Founders

Consumer social products and marketing

1. Marketing creates 1) awareness and, hopefully, 2) demand to sign up

2. For nearly all consumer apps, ~50% of new sign ups never come back to the app after the first day! This declines over the next 30 days to get to a measure of day 30 (d30) retention.

3. Ideally, this decline curve “flattens” (i.e. asymptotic) or even “smiles”. This means you have a retentive product and you can measure $X spent turns into Y downloads and into Z sign ups and into A retained users.

4. However, if your product does not have a retentive curve, then all spending will do is make metrics go up for a bit and then air will slowly come out of the balloon.

5. Retentive social products work because their core value proposition and product / functionality / features creates long-term retention. Exceptional products do that and have a viral growth component (k-factor).

6. So before spending time and money marketing, be sure you have a product that benefits from the marketing.