Alex Schultz, VP of Growth at Facebook, shares with us how to get users, how to grow, and how to measure growth.
Some of my own (incomplete) notes:
Retention is the #1 thing to measure. Retention curves must flatline at some level, and the level you need them to flatline at depends on the nature of the business. So 5% is very bad for a social network, but may be good for an e-commerce business with high LTV per user.
You don't need millions of users to understand your retention. A few hundred or thousand may be enough.
Three reasons why your retention curve may come back up:
Network Effects kick in as over time as more people sign up.
You open up the for a new platform (say were iOS only & launch Android app)
Adding categories (Example: Amazon went from books only to books and something else)
Measure net growth:
net\ growth = (new - churning + resurrecting)\ users
What gets you retained? Magic Moments. How do you find magic moments?
(Qualitative) Ask your users why do they keep coming back?
(Quantitative) Look for correlations in your data (Of the users who keep coming back — what is it they did early on?)
Understand → Identify the gaps → Execute
Use data to make decisions:
Predict the future (your retention curves can be used to predict your future revenue assuming you capture the entire addressable market). A/B tests are scientific — use them.