"Unlocking Success: The Flaws in Consumer Product Metrics and the Power of Non-Conformity"

"Unlocking Success: The Flaws in Consumer Product Metrics and the Power of Non-Conformity"

In the ever-evolving world of consumer products, metrics play a crucial role in determining success. However, upon closer examination, it becomes clear that these metrics are often flawed and fail to capture the true essence of user engagement. Let's delve deeper into why consumer product metrics are all terrible and explore how non-conformity can be a powerful tool in achieving success.

One of the main issues with consumer product metrics lies in the low conversion rates and disengagement of users. It is not uncommon for a typical product to witness a staggering 90% refusal to sign up. Even among those who do sign up, over 90% eventually become inactive and disengage over time. This trend is particularly evident in mobile apps, where upfront conversion rates are lower, but engagement metrics tend to be higher. However, when it comes to the homepage, one would expect higher signup rates. The reason behind this lies in the fact that homepage traffic is often driven by word of mouth, leading to sign-up rates of 10% or higher as people actively seek out the product to try it.

Engagement and frequency are also significant challenges in consumer product metrics. More often than not, a large majority of users, often over 90%, are not engaged on a daily basis. They either churn or remain active for only a few days per month. In fact, anything above a 10% daily active user rate is considered a success. However, the reality is that more often than not, the engagement rate hovers around 5% or even lower. To address this issue, it is imperative to find ways to tie the product into users' pre-existing behaviors instead of asking them to adopt new habits.

Another critical aspect to consider is the lack of social connections within the product's user base. Surprisingly, it is not uncommon for 50% or more of users to have no connections within the service. This necessitates the need to fill their feed with content from a single source or, in some cases, impersonal content. This challenge becomes even more daunting when taking into account the "1% rule" – the fact that only a small percentage of users will actively create content. This makes creating a dynamic and engaging news feed a Herculean task.

To illustrate the difficulties of achieving high engagement and usage, let's take a look at Instagram's history. At one point, a staggering 65% of their users had no connections within the platform. Despite this, Instagram managed to become one of the most explosively viral products in recent history. This highlights the importance of finding innovative solutions to drive engagement and usage, even in the face of seemingly insurmountable obstacles.

While these challenges may seem overwhelming, there is hope. By embracing the concept of non-conformity, companies and products can unlock their true potential. The ERRC Grid, popularized by the Blue Ocean strategy, provides a framework for success. The grid emphasizes the need to eliminate conventional features that have no impact on the customer base, raise aspects that have an impeccable impact, reduce aspects with minimal impact, and create new aspects that add value to the customer base.

In essence, the relationship between non-conformity and performance follows an inverse U-shaped curve. Moderate non-conformity has a superlative impact on a company's performance, while excessive non-conformity can lead to diminishing returns. Embracing mild divergence from conventional norms can significantly enhance a company's performance.

So, how can companies leverage non-conformity to drive success? Here are three actionable pieces of advice:

1. Challenge the Status Quo: Identify aspects of your product or company that are conventional and have little impact on the customer base. Eliminate these features and focus on what truly adds value and engages users.

2. Embrace User Behavior: Rather than asking users to adopt new habits, find ways to align your product with their existing behaviors. This can be achieved by integrating seamlessly into their daily routines or by offering solutions that complement their lifestyle.

3. Foster Meaningful Connections: Recognize the importance of social connections within your product's user base. Encourage users to connect with others and facilitate the creation of user-generated content. A vibrant and engaged community can be a powerful driver of growth and success.

In conclusion, consumer product metrics often fall short in capturing true user engagement and usage. However, by understanding the flaws in these metrics and embracing non-conformity, companies can unlock their true potential. By challenging the status quo, aligning with user behavior, and fostering meaningful connections, companies can create products that not only captivate users but also drive long-term success. It may be hard, but the rewards are worth it.