Unlocking Growth: Benchmarking Social Apps and the Value of Reading

Unlocking Growth: Benchmarking Social Apps and the Value of Reading

Introduction:
In today's digital landscape, social apps have become a fundamental part of our daily lives. But how do we measure their success and gauge their potential for growth? In this article, we will explore the key metrics used to benchmark social apps and draw parallels to the value of reading books. Both endeavors require an understanding of core elements and the ability to uncover hidden insights. So, let's dive in and discover how to unlock lightning in a bottle.

Defining Core Metrics for Social Apps:
When it comes to benchmarking growth in social apps, defining the core metric is crucial. For most consumer social apps, the daily active users (DAUs) metric reigns supreme. The goal is to have people using your product every day, creating a habit-forming experience. However, for apps with less frequent use cases, weekly active users (WAUs) can be an acceptable starting point.

The Organic Growth Advantage:
In the world of social apps, organic growth is the Holy Grail. These apps, often unable to monetize until later stages, rely on users' natural inclination to invite friends and spread the word. Paid marketing can only take a product so far, and a strong organic growth rate indicates the app's inherent value. If more than 10-20% of users come from paid sources early on, it may be necessary to reevaluate the acquisition strategy.

Benchmarking User Growth:
To assess the success of a social app, we can look at the monthly user growth rate. Here's a breakdown of what is considered OK, good, and great in terms of percentage growth:

• OK: 20%
• Good: 35%
• Great: 50%

Ideally, these growth rates should be achieved organically, demonstrating the app's viral nature. The goal is to make the product a regular part of users' lives, leading to sustained engagement.

Retention and Regular Use Behavior:
Retention is a critical aspect of a social app's success. It measures the percentage of users who continue to engage with the app over time. The primary metric for retention is the n-day retention, focusing on specific points in time, such as day 1, day 7, and day 30.

Benchmarking n-day retention:

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

It's worth noting that the slope of the retention curve tends to flatten between days 7 and 14, reaching a plateau by day 20. Companies transitioning from a tool to a network may also consider weekly retention metrics, following the "come for the tool, stay for the network" principle.

Cohorts and Long-Term Trends:
While point-in-time metrics are informative, evaluating social apps requires analyzing cohorts over time. By examining metrics across different cohorts, we can identify stable patterns and potential areas for improvement. A good social app should exhibit strong network effects, with its value increasing as more users join.

The Value of Reading:
Now, let's shift gears and explore the value of reading books. If a book's contents can be easily summarized without missing any crucial elements, it may not be worth reading. The true value of a book lies in its ability to challenge our understanding, offer unique insights, and provoke thought.

The Difficulty of Summarizing:
Books that resist summarization often hold greater value. The more challenging it is to condense a book's ideas into a brief summary, the more potential it has to expand our knowledge and broaden our perspectives. As we read and digest more, we uncover connections and patterns that enrich our understanding of the world.

Beyond Surface Summaries:
Books, like works of art, transcend mere summaries. They convey implicit messages that cannot be fully captured by extracting isolated elements. By shining a spotlight on a specific passage, we risk distorting the overall meaning. To truly appreciate a book, we must delve deeper, exploring the layers of context and uncovering the essence of what the author intended to convey.

Actionable Advice:
Now that we've explored benchmarking social apps and the value of reading, here are three actionable pieces of advice to consider:

1. Prioritize organic growth: Focus on creating a product that users naturally want to share and engage with. Invest in building a strong network effect to drive sustained growth.

2. Embrace challenging books: Seek out books that resist easy summarization. The more complex and thought-provoking the content, the more it can expand your horizons and deepen your understanding.

3. Read with context: When reading, strive to understand the broader context of the book. Avoid reducing it to isolated quotes or passages. Instead, aim to grasp the author's intended message by exploring the work as a whole.

Conclusion:
Benchmarking social apps and reading books both require a nuanced approach. By defining core metrics, prioritizing organic growth, and embracing complexity, we can unlock the full potential of these endeavors. Whether it's a social app or a captivating book, the journey of discovery and growth awaits those willing to explore beyond the surface. So, go forth, benchmark your app, and immerse yourself in the transformative power of reading.