The biggest initial hurdle for a new product isn't getting the first dollar of revenue; it's crossing the chasm from a user trying the product once to becoming a truly engaged, repeat user. This "penny gap of engagement" is the most critical early milestone to overcome for long-term success.
Instead of setting early revenue targets, new products should focus on a more telling metric: getting a small cohort of sophisticated users to become obsessed. This deep engagement is a leading indicator of product-market fit and provides the necessary insights to scale to the next 50 users.
Before investing in top-of-funnel marketing, ensure your core growth engine works. Gamma paused all other efforts and dedicated their entire team for months to perfecting the first 30 seconds of the user experience. This focus on the 'aha moment' was the key to unlocking true organic virality.
Instead of focusing solely on conversion rates, measure 'engagement quality'—metrics that signal user confidence, like dwell time, scroll depth, and journey progression. The philosophy is that if you successfully help users understand the content and feel confident, conversions will naturally follow as a positive side effect.
The current AI hype cycle can create misleading top-of-funnel metrics. The only companies that will survive are those demonstrating strong, above-benchmark user and revenue retention. It has become the ultimate litmus test for whether a product provides real, lasting value beyond the initial curiosity.
Figma learned that removing issues preventing users from adopting the product was as important as adding new features. They systematically tackled these blockers—often table stakes features—and saw a direct, measurable improvement in retention and activation after fixing each one.
Instead of a broad onboarding, focus the entire initial user experience on achieving one specific, "brag-worthy" value event as quickly as possible. Structure this as a sprint: define the event, remove all friction, design a "click, click, value" path, and use alerts to nudge users along to that singular 'win'.
The most durable growth comes from seeing your job as connecting users to the product's value. This reframes the work away from short-term, transactional metric hacking toward holistically improving the user journey, which builds a healthier business.
Move beyond simple product usage for retention. Design a clear "adoption ladder" with defined milestones that encourages customers to deepen their relationship with your brand—progressing from user, to community participant, to podcast guest, and even to business partner. This creates immense stickiness and fosters evangelism.
Because AI products improve so rapidly, it's crucial to proactively bring lapsed users back. A user who tried the product a year ago has no idea how much better it is today. Marketing pushes around major version launches (e.g., v3.0) can create a step-change in weekly active users.