Viral Marketing - International case "Hotmail.com" (PART II)

The NEW Hotmail - Next generation in personal email


Hotmail is the best example of most successful viral marketing strategy over full life cycle. In 1996, a new product, free web based email was launched by Sabeer Bhatia and Jack Smith. 'Viral Marketing' catalyst was involved that would exponentially increase the rate of flow of information; nothing to do with virus but the growth is rapid like virus growth through word-of-mouth.

Impact and results of viral marketing strategy over hotmail growth can be summarized as: most important is that Hotmail grew a subscriber base more rapidly than any other company in the world.

Now, Hotmail is the largest email provider in the world. Exponential growth of subscribers; unprecedented source of personal information as almost subscribers filled up demographic and psychographic profile.

Also, with expense close to $500K spent on branding, marketing, advertising and promotion, very less was spent in comparison to nearly 12 million users. It is not just spending money, but spending money in a smart way will work. Hotmail became email king at reduced cost, less expense using viral marketing catalyst. Hotmail viral message (free email services) was involuntary and spread through word-of-mouth.

source: Ezine articles, 09800530S.blogspot.com

Viral Marketing - International case "Hotmail.com" (PART I)

Hotmail.com is one of the first free web-based e-mail services. The strategy is simple:

1. Give away free e-mail addresses and services,

2. Attach a simple tag at the bottom of every free message sent out:" Get your private, free e-mail at http://www.hotmail.com/"

Here's what it looked like:

__________________________________________
Get Your Private, Free E-mail from MSN Hotmail at:
http://www.hotmail.com/

and,

3. Stand back while people e-mail to their own network of friends,

4. Who see the message,

5. Sign up for their own free e-mail service, and then

6. Propel the message still wider to their own ver-increasing circles of friends and associates.

Hotmail's practice was to append an advertisement of itself on each message that is sent using their service. When a recipient gets interested and clicks on the ad, it will lead to hotmail's website for him/her to signup. This will go on and on, and the growth is similar to an exponential curve.

In the first 18 months of being in business, Hotmail.com garnered 12 million subscribers with a total marketing budget of less than $500,000. That's a new customer acquisition cost of 4 cents per customer!!!

source: Xcellent marketing , 09800530S.blogspot.com , hotmail.com