"The Surprising Science of How Feelings Help You Think: Benchmarking Growth for Social Apps"

"The Surprising Science of How Feelings Help You Think: Benchmarking Growth for Social Apps"

No matter how rational or objective we might think we're being, our emotions play a significant role in our decision-making process. Emotions are not distinct from one another; they overlap and form a spectrum. The way we express and categorize emotions varies across cultures, highlighting the connection between emotions and language.

Emotions are not separate from logical thinking; they are intertwined. Our emotions affect how we evaluate data and ideas, shaping our actions and influencing our rational processing. Our unconscious mind processes information that our conscious mind cannot handle, resulting in gut feelings and intuitions. Our bodily state and emotional state are crucial factors in decision-making.

Being more conscious of our emotional state can lead to better emotional regulation, which has been linked to increased happiness and longer life expectancy. Practices like meditation can enhance "executive control" in the brain, aiding in emotion regulation.

When benchmarking growth for social apps, defining a core metric is essential. For most consumer social apps, daily active users (DAUs) or weekly active users (WAUs) are commonly used metrics. DAUs are preferred for securing a spot on the home screen.

Organic growth is crucial for social apps, as they often have limited resources for paid marketing. If a significant portion of users are coming from paid sources, it may be necessary to reevaluate the acquisition strategy.

Benchmarking DAU/MAU (monthly active users) ratios can provide insights into user engagement. A "crooked smile" curve, where users regularly use the app, indicates strong user retention.

Retention metrics, such as n-day retention, are crucial for measuring user engagement. Tracking retention at specific time points, such as day 1, day 7, and day 30, can help gauge the app's stickiness. The slope of the retention curve typically flattens after day 7 and plateaus around day 20.

For companies transitioning from a tool to a network, weekly retention metrics may be relevant. The focus shifts to users staying in the app for a longer duration.

While point-in-time numbers are informative, analyzing cohorts over time provides a more comprehensive view of user behavior. Strong network effects indicate that the app becomes more valuable as more users join.

In conclusion, emotions play a significant role in our thinking process, influencing our rationality and decision-making. Understanding and regulating our emotions can lead to better outcomes. When benchmarking growth for social apps, defining core metrics and focusing on organic growth are crucial. Retention metrics and cohort analysis provide valuable insights into user engagement and the app's value proposition. By considering these factors, app developers can optimize their product and drive sustainable growth.

3 Actionable Advice:

1. Practice mindfulness and emotional regulation techniques to improve decision-making and overall well-being.
2. Prioritize organic growth and focus on creating a product that users want to share with others.
3. Regularly track retention metrics and analyze cohort behavior to identify areas for improvement and enhance user engagement.