Why Consumer Product Metrics Are All Terrible: A Roadmap to Success

Why Consumer Product Metrics Are All Terrible: A Roadmap to Success

In the world of consumer products, metrics are often used to measure the success and engagement of users. However, these metrics can be deceiving and often paint a bleak picture of user behavior. For instance, a typical product may see a staggering 90% of users refusing to sign up, and of the ones who do sign up, over 90% become inactive over time. These numbers can be disheartening for product owners, but it's important to dig deeper and understand the reasons behind these statistics.

One aspect to consider is the difference between conversion rates and engagement metrics. Mobile apps, for example, may have better engagement metrics but lower upfront conversion rates. This is because mobile app traffic is usually driven by word of mouth, leading to higher sign-up rates from users actively seeking out the product. On the other hand, if we're talking about the homepage of a product, we would naturally expect higher conversion rates since users are already interested in trying the product.

Another common issue with consumer product metrics is the lack of daily engagement. It's not uncommon for over 90% of users to be disengaged on a daily basis, either because they've churned or are only active a few days per month. In fact, anything more than 10% of total users coming back every day is considered a success. Often, it's as low as 5% or even lower. To improve engagement and frequency, it's crucial to tie the product into someone's pre-existing behaviors rather than asking them to do something completely new. By understanding user habits and incorporating the product seamlessly into their routines, the chances of daily engagement increase significantly.

One surprising statistic is that a significant percentage of users don't know anyone else on the service. This means that the product needs to fill their feed with content from just one person or impersonal content. Instagram, one of the most explosively viral products in recent history, had a staggering 65% of their users disconnected from anyone else. This highlights the challenge of creating a healthy and dynamic news feed when a large portion of users doesn't contribute content. Known as the 1% rule, where only a few percentages of users actively author content, it becomes clear why creating a vibrant news feed can be incredibly challenging.

It's disheartening to acknowledge that many users either don't sign up or have a poor experience with the product. This reality emphasizes the difficulty of creating a successful consumer product. However, it's essential to keep striving for improvement. While a 30% daily active users to monthly active users ratio may be considered good, comparing it to WhatsApp's 70% reveals the vast difference between good and great engagement.

So, what can product owners do to improve their metrics and create a successful consumer product?

1. Focus on understanding user habits and behaviors: By tying the product into pre-existing behaviors, users are more likely to engage with it on a daily basis. This could involve integrating the product into their daily routines or offering features that complement their existing activities.

2. Foster a sense of community: Encourage users to connect with others on the platform and build a network. By promoting social interactions and facilitating connections, users are more likely to stay engaged and contribute content. This can be done through features like messaging, commenting, and sharing.

3. Continuously iterate and improve: The road to success is paved with constant iteration and improvement. Regularly analyze user feedback, track metrics, and make data-driven decisions to enhance the product's user experience. This could involve adding new features, optimizing existing ones, or addressing pain points identified by users.

In conclusion, consumer product metrics can be misleading and often paint a gloomy picture of user engagement. However, by understanding user behaviors, tying the product into pre-existing habits, fostering a sense of community, and continuously iterating, product owners can improve their metrics and create a successful consumer product. It's a challenging journey, but with dedication and a deep understanding of user needs, success is within reach.