Stage 1: Magic - Deepstash
Ultimate Guide to Reducing Churn

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How to analyze churn data and make data-driven decisions

The importance of customer feedback

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Ultimate Guide to Reducing Churn

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Stage 1: Magic

The Milestone: 80% of top of funnel users retain day 7 (i.e. come back at least one more time in the first week).

If your users aren’t retaining day 7, it’s likely that the smoke isn’t coming out of their ears, they never exclaimed ‘aha’ and all of the things people do when they realize they have been waiting for your product for a long time.


184 reads


Stage 2: Habit

The Milestone: 65% of users should retain d30.

The simple math of organic user acquisition is that you need very high day 7 and day7->day30 retention to grow. A high (but achievable) bar is 80% for each. When you combine those, you get an overall d30 retention of 65%.


201 reads

Stage 0: Idea Validation

The Milestone: Get a small number of users very excited by your product, to experience ‘the magic’ of the approach. 

The magic is that moment when your user mentally puts together a big problem they have with the way your product solves it.

Typically, founders will ge...


214 reads

Stage 7: Monetization

The Milestone: 10% of top of funnel visitors become paid users.

Conversion to paid can happen at very different points in time and one app may require a very different conversion rate than another in order to have a good business. For products with a trial, you want a very ...


132 reads

Stage 5: Activation

The Milestone: 80% of the top of the funnel should retain day 7. (same as magic, but now you are getting down in the dirt).

2 main components of activation usually result in the best chance of getting to that big hairy 80% d7 number. 

  1. Get the magic in front of ev...


142 reads

Stage 4: Growth

The Milestone: You need to grow payers by 20% MoM organically.

That seems a bit insane until it doesn’t. You won’t maintain 20% MoM forever, but you should during seed or you don’t have PMF. 

One of the biggest challenges I see is that a founder in an interesting ...


120 reads

Stage 6: Engagement

The Milestone: Users should use your product daily.

For every product, there is a natural cadence which determines the number of times a user is going to use the product. Generally, the higher the frequency, the better. In the report card, I have 7x per week because that’s ...


141 reads

Stage 3: Your First Channel

The Milestone: Find a channel that can generate 1000 new users a week for you.

Before you waste your money, don’t do this with paid. Do the hard work to find out where they are and get the word out. That might be a set of working moms Facebook groups for an...


137 reads

The PMF Report Card

The PMF Report Card

John Danner of Dunce Capital created it as a way to track the progression of a startup from ideation to Series A. The stages are benchmarks for measuring product market fit:

  • The magic refers to value proposition, the excitement people have when exposed to your approach to a clearly sta...


476 reads




Life-long learner. Passionate about leadership, entrepreneurship, philosophy, Buddhism & SF. Founder @deepstash.

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Stage 2: Habit

The Milestone: 65% of users should retain d30.

The simple math of organic user acquisition is that you need very high day 7 and day7->day30 retention to grow. A high (but achievable) bar is 80% for each. When you combine those, you get an overall d30 retention of 65%.


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