The more painful the process of building it is, probably the more you're learning.
Developing a growth model + marketplace growth strategy
October 09, 2022
Featuring: Dan Hockenmaier (Head of Strategy and Analytics, Faire)
5 quotes · 4 insights
Watch Full EpisodeSystems thinking reveals hidden leverage
Fix retention by fixing acquisition
Working on early user experience is highly impactful. You often see product teams say we should work on resurrection because we have this huge pool of users that is churned out. If we get just 1% of those people back, it's going to be such a big lift. The problem is that pool of users is the group of people who has tried the product and decided they don't want to use it.
Rarely should you go right to the source and send them more email or push notification or something like that. It's really actually about understanding what is the customer experience and what matters to them.
Marketplaces need supply before demand
I think on average when you hear advice about where to focus, people over rotate on supply and actually are under focused on demand. I think ultimately demand is the only thing that matters. If you are successful at aggregating the demand in your industry, you will have the winning marketplace.
Retention is the only metric that matters
One of the immediate things that you see when you build these is that your growth is much more sensitive to customer retention than you can ever intuit because there's a lot of interaction between having a healthy retained customer base and everything else you care about.