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Viral Campaigns from an Investors Perspective               Joysy John     Founder & CEO, FoundersFit.com            @Joys...
Agenda•   Introduction•   Why Viral Campaigns work•   How Viral Campaign drives growth•   3 Things that matter•   Q&A
IntroductionAngel Investor, Ex-Banker,Founder, Social EntrepreneurComputer Engineer, MBA
Why Viral Campaigns work
Market for social apps is growing       2005                          2012  1                    1  2                    2...
How Viral Campaigns Work              Call to action toUser          invite friends                     x = invited       ...
Channels• Focus on 1-to-Many to get People Engaged  – News Feed  – Profile  – Notifications  – Non User Pages• Focus on 1-...
3 Things that Matter      Users      Acquisition cost      Conversion rate
Customer Acquisition Speed Matters                              50      Registered Users (MM)                             ...
Customer Acquisition cost matters
Conversion (%)
Dropbox Conversion rate of 3%
Dropbox Conversion rate of 5%
Using Metrics to Drive Product Design                X% user dropoff   Y invites sent/user   Z% invites acceptedFlow A    ...
Role of Marketing / SalesQ: What channels? Which users? Why?A: High Volume (#), Low Cost ($), High Conv (%)   Design & Te...
ConclusionKeep it simpleThink of incentives for sharingOptimize for conversionSet up balanced teams
London matchnhack   viral campaigns from an investors perspective v3
London matchnhack   viral campaigns from an investors perspective v3
London matchnhack   viral campaigns from an investors perspective v3
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London matchnhack viral campaigns from an investors perspective v3

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  • Install flow x = 5 (friends invited on average) y = 22% (acceptance rate for invites) -> invites, clicks, registers Viral factor = 5 * 0.22 = 1.1 VIRAL! Engagement flow Repeat users can generated additional virality!
  • September 2008: 100,000 registered users January 2010 (15 mos later): 4,000,000 Mostly from word-of-mouth and viral: 35% of daily signups from referral program 20% from shared folders, other viral features Sustained 15-20%+ month-over-month growth since launch Give users better tools to spread the love Referral program w/ 2-sided incentive permanently increased signups by 60% (!!) Inspired by PayPal $5 signup bonus
  • Saurav Chopra, CEO of Huddlebuy said: “This is the competition with a prize that money can’t buy – an audience with one of the nation’s most celebrated businessmen. Sharing via social media is obviously pretty standard these days, but our platform now allows people to increase their probability of winning this amazing competition by sharing it with their online network. Put simply, if your friend wins, then you win too. And who wouldn’t want to win half an hour with Sir Richard Branson?!”
  • Landing page  desired goal  conversion page
  • Assume 1,000 users per week with an exponential growth rate of 1.2.  that a paid user does about 12.5x more downloading and uploading than a free user an important thing to note is that as free users gradually consume more of their space, they will cease to be profitable in week 295 as costs will rise more rapidly than paid user revenue.
  • Transcript of "London matchnhack viral campaigns from an investors perspective v3"

    1. 1. Viral Campaigns from an Investors Perspective Joysy John Founder & CEO, FoundersFit.com @JoysyJ, @startlead #AngelLab, #FoundersFit 21 Jul 2012, London Match N Hack
    2. 2. Agenda• Introduction• Why Viral Campaigns work• How Viral Campaign drives growth• 3 Things that matter• Q&A
    3. 3. IntroductionAngel Investor, Ex-Banker,Founder, Social EntrepreneurComputer Engineer, MBA
    4. 4. Why Viral Campaigns work
    5. 5. Market for social apps is growing 2005 2012 1 1 2 2 3 3 4 4 5 5 6 6 Wikipedia.org 7 7 8 (U.K.) 8 9 9 10 10 2012 Alexa Global Traffic Rankings
    6. 6. How Viral Campaigns Work Call to action toUser invite friends x = invited friends Yes Accept? y% = invite accept rate x * y > 1 gives you viral growth! Viral loop cycle time impacts how quickly you grow
    7. 7. Channels• Focus on 1-to-Many to get People Engaged – News Feed – Profile – Notifications – Non User Pages• Focus on 1-to-1 to re-engage current users – Email – Notifications
    8. 8. 3 Things that Matter Users Acquisition cost Conversion rate
    9. 9. Customer Acquisition Speed Matters 50 Registered Users (MM) 40 Facebook 30 platform launch 20 10 (2) 0 1 3 5 7 9 11 13 15 17 19 21 23 (1) MonthsSource: eBay Investor Presentation, RockYou(2) eBay starts Q2 98, PayPal starts Q1’00, Yahoo! starts Q1’95, AOL starts Q1’92, Facebook starts Q4’04, and RockYou Starts Q4’05(3) Facebook data represents active users, which was disclosed on 12/05 and 12/06. Undisclosed active user data is extrapolated by applying an average active user penetration to global Unique Visitors (per comScore Media Metrix)
    10. 10. Customer Acquisition cost matters
    11. 11. Conversion (%)
    12. 12. Dropbox Conversion rate of 3%
    13. 13. Dropbox Conversion rate of 5%
    14. 14. Using Metrics to Drive Product Design X% user dropoff Y invites sent/user Z% invites acceptedFlow A An new usersFlow B Bn new users • A/B test entire user flows • A/B test calls to action • Base decisions off of statistically significant data
    15. 15. Role of Marketing / SalesQ: What channels? Which users? Why?A: High Volume (#), Low Cost ($), High Conv (%) Design & Test Multiple Marketing Channels + Campaigns Select & Focus on Best-Performing Channels & Themes Optimize for conversion, not just site/landing page Match/Drive channel cost to/below revenue potentialLow-Hanging Fruit: – Blogs – SEO/SEM – Landing Pages – Automated Emails
    16. 16. ConclusionKeep it simpleThink of incentives for sharingOptimize for conversionSet up balanced teams
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