Sarah Tavel: The Hierarchy of Engagement

How do you maximize your chances of building an enduring $1B+ non-transactional customer company?

By building enduring engagement, in three levels:

1. Growing engaged users: focus on growing users completing the ==core action==.

2. Retaining users: product should get better the more it’s used. Users have more to lose by leaving the product.

3. Self-perpetuating: As users engage, they create ==virtuous loops== in the product.

   • Pinterest did well with
     • network effect
     • new UGC re-engages users
     • viral referral
   • Evernote and Tinder fall short on this.