AARRR – PIRATE METRICS There is no way back!
WHAT IS THE PROBLEM YOU ARE TRYING TO SOLVE?
WHAT IS YOUR MOST IMPORTANT CUSTOMER SEGMENT?
WHO IS YOUR BEST CUSTOMER?
WHY IS THIS YOUR BEST CUSTOMER?
HOW DO YOU (PLAN TO) MAKE YOUR MONEY?
HAVE YOU COLLABORATED WITH YOUR (POTENTIAL) CUSTOMERS?
WHO TRIED THIS BEFORE?
WHAT IS YOUR MOST USED FEATURE?
THERE IS NO WAY BACK!
YOU’RE DOING TOO MUCH
DON’T HANG ON TO THINGS THAT YOU MIGHT BUILD SOMEDAY
CREATE HYPER FOCUS
KILL A FEATURE EVERY WEEK
TAKE OUT A FEATURE AND MONITOR THE REACTIONS
OPTIMIZE FOR HAPPINESS
Either they love it or hate it, all other reac;ons means you’re screwed
THERE IS NO WAY BACK!
AARRR Dave McClures’
NARRATIVE OF YOUR STRATEGY, PROGRESS
Create different storylines for different combina;ons
EXAMPLES Let’s take a look at this meta-‐framework
#1 DOGGIECOLR
Social Network for Dog Lovers Makes money through advertising and affiliate sales of lush dog collars.
Key business drivers Advertising and affiliates need large traffic/page views so growth and referral are key.
VISIT
SIGN-UP
CREATE PROFILE
POST PICTURES COMMENT
SHARE PICTURES
INVITE FRIENDS
BUY COLAR
ACQUISITION
ACQUISITION
ACTIVATION
ACTIVATION
REFERRAL
REVENUE
#2 AGILESAMBA
Project management tool for Agile startups Makes money through monthly subscriptions. Has a free trial period.
Key business drivers Conversion to paid users.
VISIT
SIGN-UP
CREATE PROJECT
UPGRADES PAID
CANCELS ACCOUNT
ACQUISITION
ACQUISITION
ACTIVATION
REVENUE
REVENUE
ACQUISITION Let’s take a closer look at this meta-‐framework
ARE YOU FISHING IN THE RIGHT POND?
HOW DO YOU GET NEW CUSTOMERS?
IS YOUR MESSAGE REACHING THE RIGHT PEOPLE?
ARE YOU FOCUSSING ON THE RIGHT PEOPLE?
ACTIVATION
ARE YOU USING THE RIGHT BAIT?
HOW DO YOU LAND POTENTIAL CUSTOMERS?
IS YOUR MESSAGE CLEAR?
ARE YOU HELPING YOUR CUSTOMERS?
RETENTION
DO YOU USE THE RIGHT MATERIAL?
HOW DO YOU MAKE CUSTOMERS STAY?
DO YOU OFFER THE RIGHT EXPERIENCE?
DO YOU OFFER QUALITY?
REFERRAL
HOW DO YOUR FISHES LURE IN MORE FISHES?
HOW IMPORTANT IS WORD OF MOUTH?
HOW EASY IS IT FOR CUSTOMERS TO SHARE THEIR EXPERIENCES?
REVENUE
SELLING YOUR FISH
HOW DO YOU (PLAN TO) MAKE YOUR MONEY?
ARE YOU CATCHING THE RIGHT FISH?
TIME TO START MEASURING AND LEARN
THERE IS NO WAY BACK!
VANITY METRICS Metrics that make you feel good but don’t tell anything…
Google Analy;cs
TechCrunch
WHAT WOULD INDICATE SUCCES?
Let us examine Facebook…
• 150 000 Users • Numerous superior compe;tors • …
WHAT WOULD INDICATE SUCCES?
Let us examine Facebook…
• 75% of the users visit the site 1 or mul;ple ;mes a day • 1 month aUer the launch in a student campus they could acquire 90%
of the student body
• 150 000 Users • Numerous superior compe;tors • …
Metrics that matter!
• Value Hypothesis à How do we add more value to our customers live?
• Growth Hypothesis à Through what engine will we acquire new customers?
Metrics that matter!
• Value Hypothesis à How do we add more value to our cusotmers live?
• Growth Hypothesis à Through what engine will we acquire new customers?
Metrics are… -‐ Ac;onable -‐ Auditable -‐ Accessible
COHORT Fact: New users are more engaged! Group users in month or week.
A-B TESTING Let different groups of customers validate different new features
RATE OF VALIDATED LEARNING
Experiment, validate learning & change!
VIRAL COEFFICIENT Focus on Acquisi;on & Referral – Revenu is side effect
Viral Coeff = Invites * Conversion Rate Examples: Facebook, Hotmail…
LIFETIME VALUE (LTV) Focus on Ac;va;on & Reten;on – Payment is central
LTV = Cost of Acquiring Customer / Earnings from that customer Examples: Amazon, Match.com…
Recommended Software
• Ubounce • KISS Metrics • Survey.io • Wufoo • LinkShiUr • …
WE DONT’T KNOW ENOUGH!
WE’RE DOING TO MUCH!
USE AARRR TO BUILD THE NARRATIVE OF YOUR STRATEGY!
Acquisi;on Ac;va;on Reten;on Referral Revenue
FOCUS ON REAL METRICS
Metrics are… -‐ Ac;onable -‐ Auditable -‐ Accessible
GO OUT AND COLLABORATE WITH YOUR CUSTOMERS!
THERE IS NO WAY BACK!
