Yep, this is adapted from (product sir 😅) Nir Eyal’s book.

Anddd yes, this is based on my work trying to drive app usage in a Mobile Device Financing product ecosystem. The mobile app plays a key role in

  1. Driving on-time collections,
  2. Reducing customer care call centre workload,
  3. Distributing retention products, and
  4. Fraud & Risk Tracking.

App utilisation is a key problem especially given that we are dealing first time smart phone users and are likely the first lenders to these customers (they are largely unbanked).

Product Goal: To turn X% of our sporadic users into high power app users, leveraging psychology and behavioural economics to build a sticky app.

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🤨 How do we drive high user engagement and/or utilisation of our app? Can we tap into user psychology to build user habits and foster repeated app usage? = the HOOK framework

Nir’s framework consists of four key strategies;

  1. Triggers: These are external or internal cues that prompt a user to take our desired action of opening the app during the lifetime of their loan.

    External Internal
    Call Center IVR Frustration: Phone is locked, need a few seconds to pay, make emergency call/SMS
    Knox Installation of App Frustration: How much do I need to Pay?
    Knox Notifications Curiosity: How many “use time” do I have?
    App Notifications Obligation: I want to make payment
    Walk in to branch support Obligation: I want to set up/monitor/change/ direct debit on my financial account
    WhatsApp Support Curiosity: I want to to settle my loan, what are the T&Cs
    USSD Support

    External triggers are prompts that direct users to engage with the app, while internal triggers are the emotional or situational cues that subconsciously motivate users to seek solutions within the app.

    External triggers are purposefully designed to align with these internal triggers.

  2. Actions: The simplest user behaviour in anticipation of a reward - how do we reduce friction so that the desired actions are effortless.

    | User Motivation

    (how much user wants to perform action) | Ability

    (how easy is to complete action?) | Trigger

    A clear tigger(s) to initiate action | | --- | --- | --- | | Frustration: Phone is locked, need to access phone for a few seconds to Pay | Initiate payment from my Mobile Money | Knox Notification X days, X hours, X minutes to phone lock | | … | | |

  3. Variable Reward: The reward phase satisfies the user’s need while introducing variability, which keeps them coming back due to the unpredictability of outcomes (similar to a slot machine effect).

    Social Rewards Material Rewards Intrinsic Rewards
    Recognition from Peers when I complete my loan X months before time by exporting “ambassador frame” Points accumulation for payments made before lock time Learning about the details of my loan, Repair Process
    Cash back or discounts for >X month build payments on time, Y consistent on time repayment app For information on running promotions/reward programs
  4. Investment: Users invest effort, time, data, into the App, increasing their likelihood of returning. This phase is about building a cycle of engagement by creating hooks for future use.

    Phsycology Mechanism: The more users invest in their Watu profile, the more valuable the App becomes valuable to them by fostering a sense of ownership, commitment and personal relationship with Watu.

    Some drivers include:

    1. Changing preferred language for customer care or collection calls
    2. Uploading Profile Picture in anticipation of social reward
    3. Updating KYC
      1. Alternative phone number(s) ( adding new number to wallet to make auto reconcilable payments)
      2. Address (eg to qualify for regional promotions)
      3. Monthly income (eg to qualify for discounts)
      4. Adding debit card for auto debit

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The hook framework provides a product team with a tool of brainstorming features that encourage repeat product usage. The framework is user centric by design given its focus on triggers, actions and rewards that align with user behaviour.