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Startup and Finding Product-Market Fit

· 2 min read
Carl Liu

This is an introduction blog to some knowledge (basic) and vocabs I have learnt at Presence.

App's Skill Radar​

  • For any Mobile/Web/Internet startup, you need to know your advantages and disadvantages just so you don't get lured down a blind alley.
  • This is appliable not only to Mobile Apps, but also to any modern startups (i.e. Website for delivery call, aka. Doordash/Palo Altos Delivery)

CPI​

  • Cost Per Install:
    • Web: 0$
  • Top tier compnay examples
    • Any web era startups: Google, Yahoo, Portal sites

Muliplier​

  • How fast does the product spread, is it exponential or linear?
  • Top tier compnay examples
    • Uber, UberEats

Screen Time​

  • How long does your user spend on your app
  • Top tier company examples
    • Tiktok -> 100 Mins
    • FB -> 45 Mins
    • Bytedance Toutiao -> 75 Mins

Retention​

  • How long does a customer keep your app:
  • 2nd/7th/30th day Retention:
    • 4-2-1 -> OK (40% users kept your app on the second day, 20% users kept after a week, 10% after a month)
    • 6-4-3 -> TikTok, Facebook, Google
    • 5-3-2 -> Very good, you can go IPO
  • for Web, DAU/MAU is commonly discussed. It is the same thing as Retention
    • The formula is: DAU / MAU = 2nd day retention / 30th day retention
    • 20% -> Ok
    • 60% -> Tiktok level
    • 66% -> Facebook level
  • Top tier compnay examples
    • Tiktok, Facebook, Snapchat
    • To-B apps: Salesforce, Slack, Tableau, needed for work, mandatory retention

ARPU​

  • How easy is it to generate cash from your customers
  • Top tier company examples
    • Airbnb: extremely high ARPU, extremely low Screen Time
    • Amazon: Okay Screen Time, but high ARPU

Branding​

  • Top tier compnay examples:
    • Apple
    • Amazon: return policy, Amazon Prime

Experiment vs. Error​