You acquire the user. For a SaaS product, this usually means a sign up.
The user uses your product, indicating a good first visit.
The user continues to use your product, indicating they like your product.
The user likes your product so much that he refers it to other new users.
The user pays you. Yay!
Pirate Metrics is a simple metrics and analytics foundation for startups devised by Dave McClure in 2007. The Metrics are based on the assumption that every startup needs to get customers through 5 key stages and Pirate Metrics helps you perform quantitative and comparative analysis of your business by tracking these key metrics:, Acquisition, Activation, Retention, Referral & Revenue. AARRR!
The infographic below is a great breakdown of these metrics using the example of a project management SaaS app.
If you want to find out more about Pirate Metrics, check out the great Blog Post by Pierre Le Chelle
Author - Michael McKenna
Mike has been working in the CRM arena since 2001. With a BA in Economics and a BSc. in Financial Information Systems from Trinity College Dublin, plus a background in project management and sales, Mike is a recognised CRM expert with over a decade of experience in delivering cost-effective solutions that work.
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