AgentVladimir
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02:23:45 pm on January 21, 2012 | # |
What good is a campaign if success can’t be measured?
Viral Marketing is about two things, the referral rate (RR) and the take up rate (TR).
The referral rate is the number of referrals you get, divided by the total number of people asked to refer. So if 100 people were asked to refer their friends and 20 of them referred 1 friend each, that’s 20 referrals received. 20 / 100 = 0.2
The take up rate is the percentage of those marketing campaigns – if the referrals don’t take up the offer then you can’t add them to your mailing list. They have to opt-in or accept whatever it is you are offering. If 50% of those friends take up the offer then the TR=0.5
If you multiply RR x TR you get the Viral Efficiency (VE) ratio. In this case 0.2 x 0.5 = 0.1 or 10%. This means that if the viral campaign was to carry on, in other words, if those referrals generate other referrals, etc. then your database will increase by 10% for doing nothing. However, remember that those 10% are often HIGHLY QUALIFIED which makes them more valuable than normal leads.
