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AARRR: Product Marketing for Online Pirates

When it comes to product marketing, there are many concepts you can use to help you understand metrics.

Here at Potential.vc we often talk alot about different marketing metrics with startups, however one of the easiest to understand has to be the AARRR concept, as delivered by Dave McClure.

People often refer to this form as the pirate concept, since the acronym looks like a pirate’s exclamation of “Aarrr!” If you want to use a straightforward model to help you understand greater customer patterns, this idea might just be the one for you.

With any luck, this concept will aid you in your quest to develop a strong grasp on customer retention and decide on which metrics matter to your startup the most. Let’s take a look at the theory behind this popular and engaging concept. The idea is that the form uses five types of measurement to describe user behaviour. That is to say that there are five different categories or phases, which the average customers falls into at any point.

Five types of measurements of user behaviour

A: Acquisition

The first type of measurement is the acquisition, which refers to customers who come to the service via different means. This header could refer to random users online or people who search for a particular service using Google. This percentage is usually quite small to begin with but grows according to the size of your company. That is to say that over time, you may get a high level of new users.

Do: Look into various customer acquisition channels and test which ones work for you the best.

A: Activation

Activation is the second phase of customer patterns. This header refers to the amount of customers who enjoy their first visit to your site/or product experience. For example, it could mean that a customer (or potential customer) found the site easy to use, hence will be likely to return at a later date?

Do: Ensure that your site is user-friendly if you want to ensure the activation stage of this concept.

R: Retention

After people have visited the site, the general aim is to get them to return later. Retention refers to this idea. If a user revisits the site many times, it is a massive success. This part of the theory rests on the activation phase. If, in the second phase of the theory, users found the site satisfying, they will come back.

Do: Look into different customer retention plans like re-marketing to users through Google Ad-words or capture email address for a weekly newsletter to keep your customer engaged.

R: Referral

If customers are entirely happy with your services, they may refer a friend or family member to them. Campaigns and online contests can also help with the referral stage. That means that you can encourage people to refer their social circle to you.

Do: Use social media platforms to aid you in achieving this strategy.

R: Revenue

Revenue is the monetization of the campaign as a whole. That is to say that it refers to how you profit from the activity of your customers. If you can use their information or encourage them to buy products, you can create viable revenue streams.

Do: Quantify this amount in your annual reports and set targets to stay goal orientated.

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