May 9th, 2020 | Retention better than growth
Retention is more important than growth. That thought always pops in my mind. Even on my run today. It kept coming to me. My revenue is good enough as it is. And I'm sure my revenue will increase in the future. But the best way to grow is with users that stick around for a long time. If your retention is only one month, you aren't even running a subscription business. You are running a one-time purchase business. If your retention is one year, now we talking about something completely different. Of course I want to grow. Of course I want more customers. But I want them to stick around. With $50 and $100 per month price tags, maybe I can do crazy shit that delights them. For example, I don't have any automated email in place. Every single email is personal and manually written. Now, I am thinking of sending handwritten letters to every new customer. Small stuff like that. You know. Build relationships. Run your small little company like a boutique. Don't try to be Walmart. I see so many maker products that have automated emails even for paying customers. There is no way they get so many paying customers per day that they had to automate it. Most people want to look "like a big company". In many cases that doesn't make sense. You should take pride that you are solo or a small team. Like in the movie "Ferrari vs Ford". I don't want to be Henry Ford II, I want to be Enzo Ferrari. That's a great movie by the way. Recommended.