"Benchmarks for Growth and the Urgency of Living in the Present"

"Benchmarks for Growth and the Urgency of Living in the Present"

Introduction:
Life is unpredictable, and it can change in an instant. This sentiment holds true not only for personal circumstances but also for the growth and success of social apps. In this article, we will explore the benchmarks for measuring growth in social apps and reflect on the importance of living in the present.

Defining Core Metrics:
When benchmarking growth in social apps, it is crucial to define core metrics. For most consumer social apps, the daily active user (DAU) count is the key metric. The goal is to have users engaged with the app on a daily basis. For apps with less frequent use cases, weekly active users (WAUs) can be an acceptable starting metric. However, to secure a coveted spot on the home screen, upgrading to DAUs is essential.

Organic Growth and Virality:
All or almost all growth in social apps should ideally come organically. This is because social apps often struggle to monetize in the early stages, making it challenging to allocate funds towards paid marketing. Moreover, social apps should inherently be viral, with users eager to invite their friends to enhance the experience. If more than 10-20% of users come from paid sources early on, it may be necessary to reconsider the acquisition strategy. It is vital to ensure that growth stems from the product itself.

Benchmarking Key Metrics:
To assess the success of social apps, certain benchmarks can be used. One such benchmark is the ratio of DAUs to monthly active users (MAUs). A smile-shaped or skewed-right "L-ness" curve indicates that users are making the app a regular part of their lives. For weekly L-ness curves, focusing on L5+ (users in the app five, six, or seven days a week) can indicate near-daily use behavior.

Retention and Cohorts:
Retention is a critical metric for social apps, specifically n-day retention, which measures the percentage of an original cohort that remains engaged on specific days. Key points in time for evaluating retention are d1, d7, and d30. A good benchmark for n-day retention is d1 70%, d7 50%, and d30 30%. It is common for the retention curve to flatten between d7 and d14, reaching a plateau around d20.

The Importance of Cohorts:
While point-in-time numbers are informative, evaluating cohorts over time provides a more comprehensive understanding of a social app's growth. The trend of metrics stability or improvement cohort by cohort is a positive sign, indicating strong network effects. A social app's value should increase as more users join, creating a virtuous cycle of growth.

Living with Urgency:
In the midst of analyzing benchmarks and growth strategies, it is vital to remember the unpredictability of life. A personal account highlights the sudden realization that time may be limited, urging individuals to live with urgency and embrace the present. Assumptions of a full lifetime to pursue dreams can be shattered, emphasizing the importance of making the most of every moment.

Actionable Advice:

1. Define and prioritize your core metrics: Understand the key metrics that drive growth in your social app and focus on improving them over time.
2. Foster organic growth and virality: Ensure that your product itself is driving growth, and prioritize creating a viral experience that encourages users to invite others.
3. Embrace the urgency of living: Recognize that life is unpredictable, and use this awareness to motivate yourself to pursue your dreams and make an impact now, rather than waiting for the future.

Conclusion:
Benchmarking growth in social apps is crucial for success, but it is equally important to remember the fragility of life. By combining a strategic approach to metrics with a sense of urgency in living, social app creators can build sustainable and meaningful products. Embrace the benchmarks, but also embrace the present, as life can change in an instant.