This article is one part of a series on successfully utilizing marketing frameworks. To start from the beginning, click here.
Marketing Framework #4: Pirate Metrics or “AARRR!”
No, you don’t have to don an eye patch or adopt a parrot to use this framework. Developed by serial Startup Founder Dave McClure, Pirate Metrics allows you to see how a customer may travel on their buying journey and what areas you need to improve. AARRR stands for:
- Acquisition: Where are prospects finding you? Facebook ads, blog content, a paid search, etc.
- Activation: What step did a prospect take once they arrived at your website? Depending on the business, this could include signing up for an account, downloading a free giveaway in exchange for their email, filling out a profile, etc.
- Retention: Once they’ve left your site, do prospects or customers come back? How often?
- Revenue: How do you earn money from your customers? Consider reviewing metrics such as conversion rates, shopping cart size, and the LTV or customer lifetime value.
- Referral: When customers are happy, they tell other people, and you end up with more customers. This lowers your CAC or customer acquisition cost because your loyal customers will attract new prospects for you.