The Evolving Landscape of Social Media and Consumer Product Metrics

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Jul 24, 2023
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The Evolving Landscape of Social Media and Consumer Product Metrics
Introduction:
In 2021, the social media landscape is set for significant changes, with both increased and decreased censorship on various platforms. Alongside this, the ease of making impulsive community purchases is expected to rise, benefiting community leaders and members alike. As the social internet becomes more intimate, implicit social sharing will gain popularity, fostering closer connections among friends and family. Additionally, the emergence of audio social networks is predicted to outpace the growth of podcast companies. Moreover, paid social apps are expected to replace ad-models, with some apps charging exorbitant monthly fees. In this article, we will explore these social media predictions for 2021, while also delving into the challenges and shortcomings of consumer product metrics.
The Challenge of Consumer Product Metrics:
Consumer product metrics often reveal disheartening statistics, such as low sign-up rates and user disengagement. It is not uncommon for 90% of potential users to refuse to sign up for a product. Even among those who do sign up, over 90% eventually become inactive. While mobile apps may show better engagement metrics, their upfront conversion rates tend to be lower. On the homepage, where traffic is driven by word of mouth, sign-up rates can reach 10% or higher as users actively seek out the product. However, a majority of users, often over 90%, fail to engage on a daily basis, leading to high churn rates or sporadic activity. Achieving a daily active user rate of more than 10% is considered a success, but it is not uncommon for it to be as low as 5% or even lower. To improve engagement and frequency, it is crucial to align the product with users' existing behaviors rather than asking them to adopt new ones.
The Importance of Building Connections:
One of the key challenges in creating a thriving consumer product is ensuring users feel connected to others within the service. Surprisingly, more than 50% of users often do not know anyone else using the same product. This necessitates the need to provide a substantial amount of content from a single source or impersonal content to fill their feeds. Instagram, for instance, experienced explosive growth despite 65% of its users being disconnected from anyone else. This highlights the difficulty of curating a dynamic news feed when only a small percentage of users actively contribute content. The struggle to onboard and retain users becomes evident, as many individuals either do not sign up or have a subpar experience with the product.
Actionable Advice:
- 1. Focus on tying your product into users' pre-existing behaviors to enhance engagement and frequency. By aligning with what users already do, you can increase the chances of their continued usage and satisfaction.
- 2. Implement strategies to foster connections among users. Consider features that encourage interaction and facilitate the formation of communities within your product. By promoting a sense of belonging, users are more likely to remain active and engaged.
- 3. Continuously analyze and optimize your metrics. Set realistic goals, but also benchmark against successful platforms to strive for greatness. Regularly monitor user engagement and retention rates, and experiment with different approaches to address any shortcomings.
Conclusion:
As we step into 2021, the social media landscape is poised for significant changes and opportunities. With the rise of vertical networks and social platforms catering to close-knit circles, social sharing will become more implicit, fostering a sense of closeness among friends and family. Simultaneously, consumer product metrics present significant challenges, with low sign-up rates, user disengagement, and the difficulty of fostering connections among users. However, by aligning products with existing behaviors, fostering community-building features, and continuously optimizing metrics, social startups can thrive in this evolving landscape. With the right strategies in place, 2021 has the potential to be a remarkable year for building successful social startups.
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