Adaptive experimentation in interactive marketing: The case of viral marketing at Plaxo

This case study shows how interactive marketing campaigns can be systematically fine-tuned and made more productive through adaptive experimentation. It details the use of adaptive experimentation in a viral marketing campaign at Plaxo, Inc., a company that provides Internet-based updating of personal contact information. The experiences of Plaxo highlight that even for a product that is amenable to viral marketing, growth is not guaranteed. To achieve a desired level of growth, Plaxo identified the product features that contributed to greater adoption conversion of recipients of its marketing message and improved them through continuous experimentation. To overcome potential negative side effects of aggressive viral growth, the company used a carefully crafted feedback loop via internet alert services that tapped into the blogging community. This practice allowed management to better understand negative perceptions of the product and take timely corrective actions.