AARRR is a popular framework that helps understand consumers better. It's also well-known as Pirate Metrics (invented by Dave McClure). The framework will help you measure your funnel and enable you to optimize it correctly.
AARRR approach is quite a simple metric, so every product manager can quickly understand and easily implement it without any tech knowledge or special marketing background.
With its help, you may measure customer behavior, use conversion metrics, and web analytics. All this will assist your marketing and product management.
How does AARRR work?
The meaning and the main idea are to develop a model of your client's behavior. The concept is based on the following types of measurements of user behavior:
Acquisition — what channels do your users come from? It is your first transaction with consumers when you begin to identify them as individual users/ customers.
Activation — how many of them have a positive initial experience? It is the stage when your users actually try your product.
Retention — do they come back? It is the amount of incremental revenue that you can generate from a given client.
Revenue — can you monetize any of this behavior? Revenue is the stage when your contact finally takes the plunge to swap out some of their money for some of your products.
Referral — do they tell about the product their friends?
Today, managers apply these popular metrics to different products and in various industries. You can find many interesting examples and cases, for example, the use of Pirate metrics for a mobile dating app.
Thiese metrics look like an indispensable tool for focusing your team. How to use it?
You can easily apply Hygger Kanban boards to work with Pirate Metrics. Here’s how it may look like:
At first, you specify your metrics for each stage: Acquisition, Activation, Retention, Referral and Revenue.
Then you generate ideas for experiments on how to increase each metric. For this goal, you may use convenient Hygger Kanban boards to write everything down.
Hygger will also assist you to determine the value and effort criteria for each idea. You may easily visualize it with Backlog Priority Chart.
After that, you may select the best experiments and send them further to work: write the code, collect all data needed and make a right decision whether the metric improved the experiment or should it be ignored.
As you can see, AARRR is a model that any product manager can understand and can use to take action, without spending extra hours. Smart tools as Hygger.io assist to visualize all the data in easy ways. If you’re doing it right, the results should speak for themselves.
Setup an AARRR funnel and get great business results!
Want to find out more about the method? These resources should be helpful:
Startup Metrics for Pirates by Dave McClure
Lean Analytics: Use Data to Build a Better Startup Faster by Alistair Croll and Benjamin Yoskovitz