Strategies for Benchmarking Growth and Learning in Public

Strategies for Benchmarking Growth and Learning in Public

Introduction:
When it comes to building a successful social app or expanding your knowledge, benchmarking growth and learning in public are two key strategies to consider. By defining core metrics and utilizing feedback from others, you can achieve organic growth and build a valuable network. In this article, we will explore the benchmarks for social app growth and the benefits of learning in public, as well as provide actionable advice for implementing these strategies effectively.

Benchmarking Growth for Social Apps:
To benchmark growth for social apps, it is crucial to define your core metric. For most consumer social apps, daily active users (DAUs) serve as the primary metric, as consistent usage is essential. However, for apps with a less frequent use case, weekly active users (WAUs) can be an acceptable starting point. The benchmarks for monthly user growth in seed-stage consumer social companies are as follows:

• OK: 20%
• Good: 35%
• Great: 50%

It is important to note that organic growth is preferred for social apps, as paid marketing may not be sustainable in the early stages. In fact, if a significant portion of users are acquired through paid sources, it may be necessary to reconsider the acquisition strategy. Ensuring that growth comes from the product itself is crucial for long-term success.

Additionally, the DAU to MAU ratio, often referred to as the L-ness curve, can provide insights into user behavior and engagement. Best-in-class social apps exhibit a curve that "smiles," indicating that users make the product a regular part of their lives. Benchmarks for L5+ performance, which represents users who engage with the app five or more days a week, are as follows:

• OK: 30%
• Good: 40%
• Great: 50%+

Retention is another critical aspect of benchmarking growth for social apps. N-day retention, focusing on specific time points such as day 1, day 7, and day 30, helps evaluate user stickiness. The benchmarks for n-day retention are as follows:

• OK: D1 50%, D7 35%, D30 20%
• Good: D1 60%, D7 40%, D30 25%
• Great: D1 70%, D7 50%, D30 30%

It is common to observe a flattening of the retention curve between day 7 and day 14, with a plateau by day 20. Weekly retention can also be relevant for companies transitioning into a network model. Benchmarks for weekly retention are as follows:

• OK: W1 40%, W4 20%
• Good: W1 55%, W4 30%
• Great: W1 75%, W4 50% (note: Glasp - W1 40%, W4 30%)

Learning in Public: Benefits and Strategies:
Learning in public is a powerful approach that allows you to accelerate your learning process while building a valuable network. By sharing what you learn, whether through social media platforms or blog posts, you create opportunities for feedback and knowledge exchange. The benefits of learning in public include:

1. Feedback: When you share your work, others provide valuable feedback that can help you refine your understanding and improve your skills.

2. Finding like-minded people: By sharing your knowledge, you attract individuals with similar interests and passions, fostering connections and potential collaborations.

3. Value for others: Sharing what you learn can be helpful to others who are seeking information in that domain, establishing your expertise and credibility.

Actionable Advice:
To implement these strategies effectively, here are three actionable pieces of advice:

1. Define your core metric: Clearly identify the primary metric that aligns with your social app's goals, such as DAUs or WAUs, and ensure it reflects the desired level of usage.

2. Embrace feedback: Actively seek feedback from others by sharing your work publicly. Utilize social media platforms, blogging, or video creation to share your insights and invite discussions.

3. Share your knowledge: Take advantage of platforms like Twitter, Medium, or personal blogs to share what you learn. Even a short post summarizing a Wikipedia article can provide value to others and establish your presence in the community.

Conclusion:
Benchmarking growth and learning in public are strategies that can significantly impact the success of social apps and personal development. By understanding the benchmarks for growth and leveraging the benefits of learning in public, you can achieve organic growth, build a strong network, and continuously improve your skills and knowledge. Implement the actionable advice provided to maximize the effectiveness of these strategies and propel your app or personal growth forward.