Meta Platforms executives are placing significant emphasis on increasing user retention for their new Twitter competitor, Threads. Following a highly anticipated launch, the app experienced a loss of over 50% of its users in the subsequent weeks. During an internal town hall meeting, CEO Mark Zuckerberg acknowledged that while the retention rate for the text-based app was better than expected, there is still room for improvement.
Zuckerberg stated, “Ideally, if you have over 100 million people sign up, it would be great if all or at least half of them stuck around. However, we’re not there yet.” He considers the drop-off in users after launch as “normal” and anticipates that retention will improve as Meta adds more features to the app, including a desktop version and search functionality.
To boost retention, Meta is exploring the implementation of additional “retention-driving hooks.” Chief Product Officer Chris Cox mentioned one potential hook, which involves making important Threads visible to Instagram app users. These efforts aim to entice users to return to the app and engage with its content. Meta spokesperson declined to comment on the specifics discussed during the meeting.
The executives’ discussion on retention comes shortly after Meta impressed investors with a promising revenue growth forecast. This positive outlook signals a potential comeback for the company, which faced skepticism due to its significant investment in the metaverse amid declining ad sales.
Zuckerberg also emphasized the importance of Meta’s augmented and virtual reality technology in powering the future metaverse. He expressed the need to invest in this technology ahead of competitors like Apple, Google, and Microsoft, given their experience in building operating systems for existing products. He predicts that mass adoption of metaverse technologies will occur in the 2030s.
Additionally, Zuckerberg and Cox highlighted the recent release of Meta’s artificial intelligence model, Llama 2, which is now freely available for commercial use by developers with fewer than 700 million users. Cox disclosed that the model received more than 150,000 download requests within a week of its release.
In response to a question about a potential “cage match” against Elon Musk, Zuckerberg was uncertain if it would materialize.
Unique Perspective:
Creating hooks to retain users is a critical aspect of app development. As Meta Platforms focuses on improving retention for Threads, they recognize that retaining users is not a straightforward task, even with a large user base. It’s encouraging to see Meta acknowledging the importance of adding features and optimizing the user experience to enhance retention. By investing in augmented and virtual reality technology and releasing AI models, Meta is positioning itself for future success in the metaverse. However, competition with established tech giants remains a challenge, requiring strategic planning and execution.
It will be interesting to see how Meta continues to innovate and build upon Threads, ultimately striving for long-term user engagement and a thriving community.
