In the world of digital, it is not just a case of something going viral but there is a method. Enter the K Factor: the key figure that shows how well your app can go viral – turning individual downloads into viral growth.
What is the K-factor?
If we were to metaphorically simulate your app, I guess it is a fantastic example of an application that has the potential of being a wildfire: the closest user has the potential of lighting up multiple first-degree users.
The K Factor calculates that in a very special way – what is, on average, each of your existing users introduces to your app. It is what makes more of the things anyone wants to grow, grow faster and it is as simple as counting.
As the term suggests, the terminology is borrowed from epidemiology, where you can think of the K-factor as the combination of the “contagiousness” of your app (how many new users are “infected” by an existing customer through an invite) and the effectiveness of each invite (its associated conversion rate).
In other words, the higher your K-factor is, the more people are spreading the good word about your app.
How Is It Calculated?
The K Factor is something like word of mouth where friends are telling friends that there is something good out there. They set a rate of how many more new users are being introduced to the app environment by each active user. It has all to do with how real people communicate with others about the product.
The formula is as simple as a friend recommendation: In this strategy, we have K Factor which is calculated asthe Number of Invites per User multiplied by the Conversion Rate.
Here’s what these human-powered components really mean:
- i (Invitation Rate): In your day to day life how many people would you go to inform them about something that is cool?
- c (Conversion Rate): The number of people you actually look at responding to these posts with enough enthusiasm to engage in a conversation.
Let’s break it down with a real-world chat:
If each user sends 10 invites (i = 10,)
And 30% of your friends may say ‘This is awesome’. and sign up (c = 0.3),
The K Factor would be:
K = 10 x 0.3 = 3
These mean that every user has invited three of his or her friends to become members of your application’s community. The closer your K Factor is toward one, the more your app is becoming the subject of the town’s gossip.
Why Does the K Factor Matter?
K Factor is not only the number but also an indicator of how users find your app relevant and if they can share it with others. Here’s why it’s such a big deal:
Predicts Growth:
- If your K > 1, then your app is achieving viral growth on the web. Every single user is introducing a new user and more than just one, in fact, generates a chain effect.
- If K = 1, your app is stable. Many thanks that you are replacing those customers you have lost but you are not expanding your customer base.
- If K < 1, your growth rate is getting smaller implying that you have to set a new plan.
Cuts Marketing Costs:
Paid campaigns make a minor impact on the app as the masses are being driven by the K Factor aspect which makes the users promote the app on their own. This makes growth not only even more efficient but also cheaper, that criteria is also met.
Shows Product Value:
K Factor shows that users really like your app and are willing to share the application with others. That means you are on the right path with your product presentation.
How to boost your K Factor
To increase you K Factor you have to work on both the elements of invitation rate (i) and conversion rate (c). Here’s how to do it:
1. Make Sharing Easy
- Integrate regular and obvious share options to your app.
- Allow for sharing on the most used platforms such as WhatsApp, Instagram, via email or a simple text.
- Make it easier for users by providing templates for sharing or custom URL to share with friends.
2. Incentivize Referrals
- Advertise and incentives for people that complete the task of getting other new people on board.
- Use two-way incentives – when both an existing client who makes a referral and the referred one are to receive some bonuses, or extra discounts, extra credits, or some other privileges.
- workplace-based ideas are things like competitive gifts or games like five invites get five days of a top invite list in the coming week etc or a favorable difference where you get something you like once you have invited five people.
3. Improve Onboarding for the Referred Users
- Save the prospects from escaping halfway through the registration process by making the registration process easier.
- Be as specific as possible while inviting users; use data from the referrer.
- Make sure that users who have just started their journey get some value out of the app right away.
4. Concentrate on Building Shareable Experiences
- Create macros which the users are inclined to share, those might be achievements, content which corresponds to a user profilе or discounts.
- Instruct the users to share at the places where they are engaged more, for example after a task is done or when a buy is made.
5. Leverage Social Proof
- To create a traditional appeal, show numbers of the kind that will make anyone interested in using your app already started feeling the value.
- Present evidence that would help the target user understand the purpose of having the app.
- Remind people about their referrals to warrant engagement (for example, “You and all other users out here have referred more than 1000 friends”).
6. Analyze and Iterate
- See how often they invite others and the conversion of the invites as seen by the users.
- It compares two variables, such as the message, offered bonus, or method of sharing to determine which your target audience prefers.
- You should always be updating your referral program based on data and feedback from the users.
Quick Example
Suppose you have recently developed a mobile application for learning languages. Since then, you come up with a referral program whereby both the user inviting other people and the invited people will get paid for premium features for 30 days each.
Here’s how it might play out:
- Invitation Rate (i): On average the each user invite 5 other users.
- Conversion Rate (c): 40% of invitees sign up.
The K Factor: K=5×0.4=2
This means that every joining user contributes an addition of two other users into the system. Since they also send invites, growth occurs very fast and you will have your user base doubled in no time.
The Bottom Line
Most importantly, the K Factor defines the way your app can spread across the audience.It reflects the principles of user growth, and you will see how actively your target audience popularizes your account.
There is an old saying that ‘K Factor greater than 1’ which means exponential growth, and this does not happen without strategic planning. You can make your app go viral by prompting simple sharing experiences, the referral program and well, a product that has a compelling story to tell.
Just remember that every user can attract and introduce more users to the business IF you create simple and effective incentives and tools for that. So look at your K Factor more carefully, and begin to learn how to turn the growth of your app into an organic process.