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AARRR Model
Step 1:
Acquisition
Step 2:
Activation
Step 3:
Retention
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Step 4:
Referral
Step 5:
Revenue
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AARRR Model
Step 1:
Acquisition
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How potential customers can find your product. This needs to start with your total market. Focus on the users who can really benefit the most from your product. These will be the subset that represents your reachable market.
Don’t just look at site visitors, track conversion rates and how they convert. Prioritize tracking every step of the customer journey in the funnel. Every micro-conversion is important.
3
AARRR Model
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At this stage, you need to hone in on the experience you want to deliver to your users. It’s vital users quickly understand the value proposition and realize how the product might be able to help them.
Prioritize getting users to the “Aha Moment” as quickly as possible through a seamless onboarding process. Be sure to test, and test some more until you find your magic metric and build your onboarding process around it.
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Step 2:
Activation
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AARRR Model
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During this phase, it’s important to think about how you can keep users coming back. If a user has subscribed to the product, how do you prevent them from churning?
Keeping your users engaged is critical to ensuring your churn rate is lower than your user acquisition rate.
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Step 3:
Retention
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5
AARRR Model
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Turning your users into advocates for your product and org is the absolute best way to drive growth.
Have a systematic process in place that incentivizes both the referrer and referee.
A strategy to get users to recommend the product to others is essential for driving
viral growth.
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Step 4:
Referral
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Step 5:
Revenue
AARRR Model
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If you’re successfully optimizing the four metrics above, revenue should already be flowing in.
Now people are using the product, understanding the value, and paying for it. Start calculating your pricing and whether your business model is sustainable.
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