Create User-Retaining Products in 4 Steps With the Hook Model
Blog post from Stream
The hook model, devised by startup entrepreneur and behavioral economist Nir Eyal, is a strategy for creating habit-forming products that enhance user retention and engagement by leveraging human psychology. Outlined in Eyal's book "Hooked: How to Build Habit-Forming Products," the model consists of four steps: trigger, action, variable reward, and investment. Triggers, both external and internal, initiate user action by addressing problems or emotions, while motivation and ability facilitate the action. The introduction of variable rewards adds unpredictability, fostering a desire for continued engagement. Users further invest time and effort into a product, increasing their likelihood of returning. Examples such as Instagram, Uber, and The Bible App illustrate how these companies have successfully applied the hook model to maintain high user engagement and loyalty, ultimately increasing customer lifetime value and revenue.