The plan focuses on product virality and tracks several important metrics to ensure users actively promote the product. Metrics such as the Viral Coefficient and Invite Conversion Rate offer insight into how effectively users are bringing in new subscribers. For example, a Viral Coefficient benchmark of 1.0 signifies that every existing user generates at least one new user.
Time to First Referral measures how quickly users engage others, with a prompt benchmark set for within 7 days. User Retention Rate and DAU/MAU ratios assess longer-term engagement and stickiness, indicating continued value and regular use. These metrics collectively ensure a holistic approach to sustaining product growth and virality.
Top 5 metrics for Product Virality
1. Viral Coefficient
Measures how many new users each existing user brings in. Calculated as (Number of invitations sent by existing users * Conversion rate of the invitations) / Total number of existing users
What good looks like for this metric: 1.0 or higher
How to improve this metric:- Create incentives for users to refer others
- Simplify the referral process
- Enhance the referral reward system
- Optimise onboarding processes for referred users
- Regularly test and refine referral messages
2. Invite Conversion Rate
The percentage of invitations sent out that result in new users. Calculated as (Number of successful invites / Total invites sent) * 100
What good looks like for this metric: 20-30%
How to improve this metric:- Personalise invitation messages
- Optimise follow-up sequences
- A/B test different invitation templates
- Offer additional incentives for completion
- Improve the perceived value of joining
3. Time to First Referral
The average time it takes for a new user to make their first referral. Calculated by tracking the time between user registration and their first successful referral
What good looks like for this metric: Within 7 days
How to improve this metric:- Create a sense of urgency
- Provide clear instructions on how to refer
- Showcase the benefits immediately
- Use gamification strategies
- Send targeted reminders
4. User Retention Rate
Percentage of users who continue to use the product over a specific period. Calculated as (Number of users at end of period – Number of new users during period) / Number of users at start of period * 100
What good looks like for this metric: 35% after one month
How to improve this metric:- Provide continuous value through updates
- Engage users with regular content
- Offer personalised experiences
- Implement user feedback
- Ensure seamless and user-friendly design
5. Daily Active Users (DAU) / Monthly Active Users (MAU)
The ratio of daily active users to monthly active users, indicating how sticky the product is. Calculated as DAU / MAU
What good looks like for this metric: 20% or higher
How to improve this metric:- Encourage daily engagement through notifications
- Develop engaging daily content or features
- Analyse and replicate behaviours of highly active users
- Implement loyalty programs
- Regularly update and improve product features
How to track Product Virality metrics
It's one thing to have a plan, it's another to stick to it. We hope that the examples above will help you get started with your own strategy, but we also know that it's easy to get lost in the day-to-day effort.
That's why we built Tability: to help you track your progress, keep your team aligned, and make sure you're always moving in the right direction.
Give it a try and see how it can help you bring accountability to your metrics.
