Viral Coefficient

What is Viral Coefficient?

The Viral Coefficient measures the number of new users generated by an existing user through referrals or invitations. A viral coefficient greater than 1.0 means that the product is growing exponentially without any additional marketing spend.

Why It Matters

• It is a key driver of low-cost, organic growth and can significantly reduce overall CAC.

• High virality indicates that users find the product valuable enough to share with their network.

• It helps product teams identify and optimize the referral loops within the application.