AARRR Framework

AARRR is a popular framework to track product/business metrics. It is an acronym that stands for

• Acquisition - Acquiring users. Ex: Number of users visiting a website.
• Activation - Activating users. Ex: Number of users signing up.
• Retention - Retaining users. Ex: Number of monthly active users.
• Referral - Word of mouth. Ex: Users inviting their friends
• Revenue - Generating monetary value. Ex: Average purchase value.

It helps us measure every stage of the funnel. For example, 500 people visited your website this month, 50 users signed up and 5 of them bought something.

• Stop leakage and optimise in every phase of the customer journey
• Monitor how your product is performing with actionable decisions

Good for measuring success of a new product, software or service.

Example use case:

• 500 people visited the website and 1.2% bought something. Say, in your industry averages a 2% conversion rate.
• It makes you think about improving your conversion workflow. It makes you think - is it because users did not find a good reason to sign up or are we pricing the product right?
• This framework helps you identify where you lose your users, and improve that part of the customer journey.