OfferUp tracks marketplace health through cohort retention rates, DAU/MAU, and item conversion metrics. Beyond core buying and selling, the company monitors ad click-through rates and shipping service conversions. The speaker emphasizes becoming obsessive about cohort trends to understand user behavior.
Chapters
What are some of those kind of metrics that you focus on? And then I did want to dig a little bit deeper. You also mentioned kind of buy-side metrics and experiments. So I'd love to kind of learn more about that.
Yeah. Yeah. So we take a funnel approach to our metrics from understanding the health across the entire funnel. And it's really a loop. It's not really a funnel, but, you know, how are people coming in? What are— what's their level of of engagement from, you know, first session, second session, first day, second day, third day? How are we converting them to be buyers and/or sellers? What do their retention rates look like on a cohorted basis over time? In aggregate, what are our conversion rates looking like for all the items that are on the platform? What are our user DAU, MAU retention metrics looking like? Those are all to me the most important metrics that inform the health of the business. from our core marketplace standpoint, and that's what we refer to our core marketplace as, the local buying and selling. Of course, on top of that, we have our revenue-generating businesses. We're primarily an ad-driven business, but we also have a transactional business where people can ship items if they don't prefer to meet locally. So I'm looking at, for the ad business, I'm looking at the, you know, the click-through rates on the ads. I'm looking at the the CPMs that we're getting. I'm looking at the trends there. For the transactional business, I'm looking at funnel conversion rates, seeing how our shipping business is performing in terms of sellers actually shipping the items, what the conversion rate is on the different bids that we're getting. But for me, really, I'm maniacal about understanding the trends and cohort retention. I think from a growth perspective, you have to Look at a business that way. That's how all investors look at businesses. And if I could give anybody any advice, if you're in growth, to be an expert in cohort— user cohorted behavior. Awesome.
