
{"id":22013,"date":"2023-01-11T15:24:41","date_gmt":"2023-01-11T14:24:41","guid":{"rendered":"https:\/\/careerfoundry.inbearbeitung.de\/en\/?p=22013"},"modified":"2023-01-11T15:24:41","modified_gmt":"2023-01-11T14:24:41","slug":"what-is-aarrr","status":"publish","type":"post","link":"https:\/\/careerfoundry.inbearbeitung.de\/en\/blog\/product-management\/what-is-aarrr\/","title":{"rendered":"What is AARRR? A PM\u2019s Guide to the Pirate Metrics Framework"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Have you ever heard of the term \u201c<\/span><span style=\"font-weight: 400;\">AARRR<\/span><span style=\"font-weight: 400;\">\u201d and wondered what it means? If you&#8217;re interested in product management, startups, or sailing the seven seas, this is definitely something you\u2019ll want to learn more about.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The <\/span><span style=\"font-weight: 400;\">AARRR framework <\/span><span style=\"font-weight: 400;\">or Pirates Metric Framework is a set of metrics popularly followed by startup founders, <a href=\"https:\/\/careerfoundry.inbearbeitung.de\/en\/blog\/product-management\/what-does-a-product-manager-do\/\" target=\"_blank\" rel=\"noopener\">product managers<\/a>, and growth marketers. The framework has little to do with pirates, except how it is pronounced (AARRR as in \u201cArr, matey\u201d). Its core idea is to effectively track and influence user behavior to maneuver product-led business growth.\u00a0<\/span><\/p>\n<p>Dave McClure, a Silicon Valley investor and <a href=\"https:\/\/500hats.typepad.com\/500blogs\/2007\/06\/internet-market.html\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">founder of 500 Startups<\/span><\/a>, first coined this term in 2007. McLure realized that many founders, product managers, and marketers were increasingly diverted by superficial metrics such as social media likes that often yielded little growth results. Thus, he developed the <span style=\"font-weight: 400;\">AARRR framework<\/span><span style=\"font-weight: 400;\"> to help narrow their focus and enable them to leverage the right data for startup success.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In this article, we will explore the Pirates Metric or <\/span><span style=\"font-weight: 400;\">AARRR framework<\/span><span style=\"font-weight: 400;\"> in detail, and discuss ways for product managers to implement it.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Read on for answers to the following:<\/span><\/p>\n<ol>\n<li><strong><a href=\"#what-is-the-aarrr-framework\">What is the AARRR framework?<\/a><\/strong>\n<ul>\n<li><a href=\"#what-does-aarrr-stand-for\"><span style=\"font-weight: 400;\">What does AARRR stand for?<\/span><\/a><\/li>\n<li><a href=\"#why-should-you-track-aarrr\"><span style=\"font-weight: 400;\">Why should you track AARRR?<\/span><\/a><\/li>\n<\/ul>\n<\/li>\n<li><strong><a href=\"#how-do-product-managers-use-aarrr\">How do product managers use AARRR?<\/a><\/strong><\/li>\n<li><strong><a href=\"#how-to-use-the-aarrr-metrics-a-step-by-step-guide\">How to use the AARRR metrics: A step-by-step guide<\/a><\/strong>\n<ul>\n<li><a href=\"#step-1-identify-your-metrics\"><span style=\"font-weight: 400;\">Step 1: Identify your metrics<\/span><\/a><\/li>\n<li><a href=\"#step-2-shortlist-tools-to-track-and-analyze-aarrr-metrics\"><span style=\"font-weight: 400;\">Step 2: Shortlist tools to track and analyze AARRR metrics<\/span><\/a><\/li>\n<li><a href=\"#step-3-run-ab-tests\"><span style=\"font-weight: 400;\">Step 3: Run A\/B tests<\/span><\/a><\/li>\n<li><a href=\"#step-4-use-insights-to-guide-decisions-and-forecasts\"><span style=\"font-weight: 400;\">Step 4: Use insights to guide decisions and forecasts<\/span><\/a><\/li>\n<\/ul>\n<\/li>\n<li><strong><a href=\"#bottom-line-aarrr-enables-prioritizing-data-over-intuition\">Bottom line: AARRR enables prioritizing data over intuition<\/a><\/strong><\/li>\n<\/ol>\n<p>Are you ready to get into it? Then let&#8217;s begin!<\/p>\n<h2 id=\"what-is-the-aarrr-framework\"><span style=\"font-weight: 400;\">1. What is the AARRR framework?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The <\/span><span style=\"font-weight: 400;\">AARRR framework<\/span><span style=\"font-weight: 400;\"> is a set of metrics meant for businesses and startups to analyze consumer behavior and scale effectively.\u00a0 It is used by product managers to effectively focus on metrics that matter and use only the most relevant data to derive business insights.<\/span><\/p>\n<h3 id=\"what-does-aarrr-stand-for\"><span style=\"font-weight: 400;\">What does AARRR stand for?<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The term &#8220;<\/span><span style=\"font-weight: 400;\">AARRR<\/span><span style=\"font-weight: 400;\">&#8221; is an acronym for Acquisition, Activation, Retention, Referral, and Revenue. These five unique categories make a robust customer-focused performance measurement framework. As per <\/span><a href=\"https:\/\/view.officeapps.live.com\/op\/view.aspx?src=https%3A%2F%2F500hats.typepad.com%2Ffiles%2FWebStrategyPirates.ppt\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Dave\u2019s representation of them<\/span><\/a><span style=\"font-weight: 400;\">, let\u2019s see what each of them entails:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><strong>Acquisition<\/strong>: Which channels do users come in from?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><strong>Activation:<\/strong>\u00a0What proportion of users have a &#8220;positive&#8221; initial experience?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><strong>Retention:<\/strong>\u00a0How often do visitors return as repeat visitors?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><strong>Referral:<\/strong>\u00a0Are they likely to tell their friends and oblige with referrals?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><strong>Revenue:<\/strong>\u00a0Is there any scope to monetize this behavior?<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">While this framework outlines the categories we just described, the actual metrics that different businesses track can for them vary. For example, you may track acquisition metrics across paid search, organic search, word of mouth, or social media.<\/span><\/p>\n<p><span style=\"font-weight: 400;\"> Similarly, you may measure retention as a proportion of repeat visits to your website or the use of your product, as a response to marketing emails, or as purchases of your product or service.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Please note that these examples are not exhaustive and only define some possible metrics to track for the respective categories.\u00a0<\/span><\/p>\n<h3 id=\"why-should-you-track-aarrr\"><span style=\"font-weight: 400;\">Why should you track AARRR?<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The idea behind tracking and measuring information on these categories is to ascertain which parts of the customer lifecycle are performing well and identify actionable areas for improvement to grow sustainably.\u00a0<\/span><\/p>\n<figure id=\"attachment_22071\" aria-describedby=\"caption-attachment-22071\" style=\"width: 734px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-22071 size-full\" src=\"http:\/\/careerfoundry.inbearbeitung.de\/en\/wp-content\/uploads\/2023\/01\/AARRR_Startup_Metrics_Model.jpeg\" alt=\"An infographic showing how the 5 components of AARRR work in the customer lifecycle.\" width=\"734\" height=\"548\" title=\"\" srcset=\"https:\/\/careerfoundry.inbearbeitung.de\/en\/wp-content\/uploads\/2023\/01\/AARRR_Startup_Metrics_Model.jpeg 734w, https:\/\/careerfoundry.inbearbeitung.de\/en\/wp-content\/uploads\/2023\/01\/AARRR_Startup_Metrics_Model-300x224.jpeg 300w\" sizes=\"auto, (max-width: 734px) 100vw, 734px\" \/><figcaption id=\"caption-attachment-22071\" class=\"wp-caption-text\">Source: <em><a href=\"https:\/\/www.slideshare.net\/dmc500hats\/startup-metrics-for-pirates-seedcamp-sept-2009\" target=\"_blank\" rel=\"noopener\">Pirate Metrics Presentation,<\/a> David McClure<\/em><\/figcaption><\/figure>\n<h2 id=\"how-do-product-managers-use-aarrr\"><span style=\"font-weight: 400;\">2. How do product managers use AARRR?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The job role of a <\/span><span style=\"font-weight: 400;\">modern-day product manager<\/span><span style=\"font-weight: 400;\"> requires navigating unpredictable situations and making critical decisions all the time. After all, it\u2019s challenging to ensure proper alignment of the business&#8217;s aims with the end users\u2019 needs regularly.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Getting this balancing act right requires making decisions on sound wisdom from time to time, and tracking progress is key.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Thanks to the unparalleled ability to collect data in the digital world, collecting accurate data is quite straightforward today. However, translating that data into meaningful insights is not that simple.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Firstly, it\u2019s a function of choosing the right metrics. Next, developing a robust mechanism to track and interpret those effectively. That\u2019s precisely how and why modern product managers depend on the <\/span><span style=\"font-weight: 400;\">AARRR framework<\/span><span style=\"font-weight: 400;\"> to navigate a <\/span><a href=\"https:\/\/careerfoundry.inbearbeitung.de\/en\/blog\/product-management\/product-roadmap-guide\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">successful product roadmap<\/span><\/a>.<\/p>\n<h2 id=\"how-to-use-the-aarrr-metrics-a-step-by-step-guide\"><span style=\"font-weight: 400;\">3. How to use the AARRR metrics: A step-by-step guide<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Wondering how to use the <\/span><span style=\"font-weight: 400;\">AARRR <\/span><span style=\"font-weight: 400;\">metrics to enhance business revenue and growth for your product? Here\u2019s a step-by-step rundown of how to acquire and retain high-value customers to fuel growth for a product-led business.<\/span><\/p>\n<h3 id=\"step-1-identify-your-metrics\"><span style=\"font-weight: 400;\">Step 1: Identify your metrics<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Using the <\/span><span style=\"font-weight: 400;\">AARRR framework<\/span><span style=\"font-weight: 400;\"> in product management begins with identifying the proper conversion metrics to track user behavior across\u2014Acquisition, Activation, Retention, Referral, and Revenue for your specific business needs.<\/span><\/p>\n<figure id=\"attachment_22077\" aria-describedby=\"caption-attachment-22077\" style=\"width: 1200px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-22077 size-full\" src=\"http:\/\/careerfoundry.inbearbeitung.de\/en\/wp-content\/uploads\/2023\/01\/sample_conversion_metrics_aarrr_presentation-1.png\" alt=\"A sample conversion dashboard for AARRR metrics, showing which customers are worth more than others.\" width=\"1200\" height=\"796\" title=\"\" srcset=\"https:\/\/careerfoundry.inbearbeitung.de\/en\/wp-content\/uploads\/2023\/01\/sample_conversion_metrics_aarrr_presentation-1.png 1200w, https:\/\/careerfoundry.inbearbeitung.de\/en\/wp-content\/uploads\/2023\/01\/sample_conversion_metrics_aarrr_presentation-1-300x199.png 300w, https:\/\/careerfoundry.inbearbeitung.de\/en\/wp-content\/uploads\/2023\/01\/sample_conversion_metrics_aarrr_presentation-1-1024x679.png 1024w, https:\/\/careerfoundry.inbearbeitung.de\/en\/wp-content\/uploads\/2023\/01\/sample_conversion_metrics_aarrr_presentation-1-768x509.png 768w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><figcaption id=\"caption-attachment-22077\" class=\"wp-caption-text\">Source: <em>Pirate Metrics Presentation, David McClure<\/em><\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">Let\u2019s go over some of the possible metrics for each of these.<\/span><\/p>\n<h4><span style=\"font-weight: 400;\">Acquisition Stage<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Here, you need to identify those metrics that determine how effectively you\u2019re able to acquire users or customers.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For instance, if your product is an application or website, you could track the number of downloads or website visits as a measure of interest in the product. Some metrics to measure acquisition can include:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Search engine optimization<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Social media<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Advertising<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Marketing<\/span><\/li>\n<\/ul>\n<h4><span style=\"font-weight: 400;\">Activation Stage<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Once prospects are exposed to your product, the next step is to get users to display interest and take desired next steps.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For instance, if your product is a website or an application, a sign of activation may be clicking on a call-to-action (CTA) button. Thus, metrics to measure activation can include:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Page visits<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Number of users experimenting with the product\u2019s features<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Typical <\/span><a href=\"https:\/\/en.ryte.com\/wiki\/Dwell_Time\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">dwell time<\/span><\/a> <span style=\"font-weight: 400;\">on your website or app\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Number of clicks on your CTA<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Retention Stage<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This is the stage where users move from being curious about your product to either losing interest or sustaining it. You must work hard to retain them and ensure continued interest in your product. For those interested, the goal should be to nurture them further.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Some useful retention metrics to track retention progress can include:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Product return rate<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Refund request rate<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Number of website revisits\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Number of repeat purchases<\/span><\/li>\n<\/ul>\n<h4><span style=\"font-weight: 400;\">Referral Stage<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Following retention, next, you need to closely follow your loyal customers and try to motivate them to spread the good word. After all, positive social proof is core to product success.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It\u2019s been seen that implementing an effective reward system is an excellent way to generate social proof and get loyal customers to refer your product.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Some key metrics to track the progress of referrals can include:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Number of signups\/purchases using the referral code<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Number of clicks on the \u201cRefer a Friend\u201d button<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Success of referral contests<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Clicks on referral promotions in emails<\/span><\/li>\n<\/ul>\n<h4><span style=\"font-weight: 400;\">Revenue Stage<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">The previous four stages of the customer journey we just discussed directly propel revenue growth. However, as product managers, it\u2019s also vital to know how exactly is your revenue is generated and what each user or Customer\u2019s Lifetime Value (CLTV) is.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Studies show more than <\/span><a href=\"https:\/\/www.thinkimpact.com\/customer-retention-statistics\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">70% of revenue<\/span><\/a><span style=\"font-weight: 400;\"> is often generated from high-value customers, and repeat customers spend <\/span><a href=\"https:\/\/savemycent.com\/customer-retention-statistics\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">30% more than other customers<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As it costs to acquire and nurture customers, it is important to identify your high-value customers and ensure they are given the attention they need. This directly translates to more sales and revenue. Thus, this step is to calculate the \u201crevenue per user\u201d metric and implement a reward system that adequately reinforces their positive behavior toward the product.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Some key metrics to measure that can include:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Minimum and break-even revenue<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Revenue compared against customer acquisition cost<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">As you start tracking the above metrics for the different stages, you\u2019ll realize that other opportunities often appear organically. This is the beauty and value of using frameworks like the <\/span><span style=\"font-weight: 400;\">AARRR<\/span><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h3 id=\"step-2-shortlist-tools-to-track-and-analyze-aarrr-metrics\"><span style=\"font-weight: 400;\">Step 2: Shortlist tools to track and analyze <\/span><span style=\"font-weight: 400;\">AARRR <\/span><span style=\"font-weight: 400;\">metrics<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">After identifying your list of relevant metrics, you need to pick the best-suited tools and methods to collect and analyze the data you plan to track.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Some useful tools for tracking identified metrics for each of the <\/span><span style=\"font-weight: 400;\">AARRR <\/span><span style=\"font-weight: 400;\">stages include:<\/span><\/p>\n<h4><span style=\"font-weight: 400;\">Acquisition Stage<\/span><\/h4>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"http:\/\/analytics.google.com\" rel=\"noopener\"><span style=\"font-weight: 400;\">Google Analytics<\/span><\/a><span style=\"font-weight: 400;\"> to understand website behavior<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/www.kissmetrics.io\" rel=\"noopener\"><span style=\"font-weight: 400;\">KISSmetrics<\/span><\/a><span style=\"font-weight: 400;\"> to understand customer\u2019s journey across devices<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/ahrefs.com\" rel=\"noopener\"><span style=\"font-weight: 400;\">Ahrefs<\/span><\/a><span style=\"font-weight: 400;\"> for keyword research, competitor analysis, and SEO<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/neilpatel.com\/ubersuggest\/\" rel=\"noopener\"><span style=\"font-weight: 400;\">UberSuggest<\/span><\/a><span style=\"font-weight: 400;\"> for generating content ideas<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/buzzsumo.com\" rel=\"noopener\"><span style=\"font-weight: 400;\">BuzzSumo<\/span><\/a><span style=\"font-weight: 400;\"> for identifying content that performs well<\/span><\/li>\n<\/ol>\n<h4><span style=\"font-weight: 400;\">Activation Stage<\/span><\/h4>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/www.hotjar.com\/product\/recordings\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Hotjar Session Recordings<\/span><\/a><span style=\"font-weight: 400;\"> to replay web sessions<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/www.fullstory.com\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">FullStory<\/span><\/a><span style=\"font-weight: 400;\"> to discover genuine customer frustrations<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/www.crazyegg.com\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Crazy Egg<\/span><\/a><span style=\"font-weight: 400;\"> to understand user behavior in detail<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/www.hotjar.com\/heatmaps\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Hotjar Heatmaps<\/span><\/a><span style=\"font-weight: 400;\"> for identifying where people spend more time on a webpage<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/www.luckyorange.com\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Lucky Orange<\/span><\/a><span style=\"font-weight: 400;\"> to spot any UX\/UI issues faced by individual users<\/span><\/li>\n<\/ol>\n<h4><span style=\"font-weight: 400;\">Retention Stage<\/span><\/h4>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/www.amplitude.com\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Amplitude<\/span><\/a><span style=\"font-weight: 400;\"> to ascertain what keeps customers loyal<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/qualaroo.com\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Qualaroo<\/span><\/a><span style=\"font-weight: 400;\"> to collect accurate customer feedback<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/www.zendesk.com\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">ZenDesk<\/span><\/a><span style=\"font-weight: 400;\"> to understand customer satisfaction metrics<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/userpilot.com\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">User Pilot<\/span><\/a> <span style=\"font-weight: 400;\">for insights into customer opinions\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/www.tidio.com\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Tidio<\/span><\/a><span style=\"font-weight: 400;\"> to improve customer service using live chat and chatbots<\/span><\/li>\n<\/ol>\n<h4><span style=\"font-weight: 400;\">Referral Stage<\/span><\/h4>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/referral-factory.com\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Referral Factory<\/span><\/a><span style=\"font-weight: 400;\"> for access to 1000+ pre-built referral programs<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/www.refersion.com\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Refersion<\/span><\/a><span style=\"font-weight: 400;\"> to get influencers to spread the word about your product<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/www.crewfire.com\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">CrewFire<\/span><\/a><span style=\"font-weight: 400;\"> to turn your customers into brand ambassadors<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/www.friendbuy.com\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">FriendBuy<\/span><\/a><span style=\"font-weight: 400;\"> to implement loyalty-based referral programs<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/www.invitereferrals.com\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">InviteReferrals<\/span><\/a><span style=\"font-weight: 400;\"> to make it easy for customers to refer to their network<\/span><\/li>\n<\/ol>\n<h4><span style=\"font-weight: 400;\">Revenue Stage<\/span><\/h4>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/dreamdata.io\/revenue-analytics\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Dreamdata<\/span><\/a><span style=\"font-weight: 400;\"> to gather insights related to the sales pipeline<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"http:\/\/revenueanalytics.com\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Revenueanalytics.com<\/span><\/a><span style=\"font-weight: 400;\"> for pricing strategies<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"http:\/\/insightsquared.com\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Insightsquared.com<\/span><\/a><span style=\"font-weight: 400;\">\u00a0 to derive intelligent insights about your revenue-related trends<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"http:\/\/boostup.ai\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Boostup.ai<\/span><\/a><span style=\"font-weight: 400;\"> to generate insights concerning revenue<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"http:\/\/klearly.com\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Klearly.com<\/span><\/a><span style=\"font-weight: 400;\"> to enhance demand generation outcomes<\/span><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">As a practice, it\u2019s a good idea to assign an estimated budget for each user behavior category. Doing so helps to clarify where your efforts yield good ROI and where you can improve.<\/span><\/p>\n<h3 id=\"step-3-run-ab-tests\"><span style=\"font-weight: 400;\">Step 3: Run A\/B tests\u00a0<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">With the previous steps, you unlock a pool of objective data for your analysis. According to McClure, you should then run A\/B tests to improve user engagement across the stages of the <\/span><span style=\"font-weight: 400;\">AARRR framework<\/span><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">An A\/B test compares the performance of two versions. It identifies which appeals more to users, thereby helping you optimize results in product management.\u00a0<\/span><\/p>\n<figure id=\"attachment_22078\" aria-describedby=\"caption-attachment-22078\" style=\"width: 1024px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-22078\" src=\"http:\/\/careerfoundry.inbearbeitung.de\/en\/wp-content\/uploads\/2023\/01\/AB-Testing-definition.webp\" alt=\"A graphic illustrating how an A\/B test works, with two different customer groups seeing different things.\" width=\"1024\" height=\"512\" title=\"\" srcset=\"https:\/\/careerfoundry.inbearbeitung.de\/en\/wp-content\/uploads\/2023\/01\/AB-Testing-definition.webp 1024w, https:\/\/careerfoundry.inbearbeitung.de\/en\/wp-content\/uploads\/2023\/01\/AB-Testing-definition-300x150.webp 300w, https:\/\/careerfoundry.inbearbeitung.de\/en\/wp-content\/uploads\/2023\/01\/AB-Testing-definition-768x384.webp 768w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption id=\"caption-attachment-22078\" class=\"wp-caption-text\">Source: <a href=\"https:\/\/startup.unitelvoice.com\/a-b-testing\" target=\"_blank\" rel=\"noopener\">Startup Stockpile<\/a><\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">For example, let us suppose that your acquisition metrics show satisfactory results. However, you observe that you could improve retention rates. In this situation, you may run variations of A\/B tests for retention to figure out how to fix this, keeping acquisition strategies and tactics unchanged.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Some practical tools you can use for conducting A\/B testing include:<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/vwo.com\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">VWO<\/span><\/a><span style=\"font-weight: 400;\"> to help with making data-driven decisions<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/www.abtasty.com\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">AB Tasty<\/span><\/a><span style=\"font-weight: 400;\"> to experiment, personalize, and optimize your products\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/www.convert.com\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Convert<\/span><\/a><span style=\"font-weight: 400;\"> to enhance your conversion rates<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/www.freshworks.com\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Freshworks<\/span><\/a><span style=\"font-weight: 400;\"> to implement a variety of A\/B tests<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/www.optimizely.com\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Optimizely<\/span><\/a><span style=\"font-weight: 400;\"> to improve your existing content, visuals, web performance, etc.<\/span><\/li>\n<\/ol>\n<h3 id=\"step-4-use-insights-to-guide-decisions-and-forecasts\"><span style=\"font-weight: 400;\">Step 4: Use insights to guide decisions and forecasts<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Finally, once you know what\u2019s working at each level of the <\/span><span style=\"font-weight: 400;\">AARRR framework<\/span><span style=\"font-weight: 400;\">, you need to translate all that information into practical and effective actions. Making business decisions based on insights over pure intuition is always advisable to achieve the best results.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">By using the <\/span><span style=\"font-weight: 400;\">AARRR framework<\/span><span style=\"font-weight: 400;\">, you can put together a simple and verifiable plan of action to improve your products and ultimately enhance customer satisfaction metrics.\u00a0<\/span><\/p>\n<h2 id=\"bottom-line-aarrr-enables-prioritizing-data-over-intuition\"><span style=\"font-weight: 400;\">4. Bottom line: AARRR enables prioritizing data over intuition\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Dave McClure\u2019s <\/span><span style=\"font-weight: 400;\">AARRR framework<\/span><span style=\"font-weight: 400;\"> is an excellent way for startups and businesses to drive product-led business growth. It equips product managers and growth hackers with the ability to identify vital metrics to measure performance and generate crucial insights for business growth.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As product managers, using the <\/span><span style=\"font-weight: 400;\">AARRR framework<\/span><span style=\"font-weight: 400;\"> provides excellent direction to understand customers, refine the funnel and navigate effective revenue and growth strategies.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The steps start with shortlisting the metrics that matter and ways to track them accurately. Thereafter, run A\/B tests to optimize outcomes and use analysis results to guide effective decision-making. We hope that with the tools we\u2019ve listed for each of the stages, you\u2019ll be able to glide into effective application of the <\/span><span style=\"font-weight: 400;\">AARRR framework<\/span><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you found this topic interesting and want to learn more about navigating a successful product management career, <\/span><a href=\"https:\/\/careerfoundry.inbearbeitung.de\/en\/short-courses\/become-a-product-manager\/?popup-tracking=blog-inline-PM\"><span style=\"font-weight: 400;\">sign up for this free Product Management for Beginners course<\/span><\/a><\/p>\n<p><span style=\"font-weight: 400;\">Here are some additional resources to explore:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong><a href=\"https:\/\/careerfoundry.inbearbeitung.de\/en\/blog\/product-management\/product-roadmap-guide\/\">The Complete 2024 Product Roadmap Guide<\/a><\/strong><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong><a href=\"https:\/\/careerfoundry.inbearbeitung.de\/en\/blog\/product-management\/product-management-process\/\">What Is the Product Management Process? A Complete Guide<\/a><\/strong><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong><a href=\"https:\/\/careerfoundry.inbearbeitung.de\/en\/blog\/product-management\/product-manager-career-path\/\">7 Great Steps on the Typical Product Manager Career Path<\/a><\/strong><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Since 2008 the AARRR or pirate metrics framework has been extremely useful for product managers. Learn what it is and how to use it in this guide.<\/p>\n","protected":false},"author":152,"featured_media":22052,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_lmt_disableupdate":"yes","_lmt_disable":"","footnotes":""},"categories":[55],"tags":[],"class_list":["post-22013","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-product-management"],"acf":{"homepage_category_featured":false},"modified_by":"Matthew Deery","_links":{"self":[{"href":"https:\/\/careerfoundry.inbearbeitung.de\/en\/wp-json\/wp\/v2\/posts\/22013","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/careerfoundry.inbearbeitung.de\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/careerfoundry.inbearbeitung.de\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/careerfoundry.inbearbeitung.de\/en\/wp-json\/wp\/v2\/users\/152"}],"replies":[{"embeddable":true,"href":"https:\/\/careerfoundry.inbearbeitung.de\/en\/wp-json\/wp\/v2\/comments?post=22013"}],"version-history":[{"count":1,"href":"https:\/\/careerfoundry.inbearbeitung.de\/en\/wp-json\/wp\/v2\/posts\/22013\/revisions"}],"predecessor-version":[{"id":30797,"href":"https:\/\/careerfoundry.inbearbeitung.de\/en\/wp-json\/wp\/v2\/posts\/22013\/revisions\/30797"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/careerfoundry.inbearbeitung.de\/en\/wp-json\/wp\/v2\/media\/22052"}],"wp:attachment":[{"href":"https:\/\/careerfoundry.inbearbeitung.de\/en\/wp-json\/wp\/v2\/media?parent=22013"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/careerfoundry.inbearbeitung.de\/en\/wp-json\/wp\/v2\/categories?post=22013"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/careerfoundry.inbearbeitung.de\/en\/wp-json\/wp\/v2\/tags?post=22013"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}