Product strategy — retention trumps acquisition

Excerpted from Kiss Metrics:

It’s a rookie mistake to focus on customer acquisition instead of customer retention, especially early in a startup’s life. It’s exciting to get new traffic and acquire new users, but the primary purpose of your first visitors is to inform you of the holes in your funnel.

Early visitors exist for one reason, and one reason only – to show you how broken your website really is. Until you are successfully learning from, and retaining, those visitors, you are not ready to drive a lot of new people to your product. Leaky buckets don’t need more water, they need their holes fixed.

Separately, Tomasz Tunguz provides tips to measure and optimize retention.

6 thoughts on “Product strategy — retention trumps acquisition

  1. Pingback: Why retention is the key to growth | A Founder's Notebook

  2. Hi this is kind of of off topic but I was wanting to know
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  3. Pingback: The number 1 growth hack | A Founder's Notebook

  4. Pingback: Tom Tunguz’ five keys to building a successful company | A Founder's Notebook

  5. Pingback: Should I hire a growth hacker or growth engineer? – Smart People Say

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