Effective referral marketing is not just about launching an invite system—it is about measuring and optimising its impact. Here, we break down K-Factor, Viral Coefficient, and Retention Rate, explaining how they work and how you can calculate them to scale your app's growth.
K-Factor measures how effectively your current users bring in new users through referrals. A K-Factor greater than 1 means your app is growing exponentially, while a K-Factor below 1 indicates that referrals alone will not sustain user growth.
Where:
A K-Factor of 1.0 means that every user generates one additional user, leading to sustainable linear growth. A K-Factor above 1.0 creates exponential growth.
Further Reading:
The Viral Coefficient measures the total effect of referrals, factoring in the multiplier effect of new users also inviting others.
This tells you how long new users stay engaged, influencing how many additional people they refer over time.
A Viral Coefficient above 1 means compounding growth, where each user contributes to continuous viral expansion.
Further Reading:
Retention Rate measures how many users stay active after a certain period (e.g., Day 7 retention, Day 30 retention). High retention means your app provides lasting value, increasing the likelihood that users will continue inviting others.
Further Reading:
To scale referrals effectively, you need a data-driven approach that measures:
At Kurve, we specialise in optimising referral and invite-based growth strategies, ensuring your app maintains a high K-Factor and sustainable user growth.
Want to build a referral engine that drives exponential growth? Let’s talk