YodaCategory: GrowthTo what extent should B2B and high LTV companies think about pushing viral growth?

Michael Frank ( @michael ) Staff asked 7 months ago

Staff

To what extent should B2B and high LTV companies think about pushing viral growth?

1 Answers
Sean Ellis ( @seanellis ) asked 7 months ago


Viral growth can be a very powerful and affordable way to attract a large user base for a product. Products that have a very low lifetime value are often very limited in their ability to pay to acquire customers with a positive ROI, so rely on free organic customer acquisition channels such as SEO or viral growth drivers. B2B companies with a high LTV have more flexibility in the types of channels they can use to grow their business, but often face stiff competition in paid channels since related products drive up the prices to reach their target customers. Therefore, B2B products with a high LTV can benefit greatly from exploring viral growth drivers. Even if the program doesn’t create an indefinite viral chain, any level of virality can average down paid customer acquisition costs, making it easier to compete in paid channels.