Maximizing Growth and Retention: Benchmarking Social Apps and Effective Study Techniques

Maximizing Growth and Retention: Benchmarking Social Apps and Effective Study Techniques

Introduction:
In today's digital age, social apps have become an integral part of our daily lives. The success of these apps hinges on their ability to attract and retain users. In this article, we will explore the key metrics for benchmarking social app growth, as well as delve into the effectiveness of studying with a highlighter.

Benchmarking Growth for Social Apps:
When it comes to measuring the success of a social app, defining the core metric is crucial. For most consumer social apps, daily active users (DAUs) serve as the primary metric. The goal is to have users engaging with the app on a daily basis. However, for apps with less frequent use cases, weekly active users (WAUs) can be a suitable starting metric.

To evaluate the growth of seed-stage consumer social companies, the following benchmarks are commonly used:

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

It is essential for the majority of this growth to come organically. Social apps often have limited resources for paid marketing, and therefore, they rely on viral user acquisition. If more than 10-20% of users are coming from paid sources at the early stages, it may be necessary to rethink the acquisition strategy.

Furthermore, the DAU to monthly active user (MAU) ratio provides insights into user retention. A "smiling" L-ness curve, where users are consistently engaging with the app, is indicative of a successful social app.

• OK: 25% DAU/MAU ratio
• Good: 40% DAU/MAU ratio
• Great: 50%+ DAU/MAU ratio

Retention and Cohorts:
Retention is a critical aspect of a social app's success. N-day retention, which looks at the percentage of users returning on specific days, is a primary metric for evaluating retention.

• OK: d1 50%, d7 35%, d30 20%
• Good: d1 60%, d7 40%, d30 25%
• Great: d1 70%, d7 50%, d30 30%

It is important to note that the slope of the retention curve tends to flatten between d7 to d14, and eventually reaches a plateau by d20. Weekly retention can also be relevant for apps transitioning into networks, where users come for a tool and stay for the network.

• OK: w1 40%, w4 20%
• Good: w1 55%, w4 30%
• Great: w1 75%, w4 50%

Analyzing cohorts over time allows for a deeper understanding of a social app's performance. Stable or improving metrics cohort by cohort indicate strong network effects and increasing user value.

The Power of Connections in Studying:
Shifting gears, let's explore the effectiveness of studying with a highlighter. While highlighting may have short-term benefits, research suggests that it is less effective than note-taking when it comes to long-term retention.

The human brain naturally learns by making connections between information. By taking notes and actively engaging with the material, you create a web of connections that aid in memory retention. These connections can be based on similar details, concepts, or locations. Therefore, note-taking is a more effective strategy for long-term learning.

However, there are instances where studying with a highlighter can be beneficial. If your goal is to reference the materials years down the road, a highlighter can serve as a visual aid. This is particularly useful if the system allows for easy searching and retrieval of highlighted information.

Actionable Advice:

1. Focus on organic growth: Prioritize strategies that encourage viral user acquisition and minimize reliance on paid sources. Strive for high DAU/MAU ratios to ensure consistent user engagement.
2. Evaluate retention metrics: Monitor n-day retention and cohort performance to identify areas of improvement. Aim for increasing retention rates over time to indicate strong network effects.
3. Optimize study techniques: Emphasize note-taking over highlighting for long-term learning. Utilize connections between information to enhance memory retention. Leverage technology to make your study materials searchable and accessible in the future.

Conclusion:
Benchmarking growth and retention metrics is vital for the success of social apps. By focusing on key indicators such as DAUs, WAUs, and retention rates, app developers can gauge their performance and make informed decisions to drive growth. Similarly, adopting effective study techniques like note-taking and leveraging connections between information can enhance learning outcomes. Ultimately, the goal is to create a valuable and engaging user experience that stands the test of time.