What is the AARRR Framework?

The AARRR is a framework that allows marketing professionals to convert and retain leads, by following a Growth Hacking strategy.

What is the AARRR framework?

AARRR is a framework with 5 main stages that represent the user life cycle for the company:

• Acquisition: to acquire new customers;
• Activation: to identify potential customers;
• Retention: to retain customers;
• Referral: to transform customers into brand ambassadors;
• Revenue: to improve revenue per customer.

This framework allows marketing teams to identify the KPIs of each step, and determine the actions to take for each one. So, the objective is to adjust marketing campaigns according to the results based on analyzing the user behaviors and to improve the conversion rate at each stage.

Let’s learn more details about each step:

Acquisition: acquiring new customers:

To acquire new customers, you have to make your brand known. You can use one or more online communication channels, such as: social media, SEOs, SEAs, emailing campaigns and backlinks. Or, through offline communication channels, like: radio and TV advertisements, flyers, press, and people’s talk.

In this step, we can identify the most efficient acquisition channels, by determining the channels that bring the most traffic, the cost per user per channel, and the conversion rate of each channel.

Tip: To identify this data, we recommend that you use an analysis tool such as Google Analytics.

Activation: identify potential customers:

To measure the activation rate per channel, we determine an activation indicator corresponding to an action of a user who has shown an interest in one of your products. The activation indicator can be: number of views on Instagram stories, number of clicks on a product, subscription to a newsletter, number of pages visited, signing up to accounts, adding products to the cart, etc.

The activation rate optimization is mostly based on the user behaviors, so you have to focus more on ensuring a good first experience for each user so that they keep a good impression about you.

Retention: building customer devotion:

After people start using your product or service, you have to retain them so that they will come back once again to buy from you, and therefore this step is very important to maintain your growth.

To optimize the retention rate of your users, consider segmenting your audience, and implementing actions according to user activity. For example, profiles that have not been active for more than 6 months, you can offer them a promotional offer to make them active again.

Referral: transforming its customers into brand ambassadors:

If you have succeeded your mission of retaining your customers, make them ambassadors of your brand and encourage them to talk about you in their stories on social networks or in their entourage. This helps you to maintain your growth for the long-term.

Revenue: improve your revenue per customer:

This stage generates revenue for your business. So, you have to focus on optimizing the conversion rate of users to leads and then to customers, and on the revenue generated per customer. For example modifying prices, special offers, giveaways, etc.

Marketing professionals and entrepreneurs use the AARRR framework as a guide for growing their business. What do you think?

If you want to talk about it in detail with our experts, contact us!

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