Virality and word-of-mouth (WOM) are powerful growth drivers for startups, enabling rapid user acquisition with minimal marketing spend. However, tracking their impact requires structured approaches that offer actionable insights.
Here’s a guide to the most effective frameworks for measuring virality and WOM growth.
1. The viral coefficient framework
This framework evaluates how effectively existing users bring in new users, creating a cycle of organic growth.
Example:
Imagine your app allows users to invite friends via email. If 100 users send invites and 30% of the invitees sign up, that’s 30 new users brought in by the original group. A high percentage suggests that your referral mechanics are effective, while a low percentage indicates room for improvement.
2. Net Promoter Score (NPS)
NPS measures customer satisfaction and their likelihood to recommend your product, which directly influences WOM growth.
Example:
You survey your customers, asking how likely they are to recommend your service. Most responses are high scores (9 or 10 out of 10), meaning a strong majority of your user base actively promotes your product, likely leading to organic growth.
3. K-factor analysis
K-factor focuses on viral loops by analyzing how new users share your product and bring in others.
Example:
A language-learning app encourages users to share progress badges on social media. Tracking how many new users sign up after seeing these badges helps you identify the impact of this feature on growth.
4. Word-of-mouth effect (WOME) model
This model looks at the influence of both direct and indirect WOM on acquiring new customers.
Example:
Direct WOM: A happy customer tells three friends about your product, and two of them sign up.
Indirect WOM: A user shares their positive experience on LinkedIn, and ten people sign up through the post. By combining survey data and analytics, you can track the source and impact of these conversions.
5. Customer journey mapping for virality
Mapping your customer journey helps pinpoint moments where users are most likely to share your product.
Example:
An online retailer encourages customers to share their purchases on Instagram at checkout with an automated discount offer for referrals. Tracking how many referrals result from this moment helps optimize the sharing trigger.
6. R0 (basic reproduction number) analysis
Borrowed from epidemiology, this method measures how many new users each existing user generates on average.
Example:
Your analytics show that for every active user, 1.5 new users sign up through referrals. This highlights a healthy growth rate, with opportunities to refine messaging and incentives to increase this number.
7. Social currency framework
This framework evaluates how much value or social credibility users gain by sharing your product.
Example:
A fitness app allows users to share milestones like “10,000 steps today” on social media. These posts receive high engagement, demonstrating the app’s ability to provide social value, which encourages more sharing.
8. Customer referral program tracking
A structured referral program can be an effective way to track WOM growth.
Example:
An e-commerce platform offers a $10 discount for every friend a customer refers. By analyzing which incentives lead to the most referrals and highest engagement, you can refine the program to maximize its impact.
Conclusion
Tracking virality and WOM growth requires analyzing user behavior at multiple touchpoints. Whether you’re measuring direct referrals, social sharing, or customer satisfaction, these frameworks provide a solid foundation for optimizing your growth strategies.
By focusing on what drives your users to share, you can create a self-sustaining cycle of organic growth.