AARRR METRICS 2.0

A Brief History

Dave McClure 500 Startups

ACQUISITION

ACTIVATION

RETENTION

REVENUE

REFERRAL

Unaware visitor

Passionate Happy Customer

Pirate Metrics as a Marketing Funnel

ACQUISITION

ACTIVATION

RETENTION

REVENUE

REFERRAL

Challenge 1: Funnels lack emotion

70%

30%

3%

2%

1%

ACQUISITION

ACTIVATION

RETENTION

REVENUE

REFERRAL

Challenge 2: Customer journeys are non-linear

When does referral happen?

Or Here?

Here?

Here?

ACQUISITION

ACTIVATION

RETENTION

REVENUE

REFERRAL

Challenge 3: Hard to internalize complex concepts

What’s my engine of growth?

Where is value created?

Where do I focus first?

So I redrew Pirate Metrics…

Pirate Metrics as a Customer Factory Blueprint

A metaphor for your business model

Metrics are people first

Easier to visualize the job of the business model

The Job: Turn unaware visitors into happy customers

Happy passionate customers

Unaware visitors

How You Do This:

How You Do This:

Acquire raw materials

Create customer value

How You Do This:

Deliver customer value through your Happy Customer Loop

How You Do This:

Capture Value through your Monetization Engine

Trigger the Referral Loop

Helps simplify complex concepts

Notice two hotspots

Node with the most number of lines leaving

Node with the most number of lines entering

Customer value creation is a causal step

It causes:

People to spend more time with you

It causes:

People to spend more money with you

It causes:

People to refer others to you

The inverse is also true:

People leave you negative reviews

People leave and don’t come back

People ask for refunds

Helps Unlock the 3 Ways to Grow Your Business

Your Customer Factory

Engines of Growth

PAID

STICKY

REFERRAL

PAID Engine of Growth

STICKY Engine of Growth

REFERRAL Engine of Growth

Can be mapped to any type of business

The Lean Canvas App Customer Factory

Makes for the perfect metrics dashboard

Helps identify bottlenecks

And achieve breakthrough

IN STORES JUNE 14TH. BUY THE BOOK:

“Before you can prioritize waste, you have to be able to see the factory floor.”

- Ash Maurya, Scaling Lean

Master the Key Metrics for Startup Growth (AKA Traction)

SCALING LEAN

GET MORE FROM ASH AT LEANSTACK.COM