Unlocking Growth and Understanding User Engagement: Insights for Product Managers

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Sep 23, 2023
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Unlocking Growth and Understanding User Engagement: Insights for Product Managers
Introduction:
In the fast-paced world of product management, creating value for users and driving growth are essential for success. In this article, we will explore two key concepts: growth hacking and the power user curve. By understanding these concepts and incorporating them into your product strategy, you can make small, impactful changes and gain valuable insights into your most engaged users.
Growth Hacking: Finding Shortcuts to Success
According to Chris Long, a successful product is one that brings value to its users. Growth, on the other hand, is about getting more people to experience this value. The concept of "growth hacking" involves finding shortcuts and easy solutions to achieve growth in a short period of time. Instead of making big and risky changes to your product, the focus should be on making small, continuous improvements. The key question to ask yourself is: What is the smallest change you can make to create the biggest impact for the user in the shortest time?
The Power User Curve: Understanding User Engagement
Andrew Chen introduces us to the power user curve, which is also known as the activity histogram or the "L30." This curve provides valuable insights into user engagement by plotting the number of days users are active in a month. It ranges from 1 day to all 30 (or 28, or 31) days. Power users, who are highly engaged and contribute significant value to the network, are crucial for the success of a product.
Measuring Engagement: Beyond DAU/MAU
While the common metric of dividing daily active users (DAUs) by monthly active users (MAUs) provides a snapshot of engagement, it has its limitations. The power user curve offers a more nuanced understanding of user behavior. It reveals the variability among users, with some being slightly engaged and others being power users. Products with frequent user engagement, such as social platforms, can leverage this engagement for monetization through advertisements.
Driving Monetization and Identifying Opportunities
The power user curve not only helps in understanding engagement but also in driving monetization strategies. Analyzing successive power user curves can indicate whether strong monetization efforts are needed. Not every company needs to have a smile-shaped power user curve, and different product categories may have varying levels of engagement. For example, LinkedIn may not have daily usage but still have a successful business model.
Actionable Advice:
- 1. Focus on small, continuous improvements: Instead of making big and risky changes to your product, prioritize small, impactful improvements that can create the most significant impact for users in a short period of time.
- 2. Understand your power users: Plot the power user curve to gain insights into your most engaged users. Identify ways to leverage their engagement and contribution to drive growth and monetization.
- 3. Tailor metrics to your product: While DAU/MAU is a common metric, consider using the power user curve to understand the nuances of user engagement. Adapt the timeframe and metrics to suit your specific product category and goals.
In conclusion, growth hacking and understanding user engagement through the power user curve are essential tools for product managers. By making small, continuous improvements and gaining insights into user behavior, you can drive growth, monetization, and ultimately create a successful product. Remember to focus on value creation for users and leverage the engagement of power users to achieve your goals.
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