Lessons Learned – Viral Marketing: The Pinterest Pivot

Lessons Learned – Viral Marketing: The Pinterest Pivot

In the world of viral marketing, there are certain key variables that can drive exponential growth. One of these variables is the Viral Coefficient, which measures the number of new customers that each existing customer is able to convert successfully. To calculate the Viral Coefficient, simply multiply the number of invitations by the conversion rate. It's important to note that the Viral Coefficient must be greater than 1 in order to achieve true viral growth.

However, while the Viral Coefficient is an important factor, it is not the most crucial one. The Viral Cycle Time, or the time it takes for the viral cycle to complete, has a far more powerful effect on growth. By reducing the Viral Cycle Time, you can dramatically increase customer growth. The formula for calculating the Viral Cycle Time is K^(t/ct), where K is the Viral Coefficient, t is the time, and ct is the Viral Cycle Time. This means that shortening the cycle time has a much greater impact than increasing the Viral Coefficient.

When it comes to creating a viral product, it's important to remember that the most successful ones are those that can only work if they are shared. This means that you should be asking yourself whether the value proposition of your product is compelling enough for customers to want to share it with others. One way to encourage sharing is to provide an equal incentive for both the customer sending the invitation and the friend receiving it.

The Pinterest pivot is a prime example of how a company can capitalize on the power of viral marketing. Ben Silbermann, the co-founder of Pinterest, recognized that while the app Tote was not generating significant sales, users were amassing collections of "favorite" items to share with their friends. Silbermann saw this as an opportunity to tap into people's natural tendency to share their collections. He pivoted from Tote to Pinterest, offering users a visually appealing way to display all their collections.

The pivot from Tote to Pinterest was an iterative process for Silbermann. He saw it as a direct outgrowth of what he had learned from the first business. By recognizing an unmet need and a huge opportunity, Silbermann was able to transform his company and achieve viral growth.

In conclusion, viral marketing is a powerful tool for driving exponential growth. By focusing on both the Viral Coefficient and the Viral Cycle Time, companies can increase customer growth significantly. Additionally, creating a product that relies on sharing and providing incentives for both the sender and receiver of invitations can further boost viral potential. The Pinterest pivot serves as a successful case study of how a company can leverage viral marketing to achieve success.

Actionable Advice:

1. Calculate your Viral Coefficient and evaluate whether it is greater than 1. If not, focus on improving it through incentives and value proposition.
2. Analyze your Viral Cycle Time and identify ways to shorten it. This can have a more significant impact on growth than increasing the Viral Coefficient.
3. Explore opportunities to tap into people's natural tendency to share, whether it's through creating a visually appealing platform or offering features that encourage collection sharing.