Measuring Virality in a SaaS Business
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Transcript of Measuring Virality in a SaaS Business
Prepared11/03/2014
Ryan [email protected]
@RyanWithop
Prepared11/03/2014
Ryan [email protected]
@RyanWithop
Measuring Virality in a SaaS Business
Measuring Virality in a SaaS Business
Industry Best PracticeIndustry Best Practice
k-factor
BJ Fogg, Dave McClure – Stanford Facebook Classhttp://framethink.wordpress.com/2008/01/15/the-four-viral-app-objectives-aka-social-network-application-virality-101/http://www.quora.com/How-do-you-actually-calculate-a-k-factor-or-virality-factor-for-web-applications
Roots: EpidemiologyRoots: Epidemiology
42
= 2
Over a given period of time, typical for infection
Spread of diseases
k-factor =
infected
had virus
Computation in SaaSComputation in SaaS
42
Given time period:= the average number of days between an active user and when her network becomes “active”
Spread your service like a disease
k-factor =
of their friends become active
Active users
Viral Growth ExampleViral Growth Example
1.95M1.5M
k-factor = =1.3
Over a 30-90 day period
Viral growth!
3 degrees separation network contribution
Weekly cohort of active users
specifics: http://www.quora.com/How-do-you-actually-calculate-a-k-factor-or-virality-factor-for-web-applications
Multiple Factors?Multiple Factors?
k1
k2
k3
Invited
Registered
Engaged
Subscribedk4
Questions to ConsiderQuestions to Consider
• What counts as being an “active user”?
• Should your denominator only include people who attempt to refer you to their network?
I prefer cohorts of people actually using your service in a meaningful way as the denominator. You have an opportunity to get them to be viral at any point if you choose to.
Why not Use RegistrationWhy not Use Registration
• Too easy to manipulate registration
• True value of getting people to use your service is if they “use” your service
1. Increase number of people referring2. Get each person to send to a wider
audience3. Increase frequency of a referral or
notification4. Increase the messages’ effectiveness5. Make it easier to onboard with your
service
Virality Control KnobsVirality Control Knobs
1. Which control knob are you best able to enhance?
2. Run simple testse.g. more friend notifications rather than marketing emails
3. Measure k-factor over time and for given test cohorts – are you actually able to move this metric?
Make it Happen!Make it Happen!
Now get to it!
Make it Happen!Make it Happen!