It’s been a couple of months since I first launched WheresMyStuff, so I thought I’d share how it’s going so far.
First, some some vanity metrics 😆
Now, let’s dig into this more deeply and examine the true health of the product. But first, some definitions:
Given the definitions above, the key metrics break down as follows:
So, while there are good number of users overall, only 19% (so far) have reached the habit moment and are using the product consistently. And while 19% isn’t terrible, I definitely want to work towards increasing that number to at least 25% retention or better.
It’s also interesting to note that of all the users, 67% are new contacts, i.e. I do not know them personally. So, it seems like WheresMyStuff is in fact reaching an audience beyond my personal network, which is pretty cool.
Now, let’s look at the CAC and revenue numbers so far:
Again, let’s break that down:
Given all this, here is how I am measuring and evaluating the sustainability of this product as a business:
If you sum the amount I spent on Marketing (acquiring) each of the retained users, plus the operational costs, plus the average churn cost, each retained user costs a whopping $53. I chose to include the average churn cost (i.e. the total cost spent on acquiring churned users, divided by the number of retained users) because I want to be hyper vigilant about my churn. So, by including the churn cost in my cost calculations for retained users, I’m forced to think about it and not just be satisfied with retention / blind to churn.
So, even though I’ve made some revenue from those who’ve chosen to support me (thank you!), the my net revenue to-date is -$313.
This is obviously NOT sustainable over the long term. But, I’ve only just started to do some paid marketing as well as ask people to subscribe to the service, so I’m going to give it more time. But, I think if my net revenue exceeds -$1000, that will be my line in the sand to step back and evaluate whether or not to shutdown WheresMyStuff.