I’ve been a big fan of AARRR for some time now.
Growth is essential to new businesses. Adopting this framework makes it easier for me to keep the focus on what I should and shouldn’t be doing.
I’ve used it in roles in the past and, as I look to grow eOpinion, I’m incorporating it into my plans again.
Here is my simple overview:
What is the AARRR framework?
The AARRR framework was devised by Dave McClure as a set of user-based metrics tracking the important points throughout the customer journey. Businesses should focus on these areas to achieve growth.
What does AARRR stand for?
- Acquisition (people sometimes change this to Awareness)- How do potential users and customers discover you or your product? Which channels perform best for you? Should you shift your focus to them?
- Activation – How do you make that first experience amazing? Whether it be purchasing something, creating an account or signing up to an email list. Can it be more engaging? Can it be cheaper?
- Retention – How many of your audience do you lose each month? A simple equation to think about is if your acquisition numbers are higher than the churn numbers, you’ll see growth. The other way round and you won’t. 😉 It’s important to understand why you are losing customers/users. In general, it is far cheaper to retain someone than it is to acquire someone.
- Referral – Word of mouth is king! How can you make your audience be your biggest advocates? What problems do you need to solve to improve customer morale?
- Revenue – How can you increase it? What products/services perform better than others? What can you introduce to your service lineup? Which areas should you adjust your focus to when it comes to promotion? Can you increase prices? Can you add a recurring subscription? Can you decrease your CAC (customer acquisition cost)?
And there you have it, a little look at the framework I use when planning to grow my business.
Each section above will have different OKR’s against them so I can learn what areas to tweak in order to have the biggest impact.
I hope this was helpful. Feel free to get in touch with any questions or feedback.