Assuming that most people eventually exit, it’s FAR better if they exit via a match on the platform—that likely influences many others to take it seriously.
Why is this true? Is there any word-of-mouth benefit for e.g. Tinder at this point, which plausibly outweighs the misaligned incentives ofer points out?
I don’t know much about their business and customer modeling specifically. In other subscription-based information businesses, a WHOLE LOT of weight is put on word of mouth (including reviews and commentary on social media), and it’s remarkably quantifiable how valuable that is. For the cases I know of, the leaders are VERY cognizant of the Goodhart problem that the easiest-to-measure things encourage churn, at the expense of long-term satisfaction.
Why is this true? Is there any word-of-mouth benefit for e.g. Tinder at this point, which plausibly outweighs the misaligned incentives ofer points out?
I don’t know much about their business and customer modeling specifically. In other subscription-based information businesses, a WHOLE LOT of weight is put on word of mouth (including reviews and commentary on social media), and it’s remarkably quantifiable how valuable that is. For the cases I know of, the leaders are VERY cognizant of the Goodhart problem that the easiest-to-measure things encourage churn, at the expense of long-term satisfaction.