The virality is about the total number of customers that you have and how many new customers they will drive to your company.
To get started with Virality, head to the fx variables section of Finmark.
Step 1: Add Custom Variables
Now that you are on the fx variables section. We will be adding the following custom variables:
Referrals Per New Customer: For each customer that you have, how many new referrals are you forecasting that they are going to send you. This can be fixed or a growing referral rate.
Referral Conversion Rate: How many of those referrals will convert to paying customers.
Virality Coefficient: The number of new users the average customer generates.
Virality New Customers: The number of new customers generated by virality. This is based on your New Customers from previous months multiplied by your Virality Coefficient.
Step 1: Click +Add Custom Variable
Step 2: Enter the name “Referrals Per New Customer” for the custom variable and select the function(#).
Step 3: Enter the number of referrals into the desired start date.
Step 4: Click the arrow to fill right.
Great work! Now we can add the remaining variables.
Repeat steps 1-2 for each of the remaining variables.
Referral Conversion Rate:
Step 1: Complete steps 1-2 from above.
Step 2: Enter your conversion rate into the desired start month and fill right.
Virality Coefficient:
Step 1: Complete Steps 1-2 from the first variable we created.
Step 2: In the start date of the previous variables, enter the formula below. Then click the arrow to fill right.
Custom.ReferralsPerNewCustomer*Custom.ReferralConversionRate
*Important Note* if you want to grow virally, you need to get your vitality coefficient over one, if you have under one as a vitality coefficient, the engine is not going to self-sustain.
Virality New Customers:
Step 1: Complete Steps 1-2 from the first variable we created.
Step 2: In the start date of the previous variables, enter the following formula:
Step 2: Add your Revenue Stream (Driver)
Now that you have created the variables needed for the Virality Growth Engine, we can head over to the Revenue Section.
Step 1: Click +Add -> Revenue Stream (Driver)
Step 2: Fill in the revenue stream details such as:
Name of Revenue Stream
Type of Revenue Stream (Subscription/One-time purchases)
Products/Pricing Plans (Type of Customer)
Step 3: Set the forecast method from the drop-down as Custom Formula. From here, fill in the remaining necessary details. For the custom formula you will enter the following:
fx = Custom.ViralityNewCustomers