Unveiling the Secrets of Benchmarking Social Apps and Understanding Goodreads Users

Unveiling the Secrets of Benchmarking Social Apps and Understanding Goodreads Users

Introduction:
In the digital age, social apps have become an integral part of our lives, connecting people from all corners of the world. However, ensuring the success and growth of these apps is no easy task. Benchmarking metrics and understanding user demographics play a crucial role in achieving sustainable growth. In this article, we will explore the key metrics for benchmarking social apps and delve into the surprising insights about Goodreads users.

Benchmarking Growth for Social Apps:
When it comes to measuring growth, defining a core metric is essential. For most consumer social apps, the daily active users (DAUs) metric is paramount. The goal is to have users engage with the app on a daily basis. However, for apps with less frequent use cases, weekly active users (WAUs) can serve as a starting point. Eventually, upgrading to DAUs becomes crucial for securing a prominent position on users' home screens.

To evaluate the success of monthly user growth in seed-stage consumer social companies, we can use the following benchmarks:

• OK: 20%
• Good: 35%
• Great: 50%

Organic growth is highly desirable for social apps. Monetization often comes later for these apps, making it crucial to prioritize organic growth over paid marketing strategies. When more than 10-20% of users come from paid sources, it may be necessary to rethink acquisition strategies. The product should be the driving force behind growth.

Key Metrics for Social App Benchmarking:

1. DAU/MAU Ratio:
   The ratio of daily active users (DAUs) to monthly active users (MAUs) signifies the level of user engagement. A "smiling" L-ness curve, or even better, a "crooked smile" curve, indicates that users are incorporating the app into their daily lives. For weekly L-ness curves, focusing on L5+ (users in the app five, six, or seven days a week) showcases near-daily usage behavior.

Benchmark for DAU/MAU Ratio:

• OK: 25%
• Good: 40%
• Great: 50%+

2. Retention Rates:
   Retention rates provide insights into user satisfaction and loyalty. N-day retention, specifically d1 (day 1), d7 (day 7), and d30 (day 30), is a crucial metric to evaluate.

Benchmark for N-day Retention:

• OK: d1 50%, d7 35%, d30 20%
• Good: d1 60%, d7 40%, d30 25%
• Great: d1 70%, d7 50%, d30 30%

The slope of the retention curve typically starts to flatten between d7 and d14, eventually reaching a plateau around d20. For companies transitioning from a tool to a network, weekly retention rates become relevant. The "come for the tool, stay for the network" concept applies here.

Benchmark for Weekly Retention:

• OK: w1 40%, w4 20%
• Good: w1 55%, w4 30%
• Great: w1 75%, w4 50%

Unveiling Goodreads User Demographics:
Goodreads, a popular book lovers' website, attracts a staggering 45 million active visitors each month. Surprisingly, the city with the highest number of visitors is Jakarta, Indonesia, surpassing major cities like New York and Chicago. While 20 million visitors in December were from the US, India, Indonesia, and the Philippines together accounted for 7 million users.

The demographic breakdown of Goodreads users reveals intriguing insights:

• Women are 40% more likely to be active on Goodreads compared to the average user, while men are 40% less likely to engage.
• Goodreaders are four times more likely to work in agriculture or the justice system.
• Interestingly, some of their favorite sites are those offering free access to books, even copyrighted novels.

Conclusion:
Benchmarking social apps is crucial for sustainable growth. By focusing on core metrics such as DAUs, MAUs, retention rates, and user demographics, app developers can gain valuable insights into their product's performance. Organic growth, user engagement, and satisfying user needs should be the driving forces behind a successful social app.

Actionable Advice:

1. Prioritize organic growth: Invest in creating a product that users naturally want to share with their friends, rather than relying heavily on paid marketing efforts.
2. Foster daily engagement: Aim for a high DAU/MAU ratio and strive to create a product that becomes an integral part of users' daily lives.
3. Understand your audience: Conduct thorough research on user demographics and preferences to tailor your app's features and content to their needs and interests.

By implementing these actionable advice, social app developers can unlock the potential for lightning in a bottle and achieve remarkable growth in the competitive digital landscape.