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The Secret Sauce of SaaS Product Virality: B2B vs. B2C
When it comes to driving organic growth, virality is the buried treasure that most teams are after. No, I’m not talking about viral marketing campaigns that create a lot of buzz and then disappear from our meaningful memory storage, I’m talking about products that are built and designed to delight and drive incredible value while also being optimized for shareability and collaboration.
I mean, who wouldn’t want users to be so happy with your product that they do all of your marketing for you?
Some claim that virality is a myth, while others are convinced it’s a science. In reality, it’s a bit of both. Let's dive into what makes a SaaS product shareable in both B2C and B2B contexts, using examples from successful products like Figma, Slack and open-source projects like WordPress.
B2C
I’m going to go “light” on the B2C piece here because I think marketing has more influence over “virality” in this space than it does in B2B and I’ll plan a follow up post on those dynamics.
One of the first times I noticed this phenomenon was when I was about 8 years old and ice cream trucks were still a thing. I had just moved to a new town and was jumping my bike off a fairly unstable ramp with the kids that lived across the street.
All of a sudden I heard some weird music and everyone froze. Smiles erupted on their faces as they sprinted inside to get whatever money they could find. Less than a minute later, they came running back out screaming, “Let’s go!”. I went with it, and as I followed, I noticed a number of other kids heading in the same direction and gathering others as they went. We turned a corner, and I saw a truck with a line of kids standing next to it, and as we got closer, I realized they all had… ice cream!
Saas products may never have the emotional draw that ice cream trucks had (have?), but the good ones spread at an incredible rate to millions or billions of people around the world. Here are some of the things that matter in B2C
The first trick to getting your product shared is to create a moment worth sharing. To do this, you need to get into the minds of your users and understand their motivations and the connections you can make to those in a relevant way. That last part is important because nothing kills your chances more than trying to convince your users to turn their lives into a billboard for product placement advertising.
Instead, let’s try to think more deeply about what it means to be human at a fundamental level. I love this quote from “Hooked” because it’s a great reminder of the challenges and considerations that essentially every user processes before deciding to share something.
"all humans are motivated to seek pleasure and avoid pain, to seek hope and avoid fear, and finally, to seek social acceptance and avoid rejection."
Social sharing features are built into the product to enable users to share their experiences, achievements, or content directly to social media platforms. These features often include buttons for sharing on platforms like Facebook, Twitter, and Instagram, as well as the ability to create shareable content, such as images or videos, directly from within the app. The goal is to make the sharing process as seamless and enticing as possible, encouraging users to spread the word about the product without significant effort.
Social proof is a powerful motivator. When users share their achievements or experiences, it not only provides them with a sense of accomplishment but also acts as a recommendation to their social network. People trust recommendations from friends and family more than traditional advertising, so these shares can significantly boost awareness and credibility. Additionally, when people see their friends using and enjoying a product, it can foster a sense of community and belonging. This not only boosts engagement but also attracts new users.
A prime example of effective social sharing features is Duolingo. Duolingo allows users to share their language-learning milestones and daily streaks on social media. This not only motivates users to continue using the app but also exposes their friends and followers to the app. The result is a continuous influx of new users driven by existing ones, leveraging the power of social networks to fuel organic growth.
They take it a step further and amplify their customer’s activity through their own social media and create external opportunities to get their biggest fans to talk about the app.
Incentive Programs
Just to make my thoughts really clear on this option:
Is it a little like bribing your kids to do chores? Yes.
Does it sometimes work? Yes.
Does it sometimes backfire? Also Yes.
Incentive programs are structured to reward existing users for referring new customers to the product. These programs typically offer benefits such as discounts, free services, or bonus features both to the referrer and the referred user. The rewards are designed to be attractive enough to motivate users to actively promote the product to their friends, family, or colleagues.
The effectiveness of incentive programs lies in their ability to create a win-win situation for all parties involved. Existing users get rewarded for their efforts, new users receive a benefit for signing up, and the company gains new customers. This approach not only helps in acquiring new users at a lower cost but also fosters loyalty among existing ones, as they feel appreciated and incentivized to continue using and promoting the product.
Dropbox is a classic example of a successful referral program. By offering additional storage space to both the referrer and the referred user, Dropbox managed to significantly boost its user base in its early days. The simplicity and attractiveness of the offer encouraged users to spread the word, resulting in rapid growth through organic, user-driven referrals.
At the risk of getting very meta, Beehiiv also has a pretty sophisticated
partner program where they are paying partners for referrals and have gamified it with a leaderboard where the winner actually gets a vacation out of it
Content Creation and Publishing Platforms
I’m intentionally leaving social networks out of this. There’s a ton of content out there on social networks, how they work, how they grow, why they fail, etc.
What I’m really talking about here are products and platforms that give the average person a platform to build and engage with their own audience. Owning your audience provides several benefits. It offers greater control over the content and the relationship with your audience. You are not subject to the whims of changing algorithms or policies of a third-party platform or the inevitable shift to paying to reach the people who follow you.
Viral growth of these products is tied to their desire to be seen and heard(and validated). Their drive to grow their reach and amplify those feelings and the success they accomplish driving others to do the same. It’s a pretty interesting cycle.
I have spent a lot of time in and around the WordPress space, so I’ve learned to appreciate the dynamics of adoption from developer and end-user audiences within the same ecosystem.
This is technically where you start to draw the line between B2C and B2C. The average person might have a website, blog, wedding site, portfolio, etc., and not really be considered a “business,” so it’s important to acknowledge that a good portion of users creating on the web still fall into the B2C category.
What I’ve noticed about some of the biggest B2B stories around viral growth is that they didn’t operate in a B2B model out of the gate - and still don’t in a lot of ways.
They start as a self-serve PLG product.
They are built around collaboration, so one user quickly becomes several.
They are applicable within a business/work environment but can also be used for personal use cases e.g. staying connected with friends, designing invitations or announcements, side hustles, etc.
They offer immediate value to first-time users and leave a clear path for continued value discovery through advanced tools, shortcuts, etc.
Let’s take a look at the tactics that helped companies like Slack, Figma, Dropbox, and others find success, along with some newer examples you might not have seen yet.
Collaborative Features
Collaborative features are designed to enhance teamwork by allowing multiple users to work together seamlessly on projects. These features often include real-time editing, file sharing, task management, and communication tools integrated into the product. The goal is to create a unified platform where teams can collaborate efficiently without needing to switch between multiple applications.
These features work so well because they solve a fundamental problem in many organizations: fragmented and inefficient collaboration processes. By providing a centralized platform for collaboration, these tools improve productivity and streamline workflows. When teams experience the benefits of enhanced collaboration, they are likely to advocate for the product within their organization, leading to wider adoption.
Figma is the standout example of a product that excels in collaborative features. Its real-time design collaboration capabilities allow multiple designers to work on the same project simultaneously, making it easier to coordinate and iterate on designs. This seamless collaboration has made Figma a popular choice for design teams, driving its widespread adoption in the industry. You can read more about Figma's unique GTM motion and their strategies here.
Other recent examples include Notion and Coda. I’m more of a Coda guy myself, but they both essentially offer app-like functionality for asynchronous documentation and collaboration. I used Coda to store personal things that I don’t want to forget about, for collaborative projects with friends, and even for keep separate projects organized for work. It gives me the flexibility to work in a single tool and keep all of those things separate so, as a solo user, I’ve introduced at least 100 people to their platform in the last 9 months alone
.
Network Effects
Network effects occur when a product becomes more valuable as more people use it. In the B2B context, this often means that the utility of the product increases with the number of users within an organization or across multiple organizations. Features that facilitate communication, data sharing, or workflow integration can amplify the value of the product as the user base grows.
Network effects work because they create a compelling reason for organizations to adopt and expand the use of the product. As more users join, the product’s capabilities and benefits become more pronounced, leading to a self-reinforcing cycle of adoption and value creation. This is particularly effective in tools that rely on communication and collaboration, where the presence of more users directly enhances the user experience.
Slack is a prime example of a product that leverages network effects. As more employees within an organization use Slack, the platform becomes a central hub for communication, making it indispensable for team collaboration. The integrations with other tools further enhance its value, encouraging even wider adoption across departments and organizations.
A newer example is Miro, an online collaborative whiteboarding platform. Miro's network effects are driven by its ability to facilitate brainstorming, planning, and collaboration in real-time. As more team members use Miro, the more valuable it becomes as a central space for capturing and organizing ideas. This collaborative environment has led to widespread adoption in various industries, from tech startups to large enterprises.
While I tend to think more like a designer and lean towards Figjam for the sake of using one less tool, I work with a LOT of engineers (and product people) who love Miro for architecture diagrams, information architecture, etc. As hard as I try, we usually end up in both.
If you haven’t, you can check out the open board I created for the Worst Case Impact Framework
Champion Users
Champion users are individuals within an organization who are enthusiastic about a product and willing to advocate for its use. These users often hold influential positions and can drive adoption by demonstrating the product’s value to their colleagues and decision-makers. Empowering champion users typically involves providing them with additional resources, training, and incentives to promote the product.
Champion users are effective because they serve as trusted voices within their organizations. Their endorsement carries weight and can help overcome resistance to change. By showcasing the product’s benefits and facilitating its integration into existing workflows, champion users can significantly accelerate adoption and ensure sustained engagement.
A great example of leveraging champion users is seen with Dropbox. Dropbox initially gained traction through its referral program, but its continued success has been driven by champion users within organizations advocating for its use. These power users demonstrate how Dropbox can streamline file sharing and collaboration, making it a vital tool in their workflows.
If you’re looking for a lesser-used example. I am quickly becoming a HUGE advocate for Linear. After doing a blind run of their onboarding process I ended up setting up a little space for myself to help keep track of work, family, and personal projects and tasks and I genuinely enjoy using it. Every day I find a new keyboard shortcut our thoughtful design decision that makes simple tasks feel even easier.
Self-Serve Product-Led Growth (PLG)
Many successful B2B products start as self-serve PLG offerings. This model allows individual users to sign up and start using the product without needing to go through a lengthy sales process. These products are designed to deliver immediate value, encouraging users to explore and share the product within their networks.
The self-serve model works because it reduces friction for new users, allowing them to experience the product's benefits firsthand. By providing a clear path for continued value discovery through advanced tools, shortcuts, and features, these products keep users engaged and coming back for more. This approach not only drives initial adoption but also sets the stage for viral growth as satisfied users spread the word.
An example of this is Zapier, which allows users to automate workflows by connecting different apps and services. Zapier’s self-serve model makes it easy for users to sign up, explore, and start creating "Zaps" (automated workflows) that add immediate value to their daily tasks. As users see the benefits, they naturally share the tool with their colleagues, driving organic growth within organizations.
Another up-and-coming example that I think will continue to grow rapidly is Reclaim.ai. Calendly was the first to use scheduling as a way to bring people into their product, but Reclaim takes it a step further by helping their customers/users ensure that the convenience of allowing others to schedule time to meet with you doesn’t come at the cost of you having time to focus, decompress, or get work done.
What have you seen work well within your products?
Who do you think is creating effective viral growth loops in or outside of their products?
Will we ever see the Tickle-me-Elmo hype in SaaS?