Viral Growth & Sharing: Why Retention Matters for Product Success

This article explores the crucial role of retention in achieving sustainable viral growth. The author challenges the traditional model of aggressive viral loops, which often focus on forcing users to invite large numbers of people. He argues that true viral growth happens organically through retention and natural sharing.

The article highlights the difference between viral marketing and network-driven viral growth. The former relies on external campaigns to promote products, while the latter is embedded within the product itself, leveraging features like sharing, collaboration, and invitations.

Viral growth is often misunderstood. It's not just about a funny video going viral on social media. It's about a product growing itself by tapping into its network of users to attract new ones. The author emphasizes the importance of user-aligned features, such as folder sharing in Dropbox or content sharing in Instagram, that naturally encourage sharing and invite new users.

The Myth of Viral Factor

The author debunks the myth of achieving a viral factor above 1.0, which is unrealistic in today's market. Instead, he argues that viral growth is an ongoing process that builds up over time. He introduces a new model that incorporates retention as a key factor in viral growth.

• Viral factor is not a static number. It builds up over time as users engage with the product. Higher retention leads to more opportunities for sharing and invites.
• It is not realistic to ask users to invite hundreds of people. People are more suspicious of sharing contacts and are more likely to share with a small group of friends.
• Sharing is more effective than invites. The best viral features are native to the product and encourage natural sharing, rather than forcing invites.
• Viral growth amplifies other channels. It should not be the sole driver of user acquisition. It's more effective to use viral features to amplify organic growth, SEO, and other marketing efforts.

The Power of Retention

The article emphasizes the importance of retention in achieving sustainable viral growth. The author suggests that the most viral products are also the ones with the highest retention rates. Strong retention leads to more opportunities for sharing and invites, resulting in a compounded viral effect.

The author contrasts the success of products like Dropbox and Slack with the decline of earlier social networks that relied heavily on aggressive viral loops. These earlier products often lacked strong retention and eventually collapsed. The author argues that strong retention is key to building a sustainable and thriving product.

The Role of Network Effect

The author discusses how viral growth is a flavor of network effect. Network effects occur when the value of a product or service increases as more people use it. Viral growth is a key driver of network effects because it allows a product to leverage its existing user base to attract new users.

The author identifies three key types of network effects: Engagement effect, Economic effect, and Acquisition effect (viral growth). Each type contributes to the overall value and growth of a product or service.

Lessons for Product-Led Growth

The article provides insights for building successful products in the age of product-led growth. The author argues that it's no longer possible to force viral growth through aggressive invites. Instead, product developers must focus on creating products that are naturally engaging and encourage sharing. This requires understanding user behavior and building features that align with user needs.

The author suggests that the best approach to viral growth is to focus on:

• Building products that are highly engaging and encourage retention.
• Leveraging natural sharing flows, such as content sharing and collaboration features.
• Amplifying other growth channels with viral features, rather than relying solely on viral growth.

The Importance of Strong Product/Market Fit

The author concludes by emphasizing the importance of strong product/market fit in achieving lasting success. While viral growth can be a powerful force, it is not a substitute for creating a product that genuinely meets user needs. Building a product that people love and use regularly is the foundation of sustainable growth.

In the world of "social apps," product-led growth, and solving the "cold start problem," understanding and implementing the principles of viral growth and retention is essential. This article provides valuable insights for anyone building products that aim to achieve sustainable growth and success.