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The ‘Usage Gap’: The Real Reason People Don’t Use Your Product

7 min readOct 14, 2025

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Photo by C D-X on Unsplash

Your signup rate is great.

Your churn rate is terrible.

The problem isn’t your product — it’s the invisible chasm between “I signed up” and “I actually used it.”

Here’s how to bridge it.

Three years ago, I was advising a productivity app with a beautiful problem.

They had 50,000 registered users.

Their product was genuinely excellent — thoughtfully designed, powerful features, rave reviews from the people who actually used it. But their 30-day retention rate was a catastrophic 8%.

The founder was bewildered.

“We’ve built everything users asked for. Why aren’t they coming back?”

After interviewing 100 churned users, the answer became painfully clear. It wasn’t that the product was bad. It was that the gap between signing up and getting value was too wide.

I call this the Usage Gap, and it’s the silent killer of otherwise great products.

Stop guessing about market size. Score ideas like Series-A VCs using our proven validation matrix.

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StartupInsider
StartupInsider

Published in StartupInsider

Battle-tested strategies, founder stories, and entrepreneurial insights—practical advice that works.

Marshall Hargrave
Marshall Hargrave

Written by Marshall Hargrave

Serial entrepreneur. Finance, startups, investing. Catalyst-focused, event-driven. Hip-hop vigilante. On the quest for the best hot chicken.

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