Viral Loops: Making Self-Marketing Apps

Summary

Summary
Viral Loops create exponential growth

Summary
This is a good
problem

Summary
Viral Loops are cheap

Summary
Viral Loops are cheap
Viral Loops must be built into your product

Introduction
What is a Viral Loop?

Viral Loop:
A self-fueling action loop thatdrives users to create more users.

Example:

Example:
Not Viral: please come to my party.

Example:
Not Viral: please come to my party.
Marketing 1.0

Example:
Viral: OMG, this party is like, the best EVAR! Let’s call all our friends and invite them too!

Example:
Viral Marketing

Example:
Not a Loop Yet

Viral Loop:
A self-fueling action loop thatdrives users to create more users,which increase engagement ofexisting users.

Example:
Viral Loop: Now that all my friends are here, this party is even more awesome. I’m going to invite more!

Example:
Viral Loop: Now that all my friends are here, this party is even more awesome. I’m going to invite more!
Now it’s a loop

Is This A New Thing?

No.

All social memes areViral Loops.

It’s still viraleven when transmittedvia town crier.

Viral Loops Are:

Viral Loops Are:
Self-Spreading

Viral Loops Are:
Self-Spreading
They use existing social mechanisms

Viral Loops Are:
Self-Spreading
You trust your friends

Viral Loops Are:
Self-Spreading
You want to do what your friends do

Viral Loops Are:
Self-Spreading
You want to do what your friends do
Telling your friends about something new makes you cool

Viral Loops Are:
Inexpensive

Viral Loops Are:
Inexpensive
Cost = Almost Zero

Viral Loops Are:
Inexpensive
Cost of Acquisition

Viral Loops Are:

Viral Loops Are:
Initial Cost of Acquisitionis high per person.
It drops to almost zero over time.

Viral Loops Are:
Exponential

Viral Loops Are:
Exponential
1 person recruits 1 more person

Viral Loops Are:
Exponential
2 x 2 = 4

Viral Loops Are:
Exponential
2 x 2 = 4
4 x 4 = 16

Viral Loops Are:
Exponential
2 x 2 = 4
4 x 4 = 16
You’re smart and can do math

Ok, so all of that is great, buthow do they work?

4 Stages

Stage 1: Attract
On Ramps

Stage 1: Attract
On Ramps
Active:

Stage 1: Attract
On Ramps
Active:
Friends and Family

Stage 1: Attract
On Ramps
Active:
Friends and Family
Interrupt and Annoy

Stage 1: Attract
On Ramps
Active:
Friends and Family
Interrupt and Annoy
Ad Words

Stage 1: Attract
On Ramps
Active:
Friends and Family
Interrupt and Annoy
Ad Words
Early stages may require desperate measures

Stage 1: Attract
On Ramps
Passive:

Stage 1: Attract
On Ramps
Passive:
Search Engines (SEO)

Stage 1: Attract
On Ramps
Passive:
Be an Expert

Stage 1: Attract
On Ramps
Passive:
Be an Expert
Reviews

Stage 1: Attract
On Ramps
Passive:
Be an Expert
Reviews
Word of Mouse

Stage 1: Attract
On Ramps
Passive:
Be an Expert
Reviews
Word of Mouse
Congratulations, you went viral!

Stage 2: Capture
Engagement

Stage 2: Capture
Engagement
Immediately useful

Stage 2: Capture
Engagement
Immediately useful
It just works

Stage 2: Capture
Engagement
Immediately useful
It just works
Beware Off Ramps

Stage 2: Capture
Engagement
Immediately useful
It just works
Beware Off Ramps
I don’t get it
It’s broken
You’re annoying me

Stage 3: Spread
Sharing

Stage 3: Spread
Sharing
Easy to share

Stage 3: Spread
Sharing
Easy to share
Obvious reasons

Stage 4: Grow
Engagement

Stage 4: Grow
Engagement
Multiplier effect

Stage 4: Grow
Engagement
Multiplier effect
Use Drives Use

Stage 4: Grow
Engagement
Multiplier effect
Use Drives Use
Important!

4 Stages

Examples

Examples
Ebay

Examples
Ebay
Attract: extremely strong

Examples
Ebay
Capture: extremely strong

Examples
Ebay
Spread: very weak

Examples
Ebay
Spread: very weak
Grow: nothing. Nada. Zilch.

Examples
Ebay
Spread: very weak
Maybe this is their problem

Examples
Ebay
Spread: very weak
Maybe this is their problem
They should be Groupon

Examples
Twitter

Examples
Twitter
Attract: moderately strong

Examples
Twitter
Capture: strong

Examples
Twitter
Capture: strong
Very few off ramps

Examples
Twitter
Capture: strong
Very few off ramps
Spread: moderate

Examples
Twitter
Capture: strong
Very few off ramps
Spread: moderate
Grow: moderate

Examples
Twitter
Capture: strong
Very few off ramps
Spread: moderate
Grow: moderate
Off Ramp: too much noise

Examples
Twitter
Capture: strong
Very few off ramps
Spread: moderate
Grow: moderate
Off Ramp: too much noise
Use Kills Use

Examples
Facebook

Examples
Facebook
Attract: strong

Examples
Facebook
Attract: strong
Capture: strong

Examples
Facebook
Attract: strong
Capture: strong
Spread: strong

Examples
Facebook
Attract: strong
Capture: strong
Spread: strong
Grow: extremely strong

Examples
Facebook
Attract: strong
Capture: strong
Spread: strong
Grow: extremely strong
One of the best examples of UDU

Time To Get Rich

Build a Viral Loop

Build a Viral Loop
Plan Your Loop First

Build a Viral Loop
Plan Your Loop First
Build Product Second

Build a Viral Loop
Phase 1: Attract

Build a Viral Loop
Phase 1: Attract
Make your usefulness obvious

Build a Viral Loop
Phase 1: Attract
Sign up should be insanely easy

Build a Viral Loop
Phase 1: Attract
Sign up is a big Off Ramp

Build a Viral Loop
Phase 1: Attract
Use Facebook Connect, etc.

Build a Viral Loop
Phase 1: Attract
Free

Build a Viral Loop
Phase 1: Attract
Free
Payment is an Off Ramp

Build a Viral Loop
Phase 1: Attract
Free
Payment is an Off Ramp
Convince them, then let them pay for more

Build a Viral Loop
Phase 2: Capture

Build a Viral Loop
Phase 2: Capture
Simple

Build a Viral Loop
Phase 2: Capture
Simple
Immediately Useful

Build a Viral Loop
Phase 2: Capture
Simple
Immediately Useful
It just works

Build a Viral Loop
Phase 2: Capture
A simple, usable, stable app is much better than a complex, hard, buggy one

Build a Viral Loop
Phase 2: Capture
Most people get this wrong.

Build a Viral Loop
Phase 2: Capture
So will you.

Build a Viral Loop
Phase 3: Spread

Build a Viral Loop
Phase 3: Spread
Easy to share

Build a Viral Loop
Phase 3: Spread
Easy to share
Reasons for sharing

Build a Viral Loop
Phase 3: Spread
Easy to share
Reasons for sharing
Direct rewards (Dropbox)

Build a Viral Loop
Phase 3: Spread
Easy to share
Reasons for sharing
Direct rewards (Dropbox)
Inherent usefulness (Facebook)

Build a Viral Loop
Phase 4: Grow

Build a Viral Loop
Phase 4: Grow
Network effect

Build a Viral Loop
Phase 4: Grow
Network effect
More people = more useful

Build a Viral Loop
Phase 4: Grow
Network effect
UDU: Use Drives Use

Build a Viral Loop
Phase 4: Grow
Network effect
UDU: Use Drives Use
This part is hard

Worksheet:
Attract
Capture
Spread
Grow

Worksheet:
Attract
Capture
Spread
Grow
Don’t build your app until you have compelling features in all four columns.

Conclusion
Plan your loop, then your product
Cost of Acquisition
Word of Mouse
Use Drives Use
Eliminate Off Ramps

Who the heck is this?
Josh Jeffryes
Creative Director at BusyEvent
www.busyevent.com
www.jjeffryes.com
Jjeffryes.blogspot.com
@jjeffryes
jjeffryes@gmail.com
Linkedin/jjeffryes
www.meetup.com/design

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Viral Loops: Making Self-Marketing Apps

by Josh Jeffryes on Mar 02, 2010

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Viral Loops: Making Self-Marketing Apps — Presentation Transcript