When we think of the term viral marketing, we sometimes think of a YouTube video that went from 0 to millions of views overnight, but this is not the form most viral marketing takes. Most of the time, virality in business occurs when customers tell their friends, and their friends tell their friends, and so on resulting in an exponential viral coefficient.
The viral coefficient is the number of new customers acquired from the referrals of one existing customer. If you were to tell 5 friends about your favorite new product and 3 of those friends purchase the product, you are contributing to that company’s viral coefficient of 3.
It’s not hard to imagine how quickly a business can grow with a positive viral coefficient. This is how companies like Facebook, Instagram, Dropbox, Snapchat, and more all grew to become valued at multiple billions of dollars.
There are some strategies you can employ to promote a healthy viral coefficient. One such strategy is to build a viral sharing component into the product. This could mean a referral marketing strategy where you incentivize users to tell their friends. This could also be a shareable component of the product for users to post on social media.
Refer to the infographic from CleverTap below to learn the dangers of the viral coefficient and the strategies for navigating the viral spiral.
Infographic by CleverTap