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Never Take Your Eyes Off This Hacker Metric | TechCrunch

Stashed in: Facebook!, Awesome, Growth Hacks!, Sweet Social Media News, engagement, Metrics, For Milo, Business

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(Article begins talking about engagement, then shifts to growth, then compares them)

Facebook has +50% of Mo. Active Users logging in DAILY. (DAU/MAU)

  • This is a key metric for long term growth.
  • A high ratio is a sign of habit

High engagement is an important factor for growth (not easy to measure this one)

Virality depends on the Viral Cycle Time

  • 20 days with a cycle time of two days, you will have 20,470 users
  • 20 days with a cycle time of one days, you will have 20,000,000+ users
  • The more engaged users, the more often they will perform viral actions (ex. tag a photo)

Engagement is a tricky thing to master

  • Engagement tactics are harder for competition to emulate than distribution tactics
  • Truly understand your userS
  • Remember, your users are unique people and have their own ticks (that's not in the article :)
"Creating a company with both high engagement and high growth requires a sound distribution engine fueled by active users. Both engagement and growth are essential to a company’s viability and by adhering to the tao of DAU and MAU, founders have an accurate point of focus to increase their odds of success."

The challenge of this article is that Nir describes WHAT but not how.

If behavioral designing for engagement were easy, everyone would do it.

Everyone WANTS to have half of all monthly users login daily, but only Facebook has managed to actually make it happen.

Adam, I don't think it's realistic to expect Nir to do anything but shine a light on a target towards which we can aim and I'll give you credit for knowing that. And obviously, you can't hit a target if you don't know it exists so I say his article is super valuable for scores of entrepreneurs who need to be shown what to aim for. It's good stuff.

What I'd like to see is a list of resources for someone who'd like to learn more about behavioral design and/or growth hacking.

I think I sense a corollary between viral cycle time and inventory turnover. The latter is of course a topic that has had tons of thought put into it. I'm always on the hunt for connections like this because they frequently give you a study topic from which you can glean transferable knowledge.

Everything I've learned about viral is summed up this way:

Once a viral channel is exposed, it gets exploited until the viral channel stops working.

It's much much easier to just build a great product than it is to spend a lot of time on virality tuning, since those techniques are ever-changing.

I always tell entrepreneurs that intensity of usage (which I guess is called engagement) is more important than the quantity of users.

I know how to get more users. I don't know how to make apathetic users care.

It's not only hard to make apathetic users care.

It's hard to find people who care enough to even try something in the first place.

It's not their fault though. They're bombarded from every direction with so many things to try.

Perhaps there are just plain too many products to support the number of consumers that exist.

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