👺Metrics for Pirates: AARRR!!!👺
AARRR Metrics Framework is quite popular among the product community. It is basically an acronym for a set of five user-behavior metrics that the PMs should ideally be tracking: Acquisition, Activation, Retention, Referral, and Revenue.
🎭 Acquisition — How are people discovering our product or company?
🎭 Activation — Are these people taking the actions we want them to?
🎭 Retention — Are our activated users continuing to engage with the product?
🎭 Referral — Do users like the product enough to tell others about it?
🎭 Revenue- Are the users willing to pay for this product?
Interestingly the concept of the AARRR Framework was developed by Dave McClure (Founder of 500 Global startups accelerator program) when he saw that many startup companies were easily distracted by superficial metrics, such as likes on social media. He then decided to come up with the key guiding metrics that actually impact the health and success of any product which the startups should actually look into.
But why call it the Pirate framework?
Well, it’s because of its funny pronunciation. Try saying it out loud and you’ll know🤭
Aye, aye, captain!