The Evolution of Language and User Growth in the Digital Age

The Evolution of Language and User Growth in the Digital Age

In today's interconnected world, it's hard to fathom a time when human beings didn't have a complex system of language to communicate with one another. However, recent scientific studies have shed light on the rapid evolution of language and how it has shaped our society. At the same time, the rise of digital products and services has brought about a new way to measure success: user growth. In this article, we will explore the fascinating parallels between the evolution of language and user growth in the digital age.

According to Professor Shigeru Miyagawa of the Massachusetts Institute of Technology, the first complex conversations between humans likely took place 50,000 to 100,000 years ago. This challenges the traditional belief that early humans communicated through simple grunts and mumbles. Instead, Professor Miyagawa suggests that the hierarchical complexity found in present-day language has been present since its emergence. This means that even single words bear traces of syntax, indicating that they descended from an older, syntax-laden system.

Interestingly, this evolution of language mirrors the growth of users in digital products. Just as language developed from simple primal utterances to complex syntax, user growth in digital products follows a similar pattern. When measuring user growth, it's important to account for both new users and resurrected users (those who were once inactive but have returned). By subtracting the number of churned users (those who have stopped using the product) from the monthly active users (MAU), we can calculate the net growth. This formula, MAU(t) - MAU(t - 1 month) = new(t) + resurrected(t) - churned(t), provides a more accurate representation of user growth and product-market fit.

To further understand the health of a product's user base, the quick ratio is a valuable metric to consider. The quick ratio measures the ratio of new and resurrected users to churned users. Ideally, the quick ratio should be greater than 1, indicating that the number of new and resurrected users is higher than the number of churned users. For consumer companies, a quick ratio in the range of 1.5-2.0 is considered very good. This means that for every three customers gained, the company is only losing between 1.5-2 customers. This indicates a strong product-market fit and a sustainable user growth rate.

Interestingly, the concept of measuring user growth on a monthly basis can also be applied to weekly active users (WAU). If a product is highly sticky and retains users at a high level on a monthly basis, it may be worth exploring the next level of engagement at a weekly level. This allows companies to identify areas where they can further engage their users and drive even higher levels of growth.