Prepared11/03/2014

Ryan Withopryan@threepiers.com

@RyanWithop

Prepared11/03/2014

Ryan Withopryan@threepiers.com

@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!