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How to build habit loops that bring users back

Shared by Caddie Library · Updated
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Chapter 5 of 15 · Retention and Engagement
← The growth course
1. Finding Product-Market Fit
How to test for real customer pull earlyHow to pick a narrow niche to start inHow to launch a simple first version fastHow to learn from users and customersHow to read early signs of product-market fit
2. Onboarding and Activation
How to structure onboarding as a storyHow to ask and use onboarding questionsHow to get users to the aha moment fastHow to decide how long onboarding should beHow to build quiz funnels for paid traffic
3. Paywalls and Pricing
When to choose a hard paywall over freemiumHow to design a paywall that convertsHow to price annual and monthly plansHow to set, raise and localize pricesHow to run free trials and free tastes
4. Business Models and Revenue
How to structure subscription tiersHow to keep a free tier that pays offHow to charge for usage and AI creditsHow to pair hardware with a subscriptionHow to add ads, affiliates and partners
5. Retention and Engagement
How to measure retention honestlyHow to build habit loops that bring users backHow to use notifications and lifecycle messagesHow to reduce churn and handle cancellationsHow to build social loops and community
6. Brand and Positioning
How to position against bigger incumbentsHow to name and describe your productHow to earn trust in high-stakes categoriesHow to borrow credibility from celebrities and experts
7. Organic Content and Creators
How to find, vet and recruit creatorsHow to pay creators fairly and safelyHow to brief and manage creatorsHow to find and copy viral formatsHow to scale one format across many accountsHow to rank in AI search and SEO
8. Paid, App Store and Viral Growth
How to make ads that convertHow to turn organic winners into paid adsHow to structure and scale Meta campaignsHow to tell if paid acquisition is profitableHow to win in the App StoreHow to build viral and referral loops
9. Experimentation and Analytics
How to run trustworthy experimentsHow to judge test results correctlyHow to run more experiments fasterWhat metrics to track and how to define them
10. Building AI Products
How to build for the models of tomorrowHow to design AI interfaces beyond chatHow to design AI agents people can trustHow to measure AI quality with evalsHow to control AI costs and pricingHow to build products with AI coding tools
11. Teams, Hiring and Funding
How to hire people who thrive on ambiguityHow to organize small product teamsHow to run exploratory bets and kill themHow to work as a team with AI agentsWhen to raise money or sell your company
12. Founder Principles
How to pick a mission worth building a company aroundWhy to trust your own judgment over the consensusHow to turn failure and setbacks into the next stepHow to learn from rivals and copy what works
13. Choosing Where to Compete
How to make low cost your competitive advantageHow to create a market instead of fighting for shareWhy scarcity and brand can beat volumeHow to build an advantage that feeds itselfHow to attack a bigger rival where it cannot followWhen to stay focused on the core business
14. Building and Leading the Company
How to hire great people and give them roomHow to align pay and ownership with the missionHow to keep your culture and standards as you growHow to build candor and fast decision-makingWhy leaders must stay close to the work and customersHow to choose and prepare a successor
15. Capital and Deals
How to fund growth without losing controlHow to acquire companies and keep what makes them workWhat to do with cash: reinvest, buy back or holdWhy to keep a cash cushion and avoid heavy debtHow to structure ownership to protect your missionHow to negotiate deals that keep your leverage

1 The bottom line

Give users one small daily action, a trigger they see, and progress they would hate to lose, and the product becomes routine. Products used only now and then churn the most, so frequency is the job.

2 Key takeaways

  • Make the daily action small and clear. A bar users can clear every day is what turns a streak into a habit.
  • Put a trigger in front of users where they already are. Out of sight is out of mind.
  • Reward the return, and show what comes next. People come back for something they can see ahead.
    • Some users opened a runner game only to spin the wheel, collect credits and leave, and that still drove repeat opens Steve P. Young, Gamezop6:09.
  • Let progress and data pile up so leaving costs something. Stateless products are easy to switch away from.
  • Add a daily use to a product people only open now and then. Occasional use is where retention is worst.

Once you get to seven days, loss aversion kicks in, and you retain.

Jackson Shuttleworth, Duolingo

2.1 Pick the daily behavior

Decide the one action you want repeated, because every loop feature serves it.

  • Turn your retention goal into one simple target behavior. Ben Gammon, Ladder2:55
    • Ladder started at four workouts a week and ratcheted down to three, backed by science.
    • Then the job is to make the behavior easy to repeat: the user presses play, does the workout and does it three times a week.
    • Three workouts a week became the north star that all retention features ladder up to.
  • Find the one feature users return for and make it the front door. An (Anup), Flame10:42
    • The team saw that couples came back for the daily question, not the AI coach, so they pulled it out and put it big on the homepage.
    • They found it by talking to couples about the one thing they would do every day.
    • Day-30 retention went from 0.8% (date planner) to 4.2% (AI wrapper), then to roughly 30% and 50% after anchoring on the daily question and habit loops.
  • Tie the habit to identity or to a natural cycle. Allen Chen, Fitbod20:00
    • Fitbod shows how long since each muscle group was trained and when it is recovered, so the app itself says it is time to work out again.
    • Recording lectures is something students do daily, and past recordings build a library that creates lock-in Brett Bauman and Zack Hargett, Coconote15:35.
    • Users even open Fitbod just to see when their next workout is.
  • Add a daily-use feature to a product people use in bursts. George, Wrestle AI20:20
    • Wrestlers only analyze a match when they compete, so a calorie tracker for weight class gave them a reason to open the app daily. George says it helped retention "a ton".
    • Wisey pairs focus timers and habit tracking with short lessons on why people procrastinate Steve P. Young, Wisey1:57.
    • Games that load inside the app give a reason to open it that is separate from the core use Steve P. Young, Gamezop8:25.
    • Acorns found recurring investment correlated with retention, then added higher-frequency uses such as an IRA and a spending account with a debit card Hila Qu, GitLab1:01:48.
    • Wisey's daily focus check-in (low, medium, high) lets patterns show up over time Steve P. Young, Wisey6:58.

2.2 Build a streak users can keep

A streak works when the unit is simple, the first week is easy, and the design fits your brand.

  • Base the streak on one simple unit of use. Jackson Shuttleworth, Duolingo12:12
    • Duolingo moved the streak from an XP goal to one lesson a day, because the lesson is the unit of use. It is easy to understand and still shows real engagement.
    • Learners with higher daily goals found the old rule daunting, because the streak punished their ambition Duolingo.
    • It was one of the most impactful experiments, drove DAUs substantially, and users did not care less about the streak.
  • Aim your effort at the first seven days. Jackson Shuttleworth, Duolingo19:43
    • Each added day from one through seven gives a big retention jump, and the curve flattens after day seven.
    • Delay extra streak concepts such as perfect streak until after day seven, because showing too many early lost in tests.
    • Judge a streak change by the share of users reaching 7+ days, a threshold you can compare across A/B variants Duolingo.
  • Wrap the streak in a core loop, a metagame and a profile. Albert Cheng, Chess.com1:05:14
    • The core loop is lesson, reward, streak extension and next-day push, and it must be tight enough to form a habit.
    • The metagame is the path, leaderboard and achievements. The profile reflects what users have invested.
    • Opal built its own streak with an animated flame instead of an emoji, plus gems at milestones Kenneth Schlenker, Opal49:49.
    • Opal's friend leaderboard works because nobody knows what good screen time is, so it gives a reference point and a conversation starter Kenneth Schlenker, Opal38:59.
    • Cal AI added groups that began as private friend groups, with leaderboards on streaks Daniel Heintzman, Sway AI26:05.
  • Plan for the day a streak breaks. Steve P. Young, RiseGuide14:32
    • Streaks raise retention because people want to keep them alive.
    • A user who breaks a long streak may be lost for good, so think about other ways to handle that moment.

2.3 Put a trigger where users already are

Give people a reminder that fits inside their day, and make it useful enough to welcome.

  • Win a home screen spot first, then upgrade to a widget. Josh and Steve P Young, Miracle Morning25:05
    • A widget costs four or eight app slots, so earn the plain icon spot before asking for it.
    • Anchor use on a trigger such as a morning routine or a Saturday movie night, then give a reward. Calendar events with a deep link and Siri integration help.
  • Use a large widget with content that updates. An (Anup), Flame17:00
    • Widgets stand out when notifications are crowded. Flame copied Couplejoy's distance widget and days-together counter, which remind users the app exists every time they open the phone.
    • Couplejoy was among the first to put a widget on the lock screen and built social content around it.
  • Build the reminder into the tools people already use. Phil Carter, Elemental Growth21:19
    • Granola links to your calendar and nudges you to start notes before meetings. WisprFlow keeps a small widget on screen that later shows tips.
    • Keep it useful so it is not annoying, and the habit eventually becomes intrinsic.
    • Grammarly puts an icon on the keyboard that opens settings and leads back into the app, where premium is offered again Steve P. Young, Grammarly13:00.
  • Tie each notification to an action the user took. Tim Holley, Etsy42:59
    • When a buyer favorites an item, close the loop with an updates feed and pushes such as the item going on sale or only one being left.
    • GameChanger sends reminders around game start, in-game events and post-game recaps Sameer Ahuja, GameChanger15:03.
    • A team that created content for around four or five games was likely to continue all season. The average user stays six or seven years.
  • Send something worth opening, and own the channel. Josh and Steve P Young, Miracle Morning9:00
    • Miracle Morning sends 30 second videos from the author and a few characters, like a friendly morning show.
    • Owning the app means controlling notifications, email and an in-app inbox. The goal is to move the 350,000 person Facebook community into it.

2.4 Reward the return

Pay users for showing up, show what is next, and give a payoff for each step.

  • Show the full daily reward ladder. Tom Hammond and Steve P. Young, TheoremReach14:04
    • Display 100 today, 150 tomorrow and 200 after, and offer a double-today option for watching a video.
    • Fun Run does the same with a daily bonus and spin wheel, and the idea works for non-gaming apps too Steve P. Young, App Masters5:22.
    • By day five or day 30 the reward is big enough that players would be crazy not to log in. Monitor your economy while doing this.
    • One feature serves retention and monetization: 200 coins by clicking, or 400 by watching a quick video Steve Young, Fun Run 38:01.
  • Give free gifts on a timer. Matthew Hall, Crossy Road16:37
    • Players get 50 to 500 coins each time they return, and can claim roughly every six hours.
    • Final characters are much harder to unlock, so players keep coming back to see what is next.
    • Crossy Road's gift screen shows "next gift in eight hours", which brings people back Steve P. Young, Subway Surfers9:09.
  • Give an immediate benefit for each step, not only the long-term one. Kristen Berman, Irrational Labs22:26
    • People are present biased, so add near-term payoffs such as the checkbox or a teammate getting notified. In Asana, logging a task is rewarded that way, not just by the on-time project.
    • Return users to a home module with a checked-off item after each lesson, like a to-do list Steve P. Young, RiseGuide16:01.
    • In Fun Run 3, a chest still pays out virtual currency after a loss, so a loss feels like a win Steve Young, Fun Run 311:16.
    • The fintech app Study got more users to sync bank accounts by framing each step around a small immediate benefit and completion.
    • Always check that the end result benefits the customer, and use error-message tactics sparingly Kristen Berman, Irrational Labs42:03.

2.5 Save progress so leaving costs something

Every logged workout makes switching apps cost more
Logging feels like a reward to the user and feeds a data flywheel for the business.

Show users what they have built, and let every action make the product better for them.

  • Show progress in concrete parts, and show how the work lands. Cori Shearer, Headspace13:57
    • Headspace lets members track a survey score over time. Knowing how you are doing helps people decide what to focus on next.
    • Its Today tab shows progress and recommends a next step, for example when a score drops over a few months Cori Shearer, Headspace31:06.
    • Stash showed the amount in each investment, not only the total Stash.
    • 12% more users kept automatically saving even 8 months later.
    • Behance let anyone appreciate work even when logged out, so creators got feedback. People make more progress when they feel they are making progress Scott Belsky, Adobe9:34.
    • Anchor creators stay motivated when they can see who is listening and whether they come back Maya Prohovnik, Anchor9:23.
  • Let users log data that powers personalization. Ben Gammon, Ladder4:57
    • Ladder's journal logs reps and weights. Next time, recommended weights come back personalized, and users see progress and hit PRs.
    • As state builds, users get proud of what they have done and are less likely to leave and lose it Ben Gammon, Ladder7:04.
    • Suno's Voices, My Taste and Custom Models make the tool feel personal. Voices was among the most requested features Mikey Shulman, Suno33:45.
    • Duolingo wants Lily to ask about the story you told last week, but her memory is not yet good enough to feel human Natalia Castillejo, Duolingo14:21.
  • Make the product better the more it is used. Sarah Tavel, Pinterest11:00
    • At Pinterest, every pin trained the picked-for-you home feed, and the growing set of boards gave users more to lose.
    • Build accumulating data, integrations and history, as Strava and Dropbox have, since those can't be vibe coded in a weekend Jacob Eiting and David Barnard, RevenueCat51:04.
  • Remove friction from the action users repeat. Bangaly Kaba, Instagram1:00:59
    • Instacart made reordering hard, with seven or eight clicks to find items and no way to pick pieces of a past order.
    • Swirkit built music into workouts instead of sending users to Spotify Lauren Puffpaf, Feed.fm9:38.
    • After five Instacart orders, 90% of a user's order was the same.
    • Users who engaged with Swirkit's music had 2.5x D90 retention.
    • At Discord, fixing bugs from Reddit threads and improving performance moved users from about 10 days out of 30 to 11, 12 or 13 Peter Sellis, Snap and Discord54:00.

2.6 Keep the loop fresh

A habit fades when nothing changes, so add new reasons to return and keep sessions active.

  • Run a steady live ops cadence. Chuka Ikokwu, Exploding Kittens11:08
    • At WB, the team added new champions or challenges roughly every two weeks and announced them.
    • Rotating events refresh content without changing the core game Joel Julkunen, GameRefinery10:05.
    • Returning players raised engagement, and monetization rose with it.
    • League of Legends has released new champions for over a decade, which built a very loyal fan base Chuka Ikokwu, Exploding Kittens12:23.
  • Tie a trending moment into the app, fast. Pelin Culha, Mobile Action7:36
    • It shows current users you are present, but you must ship before the hype dies.
    • A chess app ran a "billionaires" event with tech-billionaire opponents while Elon Musk buying Twitter was in the news.
  • Layer missions, levels and challenges on a simple loop. Steve P. Young, Subway Surfers4:38
  • Make sessions active, not passive. Steve P. Young, RiseGuide13:45
    • RiseGuide ends lessons with a quiz and uses tap-through steps and flip cards, so users do not just tap through.
    • Suno users who get an okay result click in and edit lyrics, then start writing their own Mikey Shulman, Suno28:30.

2.7 Where they disagree

Some tactics only fit some products, and the sources split on points and streaks.

  • Gamification may help or may hurt motivation.
    • Connor Zwick, Speak37:51 believes relevance and a relationship with the AI motivate better than streaks. Duolingo still shows gamification retains, with 700 day streaks from people who say they cannot speak the language.
    • Rahul Vohra, Superhuman1:01:46 says points and badges undermine intrinsic motivation. Build playful features that are fun without a goal.
    • In a Stanford study, children promised a reward spent 8% of their time drawing versus 17% with no reward (Vohra).
    • Pok Pok hides nothing and unlocks nothing, so one app serves ages 2 to 8 Melissa Cash, Pok Pok12:45. It also mails a free play kit in the first month to remind parents it exists Melissa Cash, Pok Pok45:00.
  • Lower the streak bar, but not to the floor.
    • Duolingo lowered the bar from the full goal to one lesson and streaks rose Duolingo.
    • Going lower, to one exercise, captured users who did one or two questions and left, and the unit of measure got less clear. Decide what level of commitment you want to build the habit around Jackson Shuttleworth, Duolingo15:49.
  • Live and timed tactics fit some products better.
    • A live-only consumer product was not durable because users had no reason to return when not broadcasting. Instagram and TikTok layered live on top of asynchronous products Kayvon Beykpour, Twitter1:02:42.
    • Vertical live products like Twitch for gaming or Whatnot for selling can stand alone.

Sources

Part of Retention and Engagement in the growth library.