2021-09-12T02:13:04+03:00[Europe/Moscow] en true How does the AARRR (pirate) funnel work?, Acquisition: <em>How do potential customers get to know us?</em>, Activation: <em>How do potential customers get to try our product?</em>, Retention: <em>How many potential customers will stick around?</em>, Revenue: <em>How many will actually become customers?</em>, Referral: <em>Will those customers invite other potential customers?</em>, <p>Acquisition is the process of gaining new users and customers, and it is the first step in the pirate metrics process. While many companies track acquisition, few take the step to track individual channels and determine how successful each one is. Your company would benefit immensely from a detailed analysis of your various acquisition channels.</p>, <p>The next pirate metric is retention, which is all about keeping your existing customers around. Learn the different ways that various businesses track retention and how to do a cohort analysis. Retention is often overlooked, but it can make or break your company.</p>, <p>With a referral system in place, it’s time to focus on revenue, the final pirate metric. While the vast majority of companies track revenue somehow, few break it down any further than an overall number. But knowing details about your revenue, like which customers are at a break-even point, can make a massive difference for your company.</p> flashcards
Dave McClure’s Pirate Metrics: The AARRR Funnel In A Nutshell

Dave McClure’s Pirate Metrics: The AARRR Funnel In A Nutshell

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  • How does the AARRR (pirate) funnel work?

    This funnel goes through:

    Acquisition

    Activation

    Retention

    Revenue

    Referral

    It is important to highlight that this is a model, and as such, it doesn’t represent the actual behaviors of users or customers. Instead, that is a simplification that helps identify the crucial actions and marketing tactics to implement to make sure a user becomes a paying customer.

  • Acquisition: How do potential customers get to know us?

    The acquisition stage is usually when a user or potential customer gets to know a brand. A single touchpoint isn’t often enough at this stage. That is why organizations use several channels to gain visibility. Some of those are: SEO, SEM, social networks, blogging, email marketing, BizDev, PR, affiliates, apps, widgets, TV, etc.

  • Activation: How do potential customers get to try our product?

    At this stage, you need to make the acquisition concrete by enabling users to start playing around with your product or service:

    A homepage that converts, and that is optimized is essential to activate as many users that land on a site. 

    Landing pages also help you create a controlled experience for users to take a set of actions you want them to take. 

    Product features empower your clients, but they also work as a magnet for new, potential customers. 

  • Retention: How many potential customers will stick around?

    At this stage, it’s essential to look at the user engagement and how to make her stick around:

    Emails & Alerts, to enable users to understand the benefits of your product and help them benefit from it, thus reducing the churn at this stage, which brings the user closer to becoming a paying customer.

    Blogs and content help build that kind of trust and ongoing relationship with the audience, to make your product sticky. 

    System Events and Time-Based features.

  • Revenue: How many will actually become customers?

    At this stage, it is essential to focus on how to make the potential customer or the users that are already engaging with your app, service, or site to become a paying customer:

    Ads and switching on the paid engine at this stage makes sense to speed up the growth process. 

    Lead generation and a continuous stream of qualified prospects are critical to keeping the business going.

    BizDev operations help a business capture as much business value as possible. That is even truer for enterprise businesses. 

    Subscriptions and more

  • Referral: Will those customers invite other potential customers?

    At this stage, you want to make sure to trigger network effects so that existing customers can bring you more customers too:

    Campaigns,

    Contests,

    Emails & widgets

  • Acquisition is the process of gaining new users and customers, and it is the first step in the pirate metrics process. While many companies track acquisition, few take the step to track individual channels and determine how successful each one is. Your company would benefit immensely from a detailed analysis of your various acquisition channels.

    While acquisition is about bringing the right people to your website, activation is all about conversion. What is the specific action you want your visitors to take–and how can you track it? Funnel reports, which are an option on many analytics software programs, can be a great way to do this.

  • The next pirate metric is retention, which is all about keeping your existing customers around. Learn the different ways that various businesses track retention and how to do a cohort analysis. Retention is often overlooked, but it can make or break your company.

    Once you determine that your retention is high, you can focus on the next pirate metric: referrals. A referral program can be very difficult to track, so this ebook walks you through an example using Uber.

  • With a referral system in place, it’s time to focus on revenue, the final pirate metric. While the vast majority of companies track revenue somehow, few break it down any further than an overall number. But knowing details about your revenue, like which customers are at a break-even point, can make a massive difference for your company.

    If you have a startup, these five metrics will allow you to build a company that is scalable, stable, and successful. And while Dave McClure created pirate metrics with startups in mind, these metrics can help any business grow. So whether you’re just starting out or you want to give your business an extra boost, download this ebook to help you implement pirate metrics. AARRR!