viral loops

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Post on 13-May-2015

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This is a presentation about the different kind of technology consumer products, where viral loops can fit in, and how to design an efficient viral loop.

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  • 1.Value Loops, ViralLoops & NetworkAnurag JainEffects

2. Structure of Talk Value Loop Network Effects Viral Loops Designing viral loops 3. Types of products Inherent value or dependent on network effects? Primary value => Inherent even a single user can be a long-term user Primary Value => network effects No community => all users leave 4. Value loop More value + less cost = value loop Usually Word of Mouth Typically takes a while Concentrate on channels of distribution E.g. - mint.com, google.com, early days of facebook 5. How do we measure value? Net Promoter Score Users rate from 1-10 10 = best Promoters (9-10) Passives (7-8) Detractors (1-6) NPS = % Promoters - % Detractors High NPS (>40%) => No need for virality 6. Network Effects 100 users or 10,000 ? 7. Network Effects 100 users or 10,000 ? It depends!! 8. Network Effects 100 users or 10,000 ? It depends!! Imagine 10,000 facebook users with 0 friends each 9. Network Effects 100 users or 10,000 ? It depends!! Imagine 10,000 facebook users with 0 friends each 10. Network Effects Metcalfes law: Value of network = c(P^2)P no of connected users If n sets of connected users,Value = c(P1^2 + P2^2 + + Pn^2) 11. Network Effects Metcalfes law: Value of network = c(P^2)P no of connected users If n sets of connected users,Value = c(P1^2 + P2^2 + + Pn^2) E.g. facebook, linkedIn, twitter 12. Network Effects Metcalfes law: Value of network = c(P^2)P no of connected users If n sets of connected users,Value = c(P1^2 + P2^2 + + Pn^2) E.g. facebook, linkedIn, twitter Cold start problem 13. Social Layer? Facebook ->People/People Twitter->People/News Foursquare ->People/Places 14. Social Layer? Facebook ->People/People Twitter->People/News Foursquare ->People/Places Your product ->People/???? 15. Primary benefit Why should I care? Whats in it for me? 16. Primary benefit Why should I care? Whats in it for me? Sharing? 17. Psychology of sharing Facebook -> Socialite Twitter-> In the know (journalist) Yelp -> Critic Quora-> Expert Instagram-> Photographer Foursquare -> Person-about-town 18. Psychology of sharing Facebook -> Socialite Twitter-> In the know (journalist) Yelp -> Critic Quora-> Expert Instagram-> Photographer Foursquare -> Person-about-town Your product -> ????? 19. Friendship graphs Symmetric or asymmetric? Friend or follower? Friend = more private Follower = public, but higher growth More specific to intent-based vertical networks 20. Building Network Effects Critical Mass community that sustains itself 150 users in each community Alpha Users High Social Networking Potential (SNP) Cold Start problem If I have only a few friends, where is the value for me? 21. Building Network Effects Social Learning Watch what others are doing 22. Building Network Effects Social Learning Watch what others are doing Singling Out Messaging from others 23. Building Network Effects Social Learning Watch what others are doing Singling Out Messaging from others Feedback How does my network respond to my actions? 24. Building Network Effects Social Learning Watch what others are doing Singling Out Messaging from others Feedback How does my network respond to my actions? Distribution Extent of reach of my actions. Who all sees it? 25. Network Effect example Credit for user @a all along the chain More motivation to write funny/interesting tweets 26. Building Network Effects Network Effects Alpha users will help, but only for a while Slow growth => death Need viral growth 27. What is viral? Anything that grows exponentially, like a virus 28. Why do we want viral growth? Its cheap (and fast) 29. What is Viral? Anything that grows exponentially, like a virus Word of Mouth propagation can be viral undercertain circumstances 30. What is Viral? Anything that grows exponentially, like a virus Word of Mouth propagation can be viral undercertain circumstances But typically slow How do we know when something is viral? 31. Viral Co-efficient Lets say each user invites 5 friends on avg 22% of invitees register viral co-eff => 22% * 5 = 1.1 > 1 = viral 32. Viral Co-efficient Lets say each user invites 5 friends on avg 22% of invitees register viral co-eff => 22% * 5 = 1.1 > 1 = viral If 1 user gets 1 more, can get the entire world 33. Viral Cycle Time If 1 user gets 1 more, can get the entire world But, how fast? Until market is exhausted, how fast does it grow? Viral Cycle Time Depends on each product Measurement is important!! 34. Measuring Viral Cycle Time Cohort Analysis Weekly (or daily) cohorts of users Track how users behave over period of time, basedon when they joined Idea: Dont make decisions for new users based onmetrics from more experienced ones 35. What parts are viral? Invitations Engagement Trick is to invite other users as part of the core userexperience Not to be confused with network effects 36. What is the viral loop? User A takes an action 37. What is the viral loop? User A takes an action User B is notified as part of that action 38. What is the viral loop? User A takes an action User B is notified as part of that action As part of the response, user B takes SIMILAR action 39. What is the viral loop? User A takes an action User B is notified as part of that action As part of the response, user B takes SIMILAR action User B therefore invites User C 40. What is the viral loop? User A takes an action User B is notified as part of that action As part of the response, user B takes SIMILAR action User B therefore invites User C and so on 41. What is the viral loop? User A takes an action User B is notified as part of that action As part of the response, user B takes SIMILAR action User B therefore invites User C and so on Integral part of the product, not a layer 42. Designing Viral Loops 43. Designing viral loops Single core activity Single entity for user to interact with Can have multiple types of users, but with greatdifficulty Channels for virality 44. Single activity What is the core activity? Can we add messaging to this activity? The new user who sees this responds to this activityby taking the SAME action and so on 45. Single activity What is the core activity? Can we add messaging to this activity? The new user who sees this responds to this activityby taking the SAME action and so on Viral growth 46. Single type of user Multiple sets of users VERY HARD Motivations are very different for different groups E.g. Seller != Buyer 47. Single type of user Multiple sets of users VERY HARD Motivations are very different for different groups E.g. Seller != Buyer Design loop for each set separately 48. Channels for being viral News Feed Notifications Email Profile Invites Non-user pages Profile Actions 49. Other Techniques for Viral Game Mechanics Badges, scores, etc. Not core value, unless game is the core itself Rewards Contests 50. Steps for viral loop Design loop with core activity Build product Test on small set Optimize the loop 51. Conclusion Feature depends on network effects? Cold start remedies Need viral loop Measure, measure, measure World dominance