The Next Chapter of Readwise: Our Own Reading App

The Next Chapter of Readwise: Our Own Reading App

Why do we spend hours reading a book only to forget most of what we learned? Why doesn't software help us internalize the knowledge we want to apply in our lives? These questions are at the core of Readwise's mission to improve the practice of reading through software. To achieve this, Readwise has built its own fully-integrated reading app.

The decision to build their own reading app was driven by user demand. While technology has disrupted the traditional publishing and distribution models, the reading experience itself has remained largely unchanged. According to the Association of American Publishers, print books still generate significant revenue, surpassing e-books by a wide margin. The rise of e-readers and reading apps in the late 2000s seemed promising, but it was more about controlling content distribution than advancing the practice of reading.

Readwise initially focused on what happens after reading, specifically addressing the problem of retention. The app's foundation is built on a local-first approach, enabling fast and comprehensive search of your entire library of books, articles, annotations, and highlights. Even if you can only remember a single word, Readwise's app allows you to find what you're looking for, even offline. By addressing the issue of forgetting, Readwise aims to help users get more out of their reading.

Another challenge Readwise tackles is content overload. With so much information available, most of us save more than we can consume. Our inboxes become overloaded, turning our digital gardens into digital graveyards. Readwise recognizes the importance of highlighting as a core feature. Unlike other reading apps where highlighting is an afterthought, Readwise places it at the forefront. They believe that the best way to read between the lines is to write between the lines.

However, Readwise is not attempting to make reading a social experience or enable internet-scale annotations. Their focus is on improving the individual reading experience, rather than creating a multiplayer platform. By honing in on single-player mode, Readwise aims to provide the best possible reading experience for users.

When it comes to measuring the success of their app, Readwise believes that activation rate is a crucial metric. Activation rate refers to the percentage of users who hit a specific milestone compared to the total number of users who completed the signup flow. A good activation rate should be highly predictive of long-term value delivery to the user, such as retention and monetization.

For SaaS products, the average activation rate is 36%, with a median of 30%. However, it's important to note that simply completing the sign-up flow is unlikely to show the true value of a product and predict long-term retention. Therefore, it's crucial for companies to choose an activation milestone that strongly correlates with long-term retention instead of overthinking it.

In conclusion, Readwise's own reading app aims to revolutionize the reading experience by addressing the issues of retention and content overload. By focusing on individual reading rather than social interaction, Readwise prioritizes the needs of their users. To optimize the app's effectiveness, companies should pay attention to activation rate as a key metric and choose an activation milestone that accurately reflects long-term value delivery.

Actionable Advice:

1. Prioritize retention: Focus on improving retention by addressing the issue of forgetting. Provide features that enable users to easily recall and revisit the knowledge they gained through reading.
2. Streamline content consumption: Help users manage content overload by providing tools and features that allow them to organize, highlight, and easily access the most important information.
3. Measure activation rate effectively: Choose an activation milestone that is highly predictive of long-term value delivery. Avoid focusing solely on completing the sign-up flow and instead select a milestone that showcases the true value of your product.

By following these actionable advice, companies can enhance the reading experience for their users and optimize the effectiveness of their reading apps.