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Viral Coefficient is defined as the number of new consumers or customers that are generated by an existing satisfied customer. As the term suggests, this metric calculates the exponential referral cycle. It’s the viral coefficient or the virality that helped brand B perform better than brand A.
A strong virality rate seems to be +2.5\% compared to the typical Facebook Page.
What is a high viral coefficient?
The viral coefficient is a metric that determines the number of new users generated by referrals from existing customers. Products or services with a viral coefficient greater than 1 are considered viral. Viral products promote the exponential growth of a company’s customer base.
What is good K factor?
This means that to achieve true “growth,” a K-Factor of greater than 1 is the target. Even a K-Factor of 1.01 is a good K-Factor as it means that a game will keep spreading, even if it takes a long time to so. This is the general flow for a game in which it’s possible to send and receive invites.
To respond to this story,
- 9 Ways to Build Virality into your Product. Gabor Cselle.
- Two-Sided Reward. Create an incentive for a user to invite their friends, and for their friends to accept the invite.
- Appeal to Vanity.
- Collaboration.
- Embeds.
- Artifacts Shared on Social.
- Artifacts Shared via Messaging.
- Signatures.
How do you calculate media impressions?
Impressions are the total number of exposures to your advertisement. One person can receive multiple exposures over time. If one person was exposed to an advertisement five times, this would count as five impressions. Impressions are calculated by multiplying the number of Spots by Average Persons.
The viral coefficient can be calculated by dividing the total number of users generated by referrals from existing customers by the total number of customers. Mathematically, it can be expressed using the following formula: Note that the formula above can be simplified into the following:
For SaaS companies, if the software is good, the individual users will then refer the software to their friends, teams, and companies. In simple terms, a viral coefficient is a number which indicates how many new users a current user is referring to your business. This metric is used to measure the organic growth of a company.
What is a viral product?
Products or services with a viral coefficient greater than 1 are considered viral. Viral products promote the exponential growth of a company’s customer base Types of Customers Customers play a significant role in any business.
How do you calculate the conversion rate of a referral?
Take your number of current customers. Let’s say you have 100. Multiply by the average number of referrals your customers send their friends. So that’s 100 x 5 if each customer refers 5 colleagues. Find the percentage of referrals that took action. If 2 of those 5 referrals become paying customers, the conversion is 40\%.