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Virality in SaaS: What works and what doesn't

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Presentation given at OpenView's Product Led Growth Summit, 2018

Published in: Technology

Virality in SaaS: What works and what doesn't

  1. 1. Virality in SaaS What works and what doesn’t OpenView Product-led Growth Summit Olof Mathé, CEO & Co-founder, @Mixmax.
  2. 2. Key take-aways on your journey to $0 CAC. You’ll learn about: 1. The 5 kinds of virality 2. What works and what doesn’t 3. Not all virality is created equal 4. Design principles for $0 CAC
  3. 3. Bad news The only way to get $0 CAC is to create a viral product
  4. 4. Good news There are several different kinds of virality
  5. 5. The 5 kinds of virality 1. Network effects 2. Value virality 3. Exposure virality 4. Referrals & Invites 5. Word of Mouth (aka Brand)
  6. 6. Network virality
  7. 7. Your users work to get other users on your product because it makes the product better for them
  8. 8. X-company vs. Intra-company
  9. 9. Value virality
  10. 10. Your customers provide value to other people and make their lives easier, simply by using your product
  11. 11. Value virality
  12. 12. Value virality
  13. 13. Exposure virality
  14. 14. Your customers show off your product, (because it makes them look good).
  15. 15. What’s that penthouse you’re staying in? How did you take that amazing picture? “Sent from my iPhone”
  16. 16. Notes on Exposure virality 1. It’s not about value 2. It’s about social proof (status) 3. It needs to be spectacular to be effective
  17. 17. Invites and referrals
  18. 18. Your customers get rewarded by you for sharing your product
  19. 19. Invites & Referrals
  20. 20. Invites & Referrals
  21. 21. Word of mouth / Brand
  22. 22. Word of Mouth / Brand
  23. 23. Poor person’s word of mouth: Content Marketing
  24. 24. Recap, the 5 kinds of virality • Network effects • Value virality • Exposure virality • Referrals & Invites • Word of Mouth (aka Brand)
  25. 25. What worked and what didn’t
  26. 26. <1% of signups Network virality
  27. 27. 1-2% of signups Exposure virality
  28. 28. New user growth attributable to signature ≈ Immediate user churn on sign up
  29. 29. Reasons to keep the signature 1. Number of signature clicks ≠ number of impressions 2. Signature provides social proof 3. Users that churn immediately likely aren’t core audience
  30. 30. 12% of signups Referrals
  31. 31. Notes on Referrals 1. Do it early in customer lifecycle 2. Works if your product has broad appeal 3. Replace NPS with actual referrals
  32. 32. 14% of signups Value virality
  33. 33. 44% of signups Word of Mouth (aka Brand)
  34. 34. Share of signups Word of Mouth, 44% Value virality, 14% Referrals, 12% Exposure virality, 2% Chrome Store, 21% Other, 7%
  35. 35. Not all virality is created equal
  36. 36. 0% 2% 4% 6% 8% 10% Network virality Chrome Store Exposure virality Referrals / Invites Value virality Word of Mouth / Brand Conversion rate to paid n/a
  37. 37. Design principles for $0 CAC
  38. 38. Received wisdom • Spend to grow • Charge a lot • Build a platform
  39. 39. What if it’s actually • Spend to grow Instill a culture of frugality • Charge a lot Don’t get pricing right • Build a platform Enhance an existing workflow
  40. 40. Most startups after funding
  41. 41. Constraints breed creativity, creativity breeds $0 CAC
  42. 42. Received wisdom on pricing You think you want: 1. High prices 2. Annual plans 3. Multiple plans
  43. 43. Get pricing wrong, the right way What if you actually want: 1. Low prices 2. Monthly plan only 3. Single plan!
  44. 44. Change behaviors Enhance an existing workflow
  45. 45. Build on top of an existing platform
  46. 46. Thank you!

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