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1809: [Part 1] User Growth and Engagement: A Hacker Metric by Nir Eyal of NirAndFar on Business Decisions

6 snips
Sep 13, 2025
Explore how focusing solely on acquisition metrics can undermine business growth. Retention, rather than just bringing users onboard, is shown to be the key to creating lasting engagement. The discussion reveals crucial insights, including the vital DAU to MAU ratio, using Facebook as a case study. Learn why balancing user growth with sustained interaction is essential for tech startups. Discover the notion that chasing growth without considering retention is like filling a leaky bucket.
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INSIGHT

DAU/MAU Reveals Habit Strength

  • A high DAU/MAU ratio signals strong habitual use and durable engagement.
  • Habit-forming products are likelier to outcompete larger rivals with weaker daily use.
ANECDOTE

Facebook Outcompeted Earlier Rivals

  • Facebook beat MySpace and Friendster despite starting later by driving stronger engagement.
  • This example illustrates the 'more is more' principle in practice.
INSIGHT

Engagement Accelerates Viral Growth

  • Higher daily engagement shortens viral cycle time and multiplies growth.
  • More DAUs both initiate loops more often and produce faster responses to invites.
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