The acronym stands for acquisition, activation, retention, referral, and revenue, and it describes the key metrics that businesses should track in order to measure and improve their growth.
Acquisition refers to the process of attracting new customers to a business. This can be done through various channels, such as advertising, content marketing, or search engine optimization. The goal of acquisition is to bring new users to the business, and to convert them into paying customers.
Activation refers to the process of getting new users to engage with a product or service. This can include signing up for an account, completing a tutorial, or making their first purchase. The goal of activation is to ensure that new users have a positive experience with the product, and to encourage them to continue using it.
Retention refers to the process of keeping customers engaged and using a product or service over the long term. This can be done through various tactics, such as providing excellent customer service, offering regular updates and new features, and rewarding loyal customers. The goal of retention is to reduce churn and keep customers coming back to the product.
Referral refers to the process of getting customers to refer the product or service to their friends, family, and colleagues. This can be done through referral programs, word-of-mouth marketing, or social media sharing. The goal of referral is to use existing customers to bring new customers to the business.
Revenue refers to the money that a business makes from selling its products or services. This is the ultimate goal of the AARRR framework, as it is the measure of a business's success and growth.
Overall, the AARRR framework is a valuable tool for businesses that want to measure and improve their growth. By tracking key metrics at each stage of the customer journey, businesses can identify areas for improvement and implement strategies to drive more growth and revenue.