groupme, smash summit presentation

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Customer Acquisition via Group Mechanics

Steve Cheney

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Private Groups & GroupMe:

• Single Player Mode vs Groups• Privacy & Reverse Network Effects• “Unregistered” Unlogged in User?• Incredible Retention & Engagement• Downstream User Effects from Brands  

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Real Life Groups of Friends

LollapaloozaFriends

CollegeBuddies

Ex-Coworkers

NYCPals

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Private Group ConversationsGroupMe facilitates immediate & real-time conversations

across technological & geographic boundaries

Group Invitee SMS

From: (720) 399-5413

You've been added to a group named Taylor Swift with Sally. Reply to chat!

Sally: Hey girls! Check out this Taylor app! And we can all chat using this group.

Katy: On my way! Btw, love her app – listening to all her songs!

Jackie: Yes! So pretty! Katy, wanna come over to my place to watch? I just got home.

Jess: Amazing! Are you watching her at the VMA’s right now?

From: (720) 399-5413

You've been added

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Public Network Virality!

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Private Network Virality?• Privacy (and relevancy) affects sharing and your viral coefficient

• Small private groups have higher relevancy, more authenticity, but less external sharing

• You can still build a sustainable business with a viral coefficient of less than 1 if you have high retention.

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Retention and Engagement

Fred Wilson: 30/10/10 

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Humans Get Together in Small Groups… Online… and Offline

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8 <10

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We’re Heavily Influenced by the People Around Us

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Influence in GroupsDie-hard fans and evangelists bring their

friends into a conversation

Inner Circle: Die-Hard NFL Fans & Game Attendees

Outer Circle: Casual NFL Fans

Fans on GroupMe

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Friends Extend Trust to Brands

Your Brand

GroupMe Model

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GroupMe Engagement Loop

Receive message

Action Send Message

Broadcasted message

User generated message

Brand generated messages

User generated messages

Initial Engagement Convert to Action Virality Loop

Brand Engagement in Small Groups Works!

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Don’t Conflate Retention w/ Engagement

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0.0%

5.0%

10.0%

15.0%

20.0%

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Hours Since Broadcast

% Groups Active*

Over 25% groups active during show broadcast

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Humans are Social

• Think about group “engagement modes” on your service

• Cater to, not against, social conformity and group psychology

• Groups can be used to positively impact your viral cycle times, engagement and retention

Your App

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Thank You