Mark Pincus: evaluation

Transcript context

…Awesome. I want to ask about something that I think might be on people's minds as they hear you talk. For a lot of product builders, when I think Zynga, they're not like, "This is the product I want to build." And there's a spectrum of products you guys have built. There's like FarmVille and CityVille and all these things that I think turn some people off. And then there's like Poker, Words with Friends, Mafia Wars that I think people are like, "Oh, that's amazing. I love that." Can you just speak to that? Sure. I think if I'm unpacking that when you say that the products turn people off, it's funny you say that because FarmVille and CityVille were our biggest hits in terms of installs, engagement, retention, revenues. Now, Words with Friends and Poker were more enduring because they made the transition to mobile and the other games didn't. There's a whole other story, but I think the part you're getting to is that Zynga was in a lot of ways a victim of its own success, that our games were so viral and took over the feeds on Facebook so much that your friend who was playing it started to bug you as a person not playing it and that's fair. But what I would say, I think what's misunderstood about Zynga from the beginning and why we succeeded and we created eight massive hits out of 10 mass large game launches. We had a very high hit rate. It wasn't that we were good at virality. It was that we were focused on two things that I think we did better than anybody else and we had lots of competitors, lots and copying and we still managed to keep winning. And so it couldn't be that we were just spammier or better at virality. First, we had this core mission and focus around connecting the world through games and Bing Gordon and I kept coming back to this idea that I love and I want your founders, product makers watching this to join me in thinking about, which is how can we add more dimensionality? I love this idea of, it's why I call it bold beat. It's how do I take this thing that's kind of gotten boring and wrote, poker or whatever, how do I add a whole new dimension to it? And by adding social, by adding real identities, by giving you this, you're doing social networking, you're in this cocktail party and now we're giving you a way to actually meet new people or improve your relationships in a game. Well, the reason why people, so many, especially middle-aged women love FarmVille and these games was because they had this hobby, but they weren't doing it alone and they were doing it with their good friends, making new friends. And in the game, our most successful features were co-op play. There were things that let you do gifting and do things of value for your friends. And so we called the games invest, express and connect. You could do something that was, you were being seen as creative. I like to say people don't want to be creative, they want to feel creative. So we were letting you feel creative, look creative to people. It's what Midjourney does for me today. And then we were letting you... So you were expressing yourself and then you were connecting with people around it. So that was the first thing. And then if you think at a mechanical metric level, our core metric was retention, not virality. We grew, we outlasted everybody because we had the best retention. I think we were the only consumer company in the world that tracked Day 365 retention. I don't think anyone tracks it today. irality. We grew, we outlasted everybody because we had the best retention. I think we were the only consumer company in the world that tracked Day 365 retention. I don't think anyone tracks it today. I talk about in the book, I think it's a gift to your founders. I believe that the most valuable companies in the world, well, statistically this is true, they have the highest Day 365 retention. Can you build against Day 365 retention? Yes. We can't wait till Day 365. We can find early indicators of a positive Day 365 and a negative Day 365 retention. If you have low D1, low D30, you will probably not have high Day 365. So those track, those are correlated, but you can have the opposite. You can have very high Day 30 and a zero Day 365, which is most products. And if you don't think about why someone would use this in a year, if you don't have that mentality, it turns out when someone tries our product, they think that way too. They kind of think, "Is this worth investing in?" Whether it's a game or a camera, it's, "Am I going to use this in a year? Should I tell my friends about this or should I bother investing? Should I bother giving it information about me or whatever?" And I think there's a mentality to that. And I like to say viral-based companies, and there's been many, be real. We've seen these, they're sinking speedboats. They're trying to drive faster than they're sinking. They're trying to get more people in. You can either go faster, bail water out faster, which is trying to get people back or plug the hole in the boat or build a better boat that doesn't have a hole. But we were tracking both in our games, in our network, what was the retention? And we were really constantly thinking about that. And I think the two things to take away from Zynga's success in my opinion that I hold is to have a strong innovation vision that translates to what your teams are doing every week. And we even built a metric that's still not used by anyone. This is an Easter egg if this doesn't get cut and anyone's still listening, we built a metric called ASN and it stood for, we measured what was your active social network. So we looked at how many round trips you had with a friend or another player, meaning you took a turn and they took a turn back, you gifted them and they gifted you back. And we found that if you went from zero ASN to one, there was an 80% chance we saw you again in the next month. And if we got you to a four, there was an 80% chance we'd see you 22 out of the next 30 days. And so we could actually build and innovate against that metric and it made sense because if you saw positive feedback loops, it's like someone likes your photos, comments, that's probably the biggest dopamine hit we get.…

Stored transcript either side of the excerpt. The highlighted words are the published quote; the surrounding text is unedited source, never generated.