Ch 23: Building Your Own AI Products - Advanced¶
Track: Advanced | Try code in Playground | Back to chapter overview
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You can read this content here on the web. To run the code interactively, either use the Playground or clone the repo and open chapters/chapter-23-building-your-own-ai-products/notebooks/03_retention_and_funnels.ipynb in Jupyter.
Chapter 23: Building AI Products — Notebook 03 (Retention & Funnels)¶
Two diagnostics every product needs: a retention curve (do users stay?) and a funnel (where do they drop off?). We compute both and find the biggest leak.
What you'll learn¶
| Topic | Section |
|---|---|
| Cohort retention curves | §1 |
| Funnel conversion rates | §2 |
| Finding the biggest leak | §3 |
Time estimate: 2.5 hours
Key concepts¶
- Retention curve — fraction of a cohort still active over time.
- Flattening curve — the sign of real product-market fit.
- Funnel — sequential conversion from visit to paying user.
- Biggest leak — fix the worst step first for the most impact.
Retention curves reveal whether users stick; funnels reveal where they leave. Flattening retention and patching the worst funnel step are the two highest-leverage growth moves.
Run the full notebook in the chapter folder for code and outputs.
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