Retention is key

How to know if you’ve really made something people want

You’ve started a new business and things seem to be going well — you’ve acquired a number of early customers and your team is excited — but how do you know if you really truly have something customers want?

I think retention is a pretty good measure. It can be too easy to think that just because you acquired some customers (perhaps using unscalable channels), you must have fulfilled this criterion. But if they don’t actually go on to use your product substantially — and in most cases come back for more — you can’t be sure that you’re really providing something that they want/need and adding value. And if you don’t add value you will struggle to build a meaningful business. Seeing strong ongoing usage and repeat orders — not just a failure to stop paying a subscription — is a pretty good indicator that they’re getting value from what you have to offer. Conversations with customers can help to verify this too.

First published at blog.rjones.net.