Virality, Network Effects and Word Of Mouth. This is how you can embed them in your own product or service.

1. How To Build
Your Product
For Viral Growth .
Thoughts and actionable tips
on virality and word of mouth.
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2. Unlock Your Viral Growth
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The last 2 months our customers gathered more than
100,000leads
and 60,000referrals.
Viral Loops is the first complete Viral Marketing Platform
and backed by VentureFriends.
It’s built by GrowthRocks, one of the first growth hacking marketing teams,
and has been featured in publications, like:

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Why Virality &
Word Of Mouth ?
Because it’s a killer
marketing channel.
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Word of mouth is the primary
factor behind 20% to 50% of
all purchasing decisions .

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Word of mouth is 10x more effective
than traditional advertising .

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By increasing virality,
you decrease your CPA .

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Instagram’s
Viral Growth .
How Instagram orchestrated virality.
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Social Multi-User Activities
Was The Growth Key .
Unlike its competitor, Hipstamatic,
Instagram encouraged the photo
creator to share the photo
on an external network
like Facebook.

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Converted Its Users
Into Marketers .
Every time users used the app, they
shared their creations externally.

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Word Of Mouth
Is About WOWing Your Customers .
What WOM is, and what is not.
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Word of mouth is a phenomenon where people
love an offering so much, they just cannot stop
talking about it .
Word of mouth is fuelled by a company’s ability
to convert users into passionate fans.
Source: Sangeet Paul Choudary

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How You Can
Generate WOM .
• A great product or service is the most important thing
• Awesome support
• Build communities
• Love your customers, and they will love you

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Rackspace’s
Fanatical Support .
During a marathon
troubleshooting session, a
support engineer heard the
customer was hungry,
so she ordered them a pizza!
Source: hbr.org

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Shazam generates WOM
through human nature .
When you search for a song, your
friends are curious of what you’re
doing, and then ask you about it.

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Revolut solves a
real problem .
Revolut is an international money
account. It helps you transfer money
abroad and make your online purchase
without any hassle.

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Virality Is Not
WOM .
What Virality is, and what is not.
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Virality is a phenomenon where people
spread the word about an offering,
in the context of using it, rather than loving it .
The existing users gain value out of taking an
action, which in turn, exposes the underlying
platform to new users.
Source: Sangeet Paul Choudary

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Kickstarter Leverages
Its Projects For Going Viral .
When a Kickstarter creator
spreads the word about his
project, he helps Kickstarter
reach higher user adoption.

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Product Hunt Leverages
Its Products For Going Viral .
When a hunter submits a
product, both the hunter and
maker spread the word about it,
bringing in more people in the
platform.

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Network Effects & Virality
Are Not The Same Thing .
Both lead to growth and scale,
but they’re not the same thing.
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Eventbrite Leverages Virality
But No Network Effects .
Eventbrite is a platform for
booking tickets for events.
Eventbrite events find registrants
only when they are shared in
external networks.

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LinkedIn Has Network Effects
By Design .
In order someone to connect
with you in LinkedIn, he has to
be in LinkedIn, too.

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Virality is a business design problem,
not a marketing or engineering effort .

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How To Design & Build
Your Viral Growth ?
Let me show you how we
apply this approach in Viral Loops.
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What Is Viral Loops ?
Viral Loops is the all-in-one
viral marketing platform
to launch your referral programs,
sweepstakes, competitions
and pre-launch campaigns.

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Why will the sender send units out
of the platform ?
#SenderIncentives

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Why Someone Will Spread The
Word About Viral Loops ?
Because like in the Kickstarter
case, the campaign creator
wants to spread the word about
his referral program, competition
or another campaign created in
Viral Loops.
Additionally, the participants will
share the campaign to win.

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What is the minimum transferable unit
on the platform that can move on an
external network ?
#SpreadableUnit

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Viral Loops’
Minimum Transferable Units .
• ViralWidget Pop-up
• Emails
• Leaderboard
• Widgets

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Where will the unit of the platform
meet non-users ?
#ExternalNetwork

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We deeply believe
in Facebook and Messenger .
It also depends from our
campaign creators.
But we can drive this behaviour.

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Examples On Successful
External Network Exploitation .
• Paypal —> eBay
• Airbnb —> Graiglist
• Zynga —> Facebook
• WhatsApp —> Phonebook

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Why will a non-user on an external
network convert to a user
on the platform ?
#RecipientIncentives

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Why should a non Viral Loops
user become one ?
If he’s in a similar business like
the creator of the campaign or
he can leverage Viral Loops for
his own business, he will sign up.
In order to do this, we need to
build two things in our product:
•Stellar end-user experience
•Mechanisms for helping
campaigns succeed.

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The 2 Types
Of Virality .
You can leverage both for your
mobile app.
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Product Virality .
Pull product virality (PPV): Product virality where existing users require people in
their network to join to gain value out of a feature.
Splitwise
Need friends on the product to input money owing and money lent.
WhatsApp
You should have your friends and family in to communicate.
Snapchat
You should have friends in Snapchat to see snaps and be seen. Source: Philip La

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Product Virality .
Distribution product virality (DPV): Product virality where existing
users spread awareness of a product to their network.
Instagram Cross-posting
You share your photos in Facebook and Twitter. Non-users will get in.
Facebook Photo-tagging
In the early days, if a tagged friends was not in Facebook, she would receive
an email prompting her to create an account.
Source: Philip La

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Airbnb’s Viral Loop .
How Airbnb increased bookings
with a kick-ass referral program.
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The Concept .
The referral program encourages
inviting friends by giving both the
sender and recipient $25 of travel
credit at Airbnb when the invited
user completes their first trip.

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Cross-Platform .
They launched their
referral program in all
platforms. Not so many
companies do it for some
reason.

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Optimization .
They A/B tested several
parts of the program,
including message
psychology.
Hooray, A/B Testing :)

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Personalization .
They use deep linking to
personalize the invitation
experience.

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The Result .
Airbnb increased overall bookings by 25% in
some markets, and signups and bookings
from the program itself by 300%.

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Viral Marketing
& WOM Channels .
How to get your mobile app
go viral.
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Image source: Sean Ellis

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2016’s Viral Channels .
Snapchat has 200 million
users, sending over 400
millions snaps everyday!
Facebook introduced the
Messenger platform to help you
build your bot and reach 900
million people around the world.

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How Uber Made A Bot
Become Their Actual App .
Uber’s partnership with Facebook takes things to
the next level by allowing a car to be summoned
from within a conversation. Uber taps into
Facebook Messenger’s 800 million users though
a very basic bot.
There’s no need to download an app. The bot is
the app.
Source: intercom.io

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Build your own chat bots .
Messenger Platform msg.ai wit.ai

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How To Measure
Virality .
If you can’t measure it,
you can’t improve it.
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The Viral Coefficient
(aka k-factor) .
K-factor is the total number of registrations
per unique inviting user.
Say that, on average, 1 in 5 of our users will successfully recruit a new
user in their first month. In other words, our viral factor is 1/5 = 0.2, and
our initial 5,000 users will recruit another 5,000 * 0.2 = 1,000 users in
month 1.

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For a consumer internet product, a sustainable
viral factor of 0.15 to 0.25 is good, 0.4 is great,
and around 0.7 is outstanding .
Source: Rahul Vohra

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The Amplification Factor .
The amplification factor is
calculated as follows a = 1/(1-v)
To calculate our total number of
users, all we have to do is multiply
the number of users acquired
through non-viral channels by our
amplification factor.

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Anatomy Of A Viral Funnel .
You should treat your viral loop
as a funnel with several stages
that can be optimized, so as to
maximize your viral factor.
You could a use a mobile
analytics tool like Mixpanel.
Invite Prompt Rendered
Invite Form Submitted
Invite Sent
Registration form
loaded (by invitee)
Registration
completed
(by invitee)

55. Unlock Your Viral Growth
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Savvas Zortikis
CEO at Viral Loops
savvas@viral-loops.com
@SavvasZortikis
Thank you!
Do you have any questions?
We’d be more than happy to get in touch! :)