The Day Facebook Stopped Growing
Late 2007. Facebook flatlined. Growth stopped. The company created a dedicated growth team to figure out why.
They discovered the magic moment: the instant you found your friends. Users who connected with enough friends stayed. Users who didn't vanished.
Facebook stopped growing. We had to understand — what was the moment where you went 'OK, I get it, I love Facebook'?
The Argument That Almost Killed Them
The data showed a strong correlation between number of friends and retention. But was it causal? Or just correlated? Data science fought with engineering. Engineering fought with product. Product fought with marketing.
Couldn't get to a decision. Couldn't do anything.
We had this huge fight going on between data science, analytics, engineering, product, and marketing.
Ten Friends in Fourteen Days
Schultz: Mark simplified it down and said — get everyone to 10 friends in 14 days. When we took on that problem, we significantly moved the number of people who got to 10 friends in 14 days — by a double-digit percentage. We clearly moved the numbers we cared most about.
Cutting the Gordian knot and making the decision to move forward was the most valuable thing Mark did for the growth team. It took the shackles off us.
Mark simplified it down: get everyone to 10 friends in 14 days.
Test by Treating
Schultz calls this the House MD approach. Stop arguing about the diagnosis. Start treating the patient. If the treatment works, you know the diagnosis was right.
When they broke 'People You May Know,' growth went negative. That told them everything. The feature mattered. The debate was pointless.
Making the change was the thing that told us whether the change mattered.
Every Product Has a Magic Moment
Facebook's magic moment was finding friends. eBay's was finding that one item you couldn't find anywhere else. Every product has one. Find it. Optimize for it.
Schultz: You find it qualitatively and then back it up with correlations in the data. People will argue and argue. The best way to find out if they're right is — break it or move it up tremendously. Then see what happens.
Everywhere I have been involved, there is a magic moment. Find it.