The Wrath of Reading & Writing: Benchmarking Social Apps for Success

The Wrath of Reading & Writing: Benchmarking Social Apps for Success

"I write because I don't know what I think until I read what I say." These words from Flannery O'Connor perfectly capture the essence of the power of reading and writing. Reading, in particular, is a fundamental aspect of being human. It allows us to build a prepared mind, enabling us to enter conversations with a deeper understanding of concepts and ideas. However, the way we consume information has changed dramatically over time.

The industrial revolution, among other factors, brought about an explosion in literacy rates worldwide. With the advent of the internet and digital media, the volume and mediums of information have multiplied exponentially. But amidst this information overload, reading remains a vital tool for personal growth and knowledge acquisition.

In Frederik Gieschen's piece, "The Reading Obsession," he challenges the notion that reading alone is the key to success. While investors often praise Warren Buffett's reading habits, Gieschen argues that networking, building friendships, and traveling were equally crucial to Buffett's achievements. It is the combination of various experiences and knowledge that truly sets individuals apart.

Just as reading helps us build a prepared mind, writing allows us to articulate our thoughts and ideas. Packy McCormick, during a guest lecture, shared his journey as a writer. Initially feeling the pressure to produce content regularly, McCormick eventually realized that quality trumped quantity. Writing something meaningful and thought-provoking held more value than simply meeting deadlines.

One of the most rewarding aspects of sharing ideas through conversation or writing is the process of bringing those thoughts to life. Often, we have pondered and contemplated certain concepts without fully expressing them. However, when forced to discuss or write about them, we gain a deeper understanding and clarity.

Now, let's shift our focus to benchmarking social apps for success. Building a successful social app can often feel like trying to catch lightning in a bottle. Many popular social platforms, such as Facebook and Snapchat, started with humble beginnings and transformed into global phenomena. However, assessing the potential of a social app is more scientific than it appears.

When benchmarking growth, the core metric for most consumer social apps is daily active users (DAUs). The trend should show consistent growth, indicating that more and more people are using the app regularly. Additionally, excellent retention is crucial to capitalize on viral moments and retain users during periods of spiky growth.

Organic growth is ideal for social apps, as it signifies inherent virality. Users should feel motivated to invite their friends, enhancing the overall experience. If a significant percentage of users are coming from paid sources in the early stages, it may be necessary to reevaluate the acquisition strategy.

Engagement ratios, such as the DAU/MAU (daily active users to monthly active users) ratio, provide valuable insights into user behavior. Best-in-class social apps have an L-ness curve that "smiles" or skews right. This indicates that users are integrating the app into their daily lives, making it a regular part of their routine.

Retention is another critical metric to consider. N-day retention, which measures how many users continue to engage with the app after a specific number of days, is a reliable indicator of long-term success. The slope of the retention curve should start to flatten between days 7 and 14, with a plateau reached by day 20.

The value of metrics increases with higher user counts and longer time frames. Early users, often the most engaged and loyal, provide valuable insights into the product's potential. Additionally, analyzing metrics over an extended period allows for a more accurate assessment of the app's performance.

In conclusion, reading and writing are powerful tools for personal growth and understanding. They enable us to build a prepared mind and articulate our thoughts and ideas. Benchmarking social apps requires a scientific approach, analyzing metrics such as daily active users, engagement ratios, and retention. By understanding these key indicators, developers can assess the potential of their apps and chart a path to success.

Actionable Advice:

1. Embrace the power of reading and writing. Continuously seek knowledge and express your thoughts through writing to deepen your understanding.
2. Focus on organic growth and viral potential when developing a social app. Create an experience that users naturally want to share with their friends.
3. Pay close attention to retention metrics and aim for sustained engagement. Analyze user behavior over time to identify areas of improvement and ensure long-term success.