Acquisition You acquire the user. For a SaaS product, this usually means a sign up. | Activation The user uses your product, indicating a good first visit. | Retention The user continues to use your product, indicating they like your product. | Referral The user likes your product so much that he refers it to other new users. | Revenue 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.
It's a big, big place......click on the image to be taken to the original infographic and see the (huge) numbers change as you watch.
It is a great resource, but if you need help making sense of it, click here to schedule a call with one of our team.
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Author - Michael McKennaMike 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. To get notified of new posts on this Blog, click on the button below.
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