Viral Coefficient

What is Viral Coefficient?

The number of new users that a customer brings in on average.

This metric does not account for mere referrals, but for leads that convert.

Why is the Viral Coefficient important?

Indicates a company’s ability to grow, exponentially or not.

It is correlated to the quality of your product.

That is, the better the product, the higher the Viral Coefficient.

Viral products are ones that have been positively received by many, many users.

Thus, it also helps measure the effectiveness of word-of-mouth strategies.

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How to calculate Viral Coefficient?

Take the total number of customers (C).

Multiply it with the average number of referrals (R).

Multiply the result with the average conversion rate (CR).

Divide this result by 100.

Tips to achieve a higher Viral Coefficient

Make your product eligible for virality, be it through some quirky marketing or some out-of-the-box feature.

Make your product as scalable as you can.

Have a referral program that gives existing customers an incentive to bring in more users.