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The purpose of this discussion isn’t to excuse mediocre engagement or retention, but rather, to have an honest discussion of what most companies are seeing in the market. The author posits that will help us plan better, give us more options for our Plan B, versus being total newbs on the issue.

This essay breaks down a few different metrics and the uphill slog we all face as consumer-focused entrepreneurs:

1) Signup rates
2) Retention and frequency
3) Social graph density

It’s worth mentioning that every product is different. Mobile apps often have better engagement metrics, but have lower upfront conversion rates. SEO products have the lowest signup rates. But the intention of this essay is to add to the discussion for the kinds of social apps being built right now – social consumer products on web and mobile – and give everyone a baseline for discussion.

  • MT

    Muhammed Tüfekyapan

    about 6 years ago #

    Another Andew Chen post. I really like his point of view and style of writing post.

    For me, there is some important point;
    - Instagram user following distribution is incredible. I really find hard to explain it.
    - DAU/MAU is another so helpful metrics for many kind of products. (It can be great indicator for P/M fit.)
    - Retention curve is also a valuable graph.

  • JL

    Jon Lim

    about 6 years ago #

    > "On the plus side, even though these percentages all seem small, great businesses have been built from a few percentage points here or there."

    I think that's the key takeaway. When you are growing your business, growing traffic, growing signups etc, you quickly realize that even a small uptick in change is enough to make quite a ripple to your bottom line.

    A lot of marketers get bogged down in thinking that small percentages are bad, but they need to step back and look at the effect of that small percentage, and then find ways to either improve it or scale traffic up without scaling costs.