Hooked, the Habit Zone

Remember this:

  • For some businesses, forming habits is a critical component to success, but not every business requires habitual user engagement. For example, products that don’t need everyday engagement, like mortgages or insurance services.
  • When successful, forming strong user habits can have several business benefits including:
    • Higher CLTV (Customer life time value): the amount of money made from a customer before that person switches to a competitor or stops using the product. When customers have a habit to use a product, that increases CLTV.
    • Greater Pricing Flexibility: Increased usage of a product, increased customer willingness to pay a higher price.
    • Supercharged Growth: Hooked users become brand evangelists, bringing new users to your product at no cost.
    • Sharper competitive edge: Products that shape habits in users are less susceptible to attacks from competitors.
  • Habits cannot form outside the Habit Zone, where the behavior occurs with enough frequency and perceived utility.
  • Habit-forming products alleviate users’ pain by relieving a pronounced itch.
  • We try to build healthy habits, not unhealthy addictions.

Do this now:

  • What habits does your business model require? It requires that users check their training, log their workouts after finished, check their performance and readiness for a race.
  • What problem are users turning to your product to solve? They want to get ready for an important race but they don’t have knowledge about training.
  • How do users currently solve that problem and why does it need a solution? They either hire a coach or use a simpler software but get guidance by books or friends to get ready for the race. It needs a solution because the uncertainty is big, they don’t have confidence that their program will work, they risk injuries and overtraining, they don’t know if the training will be enough, they lack motivation to complete the training.
  • How frequently do you expect users to engage with your product? Couple of times a day, perhaps a bit more at the end of the week.
  • What user behavior do you want to make into a habit? Check their fitness after a training. Check their completed training.
Written on September 15, 2017