Content is often referred to as the king in the world of the internet. It is believed to be the key factor in generating revenue and creating a strong presence online. This notion is supported by the success of various platforms such as Hardbound, Gimlet, Substack, and the Everything bundle.

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Hatched by Glasp

Jul 28, 2023

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Content is often referred to as the king in the world of the internet. It is believed to be the key factor in generating revenue and creating a strong presence online. This notion is supported by the success of various platforms such as Hardbound, Gimlet, Substack, and the Everything bundle.

When it comes to understanding the most engaged users, the concept of the "power user curve" comes into play. Power users are individuals who not only enjoy a product but also show high levels of engagement and bring significant value to the network. They are often represented by activity histograms or the "L30" metric, which measures the number of active days within a month. By analyzing the power user curve, we can identify groups of users who are passionately engaged and those who are less engaged.

Drawing the power user curve for each cohort can provide insights into whether engagement is improving over time. This information is crucial in evaluating the impact of product releases and other feature changes. A positive power user curve, often referred to as a "smile," indicates high-frequency engagement, making it suitable for monetization through advertising. Platforms that have a substantial number of repeat users can generate revenue through impressions.

However, not all companies or product categories require a "smile" power user curve. Some products, such as SaaS or productivity apps, may benefit from analyzing a seven-day timeframe instead of the traditional 30-day period. The temporal trend of the curve can reveal whether the product is becoming more engaging or not. It can also help identify the timing of significant product releases or marketing initiatives that may have influenced the curve's shape.

It's important to note that the power user curve can be based not only on app launches or logins but also on central activities within the platform. As a CEO or product owner, it is crucial to design the platform in a way that gives everyone a chance to succeed. By focusing on the core activities that drive engagement, you can create a user experience that encourages and rewards active participation.

Now that we understand the significance of the power user curve and the role of content in generating revenue, let's explore three actionable pieces of advice to optimize user engagement:

  • 1. Understand your audience: Take the time to analyze your user base and identify the characteristics of your power users. What activities do they engage in most frequently? What features or content do they find the most valuable? By understanding your audience, you can tailor your product or content to meet their needs and preferences.
  • 2. Continuously improve your product: Use the insights gained from analyzing the power user curve to make informed decisions about product updates and feature enhancements. Regularly monitor the curve to identify any changes in engagement levels and evaluate the impact of your efforts. By constantly improving your product, you can keep your power users engaged and attract new ones.
  • 3. Invest in quality content: As mentioned earlier, content is king. Invest in creating high-quality, valuable content that resonates with your target audience. Whether it's articles, videos, podcasts, or interactive experiences, focus on delivering content that educates, entertains, and engages your users. Quality content not only attracts power users but also helps build a strong brand and loyal community.

In conclusion, understanding the power user curve and the role of content in generating revenue is crucial for the success of any online platform or business. By analyzing user engagement patterns and tailoring your product or content accordingly, you can create a strong user base and establish a competitive advantage. Remember to continuously improve your product, invest in quality content, and understand your audience to optimize user engagement and drive long-term success.

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