K-factor is a metric used in mobile marketing to measure an app’s virality. It indicates how many new users each existing user brings to the app, often through word-of-mouth or referral programs. The concept is borrowed from epidemiology, where it’s used to assess how fast a virus spreads.
K-factor is crucial for understanding the effectiveness of marketing campaigns, particularly in user acquisition (UA). It helps in assessing how paid traffic and installs impact organic installs, providing a fuller picture of campaign performance. A high K-factor suggests that the app is experiencing viral growth, which is beneficial for organic user acquisition and overall app popularity.
The most common formula for calculating K-factor is:
K = i × c
Where:
For example, if each user invites 5 friends (i = 5) and one in five invitees converts to a new user (c = 0.2), then K-factor = 5 \times 0.2 = 1.
A K-factor greater than 1 indicates viral growth, surpassing the churn rate of the app. A K-factor of 1 suggests stability, while below 1 indicates a decline in virality. Essentially, a good K-factor should be higher than the app’s churn rate.
To enhance an app’s K-factor, focus on:
