"The Art of Benchmarking and User Empathy: Keys to Building a Successful Social App"

"The Art of Benchmarking and User Empathy: Keys to Building a Successful Social App"

Introduction:
Building a successful social app requires a deep understanding of user behavior and the ability to measure its growth effectively. In this article, we will explore two critical aspects of app development: benchmarking growth metrics and the importance of user empathy through the practice of dogfooding. By combining these approaches, app developers can create products that cater to their users' needs and drive organic growth.

Benchmarking Growth Metrics:
When it comes to benchmarking growth, defining core metrics is essential. For most consumer social apps, the daily active user (DAU) metric is crucial. It indicates how frequently people engage with your product. However, for apps with less frequent use cases, weekly active users (WAUs) can also serve as a starting metric.

To achieve success in the consumer social app space, it's important to aim for steady monthly user growth rates. The following benchmarks provide a guideline for what is considered OK, good, and great growth rates:

• OK: 20% monthly user growth.
• Good: 35% monthly user growth.
• Great: 50% monthly user growth.

Organic growth should be the primary focus for social apps, as they often have limited resources for paid marketing. If more than 10-20% of users are coming from paid sources, it may be necessary to reevaluate the acquisition strategy. It is crucial to ensure that growth comes from the product itself and not just from marketing efforts.

User Retention and Engagement:
In addition to growth metrics, user retention and engagement are key indicators of an app's success. Tracking daily, seven-day, and 30-day retention rates can provide valuable insights into user behavior and the stickiness of the app.

Bounded retention, also known as n-day retention, looks at the percentage of users from an original cohort who continue to use the app on specific days. The following benchmarks can be used to evaluate n-day retention rates:

• OK: d1 50%, d7 35%, d30 20%.
• Good: d1 60%, d7 40%, d30 25%.
• Great: d1 70%, d7 50%, d30 30%.

It is important to note that the slope of the retention curve tends to flatten between days 7 and 14, reaching a plateau by day 20. For companies transitioning from tools to networks, weekly retention rates can also be relevant, following the "come for the tool, stay for the network" framework. The benchmarks for weekly retention are as follows:

• OK: w1 40%, w4 20%.
• Good: w1 55%, w4 30%.
• Great: w1 75%, w4 50%.

Cohort analysis is another valuable tool for evaluating social apps, as it allows for a deeper understanding of user behavior over time. By analyzing metrics cohort by cohort, developers can identify trends and determine if their product's value is increasing with each new user.

User Empathy through Dogfooding:
To truly understand the user experience and identify blind spots in your product, the practice of dogfooding is invaluable. Dogfooding involves using your own product as if you were a user, gaining first-hand experience of its strengths and weaknesses.

When we become too close to our product, we may overlook issues that are obvious to new users. By signing up for your own service with a brand new account every few months, you can stay updated on the user experience and continuously improve your product.

Having customer empathy means putting yourself in the shoes of your users, seeing the product from their perspective, and understanding their challenges and needs. It's essential to consider users from diverse backgrounds and technological capabilities to ensure inclusivity and global relevance.

Conclusion:
Building a successful social app requires a combination of benchmarking growth metrics and user empathy through dogfooding. By setting clear benchmarks for growth and retention, developers can measure their app's success and make data-driven decisions. Additionally, practicing user empathy helps identify blind spots and improve the overall user experience.

Actionable advice:

1. Continuously track and analyze growth metrics to evaluate the success of your app. Aim for monthly user growth rates of at least 20% to achieve significant organic growth.
2. Regularly engage in the practice of dogfooding to gain a user's perspective and identify any issues or improvements needed in your product.
3. Conduct cohort analysis to understand user behavior over time and ensure that your product's value increases with each new user.

By combining these strategies, developers can create social apps that resonate with users, drive organic growth, and deliver a positive user experience.