Tag Archives: alley boost

Recaps: Two days of talks with Hooked author Nir Eyal

18 Nov

Nir Eyal, an entrepreneur, designer and author, has been on the event circuit since the release of his new book Hooked: How To Build Habit-Forming Products. I recently heard him speak two days in a row at Alley Boost and StartupGrind events. Below is a post that combining what he said at both events. I guess the next step should be reading his book…it’s on my list!

FullSizeRender

Nir speaks at Alley Boost event at Mercy College.

Did you know that 1 out of 3 Americans would rather give up sex than their smart phone? Technology has quickly become a pervasive – and intimate – part of our lives. If you’re a designer or an entrepreneur, then you probably are dying to know how technology becomes habit-forming. And if you’re just a consumer, knowing why we get hooked is the first step in breaking unhealthy attachments to tech.

Cue Nir Eyal, entrepreneur, designer and author of Hooked, which was recently released as a physical book that explores what entrepreneurs should build and why. Eyal has a background in gaming and advertising, which both involve some form of mind control. He had his own startup and he has consulted plenty of others.

“A lot of companies were using these [habit-forming] tactics and yet they didn’t really understand why these tactics work,” said Eyal. “They do it without understanding the deeper psychology on how and why these things change users’ behavior.”

Companies want to create products that customers won’t just love, but won’t be able to put down. These types of addictive technologies like our phones, email and apps have a hook so compelling, that we keep using them without anyone prompting us to come back. They become habit, which is a behavior done with little or no conscious thought. This accounts for what we do for about half our day.

There are four parts to the hook, Eyal said.

1. The trigger is something that tells the user what to do and cues the next action. It can be external or internal. Most of these internal triggers are negative – our pain points that we look to solve. We form habits with technologies that lift us out of these negative states, like loneliness or boredom.

When we are lonely we use Facebook. When we’re unsure we go to Google. When we’re bored there’s YouTube, Pinterest, ESPN, etc. Studies show that people suffering from depression check email more often.

2. The action is the simple behavior done in anticipation of a reward. Examples are scrolling, searching or hitting the play button. The formula, created by B.J. Fogg, for predicting the likelihood of these singular actions is behavior = motivation + ability + trigger.

6 factors that can increase motivation are seeking pleasure, avoiding pain, seeking hope, avoiding fear, seeking acceptance and avoiding rejection.  Every ad uses one or more of those levels of motivation.

6 factors that affect ability are  time, money, physical effort, brain cycles (how hard it is to understand correlates with likeliness of doing it), social deviance (see other people doing it), non-routine (you’re more likely to do it if you’ve done it before).

3. The reward: We like variability; the uncertainty makes returning to the technology exciting. An example is the newsfeed, it’s always different.

4. The investment: The product should have a return on the investment because users put something into it in anticipation of a future benefit. Investments increase the likelihood of passing through the hook. Example – if you send a message on WhatsApp, you’ll get one back. Habit-forming technology should improve or appreciate rather than depreciate over time. Another type of investment is building a reputation or a following, like on Task Rabbit, Ebay or AirBnB. It’s hard to leave that platform once you have value on it.

While all this information has value for designers, changing someone’s behavior to meet our own ends, is a form of manipulation, said Eyal. He believes companies should practice social responsibility and use the psychology of the hook to make products that are good for us.

At Startupgrind, Eyal answered my Twitter question and I had 5 seconds of fame…within the event:

He handled the cynicism well, and said the emotions we want to manage don’t change, the technology and interface do. He predicts n a few years wearable technology, like Google Glass and smart watches will be the next big thing.

At the same time he’s teaching the hook, Eyal calls himself an advocate for breaking hooks. You can use the information to break habits and build good ones, he said. In the future, being able to control our habits will be a competitive advantage, said Eyal.

Maybe he’s saying we swap the juice cleanses and do the digital detox to prep for 2015? Maybe I’ll wait til 2016…Eyal’s “future” has no deadline. 🙂

Advertisements

AlleyBoost Fireside Chat with Brian Cohen of NY Angels: Pinterest, pitching and personality

11 Nov

AlleyBoost hosted Nir Eyal and Brian Cohen at Mercy College on Tues. November 4, 2014. I’ll post Nir’s talk in a separate post later this week. You can read about his chat at StartupGrind here.

Brian Cohen, chairman of NY Angels and author of What Every Angel Investor Wants You to Know, spoke about everything from angels to Pinterest, his most famous investment to date.

briancohen

Brian Cohen talking to an entrepreneur while subtly showing off his book.

Although Cohen didn’t spend the whole time talking about Pinterest, the reasons he initially liked the startup illustrated many of the points he made during the fireside chat.

Cohen was the first investor in Pinterest. He likes to get in early and give the first check. He’s aware it’s risky, but sometimes it works out really well – like Pinterest well. What helped Ben Silbermann, cofounder of Pinterest, even more is that Cohen really liked him. Cohen cares a lot about the person he gives his money to.

“I like to know ideas early,” Cohen said, adding that founder’s backstory adds to the allure of the pitch. “I want to know the person behind the idea. Who are you? Where did you come from? Why did you think of that? A lot of times I want to be the first check.”

He calls everyone he has invested in a friend or someone he’d like to be considered friends with. This is because often times, the person is even more important than the idea. Not just because Cohen values friendship.

“I’m not investing in your idea; I’m investing in your ability to execute,” Cohen said.

The reason the person is important is because they have to know how to build the business, even if it’s not the idea they started with.

“75 percent of the time the company I invest in is not doing the same thing 1 or 2 years later,” Cohen said.
This was the case with Pinterest. The site started as an iPhone app called Tote, a catalog for women’s accessories, which in itself was a good enough idea with a good enough team to get Cohen on board.

Pinterest customers told the founders they wanted a way to collect all the things they liked. Silbermann cared a lot about what his customers thought. Using their feedback, he gave the world a place to digitally pin, and a new interface called a board. It duplicated an action people do in the real world online and it did what the customers asked for, which are factors in its success.

Today, Pinterest is valued at $5 billion. Cohen said almost no company gets that kind of valuation, most are somewhere between $2 and $4 million, depending on the sector and the team (serial entrepreneurs are valued higher). When it comes to investing, while valuation is a piece of the decision, he said it isn’t everything. He also doesn’t care about traction but said it helps increase the valuation.

Pitching advice
Cohen, who studied rhetoric as an undergrad, believes in the power of a great communicator when it comes to pitching. He also believes in the power of a Google or LinkedIn search – meaning know the investors’ background. When speaking, be clear, crisp, clean and definitive. This means don’t use qualifiers like “I hope” or “We’re trying.” If those are the only words you can use to describe your business, it could mean you are in a position of weakness, and Cohen said that is a bad time to look for money.

For those who would rather “bootstrap” than raise money from a VC or Angel, Cohen thinks that’s stupid. He said people who are self-funding probably couldn’t convince anyone to invest. He also advises raising money six months before you need to it.

Remember to talk about exits in your pitch and have a timeframe in mind. Cohen said the average exit takes 6 to 10 years. Exits are important to angel investors – it’s how they make money.

“The word ‘exit’ to me is like sex – that is at the end the ultimate prize,” Cohen said.

This was originally written for Office Lease Center.

How to improve sales – tips from a former salesforce exec

6 Nov

Elay Cohen, the former Senior Vice President of Sales Productivity at salesforce.com, shared his proven communication-based sales techniques at an AlleyBoost class on Tuesday, October 28 at Mercy College. 

The entrepreneur and author urges companies to bring humanity back into sales – internally and externally. Cohen injected this personal, relationship-focused attitude toward sales into the culture of salesforce.com, which grew from $500 million to $3 billion in revenues while he was there.

“People would ask how we hit our numbers so fast,” Cohen said. “It has to come from the heart and soul of the company.”

Cohen’s sales philosophy comes from his experience learning sales from his father, a furniture storeowner, selling products door-to-door, and working in sales at various companies, including salesforce.com. He wrote a book called Saleshood and started a SaaS sales-solution startup with the same name. Founded less than two years ago, the company is already breaking even without any VC funding. Cohen said they are starting with a limited amount of customers so they can get the product right before they scale.

Salesforce

At salesforce Cohen created an environment where the entire team shared a single sales vision, which encouraged both results and relationship building with customers. When salesforce started in 1999, Microsoft and Oracle were competitors in the space. Sales reps met with customers, told them how salesforce could solve their pain faster and for less money than the bigger companies. Salesforce surprised the big names by expanding rapidly.

The company is known for its boot-camp training for new employees. The sales team continues to communicate with weekly and monthly meetings where they share success stories and allow for peer-to-peer learning.

Cohen’s formula for SUCCESS…

Read about his formula and more at Office Lease Center’s blog: http://bit.ly/1vqANez.