Creating customer habits around products is a constant challenge for businesses, both big and small. In his book Hooked: How to Build Habit-Forming Products, Nir Eyal talked about creating products compelling enough to "hook' their users. The part-time academic, entrepreneur, angel investor and author will look at the the psychology behind what drives user behaviour and how to build products to cater to core human needs at a VCCircle Training workshop on May 20 at Singapore. In this interview with Techcircle.in, Eyal talks about the most neglected step in building a habit-forming product, his mantra for investing in a startup and insights into psychological attributes for winning businesses. Edited excerpts:
What are the attributes you look at while assessing an angel investment opportunity?I look for GEMs. GEM stands for growth, engagement and monetisation. Each of these three elements are necessary but not sufficient. Before I invest, I want to understand how the company will grow its user base, how the product uses consumer psychology to keep people engaged, and how it will ultimately monetise.