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Best practices in product management leadership
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Should You Invest In Virality?
You should only invest in virality if you are confident that virality will be your primary growth engine for your product. As opposed to (1) performance marketing, (2) content, or (3) sales.
Most companies find the vast majority of their growth from just one of those four growth engines, and until you’ve scaled your core engine, time spent optimizing a secondary or tertiary engine is rarely time well spent.
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Virality is a natural fit for your product if:
- Your product is better with friends or colleagues (e.g. Snapchat, Slack)
- The product is innately fun or rewarding to share (e.g. travel photos, homes for sale, incidents nearby)
- Your product is remarkable — something worth remarking about.
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74 reads
Performance Marketing is a natural fit for your product if:
- You generate revenue directly from new users (e.g. purchasing a product, subscribing to a service), which you can then use to fund more marketing
- Customers are not naturally going to be looking for your product, and thus you have to come to them (e.g. a new DTC brand)
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56 reads
Content is a natural fit for your product if:
- Your users naturally generate public content (e.g. reviews or answers to questions) when using your product, which you can use to attract new users
- You have a lot of unique data (e.g. restaurants in Seattle, plumbers in Phoenix), which you can turn into rich auto-generated pages
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Sales is a natural fit for your product:
- Customers have high average order values and high LTV
- Your product requires hand-holding to be successful with
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What is “virality”, anyway?
Virality is simply growth that stems from your existing users. Each user brings in on average more than one additional user (directly or indirectly) and thus creates exponential growth.
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What are the different types of virality?
- Word-of-mouth virality: Hearing about it from friends or colleagues
- Invitation virality: Being actively invited by friends or colleagues
- Experiential virality: Seeing the product in action
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How do you increase your product’s virality?
- Increasing sharing rate: More word-of-mouth, invitations, or experiential serendipity
- Increasing conversion rate: Getting new users through your funnel at a higher rate
- Increasing engaged users: Getting more users, and re-engage existing users
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55 reads
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