1. Proven Steps to Creating a Daily Habit: Browsing Online Flash Sales – Gilt Groupe Eric Kinariwala habits.stanford.edu

2. overview Friend Sends Invite for Site – Chance to Earn Them $25 Arrive at www.gilt.com (landing page has only member login or sign –up boxes) Browse existing sales and items Friend Forwards you E-mail of Item You May Like Make a purchase Initial Behavior Register for site You hear or read about site andsign up on your own Sale Starts at 12:00 (EST) (lasts only 1-2 days and limited quantities) Make a purchase Open E-mail on Computer – view sale categories Click on e-mail link to browse individual items Receive daily e-mail at 11:41 am (EST) (shows new sales and reminds sales starts at noon in subject line) Recurring Behavior Make a purchase Receive iPhone push notification that sales is starting Open E-mail on iPhone view sale categories Launch Gilt iPhone App and browse individual items

3. behavior analysis - motivation Initial Sign-up: Motivation driven by hope of finding good deals (bargain shopper mentality) Daily Browsing: Continue receiving (and reading) e-mails also motivated by hope of finding good deals Purchase: Driven by pleasure of purchase and fear of loss(sale ending, item/size/color selling out due to limited quantities)

4. behavior analysis - ability Initial Sign-up: Registration is simple, easy, free, fast, etc. Only thing you can do on www.gilt.com Daily Browsing: Time of sales (noon EST) coincides with lunchtime (eat at your desk and browse the sale) Easy to quickly browse and see if something catches your eye (brain cycles) Daily push e-mails simplify process of seeking bargains (frees up time as a scarce resource and reduces physical effort of going to the store and digging through disorganized racks/bins of clothing) Purchase: Significantly reduced prices increases ability to purchase

5. behavior analysis - triggers Initial Sign-up: E-mail from friend is a spark trigger (individual has ability to register, but lacks motivation) Daily Browsing: Daily E-mail with sale items in subject and noon start reminder is a signal trigger (individual has motivation and ability) Purchase: Something is above expectations (like an item more than anticipated or price is better than expected)

6. behavior path BJ Fogg’s Behavior Grid explicates the path to habit formation http://www.behaviorgrid.org/ Dot Behaviors: Done once Span Behaviors: done for a specific duration Path Behaviors: is done from now on – lasting change Green Behaviors: Do new, unfamiliar behavior Blue Behaviors: Do familiar behavior Friend Sends Invite for Site – Chance to Earn Them $25 Arrive at www.gilt.com (landing page has only member login or sign –up boxes) Browse existing sales and items Friend Forwards you E-mail of Item You May Like Make a purchase Initial Behavior Register for site You hear or read about site andsign up on your own Blue Dot: Click on Link Blue Dot: Register for a Website Blue Dot: Register for a Website Blue Dot: Online Purchase

7. behavior path BJ Fogg’s Behavior Grid explicates the path to habit formation http://www.behaviorgrid.org/ Dot Behaviors: Done once Span Behaviors: done for a specific duration Path Behaviors: is done from now on – lasting change Green Behaviors: Do new, unfamiliar behavior Blue Behaviors: Do familiar behavior Sale Starts at 12:00 (EST) (lasts only 1-2 days and limited quantities) Make a purchase Open E-mail on Computer – view sale categories Click on e-mail link to browse individual items Receive and view daily e-mail at 11:41 am (EST) (shows new sales and reminds sales starts at noon in subject line) Recurring Behavior Make a purchase Receive iPhone push notification that sales is starting Open E-mail on iPhone view sale categories Launch Gilt iPhone App and browse individual items This is the big behavior change – from DOT to PATH. Reading the e-mail daily becomes habitual Blue Dot: Open E-mail Blue Path: Read E-mail Blue Dot: Browse Items Blue Dot: Online Purchase

8. initial invite (spark trigger)

9. registration page (simplicity increases ability)

10. daily e-mail (signal trigger – notice subject)

11. sale categories

12. sale items

13. mobile push trigger (signal)

14. mobile site