30/10/10 the golden ratio of the Internet

For the concept of funnel (or conversion funnel), many people may not understand, in fact, it is one of the most basic concepts of the Internet, it means that 100 of people passing your website, you can turn several people into loyal customers, below we will lead you to understand.

Generally the most basic e-commerce funnel, about five steps:

100%-Flow

20%-email Subscriber (or Facebook fan)

10%-Join Member

3%-Place Order

1%-Repeat Purchase

You can see that I've added a number to the front of each step so that you have some ideas for the funnel (these are the numbers I'm getting at, and each company will be different because of their business model).

If it's a free smartphone App, it's about the funnel:

100%-click Admob/adsense/iad ads

20%-Download

6%-Open once

2%-Reuse

Note that each site will not have only one funnel, traffic from different places, often have different first, second layer conversion rate, such as: SEM (keyword ads) conversion rate is often more than SEO (Search engine optimization) a bit higher. So you have to be clear about how many major funnels you have and the detailed tracking.

But after "membership" (or "download"), that's the problem with your product. At this time different funnel people, the difference is relatively small. Fred Wilson had published a 30/10/10 law that was very consistent with my observations, presumably like this:

30% members/downloads will be used once a month

10% members/downloads will be used once a day

The peak period of the same time online users are about 10% of the number of members

So in other words, starting with membership, your goal is to get 1/3 of users to use your service at least once, and then make 1/3 of them "the main customer." This is probably one of the most basic "gold ratios" in the Internet industry, and if it can be optimized to such a degree, it can be said that your product has reached a certain level of products harsh fit. If you can't keep 1/3 of your guests, you may want to consider pivot to other products.

Internet industry has been 16 years, which not only accumulated a lot of esoteric knowledge, the rules are always updated.