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Research notes/Engineering practice

The Hook Model and AARRR: reading notes on Nir Eyal's Hooked

Reading notes on Nir Eyal's Hooked: the four phases of the Hook Model, six checks for a habit-forming product, and how the Hook Model compares with the AARRR funnel.

Three short team notes cover Nir Eyal's Hooked: How to Build Habit-Forming Products: the four phases of the Hook Model, a checklist of six hook elements, and a comparison with the AARRR funnel. Han curated them into this page. The wording is restated in short form, and the ideas belong to Eyal.

The four Hook phases as a loop, with investment feeding the next trigger
1 TRIGGER Prompts the user to act. External: paid, earned, relationship, owned Internal: a feeling like boredom or FOMO 2 ACTION What the user does expecting a reward. Motivation: how much they want it Ability: is anything in the way? Simplicity: how many steps it takes 3 VARIABLE REWARD The value users get on each return. A predictable reward creates no desire. Not knowing what is next draws them back. 4 INVESTMENT Time, data, effort, social capital, money Makes the service better for the next pass: invite friends, state preferences, build virtual assets, learn features investment loads the next trigger Each commitment can make the next trigger more engaging, the action easier and the reward more exciting. after Nir Eyal, Hooked
Figure 1: One lap of the Hook Model. Each phase feeds the next, and the investment loads the next trigger.

The Hook Model in four phases

The Hook Model is a four-phase process that companies use to form a user's habit. The phases run in a loop: trigger, action, variable reward, investment.

Trigger

A trigger starts the behavior. It prompts the user to act, and it comes in two types.

External triggers tell users what to do next:

  • Paid. Advertising that acquires new users.
  • Earned. Press mentions and features. These build over time.
  • Relationship. Word of mouth, where the audience shares the benefit.
  • Owned. Newsletters and notifications that users opt into. This is the most important type, because it comes from the user's own need and, repeated often enough, turns into a habit.

Internal triggers come from the user. The user feels the need without any outside prompt. Raw feelings in the user's mind or body create the urge to come back.

For a product to become a habit, it must couple tightly to a negative feeling. Products that ease boredom, loneliness, frustration, confusion or FOMO reach this stage. The product becomes the top-of-mind answer, and its name turns into a verb: Google, Facebook, Instagram, Spotify, YouTube. Once users cue their next behavior automatically, the new habit is part of their routine.

Action

The action is what the user does in anticipation of a reward. Without it, the trigger is useless. Three factors drive it:

FactorQuestion it answers
MotivationHow much does the user want to do it?
AbilityIs anything in the way?
SimplicityHow many steps stand between the user and what they need?

Variable reward

The product must reinforce the user's motivation with rewards, the value users get each time they come back.

The point that separates the Hook Model from a plain feedback loop is craving. Feedback loops are everywhere, but predictable ones create no desire. The note's analogy is a different treat appearing in your fridge every time you open it. Not knowing what you will find makes you open the door again and again.

Investment

In this phase the user puts something into the product: time, data, effort, social capital or money. Investment is not about opening a wallet and moving on. It means an action that makes the service better for the next pass. Inviting friends, stating preferences, building virtual assets and learning new features all count. Each commitment can make the next trigger more engaging, the action easier and the reward more exciting.

Six checks before building a habit-forming product

The second note turns the model into six points an entrepreneur should weigh before building.

  1. Tie the product to users' pains. A trigger is an internal or external cue, and it is often a painful emotion such as fear, uncertainty, loneliness or boredom. Build the product around that pain, and find ways to link the app with relief from it.
  2. Make the action easy. Once users spot a trigger, they ignore it or act. People dislike pain, so they usually act. Make that action as easy as possible, like scrolling a Pinterest feed or pressing play on a YouTube video. The easier the action, the more likely users take it.
  3. Mix up the rewards. Users expect a reward for acting, such as less boredom, social acceptance or new information. Eyal says the reward must vary. People, and pigeons and mice, act more when the outcome is uncertain, which follows from how the brain's reward center works.
  4. Let users invest in the experience. Products become habit-forming when users find them irreplaceable. Physical goods such as furniture and clothing lose value over time, while great tech products gain value. The more followers you have on Twitter, and the more data you store, the more the product is worth to you. Each action also loads the next trigger: acting once makes the next use close to inevitable.
  5. Raise the frequency and build a community. A product with infrequent use should attach itself to actions that are already frequent and habit-forming, through content or community. Content could be a blog about things to do in the neighborhoods where you sell homes. Community could be events that engage your target audience. The more people discuss the product, the stronger its effect, and the discussion can produce ideas for a better version. A community talking about the product also moves it closer to being the top-of-mind solution.
  6. Engagement is not the only metric. For investing, look for "GEMs": companies with Growth, Engagement and Monetization.

AARRR and the Hook Model compared

AARRR is a strategy for building the user journey. The Hook Model is a process for making a product habitual.

AARRRHook Model
PurposeStrategy to build the user journeyProcess to create a habitual product
Number of steps54
Step 1AcquisitionTrigger
Step 2ActivationAction
Step 3RetentionVariable reward
Step 4ReferralInvestment
Step 5Revenuenone
AARRR's five steps above the Hook Model's four, with activation and action highlighted
FIVE STEPS AGAINST FOUR AARRR 5 steps HOOK MODEL 4 steps Acquisition Activation Retention Referral Revenue Trigger Action Variable reward Investment none activation lines up with action AARRR Strategy to build the user journey. Focus: bring in new users. The action is external: it exposes the brand to potential new users. HOOK MODEL Process to create a habitual product. Focus: keep current customers using it. The action is internal: it builds the habit and improves the product itself. Their end goals differ, and both serve product growth. after Nir Eyal, Hooked
Figure 2: AARRR and the Hook Model line up step by step. Activation meets action, and revenue has no Hook step.

AARRR focuses on bringing in new users. The Hook Model focuses on keeping current customers using the product. Both start by getting users to engage and steering them toward an intended action, so they look alike until the action step:

  • AARRR treats the action as external, exposing the brand to potential new users.
  • Hook treats the action as internal, building the habit and improving the product itself.

The two can coexist in product development. Their end goals differ, and both serve product growth. AARRR makes sure existing users help the product grow. The Hook Model makes sure the product becomes part of a consumer's daily habit. They meet at one stage: AARRR activation lines up with the Hook action.

The takeaway is to build on the synergy between the two. The product should offer:

  • An easy, approachable action.
  • A customizable experience.
  • A variable reward.

The note ends with a personal view. It reads the pairing as a case of Agile in product strategy: nothing goes straight from point A to point B on a smooth, error-free plan. Requirements and market demand change, and the whole approach depends on users and how they interact with the product.

References