Unlocking the Potential of Consumer Product Metrics in the Digital Age

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Hatched by Glasp

Jun 28, 2023

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Unlocking the Potential of Consumer Product Metrics in the Digital Age

In today's digital landscape, consumer product metrics play a crucial role in assessing the success and effectiveness of products. However, a closer look at these metrics reveals a rather grim reality - they are all terrible. Across various industries, it is not uncommon to witness abysmal conversion rates and disengagement rates among users. This article aims to shed light on the reasons behind these disappointing statistics and explore potential solutions to improve consumer product metrics.

One of the primary reasons for the underwhelming performance of consumer product metrics is the high rate of user refusal to sign up for a product. In fact, it is not uncommon to see 90% of potential users declining to sign up. Even among those who do sign up, the majority - over 90% - eventually become inactive and disengaged over time. This phenomenon is particularly evident in mobile apps, which often have better engagement metrics but struggle with lower upfront conversion rates.

The low engagement and frequency rates among users are also alarming. More often than not, only a small percentage of users, often less than 10%, remain engaged on a daily basis. In many cases, the engagement rate can be as low as 5% or even lower. To address this issue, it is crucial to find ways to integrate the product into users' pre-existing behaviors rather than asking them to adopt new habits. By aligning the product with users' existing routines and preferences, it becomes more likely to achieve sustainable engagement and usage.

Another significant challenge in improving consumer product metrics is the lack of social connections within the user base. Surprisingly, a large percentage, sometimes even 50% or more, of users do not know anyone else using the same product or service. This lack of social connectivity poses a significant hurdle in creating a vibrant and dynamic user experience. To overcome this, it becomes essential to backfill users' feeds with content from a single source or personalized content to compensate for the absence of social connections.

The case of Instagram serves as a fascinating example of a product that achieved explosive virality despite a significant portion of its user base being disconnected from others. At its peak, Instagram had a staggering 65% of users who did not have any connections within the platform. This highlights the potential for a product to thrive even without extensive social networks, emphasizing the importance of creating a compelling user experience that transcends the need for social interactions.

Moving beyond consumer product metrics, it is crucial to explore the three economies of the internet to gain a holistic understanding of the digital landscape. The first economy is the Knowledge Economy, where platforms like Google and Twitter organize the world's knowledge and conversations. This economy has been prevalent for the past two decades, providing access to information and enabling individuals to become experts in various fields.

However, the proliferation of knowledge has led to a new challenge - the lack of efficient mechanisms for filtering qualified individuals. Despite having access to vast knowledge, there is a need to identify and evaluate talented creators, workers, and craftsmen effectively. This is where the Access Economy comes into play. The Access Economy aims to match qualified individuals with the right opportunities, utilizing innovative frameworks for talent identification and evaluation. By bridging the gap between knowledge and access, this economy holds the key to unlocking the untapped potential of millions of talented individuals worldwide.

Finally, the Commerce Economy represents the ultimate goal for many businesses - a seamless flow of money across borders facilitated by smart contracts. While this may seem like an ideal scenario, it is essential to acknowledge the challenges of implementing such a system on a global scale. Solving problems for billions of people requires feasibility and practicality, and simply because something is possible does not mean it is feasible in the real world.

To harness the full potential of the three economies, it is crucial to follow a specific order. The Knowledge Economy provides the foundation by organizing information, while the Access Economy focuses on organizing people and their talents. Only then can the Commerce Economy effectively allocate resources and distribute wealth.

In conclusion, improving consumer product metrics is a complex task that requires a deep understanding of user behavior, social dynamics, and the three economies of the internet. By aligning products with users' existing behaviors, fostering social connections, and leveraging the power of the Knowledge, Access, and Commerce Economies, businesses can strive towards better engagement, usage, and overall success.

Actionable Advice:

  • 1. Prioritize integrating your product into users' pre-existing routines and behaviors to enhance engagement and usage.
  • 2. Foster social connections within your user base by backfilling feeds with personalized or single-source content to compensate for the lack of social networks.
  • 3. Embrace the potential of the three economies of the internet - Knowledge, Access, and Commerce - to unlock the untapped talent and resources that can drive your product's success.

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