The Skill You've Never Been Taught: How to Think and Make Better Decisions

The Skill You've Never Been Taught: How to Think and Make Better Decisions

No skill is more valuable and harder to come by than the ability to critically think through problems. Surprisingly, schools don't teach you a method of thinking. Thinking is one of those things that can be learned but can't be taught. However, it is a skill that is crucial for making good decisions and creating more time for ourselves.

In today's fast-paced world, multitasking has become a norm. However, research shows that the more people multitask, the worse they are at not only other mental abilities but also multitasking itself. They struggle with mental filing, which means keeping information in the right conceptual boxes and being able to retrieve it quickly. Multitasking impairs your ability to think and concentrate on one thing long enough to develop an idea about it.

This concept of slowing down and concentrating is echoed by the best writers. They write much more slowly than everyone else because they understand that their best thinking comes from taking the time to let their minds make associations, draw connections, and surprise them with original ideas. Concentration and patience are key to arriving at innovative solutions.

Interestingly, the busiest people are often the ones who make the worst decisions. Being constantly busy leaves little time for deep thinking and understanding of the problem at hand. Busy people spend a lot of time correcting poor decisions, which could have been avoided if they had taken the time to think in the first place. If you want to think better and make better decisions, it is important to schedule dedicated time for thinking and honing your understanding of the problem.

Now, let's shift our focus to the business world and the importance of understanding user engagement. In the SaaS industry, Daily Active Users (DAU) and Monthly Active Users (MAU) are crucial metrics for measuring the success and stickiness of a product.

DAU is calculated by considering the total number of unique users on a given day. This includes both new users who have downloaded the app and existing users who have logged in or taken an action within the app. On the other hand, MAU refers to the number of people who have opened and engaged with the app in some way in the past month (30 days).

The DAU/MAU ratio, also known as stickiness, is a measure of how frequently users engage with the app. For example, if your DAU/MAU ratio is 10%, it means that your customers return to engage with your app only 3 out of every 30 days. This is not an ideal ratio.

The average DAU/MAU ratio for SaaS companies falls between 10-20%. However, what is considered "good" varies depending on the app's medium and whether it is free or paid, among other variables.

To improve the stickiness of your app and increase user engagement, it is important to analyze the factors that may be affecting the ratio. Are there any barriers or friction points that prevent users from returning frequently? Understanding the user journey and addressing any pain points can help improve the DAU/MAU ratio and ultimately the success of your product.

In conclusion, the skill of thinking critically and making better decisions is invaluable in today's fast-paced world. It is a skill that can be learned through practice and conscious effort. Slowing down, concentrating, and dedicating time for deep thinking are essential for arriving at original ideas and avoiding unnecessary mistakes.

In the business world, understanding user engagement metrics such as DAU and MAU is crucial for assessing the success and stickiness of a product. The DAU/MAU ratio indicates how frequently users engage with the app, and improving this ratio requires analyzing user behavior and addressing any barriers to frequent usage.

To enhance your thinking skills and improve user engagement, here are three actionable pieces of advice:

1. Schedule dedicated time for thinking: Set aside specific blocks of time in your day or week for deep thinking and problem-solving. Minimize distractions and create an environment that promotes focus and concentration.

2. Practice mindfulness and mental filing: Train your mind to stay present and focused on one task at a time. Avoid multitasking and allow your brain to make associations and draw connections by giving it the space it needs to think.

3. Continuously analyze user behavior: Regularly assess user engagement metrics such as DAU and MAU to understand how sticky your product is. Identify any obstacles or pain points that may be hindering frequent usage and work towards improving the user experience.

By incorporating these practices into your daily life and business strategies, you can enhance your thinking skills and create products that keep users coming back for more. Remember, thinking is a skill that can be honed, and with practice, you can unlock your full potential for critical thinking and decision-making.