Using Habit for Good - Nir Eyal, 2016 Habit Summit

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  • Any economists in the room? Good lets make fun of them for a moment.

    Theres an old joke about economists assumptions about our human rationality and efficient markets. The joke goes.

    Two economists are walking down the street. One sees a $100 bill lying on the sidewalk and says, Look! Theres $100 bill! The second economist responds, Nah, thats not a $100 bill. If it was, someone would have picked it up already.

    So the joke illustrates a point. Some times there are $100 bills laying around that people dont bother to pick-up

  • Any economists in the room? Good lets make fun of them for a moment.

    Theres an old joke about economists assumptions about our human rationality and efficient markets. The joke goes.

    Two economists are walking down the street. One sees a $100 bill lying on the sidewalk and says, Look! Theres $100 bill! The second economist responds, Nah, thats not a $100 bill. If it was, someone would have picked it up already.

    So the joke illustrates a point. Some times there are $100 bills laying around that people dont bother to pick-up

    ARE YOU minting value people arent picking-up?

  • 58% of those eligible do NOT claim benefits from the Temporary Assistance for Needy Families program.

    54% of those eligible do NOT access Supplemental Security Income (food stamps).

    Earned Income Tax Credit is neglected by an estimated 6.7 million eligible people each year 25% of the population of eligible individuals.

    Source: https://www.cmu.edu/dietrich/sds/docs/bhargava/bhargava_takeup%20aer%202015.pdf and http://www.misbehavingbook.org/blog/2016/1/20/why-dont-people-take-free-cash

  • 23,000 products launch every year in the U.S., but 80% fail.

    Only 3% of consumer packaged goods succeed at launch.

    Less than 1 percent of apps in Apple app store will be financially successful.

    92% of startups fail within 3 years.

    75% of venture-backed tech startups fail to return investor capital.

    Source: Nielsen 2014, Harvard Business Review 2011, Shikhar Ghosh, Harvard Business School, Startup Genome Report, Gartner Research

  • GOOD PRODUCTS die for bad reasons.

    Illustration:KristianBjornard

  • OPPORTUNITIES to help people are slipping through our fingers

  • THIS IS WHY we are here today

  • Source: Inspired by Ideas42

    People know what they want and act consistently.

    Preferences change based on context.

    Motivate through awareness. People just need the right information.

    Motivation forms intention but thats not enough to drive behavior.

    People fail to act because they dont value whats being offered.

    Inaction is often the result of barriers, not lack of intent.

    Figure out what the user is doing wrong and make them do it right. Fix whats wrong with experience.

    BUILDING PRODUCTS BUILDING BEHAVIORS

    Build the best technology. Use the right psychology.

  • EXAMPLES show us whats possible

  • Level of motivation and ability determines if action will occur but move ability first.

    MOTIVATION

    ABILITY

    TRIGGER

    SUCCEEDS

    TRIGGER

    FAILS

    ABILITY

    MO

    TIVA

    TIO

    N

    Source: Dr. BJ Fogg, Stanford University

  • WHATS IN peoples way?

  • Earned Income Tax Credit Study

    Source: https://www.cmu.edu/dietrich/sds/docs/bhargava/Bhargava_Takeup%20AER%202015.pdf

  • Simplicity really matters

    Source: https://www.cmu.edu/dietrich/sds/docs/bhargava/Bhargava_Takeup%20AER%202015.pdf

    64%

  • the lowest-income workers had roughly twice as large of a response to mailer simplification as did recipients above median income. In short, simplification matters and it matters most for the people who have the least.

    Source: https://www.cmu.edu/dietrich/sds/docs/bhargava/Bhargava_Takeup%20AER%202015.pdf

  • Source: Pantry

  • Source: Glide

  • Source: Uber

  • Source: Product Hunt

  • Source: Dexcom

  • WE CAN design healthy habits

    Source: 7Cups

  • OPPORTUNITIES to help people live better lives

  • THANK YOU lets get to work