https://www.youtube.com/watch?v=JDW0pI2gkS0
The AARRR Product Funnel, also known as Pirate Metrics, is a framework created by Dave McClure to optimize customer conversion through five key stages. These stages are:
Acquisition: This stage focuses on how potential customers find your business. It's about attracting visitors to your website or app through various channels like social media, SEO, or advertising.
Activation: Here, the goal is to engage users and provide them with an "aha" moment where they see the value of your product or service. This often involves getting users to sign up, create an account, or take a specific action that indicates interest.
Revenue: This stage is about monetizing user engagement. It involves converting users into paying customers, whether through direct sales, subscriptions, or other revenue models.
Retention: Retention focuses on keeping customers coming back. It's about ensuring users continue to engage with your product or service over time, which can involve loyalty programs, personalized communication, or product improvements.
Referral: The final stage is about encouraging satisfied customers to refer others to your business. This can be achieved through referral programs, incentives, or simply providing an excellent product or service that people want to share.
Each stage of the AARRR funnel has a Key Metric, a Goal, and Initiatives (or tactics) to help achieve that goal. The framework helps businesses track and optimize the user journey from initial contact to becoming a loyal customer and advocate.
Acquisition
Key Metric: Number of new website visitors
Goal: Increase new visitors by 20% in the next quarter
Initiative 1: Launch targeted social media ad campaigns
Initiative 2: Partner with influencers to promote new content
Activation
Key Metric: Number of free trial sign-ups
Goal: Achieve a 25% conversion rate from visitors to trial sign-ups
Initiative 1: Optimize the sign-up process for ease of use