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  • SE

    Sean Ellis

    over 4 years ago #

    These days it seems more people refer to at as the k-factor. Someone please correct me if there is a difference. Here's the definition from wikipedia for k-factor https://en.wikipedia.org/wiki/K-factor_(marketing)

    "In viral marketing, the K-factor can be used to describe the growth rate of websites, apps, or a customer base.[1] The formula is roughly as follows:[2]
    i=\text{number of invites sent by each customer } (e.g. if each new customer invites five friends, i = 5)
    c=\text{percent conversion of each invite } (e.g. if one in five invitees convert to new users, c = .2)
    k = i * c

    This usage is borrowed from the medical field of epidemiology in which a virus having a k-factor of 1 is in a "steady" state of neither growth nor decline, while a k-factor greater than 1 indicates exponential growth and a k-factor less than 1 indicates exponential decline. The k-factor in this context is itself a product of the rates of distribution and infection for an app (or virus). "Distribution" measures the average number of people a host will contact while still infectious, and "infection" measures how likely an average person is to also become infected after contact with a viral host."

  • DS

    Dan-ya Shwartz Bar-El

    over 4 years ago #

    If @sean's answer is not what you have meant (invites and so) i've heard virality mentioned with 2 other contexts:
    * WOM -I've heard a very interesting talk from Julian Runge (Head of Analytics at Wooga - https://de.linkedin.com/in/julian-runge-85466712) in which he manage to model WOM (word of mouth) factor with mobile games
    * "organic lift" that occurs when you use paid growth and earn organic.
    sometimes people refer to this as virality, ping me if you need help with those questions :)

  • DM

    Depesh Mandalia

    over 4 years ago #

    This is a good article, which goes on to explain why any k value above 0 is a good thing: http://www.referralsaasquatch.com/your-viral-k-sucks-and-thats-awesome

    In particular for you, to simplify:
    k = i * C
    i (# of invites per user) = 4
    C (conversion % of invites) = 5%
    thus k = 4 * 0.05
    and k = 0.2

    And use this Google sheets doc to help modelling: https://docs.google.com/spreadsheets/d/1dIshaj8lz1FaoK6x832yzypZyMgmPkMzwSRyInVTPcY

    • CE

      carole el-rahi

      over 4 years ago #

      Hi Depesh, thanks for sharing. It's a good article but one crucial thing the article doesn't take into account is the retention rate. You'll grow with a K factor under 1 if your retain every user but it's near impossible.

  • CE

    carole el-rahi

    over 4 years ago #

    I've done a lot of research on the topic and the best article I've found is written by Andrew Chen (love his blog if you're not following him yet you should!). There are more maths involved but it takes into account retention which is crucial and network saturation. It's a great read! http://andrewchen.co/facebook-viral-marketing-when-and-why-do-apps-jump-the-shark/

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