- What makes us keep coming back?

These are the principles that build world-changing products.

Nir Eyal, author, lecturer, and investor known for his bestselling book, Hooked: How to Build Habit-Forming Products’, breaks it all down for us in the episode of Kickoff Sessions

Nir has influenced how tech giants design their most engaging platforms and shared his insights into the psychology of habits, retention, and persuasion.

In this episode, we dive into:
- The GEM framework for sustainable businesses
- The science behind the ‘Hook Model’
- How to ethically create habit-forming products
- The future of AI and mass customization

Ready to create a product that people love and build habits that make your life better?

Smash that like button and stay tuned for next week's episode!

Connect with Nir Eyal
LinkedIn: https://www.linkedin.com/in/nireyal/

My Socials:
Instagram - https://www.instagram.com/darrenlee.ks
LinkedIn - https://www.linkedin.com/in/darren-lee1

(00:00) Preview and Intro
(01:26) The GEM Framework
(03:32) Why Retention Beats Growth Long-Term
(05:31) The Problem with Online Education
(07:11) The Hook Model Explained
(10:47) The Future of AI and Personalized Experiences
(13:15) Manipulation vs. Persuasion
(17:16) Developing Emotional Connection with Customers
(20:49) Creating Value-Driven Products
(26:06) Problems with Unsustainable Models
(30:47) Nir Eyal’s Retention Strategies
(34:12) The Role of Frequency in Building Habits
(37:05) How To Create User Engagement
(40:37) The Importance of Variability in Rewards
(49:32) Traction vs. Distraction: How to Stay Focused

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