1.
ABBOTT, KEEVEN & FISHER PARTNERS
PARTNERS IN HYPER GROWTH
The Power of
Customer Misbehavior
Mike Fisher
Marty Abbott
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2.
ABBOTT, KEEVEN & FISHER PARTNERS
PARTNERS IN HYPER GROWTH
About Us
Marty Abbott
Tom Keeven
Mike Fisher
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3.
ABBOTT, KEEVEN & FISHER PARTNERS
PARTNERS IN HYPER GROWTH
Books
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4.
ABBOTT, KEEVEN & FISHER PARTNERS
PARTNERS IN HYPER GROWTH
Other Publications
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5.
ABBOTT, KEEVEN & FISHER PARTNERS
PARTNERS IN HYPER GROWTH
Our Business – 10 Countries & Growing
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6.
ABBOTT, KEEVEN & FISHER PARTNERS
PARTNERS IN HYPER GROWTH
The Power of Customer Misbehavior
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7.
ABBOTT, KEEVEN & FISHER PARTNERS
PARTNERS IN HYPER GROWTH
Growth is Good!
For Profit Businesses:
• Higher Valuations
• Greater Access to Capital
• Larger Profits
• Higher Employment
• Better Able to Contribute Socially
Not For Profit Businesses:
• Greater Social Impact
• Better Network Effects
• Better Access to Funding
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8.
ABBOTT, KEEVEN & FISHER PARTNERS
PARTNERS IN HYPER GROWTH
Viral Growth is
Better!
Viral Coefficient (Cv) = Fan Out * Conversion Rate
Viral Growth = (Cv * Retention)Frequency
Cv > 1
In order to achieve viral
growth the viral coefficient
must be greater than 1
Viral Growth with Low
Retention is still better than
non-viral growth.
© AKF PARTNERS 2013
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9.
ABBOTT, KEEVEN & FISHER PARTNERS
PARTNERS IN HYPER GROWTH
Comparison of Social Networks

Founded by Jonathan Abrams and
Chris Emmanuel in 2002 in
Mountain View, CA

Live in March 2003, adopted by 3
million users within months

Total funding $48.5M
Only $40.7M invested by 2007,
eventual total investment $1.49B

Pages eventually took up to 40
seconds to load
IPO raised $16B valued the
company at over $104B

Hired four CEOs in three years

In 2009 sold for $26.4 million
MOL

Founded by Mark Zuckerberg and
fellow Harvard students in 2004

Initially restricted to college
students (.edu email)



500 million users by 2010
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10.
ABBOTT, KEEVEN & FISHER PARTNERS
PARTNERS IN HYPER GROWTH
Social Networking for Pets
“These are fakesters, they're not people. This is
supposed to be for actual people, so let's get
them off of there.” – Jonathan Adams
By 2012, there were an estimated 22.9 million
misclassified accounts including millions created
for pets (Kelly 2012). A Facebook executive
observed, “I still run across occasional people
profiles that are actually of their cats or dogs or
something like that.”
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11.
ABBOTT, KEEVEN & FISHER PARTNERS
PARTNERS IN HYPER GROWTH
College Parties
Friends
Groups
Events
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12.
ABBOTT, KEEVEN & FISHER PARTNERS
PARTNERS IN HYPER GROWTH
How Do You Achieve
and Sustain
Viral Growth?
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13.
ABBOTT, KEEVEN & FISHER PARTNERS
PARTNERS IN HYPER GROWTH
Technology
Adoption S-Curve
Introduced
Neal Gross and Bryce Ryan
Uses
Explained adoption of hybrid
corn seed as a social process
© AKF PARTNERS 2013
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ABBOTT, KEEVEN & FISHER PARTNERS
PARTNERS IN HYPER GROWTH
Technology
Adoption Lifecycle
Introduced
Rogers, Beel and Bohen in 1957
paper Validity of the concept of
stages in the adoption process
Uses
Provided psychographic profiles
of adopters at each stage.
© AKF PARTNERS 2013
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15.
ABBOTT, KEEVEN & FISHER PARTNERS
PARTNERS IN HYPER GROWTH
Technology
Acceptance Model
Introduced
Fred Davis 1989 MIS Quarterly
paper Perceived Usefulness,
Perceived Ease of Use, and User
Acceptance of Information
Technology
Perceived
Usefulness
Attitude
Toward
Using
Uses
Single user / single technologies
like ERP, CSM, and email
Behavioral
Intention
to Use
Actual
System
Use
Perceived
Ease of
Use
© AKF PARTNERS 2013
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16.
ABBOTT, KEEVEN & FISHER PARTNERS
PARTNERS IN HYPER GROWTH
Viral Growth
Model
TAM
Combine TAM with Viral
Growth factors
Perceived Ease of Use and
Perceived Usefulness
Positively Impact Viral Growth
Perceived
Usefulness
+
Perceived
Ease of
Use
+
Fan Out
Growth
+
Retention
© AKF PARTNERS 2013
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17.
ABBOTT, KEEVEN & FISHER PARTNERS
PARTNERS IN HYPER GROWTH
Users Help “Create Value”
Co-Creation
Co-Production

“the act of interacting, creating content
or applications by at least two people”
(Trogemann and Pelt, 2006).

“the process through which inputs used to
produce a good or service are contributed
by individuals” (Ostrum, 1975)

The contributions of users to Wikipedia
are typical examples of co-creation.

Creating social media accounts for pets

Adding hashtags to find updates

Using a product in new, innovative and
unforeseen ways

Posting status updates, pictures, sharing
links, etc. through user generated content
(UGC)
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18.
ABBOTT, KEEVEN & FISHER PARTNERS
PARTNERS IN HYPER GROWTH
The Virtuous Cycle of Misbehavior:
Co-Creation Leads to Co-Production
Use/
Co-Create
Misbehavior/
Co-Produce
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ABBOTT, KEEVEN & FISHER PARTNERS
PARTNERS IN HYPER GROWTH
CoCreation
Misbehavior
Drives Growth
Virtuous
Misbehavior
and
Collaboration
+
Fan Out
CoProduction
Growth
Perceived
Usefulness
+
Perceived
Ease of
Use
+
Retention
+
© AKF PARTNERS 2013
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20.
ABBOTT, KEEVEN & FISHER PARTNERS
PARTNERS IN HYPER GROWTH
CoCreation
Virtuous
Misbehavior
and
Collaboration
But What Drives
Misbehavior?
+
Fan Out
CoProduction
Growth
Perceived
Usefulness and…
Perceived
Usefulness
+
Perceived
Ease of
Use
+
Retention
+
© AKF PARTNERS 2013
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21.
ABBOTT, KEEVEN & FISHER PARTNERS
PARTNERS IN HYPER GROWTH
Self-Identity
“Even those who deny any interest in
how others view them actually do
care, if only by making sure that
everyone else understands that they
don't. The way we dress and behave,
the material objects we possess,
jewelry and watches, cars and
homes, all are public expressions of
our selves” - Donald Norman,
Emotional Design (2007)
Voyeurism
CoCreation
Self Identity
Virtuous
Misbehavior
and
Collaboration
Exhibitionism
+
Fan Out
CoProduction
Growth
Perceived
Usefulness
+
Perceived
Ease of
Use
+
Retention
+
© AKF PARTNERS 2013
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ABBOTT, KEEVEN & FISHER PARTNERS
PARTNERS IN HYPER GROWTH
Simplified Model with Feedback Loops
Identity
Usefulness
Misbehavior
Growth
Ease of
Use
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23.
ABBOTT, KEEVEN & FISHER PARTNERS
PARTNERS IN HYPER GROWTH
Be Open to Misbehavior
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