April 28, 2009 1:57 PM PDT

Twitter's lack of loyalty--an Achilles' heel?

by Dave Rosenberg
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Some interesting data from Nielsen suggests that Twitter, despite the hype and meteoric growth, appears to have a user loyalty problem, an issue not suffered by Facebook or MySpace, the two behemoths of social networking.

Considering the viral nature of Twitter, I was a bit surprised to see that users weren't more loyal. On the other hand, sites like Facebook and MySpace offer a lot more functions that facilitate communication on many levels, not just through messaging.

Currently, more than 60 percent of Twitter users fail to return the following month, or in other words, Twitter's audience retention rate, or the percentage of a given month's users who come back the following month, is currently about 40 percent. For most of the past 12 months, pre-Oprah, Twitter has languished below 30 percent retention.

Is this Twitter's Achilles' heel, where there aren't enough reasons to come back to the service, or, is audience retention naturally lower because Twitter only offers one thing to do in comparison to the other services?

The chart below shows that MySpace and Facebook both had higher loyalty levels at the same reach.

Twitter lacks loyalty

Twitter lacks loyalty

(Credit: Nielsen Wire)

I think it's an easy argument in Twitter's favor that it has significant reach with significantly fewer features than the comparative sites. Of course, loyalty matters a great deal if and when the company ever decides to monetize the user base.

Dave Rosenberg dishes up "Software, Interrupted" with nearly 15 years of technology and marketing experience that spans from Bell Labs to multiple start-up IPOs to open-source enterprise software companies. He is co-founder of MuleSource and currently serves as the general manager of Hardy Way. He is a member of the CNET Blog Network and is not an employee of CNET. Disclosure. You can contact Dave via e-mail at softwareinterrupted@gmail.com or follow him on Twitter @daveofdoom.
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by loose_screw April 28, 2009 6:07 PM PDT
I hate Twitter for the very reason you stated. It only offers messaging, whereas facebook facilitates communication on so many more levels. That, and the fact that I don't give a damn about how many people are following who (it's not a popularity contest), or what some famous dbag is doing.
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by calystarose April 28, 2009 6:26 PM PDT
I love Twitter precisely because it does just the one thing. I don't have to slog through an increasingly complex site full of huge images, java script and flash and other browser crashing garbage. I don't even have to go to the site itself if I don't want to, though I still go to the website several times a day. It's an option I exercise because I know the site won't eat my browser's resources. It's light-weight and efficient. If I want more in depth interaction I can link to a blog with comments enabled. I sincerely hope they don't fall prey to the nonsensical and irritating belief that one site must do everything.
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by selfkill April 28, 2009 7:49 PM PDT
Twitter is just going to be another casualty of Bubble 2.0, along with Digg, YouTube, and other social networking sites with no real business model. You can only scam VCs for so long until things start falling apart.
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by blafouille April 28, 2009 8:15 PM PDT
communication with the entire planet start being boring,let go further in the universe...
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by thatguy77 April 28, 2009 8:32 PM PDT
I despise MySpace and Facebook. They're both nonstop assaults on your visual sense and offer really very little in the way of actual communication.
Twitter, on the other hand, does one thing and does it simply. It makes it easy for you to communicate with one or hundreds, maybe thousands of people with little effort.
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by coyfsr April 28, 2009 9:16 PM PDT
Figured this twitter thing was pretty much all hat, no cattle. Recently I decided to sign up and see what all the hype was about. Within seconds of setting up my account, marked private by the way, I had two "girls" wanting to follow me. Yea sure... so were they twitter-bait, giving me someone who I could think was listening to my random rants and musings? Silliest friggin' thing I've ever seen. Hey, twitter should cut a deal with Second Life, get a twitter account, get an avatar on 2nd life that way you can be into two lame trends at once.
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by CNET-TENC April 28, 2009 10:32 PM PDT
I recently received a notification from Facebook, another to follow an earlier one received that put a block on my profile. I am curious to know if other users feel the same about after-the-fact notifications informing you that your profile has been blocked, or some other access of yours has been denied. Facebook is content to state that as per their terms of use you have violated one of them and so they have the right to shut you down, and without warning you about it. What's tough to accept is that many other users do the same as you, yet they don't seem to suffer the same problem.

The last incident happened recently when a group i created at Facebook simply disappeared. Gone! No notification, no warning, nothing, it just wasn't there any longer.

I have seen Facebook warn about the possibility of people hacking into profiles, but how can they use words like purgery in accusing members of violating terms when they can't control hacking into their own site? In another case information of mine was deleted and i was informed after the fact only to be denied an answer to my question about who initiated an allegation against my profile. And again in this case, the allegation would have applied to a great many other users of the site.

Facebook's practice of referring you to their very, very long explanation of terms of use avoids them having to come out and actually tell you what you did that supposedly is wrong. You will have your access denied but not told why, other than refer to their terms, and sift through to find what contradicts something you have done. If they're going to be so bold as to use weighty legal terms like purgery, don't standard legal practices apply, like telling someone what they are accused of, especially when they can't guarantee a safe site from hacking, which they acknowledge happens.

I've had my profile blocked with no explanation until many days after, and it was very problematic considering the contacts I had who might have thought I vanished. And more recently a group I created has disappeared. If Facebook wants to act all grown up and through legal terms and accusations around, they should run a tighter ship less filled with holes than it currently has. Makes it difficult to take them seriously. If they're throwing out the 'user beware' caution, which they appear to be..."we can't be responsible for..." then they can hardly accuse of legal wrongdoing.
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by ZetaZeta_ April 28, 2009 10:38 PM PDT
I find Twitter useful for sharing release information or previews for companies and their products or games, artists giving hints on their next big work or information about new gigs or where they're performing now, as well as a may for me to discuss with like minded individuals events that are occurring in real time. It's a good way for some people to have a conversation while letting anyone chime in. Get enough followers and you can ask a few creative questions and get some cool answers.

In the end, Twitter is something completely different from Facebook, and the users will not be the same. It's a protocol for sharing nuggets of information. NOT for making friends, per se.
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by HisRoyalDoogness April 28, 2009 11:49 PM PDT
Twitter has a steeper learning curve and a more targeted application for those that would continue to use it on a regular basis. For the "I'm doing laundry" status updaters on Facebook, the medium probably doesn't have that much value. For human information networks, (a concept that hasn't quite sunk in yet), Twitter could be revolutionairy. We're still in the very early stages of its evolutions. Give it time. I think StockTwits is an excellent example of how a specific audience and narrowly defined subject matter makes Tweeting valueable and re-usable on a regular basis.
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by hamish_ April 29, 2009 2:59 AM PDT
I'm dubious about the comparison. How does Nielson track twitter API users?

Many new users start with the website, then find a client that suits them - a trend that could surely account for the apparent retention issue.
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by septa44 April 29, 2009 5:22 AM PDT
The retention rate post-Oprah is going to be even worse. None of that is factored in yet. Twitter has been over-hyped and is now coming back to earth. Kind of like the housing bubble.

http://www.twitterbacklash.com
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by jlowry711 April 29, 2009 5:26 AM PDT
I'm new to Twitter but I do enjoy the simplicity of it, compared to MySpace where it takes forever to load up some friends' pages or the new Facebook where I am inundated with applications. What I would like to see in a Twitter 2.0 is to make it more multi-media in its approach with audio, video and picture embeds, but that's as far as I'd like to see it go..
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by unklestinkybill April 29, 2009 5:43 AM PDT
Twitter is not a web app like Myspace and Facebook. Twitter is a phone app. The fact that it occupies space in html is secondary to it's actual purpose. Use loyalty? What's that? People are not canceling accounts in droves, are they? It's simply a matter of having an interest at a point in time. Interests change like underwear, Twitter is a vehicle for that.

http://www.appraisalr.com/MLS1004MC/index.html
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by JaegerBaeger April 29, 2009 6:21 AM PDT
What?s this uproar about Twitter?
Twitter is as twitter does.

Twitter is the part six of the
Great Brain Meld?.
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by aarontitus April 29, 2009 7:03 AM PDT
Twitter is a very lonely medium. The character limit means that nuanced conversation is difficult, and it lacks the privacy necessary for deep personal disclosure and interpersonal connection. Users looking for that must utilize other media: Facebook, MySpace (does that still exist?), Skype, or IM.
Twitter is a platform for shouting slogans into the dark on the hopes that someone hears and decides to affirm you. One-sided conversation is no conversation at all.
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by pokeyoats April 29, 2009 9:36 AM PDT
Twitter is essentially a giant, organized IRC system. Re-tweets, @-clickable names, referrers and followers.

Brevity and simplicity; that's twitters selling point, 140 characters per tweet, get it?!

And for those of us that know how to use it/understand it, it's a very effective service.
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by ghaf123 April 29, 2009 11:40 AM PDT
Twitter is a very thin offering. Twitter is only for brief messages (140 characters per tweet). Some think that's the beauty of it. Rather than having a lengthy conversation, one only needs to answer quickly and if further info is needed then there is a website in which to follow. Applications that work very well are restaurants that are advertising their daily specials and want to get it across qickly and have it forwarded to their friends. Other applications are specials from the phone company with sayings like "Does your phone feature free texting?" and other apps like this one. Facebook and the others are more robust but quick tweets is sometimes all you need.
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by cb711 April 29, 2009 1:51 PM PDT
The rise of Twitter has been interesting to see. Check out this blog post I found that raises more questions about it: http://lunchpail.knotice.com/2009/04/29/twitter-and-takeaways-from-the-marketing-forum/
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by Harrison912 April 29, 2009 4:44 PM PDT
Since I'm mainly on Twitter to socially market my safety and security web site and chat up it's products, I tend to be fairly loyal and if you're offering valuable and interesting tweets, people will loyally follow.
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About Software, Interrupted

In "Software, Interrupted," Dave Rosenberg discusses disruption in the software market, as well as the products and services that keep business technology norms in perpetual flux.

With nearly 15 years of technology and marketing experience spanning from Bell Labs to multiple start-up IPOs, Dave co-founded open-source software company MuleSource and now serves as general manager of Hardy Way. He also happens to be a U.S. patent holder and a workaholic. Technology is his best friend and mortal enemy.

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