Why Consumer Product Metrics Are All Terrible: Insights and Actionable Advice

Why Consumer Product Metrics Are All Terrible: Insights and Actionable Advice

In the world of consumer products, metrics play a crucial role in understanding user behavior and measuring the success of a product. However, many of these metrics can be misleading and fail to provide a true representation of user engagement and satisfaction. Let's delve deeper into this issue and explore some actionable advice for improving consumer product metrics.

One common issue with consumer product metrics is the low conversion rates during sign-ups. It is not uncommon for a typical product to see 90% of users refuse to sign up. This can be disheartening for product owners, but it's important to remember that these numbers are not necessarily reflective of the product's value or quality. There could be various reasons why users choose not to sign up, such as lack of interest, limited time, or simply being unaware of the product's existence.

Similarly, even if users do sign up, over 90% of them may become inactive over time. This drop in engagement can be discouraging, but it's crucial to understand that it is not uncommon. In fact, it is rare for more than 10% of total users to be actively engaged with a product on a daily basis. Anything above 10% can be considered a success. Therefore, it is important to set realistic expectations and focus on improving engagement rather than expecting every user to be highly active.

To improve engagement rates, it is crucial to tie the product into someone's pre-existing behaviors. Instead of asking users to adopt entirely new habits, it is more effective to align the product with activities they already engage in. This could be achieved by integrating the product seamlessly into their daily routines or leveraging existing social connections. For example, if a user doesn't know anyone else using the product, it becomes essential to provide personalized content or create a sense of community through user-generated 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 dynamic news feed when a significant portion of users doesn't have connections within the platform. The 1% rule, which states that only a small percentage of users will actively create content, further complicates the task of curating a compelling news feed. Overcoming these challenges requires a deep understanding of user behavior and a strategic approach to content creation and delivery.

Improving consumer product metrics is undoubtedly a challenging task. It requires a comprehensive understanding of user behavior, effective onboarding strategies, and a focus on creating a seamless and engaging user experience. While there is no one-size-fits-all solution, here are three actionable pieces of advice to consider:

• 1. Focus on user onboarding: Invest time and resources in creating a seamless onboarding process that clearly communicates the value and benefits of your product. Make it easy for users to get started and provide them with guidance and support along the way.

• 2. Leverage existing behaviors: Instead of asking users to adopt new habits, find ways to integrate your product into their existing routines. Look for opportunities to align your product with activities they already engage in, making it more likely for them to incorporate it into their daily lives.

• 3. Foster a sense of community: Build a strong and vibrant community around your product. Encourage user-generated content, facilitate connections between users, and provide personalized experiences. A sense of belonging and social interaction can significantly improve user engagement and retention.

In conclusion, consumer product metrics can often be misleading and fail to capture the true essence of user engagement. By understanding the challenges and incorporating actionable strategies, product owners can improve their metrics and create a more engaging and successful product. Remember, it's not about achieving perfection, but rather about continuously striving for improvement and providing value to your users.