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The Science behind Viral marketing
The document discusses the mechanics and effectiveness of viral marketing, highlighting that successful viral growth can lead to free customer acquisition and enhance monetization strategies. It emphasizes the importance of the viral coefficient and cycle time in achieving virality, demonstrating examples from companies like YouTube and Tabblo to illustrate these concepts. The content also provides practical steps and strategies for businesses to effectively implement viral marketing, including optimizing the viral loop and addressing customer concerns.
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An overview of viral marketing, its effectiveness, and how virally acquired customers reduce acquisition costs.
Introduces key components of the viral loop and explores the viral coefficient and growth rates.
Comparison of viral loops between YouTube and Tabblo highlights the importance of cycle time for growth.
Strategies for optimizing viral marketing including the viral hook, initial seeding, and refreshing methods.
Understanding customer concerns and motivations is essential to create solutions that enhance sharing. Examines successful examples and strategies, discussing what can go wrong in viral marketing efforts.
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The Science behind Viral marketing
- 1. The Science behindViralMarketingLessons Learned
- 2. Explosive growth!YouTubeFacebookZyngaGrouponTwitterGilt GroupeAllhave set records for growth ratesThe key is Virality
- 3. The Power ofViral MarketingWhen it works it is Free!!Far more effective than paid promotions and advertising campaignsIf done well can be self-sustaining + growthUnfortunately rarely achieved!
- 4. The Best BusinessModelVirally acquired customers are freeMonetization(LTV)Cost ofCustomerAcquisition(CoCA)
- 5. TopicsThe Science behindViral MarketingHow to do Viral MarketingOptimizing for ViralityMaking this work for your businessExamples
- 6. Where my experiencescome fromTabbloPhotosharing siteFounded by Antonio Rodriguez, 2005Acquired by HP within 18 monthsGreat investment returnAll credit is owed to Antonio Rodriguez
- 7.
- 8. The Math behindViralityKey variables:Custs(0) The initial set of customersi The number of invites sent outconv% The percentage of invites that convert into customers
- 9. The Viral CoefficientK TheViral CoefficientK = no of invites x The conversion % (i x conv%)Turns out to be a very important variable. It equals the number of new customers that each customer is able to successfully invite.
- 10. An ExampleCusts(0) = 5i = 10conv% = 20%K = 2
- 11. The FormulaNew custsadded in this cycle =New custs added in the previous cycle x KAssumes that customers only send out invites once, and not continuously in every later cycleTo calculate the number of customers at any particular cycle (c):Custs(c) = Custs(c-1) + NewCusts(c)
- 12. Sensitivity to KSeeSpreadsheet model
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- 14. What we learnedViralCoefficient must be > 1to have viral growthViral Growth is a compounding phenomenonIncreasing the Viral Coefficient has a big impact on the rate of growth
- 15. YouTube versus TabbloBothstarted around the same timeYouTube’s growth massively outstripped TabbloWhat was happening here?
- 16. Tabblo’s Viral LoopUserdiscovered TabbloWait till they take some photosUploadShare (i.e. invite others)Some portion of those think, this is great, I want to use this myselfWait till they take some photosUploadEtc.
- 17. YouTube’s Viral LoopUserdiscovers YouTubeSees some hilariously funny contentDecides to share that with friendsFriends see hilariously funny contentDecide to share that with their friendsThe time to infect is far shorter!
- 18. A More SophisticatedFormulat = timect = cycle timeThanks to Stan Reissfor help with the forumula
- 19. What this tellsus Raised to the Power of …MultiplierShortening the cycle time has a far bigger effect than changing Viral coefficient!
- 20.
- 21. Some ExperimentsTime -tNo wonder YouTube was explosive!
- 22. Lesson LearnedReducing ViralLoop cycle time has by far and away the greatest effect on viral growth
- 23. How to doViral Marketing
- 24. The BasicsFigure outthe Viral HookWhat makes people want to share content?Content or Product/ServiceInitial SeedingUse communications networks to spreadEmail, Twitter, Facebook, Google+, etc.Refresh & Re-seed
- 25. Figure out theViral HookSomething very compelling that the user wants to share
- 26. Viral Hook - What works:Something of Value:ApplicationsEducational contentDataThings of monetary value (Discounts and coupons)Something entertainingHumorGamesNewsInherently Viral ServicesEmail, Skype, etc.Other?
- 27. Why do peopleshare?A paper on that here:http://marketing.wharton.upenn.edu/documents/research/Virality.pdfhttp://www.nytimes.com/2010/02/09/science/09tier.html (summary)Virality driven by physiological arousalHigh arousal, Postive (awe) – most likely to be sharedHigh arousal, Negative (anger or anxiety) – less likelyLow arousal, de-activating (sadness) – unlikely
- 28. Content TypesBlogsVideoseBooksApplications andServicesEtc.
- 31. Using engineering formarketing
- 32. Inherently Viral ApplicationsThemost viral apps are those that are require sharing to work properly:HotMailSkypeYouTubeFaceBookEtc.
- 33. Initial SeedingThe biggeryour initial seeding the betterIdentify InfluencersReach / InfluenceKlout, SocMetrics and other services emerging to helpDevelop the right relationshipListen, Strategize, Engage, MeasurePaid SeedingPaid search, Virool.com, etc.
- 34. Spread through CommunicationsNetworksEarly days this was emailSocial Networks have turbo-charged sharingWhat you want:Low effort for the user doing the sharing
- 35. Refreshing and Re-SeedingGoogleSearch (paid and organic)Creates new seedingNew Blog postsCause your existing readers to re-inviteFarmville, etc.Continue to invite by regular posts to your wall
- 36. Lessons Learned Optimizingfor Virality
- 37. Lessons LearnedApply my“Unblock your Sales Funnel” principles to the viral loop steps
- 38. GET INSIDE YOURCUSTOMER’S HEADCONCERNSHate being sold to
- 39. Find it offensiveto give name and email
- 40. Don’t want toget spam sales emails
- 41. Worried that emailaddress will be given to other marketersUNDERSTAND WHAT MOTIVATES THEMCONCERNSMOTIVATIONSWant to solve my problem
- 42. Recommendation from afriend
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- 47. Meeting other peoplelike me that have insights to shareCREATE A SOLUTION THAT ENTICES THEM AND ADDRESS THEIR CONCERNSCONCERNSENTICE & ADDRESS CONCERNSCustomer testimonials address vendor risk
- 48. Free trials addressproduct viability and fit concerns
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- 51. Another strategyOffer areward both to the user and to their friendOvercomes the feeling of being sleazyCan lead to much higher success rates
- 52. Lessons LearnedMaximize thenumber of invites they send outLeverage tools that provide easy reach to their friends:TwitterFacebook: post to their News StreamLinkedInAutomate access to their address bookWorks well for GMail, and other on-line address booksEtc.
- 53. Lessons LearnedLook forways to automate the whole invitation processNo thinking requiredNo work required
- 55. Don’t just inviteonceLook for ways to keep repeating invitesE.g. Facebook games like Farmville that post to your News Stream
- 56. Lessons LearnedLook forother ways to get your customers to tell their friends about youExample: ConstantContact’s email signature
- 57. Reduce the CycleTime
- 58. Lessons LearnedHybrid ViralEvenif you can’t get a viral coefficient > 1you can still enhance customer acquisitionwith some virality
- 59. Lessons LearnedThe ViralLoop is an important FunnelDesign each step carefullySimplify and eliminate manual stepsTest for adequate motivations and incentivesAddress concernsA/B test each stepMetrics to evaluate and improve
- 60. Make it workfor your BusinessCreepyEffective
- 61. What can gowrong? - BranchoutSocial networks are for hanging out with friendsNot promoting your businessBranchout (recruiting app on Facebook) Spammed users walls with way too many entries
- 62. The Result:Thanks topaulamarttila.posterous.com
- 63. Some Fun ExamplesFora full set, visit:http://www.ignitesocialmedia.com/social-media-examples/viral-marketing-examples/
- 64. For More informationVisitmy blog at www.forEntrepreneurs.com