Viral Referral K Factor
Estimate referrals generated per active user from invitations and conversion.
Description
Referral K-factor expresses expected new referrals per user under supplied assumptions.
Referral K-factor expresses expected new referrals per user under supplied assumptions.1
Estimate referrals generated per active user from invitations and conversion.
When to use Viral Referral K Factor
Use this tool to estimate referrals generated per active user from invitations and conversion.
Prepare consistently defined customer counts, durations, costs or forecast assumptions. Keep aligned records and monetary amounts on a common period and currency basis.
How to use Viral Referral K Factor and understand its results
- Prepare consistently defined customer counts, durations, costs or forecast assumptions. Keep aligned records and monetary amounts on a common period and currency basis.
- Enter invitesPerActiveUser, inviteAcceptanceFraction, sustainableThreshold using the field table and calculation rules, then run the tool.
- Read viralCoefficient, atOrAboveThreshold. The explanation below defines the units, signs, ordering and any flags or placeholder values.
- If the tool reports an input issue, correct the values and run it again. Apply the stated assumptions when interpreting a successfully returned result.
| Input field | Meaning | Value type; see rules below | Requirement |
|---|---|---|---|
| invitesPerActiveUser | Invites per active user | number | Required |
| inviteAcceptanceFraction | Invite acceptance fraction | number | Required |
| sustainableThreshold | Sustainable threshold | number | Required |
Enter nonnegative invitations, acceptance 0–1 and nonnegative threshold; return K/inclusive flag.
K=invitesPerUser×acceptance Units, indexing, boundary conditions and exceptional cases are defined in the calculation rules above.
| Output field | Meaning | Value type |
|---|---|---|
| viralCoefficient | Viral coefficient | number |
| atOrAboveThreshold | At or above threshold | boolean |
{
"input": {
"invitesPerActiveUser": 5,
"inviteAcceptanceFraction": 0.2,
"sustainableThreshold": 1
},
"output": {
"viralCoefficient": 1,
"atOrAboveThreshold": true
}
}Limitations and assumptions
No behavior, retention or sustained growth is measured.
Numeric inputs, where present, must be finite. Follow the calculation-specific rules for overflow, underflow and exceptional cases. Missing required fields, extra fields, wrong value types and violations of the calculation rules are input errors. A successfully returned false flag is an evaluated outcome; its meaning is explained above.
Alternative or Complementary methods
Use Activation Cohort Comparison: Compare activation rates between two consistently defined signup cohorts. For a complementary task, use Revenue Projection Growth Screen: Flag forecast months whose month-over-month revenue growth exceeds a chosen limit.
References
-
Viral Referral K Factor — tool.io
Similar or alternative tools
- Activation Cohort Comparison
Compare activation rates between two consistently defined signup cohorts.
- Revenue Projection Growth Screen
Flag forecast months whose month-over-month revenue growth exceeds a chosen limit.