What is AARRR and how it boosts growth?

Emre Can Kartal
5 min readMay 30, 2021

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Nowadays I’ve been striving to widen my marketing knowledge and continue to use CXL to do this. I’ve heard something about AARRR which is one of the best funnels to grow the business in my humble opinion at the lesson and I’ve researched it afterwards.

One of the biggest mistakes made in marketing plans is to create funnels that do not allow any errors, which prevents flexible working. In this context, the AARRR system is very useful to create funnels that have plenty of benefits. Because it has brought the main topics that change from project to project into the same context. In other words, whether you organize an event or sell a product, you can work with the AARR system. In this article, I will talk about AARR very simply.

Photo by Franki Chamaki on Unsplash

The AARRR system contains explanations on how to grow an enterprise, but I think this system can be used in any project. In other words, you can use AARRR while constructing your brand’s new project. I will use it.

Let’s say you have a product and you want to create efficient campaigns to reach people and make them happy. First thing first you need efficient brainstorming. Create a white label, separate these by five and write down on each part of it these magic letters: A, A, R, R, R.

What is AARRR?

AARRR is an abbreviation of acquisition, activation, retention, referral, and revenue created by Dave McClure. These terms are crucial to determine the data and achieve goals. You can watch the video below to learn what is AARR by the founder of this funnel type.

A — Acquisition: How to get people to your landing page including your product or service?

A — Activation: How to make people who enter your landing page happy?

R — Retention — How to get people to your page again?

R — Referral — How to make people invite their friends?

R — Revenue — How to monetize these people?

Limit the context, let the ideas

Let’s turn back to brainstorm. It is clear that if you have no address to aim for, you won’t arrive anywhere. So first of all you should limit the context and let the ideas wander in it. We can go with AARRR that makes ideas stronger and connect the main part of the roadmap.

“The worst way I’ve seen people do brainstorming sessionsis bring 10 people into the room and say, let’s just talk for an hourabout how we can grow the business.” John McBride from Growh Marketing course on CXL

Acquisition

SEO, SEM, email marketing, affiliate marketing… You can get people your website in this way. First of all, you need a landing page that is not confusing, clear, and useful for your product. In this stage, you should evaluate how to build an efficient and useful landing page for your product how to get people to your landing page. You can write the call-to-action copy like the customer.

· Customer: “This is hard to measure, I have no time to do that.”

· Your copy: “We know this is hard to measure and take so much time. The product ensure the data in 10 seconds.”

It is not a good thing to show the same page and ad creative to each segment that includes the people think differently. So it means you should make A/B testing and optimize ads in order to reach maximum people with minimum budget.

Activation

So we’ve prepared a landing page, segmented the audience, created ads and the campaign is almost ready to start. We should make a brainstorm in order to how to make the people we get the website happy. Maybe free stuff can handle this, content marketing will save your life. Let’s say you have a cookie shop, it will be sufficient to give free and special recipes on how to make cookies at home to reach people interested in your shop.

Retention

The next is retention that is related to the question of how to get people to the website again. This stage shows you the real answer to the questions that are landing page is efficient to activate the audience and are the ads run effectively. If you gather potential customers’ email and analyze the clicks of them on the website, you can automatize the email campaigns to send these people new free things related to their interest, so you can get the people your website again in this way.

Referral

Have you heard about the brand-lovers? Brand lovers advocate your brand for the haters and invite their friends to meet your brand and use your product. It is related to the level of happiness you give your audience.

It’s fine for people to stand up for your brand because you’re going to need people to explain to those who don’t like your brand as well as those who love it. Having people who don’t like will keep those who like it more active in a way. Therefore, after positioning your brand, you should have an audience that will recommend you to your friends and defend you. At the Acquisition stage, you should also pay attention to what kind of group this advocacy group will be.

Revenue

The last one is money. We create an efficient customer journey, optimize things we can and make people happy through this journey, let’s translate this journey to money. You should think about the question that how to make money.

This example conversion metrics image from the “Startup Metrics for Pirates: AARRR!” speech of Dave McClure from Ignite Seattle 2007.

The last words for AARRR

You build on how to attract people to your site during the acquisition phase, how to make them happy during the activation phase, how to attract them back to the site during the retention phase, how to invite their friends during the referral phase, and how you can earn money with this system at the revenue phase.

The AARR system consists of these briefly. I’ve talked about AARRR in a very basic way here. I will work on the subject and use AARRR in new projects. I will update this post based on the results.

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