The Psychology of Collecting and Benchmarking Social App Growth

The Psychology of Collecting and Benchmarking Social App Growth

Introduction:

Collecting items has been a part of human behavior for centuries. From valuable and scarce objects to sentimental items, people have various reasons for engaging in this activity. Similarly, social app developers strive to understand and measure the growth of their platforms. In this article, we will explore the psychology behind collecting and discuss how to benchmark the growth of social apps.

The Thrill of Scarcity and Emotional Value:

One of the reasons why people collect things is the inherent value attached to rare and scarce objects. This desire stems from our primal survival instincts. In the past, accumulating valuable items could provide individuals with the resources needed for a prosperous life. However, it's not just about monetary value. The emotional attachment to objects is equally important. Losing a sentimental item, such as a deceased grandmother's antique necklace, can be devastating, as it holds irreplaceable sentimental value. This emotional connection to objects drives people to collect and preserve them.

Sense of Belonging and Positive Connections:

Collecting often goes beyond the individual and extends to building connections with others who share similar interests. Collectors often form communities and nurture positive relationships within these groups. This sense of belonging increases their overall satisfaction and enjoyment of the collecting experience. Similarly, social app users seek out platforms where they can connect with like-minded individuals. In the case of web highlighters, users share the pleasure of collecting excerpts about topics of interest from people whose works they admire. These platforms become a gathering place, providing users with a sense of belonging to their "tribe."

Benchmarking Social App Growth:

For social app developers, benchmarking growth is crucial to understand the success of their platforms. One core metric commonly used for benchmarking is daily active users (DAUs). The goal is to have users engage with the app on a daily basis. However, for apps with less frequent use cases, weekly active users (WAUs) can also serve as a starting metric. To secure a prominent position on users' home screens, developers should aim for organic growth. Paid marketing strategies should be reconsidered if more than 10-20% of users are acquired through paid sources. Organic growth indicates that users genuinely enjoy the product and are motivated to invite others, fostering a viral effect.

Key Metrics for Benchmarking:

To assess social app growth effectively, several key metrics need to be measured. These include DAU/MAU (daily active users/monthly active users), L-ness curve, n-day retention, and weekly retention. For DAU/MAU, a benchmark of 25% is considered okay, while 40% is good, and 50%+ is great. The L-ness curve measures how frequently users engage with the app. A "crooked smile" curve, skewed right, indicates that the app has become a regular part of users' lives. Retention metrics, such as n-day retention and weekly retention, highlight the percentage of users who continue using the app over a specific time frame. The benchmark for retention varies, with higher percentages indicating better performance.

Actionable Advice for Social App Growth:

1. Prioritize organic growth: Focus on creating a product that users genuinely enjoy and want to share with others. This organic growth will provide a strong foundation for long-term success.

2. Continuously analyze and improve metrics: Regularly monitor key metrics and identify areas for improvement. Cohort analysis can help identify trends and patterns that can guide decision-making.

3. Foster a sense of community: Develop features and functionalities that encourage users to connect and interact with each other. Building a strong community will increase user engagement and retention.

Conclusion:

The psychology behind collecting and benchmarking social app growth reveals common threads. Both activities involve a desire for value, emotional attachment, and a sense of belonging. By understanding these motivations and measuring key metrics, collectors and social app developers can enhance their experiences and ensure long-term success. Remember to prioritize organic growth, analyze metrics consistently, and foster a sense of community to drive user engagement and retention.