The Evolution of Social Apps: From Experts' Approval to User Benchmarking

The Evolution of Social Apps: From Experts' Approval to User Benchmarking

Introduction:
In the ever-changing landscape of technology and social media, there are two distinct aspects that have shaped the way we interact and consume information - Wikipedia and social apps. Both have revolutionized their respective domains, but interestingly, they share common threads in their evolution. In this article, we will explore the journey of these two phenomena and discuss the importance of expert approval and user benchmarking in their success.

The Birth of Wikipedia:
When Wikipedia was first conceived, its co-founder, Larry Sanger, realized the need for expert approval in the articles published on the platform. He believed that a process that involved experts vetting the credibility of articles would ensure the reliability of information. However, this approach proved to be slow and yielded only a handful of approved articles within the first year. It was then that Sanger introduced the concept of "wiki" technology, allowing anyone to contribute and edit content on the platform. This democratization of knowledge paved the way for Wikipedia's success.

The Power of User-Generated Content:
The adoption of the wiki model faced resistance from the Nupedia advisory board, who labeled it as ridiculous. However, this decision to make Wikipedia an open platform transformed the way wikis were used. While it did invite some individuals who wasted time on irrelevant contributions, the overall impact was profound. Wikipedia became a collaborative effort, with users actively participating and improving the platform. It showcased the power of user-generated content and the potential for collective knowledge creation.

Benchmarking Growth in Social Apps:
In parallel to Wikipedia's journey, social apps have emerged as a dominant force in the digital landscape. To ensure their success, understanding and benchmarking user growth and engagement have become crucial. The key metric for most consumer social apps is daily active users (DAUs). This metric signifies the frequency of user interaction and the app's ability to become a part of users' daily lives. However, for apps with a less frequent use case, weekly active users (WAUs) can also serve as a starting point.

Defining Success in User Growth:
To assess the success of user growth, benchmarks have been established for different stages of a social app's development. For seed-stage consumer social companies, the following benchmarks can be considered:

• OK: 20% monthly user growth
• Good: 35% monthly user growth
• Great: 50% monthly user growth

It is crucial for this growth to come organically, as social apps often can't monetize early on and rely on viral growth. If more than 10-20% of users are acquired through paid sources, it might indicate the need to reevaluate the acquisition strategy.

Retention and Regular Use:
Beyond user growth, retention is a critical factor in the success of social apps. Evaluating n-day retention, specifically d1 (day 1), d7 (day 7), and d30 (day 30), provides insights into how users engage with the app over time. 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%

Additionally, weekly retention, especially for companies transitioning from a tool to a network, can be relevant. The benchmarks for weekly retention are:

• OK: w1 40%, w4 20%
• Good: w1 55%, w4 30%
• Great: w1 75%, w4 50% (note: Glasp - w1 40%, w4 30%)

Cohort Analysis and Network Effects:
While point-in-time numbers provide valuable insights, cohort analysis offers a more comprehensive understanding of user behavior and the impact of network effects. Strong network effects indicate that as more users join the platform, its value increases. Therefore, stable or improving metrics across cohorts are desirable indicators of a successful social app.

Actionable Advice:

1. Embrace the power of user-generated content: Like Wikipedia, consider ways to incorporate user contributions and feedback into your product or platform. This not only fosters a sense of community but also taps into the collective intelligence of your users.

2. Define your core metric and benchmark: Identify the key metric that signifies user engagement and growth for your social app. Set benchmarks for different stages of development to track progress and make informed decisions.

3. Prioritize organic growth and retention: Focus on creating a product that users genuinely find valuable and want to share with others. Concentrate on improving retention rates and establishing a regular usage pattern among your user base.

Conclusion:
The evolution of Wikipedia and social apps highlights the power of collaboration, user-generated content, and the need for expert approval or user benchmarking. By incorporating these principles into your own endeavors, you can create a successful platform that resonates with users, fosters community, and thrives in the digital landscape.