Vitamin vs Painkiller conundrum

• Habit is something which if you don't comply with causes you discomfort
• Habit forming products are both vitamins and painkillers

At first, nice to have vitamin

After habit is formed, they provide the remedy (painkiller)

• Store value: Habit forming products allow users to store value in them to increase switching cost (eg email provider)
• Usage frequency: Habit forming products don't require high frequency of usage eg Amazon

High perceived utility from being able to access competitive quotes

Why care about Hooks?

👉 Increase in CLTV

• higher frequency and extent of usage

👉 Acceleration of virality

• David Skok's "Viral Time Cycle" = number of days for user to recommend/on board one user

👉 Price flexibility

• reduces price elasticity of demand
• eg Coca Cola investment by Berkshire Hathway

"Old habits die hard"

New product would have to be x9 better to force switch

On new behaviours

👉 LiFO ie last in first out