Insights

Insights

Insights

August 23, 2024

August 23, 2024

August 23, 2024

Retention in Marketplaces: Why Liquidity Beats Variety Alone

Retention in Marketplaces: Why Liquidity Beats Variety Alone

Product Retention

Analytics

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holdeing phone
holdeing phone

Product Retention

Analytics

The Variety Hypothesis

CookUnity launched with the largest assortment of chef-prepared meals — a clear competitive edge. Early markets like New York and LA, with deeper catalogs, had lower churn. It seemed variety alone was the answer.

Liquidity, Not Just Supply

But looking at overall numbers was misleading. While vegetarian supply looked sufficient in aggregate, slicing by vegetarian users revealed an under-supply problem. Once the gap was filled, retention for that segment improved far more than the average — an “outsized lift effect”.

The Discovery Problem

Even with sufficient SKUs, users weren’t seeing them. On average, NY/LA eaters browsed only 40–50% of the menu each week; smaller markets browsed 60–78%. Discovery of new “premier” meals was capped at 30% (NY) to 50% (non-NY). More volume added diminishing returns without intelligent sorting and UX.

Habit Formation Matters

Retention wasn’t about endless novelty. Customers who repeated meals they loved retained better. Exploration still mattered, but in balance. Think Spotify: the magic wasn’t infinite songs, it was playlists that mixed favorites with new tracks — curating discovery without losing familiarity.Our Measurement Playbook for Brand

Balancing the Equation

Marketplace retention = Liquidity + Discovery + Habits.

  • Liquidity: right supply by segment, not just overall.

  • Discovery: UX that surfaces the right items at the right time.

  • Habits: balancing loved items with curated exploration.

Turn insights into action.

We dont just write playbooks, we help you apply them. Tell us what youre working on, and well share how wed connect the dots.

Turn insights into action.

We dont just write playbooks, we help you apply them. Tell us what youre working on, and well share how wed connect the dots.

Turn insights into action.

We dont just write playbooks, we help you apply them. Tell us what youre working on, and well share how wed connect the dots.