- Acquire new users
- Keep your current users happy
If I had to focus on one, I would pick 2). Because once you have 2), 1) will be a much easier goal to reach. On the other hand, if you spend most of your time on 1), you have an average product and you will lose the battle on both 1) and 2). It’s much easier to please 100 people than to please 1,000 people. As a Start Up, one of your main advantage over big companies is focus. Use it. Engagement metrics gives you an idea of whether or not your customer love your product. Back in 2009, Charles and I referred to it as the bar. Eric Ries called it viability in 2011. For a deep insight at a world class use of engagement metrics, read this great blog post: “How Netflix Uses Analytics To Select Movies, Create Content, and Make Multimillion Dollar Decisions“. For a deeper insight into engagement metrics, my friend +Chris Eilers (of oizoioi.vn, oizoioi.com.my) suggested the bookLean Analytics. Eric Ries blogged about the book here. The assumption here is that you have funds and are not hard pressed for new customers that may bring you money. The reality is that if you are in the middle of validating your product, you are probably not going to receive significant revenue anytime soon. I would hope that you have planned for at least 1 year’s worth of cash-flow. For keeping costs low, I have to state the obvious:
- Keep your day job or find consulting work.
- Keep operational expenses low. Don’t spend on things you don’t need.
- Get free help (yay interns!)