Edited excerpt from In Silicon Valley, Mergers Must Meet the Toothbrush Test:
When deciding whether Google should spend millions or even billions of dollars in acquiring a new company, its chief executive, Larry Page, asks whether the acquisition passes the toothbrush test: Is it something you will use once or twice a day, and does it make your life better?
(1) Marissa Mayer came from Google. So it’s not surprising that she also believes that The best products satisfy a frequent user need.
(2) To what extent is frequency of use critical for SaaS and subscription businesses? See The relationship between frequency of habit and customer retention.
(3) Thank you Selig Davis for the tip. Selig is Seeking Alpha’s head of mobile products — iOS app and Android app.