John went to the gym early in the morning.
Afterwards, like usual, he dropped by his favourite supermarket to buy some stuff.
He had a small shopping list and it was feeling hungry so he knew that it would be quick.
He arrives, picks up the shopping cart, and goes inside.
But today everything is different.
The bagels are not on the same place.
Fresh vegetables and fruits changed places also.
He needs to go aisle by aisle to discover what he wants to shop.
In the end, is cart has 20% more items than what it was expected.
Imagine if this was recurring and usual for every customer that went to that supermarket.
Everything was changed for each and anyone of them so they could increase 20% sales.
At this moment you’ve already understood the analogy right?
This is the power of knowing your persona and having a overall overview of how your product/service Funnel works.
This is why knowing how a funnel works and using it in tandem with your Customers Buyer Journey is crucial.
Dave McClure developed this framework later in the 2000s decade, when he realized that many startup and companies where only looking at vanity metrics.
Read about McClure’s framework here.
With this framework the main goal is to have a clear focus on what you should look at when working for each stage or phase of your customer journey with your product or service.
For each step of the funnel you have a different goal and objetive that you wish to achieve, thus different ways of reaching out and communicating with your Prospects until they reach to become a Customer.
The AARRR Framework (a.k.a. as Pirate Metrics) is compose of 5 stages:
Think of this as a funnel, that for each step you will be loosing customers along the way, because not everyone will do the actions that you wish them to do.
The first step to harness the AARRR funnel is to know which metrics you should look into for each stage.
Let’s just see a quick example of what can happen withing a AARRR Funnel for a Print-on-Demand Picture Service.
People can choose their pictures and print them on any type of canvas.
He’ll call this service Quick Check ✔️
The typical AARRR step-by-step would be:
Prospect Clicks Ad > Visits Website > Tries the Service > Goes Away to search for Other Providers > Comes Back > Makes an Order > Is Happy 😃> Does a Testimonial Video
Each of these steps needs to be measured.
See how everything is coming together?
In the next posts we’ll delve into each of the 5 stages of the AARRR.
👉Traffic & Activation
👉Revenue and Retention
👉Loyalty and Referral
Implementing AARRR in the Growth Process
In GHS Growth Process we’ve got you all covered.
We’ve created a simple sheet that will give you a quick overview of your Experiments and where they fit in your strategy.
So we’ve made a special column for each Phase of the AARRR Funnel, so you can define in which stage you wish to implement your Ideas.
If you wish to know more about our Growth Process hop-on to this amazing blog post.
Summarizing, the AARRR framework is the simplest and most effective way to look at optimizing your business and measuring growth.