Neil Perkin: “Users Are Not Created Equal” – The Importance of Digital Ratios

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Fred Wilson writes an interesting post about what he calls the common ‘web/mobile laws of physics’, making the observation that many of the tech services and companies they see as VCs exhibit similar ratios between the number of registered user or downloads (if it’s a mobile app) the service has, the number of monthly and daily active users, and the maximum number of concurrent users (for those with a real time component). The 30/10/10 ratio runs:

  • 30% of registered users or number of downloads will use the service each month
  • 10% of registered users or number of downloads will use the service each day
  • The maximum number of concurrent users of a real-time service will be 10% of the number of daily users

Fred goes on to talk about how often these ratios are incorrectly interpreted as poor performance, and how smart tech services and apps change these ratios more in their favour through judicious use of email and mobile notifications (such as Facebook photo tagging or Instagram ‘Like’ notifications) which can increase…
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TFA Team

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