Measuring Network Effects
https://a16z.com/2018/12/13/16-metrics-network-effects/
Last time around, we talked a lot about product dynamics. And I’ve continued going down that rabbit hole.
There are 5 main categories to measure network effects: acquisition, competitors, engagement, marketplace, and economics-related metrics.
As I had written in my blog post on Product forces, dynamics and outcomes, not all metrics that measures outcomes are equal. As the author here says:
“Every single network effect business is different depending on the particular product, audience, and environment, so there’s no one-size-fits-all list of measures.”
You do have to know your product’s dynamics and what are the main drivers of growth. Only then can you focus on one or two key metrics. And the ones listed in this article are a great start to get your analytical juices flowing. |