There’s a great answer to the question “If you were interested in User Growth for your startup, what questions would you most want answers for?” posted on Quora by Sangeet Paul Choudary of Platformed.info. Here’s a key excerpt:
[quote align=”center” color=”#999999″]”Before I start, do I have a compelling plan to engage the users I bring in? Or am I just filling a leaky funnel?[/quote]
The point is that it doesn’t make sense to focus on user acquisition if you don’t already have a solid funnel in place. A lot of startups that I work with think the best way to get new users is to do more marketing. It also turns out that a lot of the same startups have a really dismal activation rate once people actually get to their site. If your conversion rate to account signups on your site is 1%, you’ll get twice as many new users just by getting it up to 2%.
Use an analytics suite like KISSmetrics or Mixpanel to identify if there are any bottlenecks or leakages in your funnel. If only 5% of your new users are becoming active users, then you have a retention problem, not an acquisition problem.
Click here to read the question on Quora
(Credit for the image above goes to Thomas Saur at Tsamedian)