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AARRR Framework – How to Define will Your Project Success or Not

Sweetcode Lab already has 4 in-house projects, so more than anyone else knows that launching your product is difficult. And even harder it is making sure it is continuously able to retain and attract new clients. In this article, we want to tell you about measuring a product’s growth to make sure it’s on the right way.

Namely, about AARRR Framework or also the Pirate Metrics. If you say it out loud, you get “Aarrr” – is traditionally said by pirates when responding “yes” or expressing excitement.  In 2007 Dave McClure, founder of startup accelerator 500 Startups, introduced the world to a 5-step framework for growth. 

What is AARRR?

AARRR is an acronym that describes the five stages a person goes through to become a customer ready to purchase. In fact, this is a complete structure of the client’s life. It gives you insight into how well you are attracting new clients.

Let’s take a look at each stage, 

Acquisition

When someone visits your website for the very first time via a marketing channel. 

Awareness metrics include: website visits, click-through rate (CTR), impressions, user-behavior metrics, etc. In this article, we will not delve into metrics and their calculation.

What you can do on this stage: 

Analyze how the user visited your site because the result of all the following stages will depend on visitors’ quality.

You can attract 10,000 visitors, but the conversion will be 0.0001%, and you end up with a small income. It is better to find 100 clients who will bring revenue to your company.

What to do:

– targeted advertising

– contextual advertising

– email marketing

– SEO promotion

– guest posting

– articles in the company’s blog

Don’t forget to test. Use different creatives, try different audiences, and analyze the results.

Activation 

When that person has their first positive user experience with your site or marketing content.

– Acquisition metrics include: visit-to-lead conversion rate, leads and contacts generated, social engagement rates, customer satisfaction etc.

Great, you’ve brought a user to the site. Now our goal is to make them feel satisfied to first visit. You need to understand how much time they spend on the site and which pages they visit.

What to do:

– conduct A / B testing and improve website design

– offer beta version

– set up retargeting for those who left the site

Retention

When that person revisits your website again in the future to consume other content.

– Retention metrics include: сustomer lifetime value (CLV), retention rate, churn rate, payback period etc.

You need to keep users engaged and periodically remind yourself. Something like, “Hi, you haven’t opened the app for a long time. We miss you.”  Tell users about updates, news about your company or product.

What to do:

– send email or push notifications

– create a blog or podcast

Referral 

When that person enjoys your site enough to share it with others either publicly or privately.

Referral metrics include: NPS score, social shares, review rates, referred business.

Yes, yes, we are almost there. People like you so much that they are ready to tell their friends about you. At this stage, it will be correct to ask users for their opinion on your product. Ask how you can get better and ask them to point out mistakes.

We create a brand community, motivate users to tell their friends and colleagues about you.

What to do:

– make referral links

– invite users to share content on social networks

Revenue

When that person makes a purchase and becomes a paying customer

– Revenue metrics include: average deal size, monthly recurring revenue (MRR), annual recurring revenue (ARR).

Yes, it’s time to make a profit.

What you can sell:

-product/service

-subscription

-additional services, such as premium subscription

You ask, I have a startup or successful business. How can I use this framework?

With the help of a ready-made framework, you will understand how most users become paying customers and give the maximum profit.

But remember, only after trial and error will you be able to find your unique, successful business model.

And even if you have a business model that brings you a steady income, why not increase that amount? Expand your audience and look for new platforms to promote. Tik-Tok, Clubhouse? The AARRR Framework will help you find the most effective promotion channel for you.

Over to you

Friends, so there you have it: the introduction to the AARRR framework and how you can use them to grow your business.   

Our team is also ready to help you improve your business. Check out our services, and do not hesitate to send us an email at [email protected]