AARRR Framework

What is it?

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.

Why do you need it?

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

Who uses it?

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

When can one use AARRR framework

How to use?

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.
AARRR Framework