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Once you’ve exhausted all the organic growth channels you could use to launch your product, you’re often faced with stalling growth. This is because your current users don’t bring in any new users. Your product has a low viral coefficient.

Your product’s viral coefficient is the number of new users an existing user generates. It’s a way to calculate the virality of your product—meaning the inherent incentive for users to refer other people to your product. You viral coefficient is a good way to measure word-of-mouth and an indicator of your product’s growth trajectory.

This is how you can calculate your viral coefficient: number invitations sent per user x conversion rate = viral coefficient.

How to increase your viral coefficient

You can’t increase your viral coefficient with just marketing tactics. Virality needs to be embedded inside your product.

  • Word-of-mouth: build a product so good that users will want to talk about it to their friends and colleagues.
  • Easy shareability: add easy ways for users to share your product, such as social buttons.
  • Referral programme: build an ambassador scheme so users are incentivised to share the product with other people.
  • Network effect: create a product that works best with friends, and encourage users to invite other people to unlock additional benefits.
  • Monetary incentives: provide discounts or additional services to users sharing your product with other people.

The viral coefficient of your product is one of the hardest metrics to control. In the end, it boils down to how good or useful your product is. And even when that’s the case, some products are so good people want to keep it a secret to have this unfair advantage all to themselves!

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