"Why Consumer Product Metrics Are All Terrible: A Trillion Dollar Opportunity"

"Why Consumer Product Metrics Are All Terrible: A Trillion Dollar Opportunity"

Consumer product metrics have long been a source of frustration for businesses. Whether it's low signup rates, disengaged users, or a lack of daily engagement, it seems that measuring success in the consumer product industry is a constant battle. But what if these metrics are actually telling us something valuable? And what if there is a trillion-dollar opportunity hidden within the realm of subjective search?

When it comes to consumer products, the numbers can be disheartening. A typical product may see 90% of users refuse to sign up, and of those who do sign up, over 90% become inactive over time. Mobile apps, while having better engagement metrics, often struggle with lower upfront conversion rates. However, if we shift our focus to the homepage, we would expect higher signup rates due to word-of-mouth traffic. People actively seek out these products to try them, resulting in signup rates as high as 10% or more.

Engagement and frequency are key factors in determining the success of a consumer product. Unfortunately, it's rare to see more than 10% of users coming back every day. In fact, 5% or even lower is more common. So how can businesses improve engagement and frequency? The answer lies in tying the product into someone's pre-existing behaviors rather than asking them to do something completely new. By understanding and incorporating habits and routines, businesses can create a more seamless and enjoyable user experience.

Another challenge in the consumer product industry is the lack of social connections within the service. Surprisingly, more than 50% of users often don't know anyone else using the product. This means that businesses need to fill their users' feeds with content, either from one person or through impersonal means. Instagram, for example, experienced explosive growth despite 65% of its users being disconnected from anyone else. This highlights the difficulty of creating a dynamic news feed when only a small percentage of users actively contribute content.

While the struggle to attract and retain users is evident, there is a trillion-dollar opportunity waiting to be seized in the realm of subjective search. Roughly half of search activity is subjective, meaning that people are seeking ideas, opinions, recommendations, and conversations rather than concrete facts. This content thrives on forums, long-tail blogs, social media, and review sites, rather than traditional SEO optimized websites or big media publications. Access to these subjective search platforms, such as Reddit, Twitter, HackerNews, TikTok, and Pinterest, presents a massive opportunity for businesses.

Google, as the dominant search engine, may face the innovator's dilemma as its business model relies heavily on displaying keyword auctions and PPC ads. Subjective search domains, where accuracy is less critical, may be the starting point for disruption. Categories such as fashion, food, and entertainment, where personal taste and preferences play a significant role, provide fertile ground for a new approach to subjective search. By emphasizing entertainment, interactive conversations, and customizable user control, businesses can tap into the fun and engaging aspects of subjective search.

Imagine a search experience where users come for something specific but stay for the entertainment. Incorporating features like commenting, customizable algorithms and UI, downvoting and upvoting results, and social connections can transform the way people search and discover information. Users can curate their own taste boards, share content publicly, and see what their friends or people they follow are searching and interested in. This level of control and personalization not only enhances the search experience but also creates a sense of community and belonging.

In conclusion, while consumer product metrics may appear terrible at first glance, they hold valuable insights for businesses. By understanding user behaviors, incorporating pre-existing habits, and fostering social connections, businesses can improve engagement and frequency. Additionally, the trillion-dollar opportunity lies in subjective search, where people seek ideas, opinions, and conversations. Embracing entertainment, customization, and social features can revolutionize the search experience and unlock new possibilities for businesses.

Actionable Advice:

• 1. Analyze user behaviors and find ways to tie your product into their pre-existing habits and routines. This will increase engagement and frequency.

• 2. Foster social connections within your product by creating opportunities for users to connect with others and share content. This sense of community will enhance the user experience.

• 3. Explore the realm of subjective search by tapping into platforms like Reddit, Twitter, and TikTok. Engage in conversations, provide valuable recommendations, and establish your brand as a trusted source of subjective content.

Remember, the path to success in the consumer product industry may be challenging, but by embracing the insights from metrics and seizing the trillion-dollar opportunity of subjective search, businesses can thrive in this ever-evolving landscape.