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Viral Marketing 

 

 
Behind the Scenes of a Viral Marketing Campaign: How Plaxo Crossed the Tipping Point and Avoided the Fate of the Ebola Virus. This case study details the viral marketing campaign of Plaxo, Inc., a company that provides internet-based updating of personal contact information. The experiences of Plaxo highlight that even with an inherently viral product, viral-growth is not guaranteed. It can require substantial management. The case discusses how such management was done at Plaxo by focusing on a simple viral marketing equation, V= N * Cr, where the two key variables are: N = Number of messages sent and Cr = Conversion Rate of a message. Product features that affected this viral equation were identified and improved with experimentation. In short order, these improvements cumulated to push the company past the tipping point. However, the pursuit of aggressive viral growth can have negative side effects. The company employed a carefully crafted feedback loop via internet alert services that tapped into the blog community. This allowed management to better understand negative perceptions of the product and particularly to turn around critics quickly before their impact got out of control. 2007

 

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Status: 16. August 2012