The document discusses the importance of measuring cohort retention to determine if a product is truly gaining traction. It defines cohort retention as the percentage of people who performed an action, like using an app, and returned to perform the same action again within a set time period, usually a week. It notes most other metrics like downloads or users are not good predictors of success. The document advises that a retention rate above 25% could indicate the product is gaining true traction, while lower rates mean the product is not sticky enough and more work needs to be done to improve value and engagement. It provides a framework to categorize products based on how addictive and valuable they are to help focus on driving the right viral and conversion metrics to improve cohort

1. Growing up
@fiahless
felix@faber-ventures.com

3. Conception

4. Conception
=
Product / Value Fit

5. Are we or are we not?

6. Is it working?
Customer XYZ
loves it
“Did you see
the article on us
on TC?”

7. Is it working?
“We’ve had over
a Million
Downloads?”
“We have
100k Users”
Customer XYZ
loves it
“Did you see
the article on us
on TC?”

8. Most data points =
Not good predictors

9. Two Words:
Cohort Retention

10. “How many people that did X came back
in the next week and did X again”

12. 80/20

13. 25% = Good?

16. ADDICTIVE
+
VALUABLE
NON-ADDICTIVE
+
VALUABLE
NON-ADDICTIVE
+
NON-VALUABLE
ADDICTIVE
+
NON-VALUABLE
VALUE
Stickyness

17. ADDICTIVE
+
VALUABLE
NON-ADDICTIVE
+
VALUABLE
ADDICTIVE
+
NON-VALUABLE
-> 0%
VALUE
Stickyness

18. ADDICTIVE
+
VALUABLE
NON-ADDICTIVE
+
VALUABLE
-> 0%-> 0%
VALUE
Stickyness

19. ADDICTIVE
+
VALUABLE
-> 0%-> 0%
-> >10%
VALUE
Stickyness

20. -> 0%-> 0%
-> >10% -> >50%
VALUE
Stickyness

21. VALUE
Stickyness

22. Version 1.0 Release of iOS

23. K =
# Touch Points
Path of
Infection
Infectious Pop. *

24. K =
# Invites /
Shares
Conversion
Rate
Active Users *

25. Retention
Easier
Intentional Incremental
Harder
Viral Drivers
Conversion

26. Using Cohort Retention:
-> True measure for traction
-> Helps you chase value instead of vanity
-> Helps you focus
-> Helps you test and manage features

27. IF > 25% THEN
felix@faber-ventures.com