Browse Definitions :
Definition

AARRR metrics

AARRR metrics (also called pirate metrics) is an approach to analyzing a business' performance that focuses on customer satisfaction. The metrics, which were developed by venture capitalist Dave McLure, are used by growth hackers, analysts, consultants and business owners  to improve profitability.

AARRR is an acronym the individuals standing for:

Acquisition - How does the business get new customers?

Activation – How many customers are satisfied with their shopping experience?

Retention – How many customers return?

Revenue – How much money does each customer bring to the business?

Referral – How many customers suggest that other people should consider your business?

An important goal of AARRR metrics is to break the customer base down into stages that make analysis easier.  The easier analysis allows the issues of the business to be seen and addressed individually for more efficient problem solving keeping. The ultimate goal of AARRR metrics is to maximize the profitability of a startup.

By breaking down customer response into stages, AARRR allows business owners to honestly focus on where their business could do more to help itself rather than blame the market or the entirety of their business. For example, the metrics may reveal that the business doesn’t draw as many customers as it needs. Then the business can begin to focus on how it might be failing to attract customers and take corrective measures. 

This was last updated in April 2019

Continue Reading About AARRR metrics

SearchCompliance

  • compliance risk

    Compliance risk is an organization's potential exposure to legal penalties, financial forfeiture and material loss, resulting ...

  • information governance

    Information governance is a holistic approach to managing corporate information by implementing processes, roles, controls and ...

  • enterprise document management (EDM)

    Enterprise document management (EDM) is a strategy for overseeing an organization's paper and electronic documents so they can be...

SearchSecurity

  • user authentication

    User authentication verifies the identity of a user attempting to gain access to a network or computing resource by authorizing a...

  • unified threat management (UTM)

    Unified threat management (UTM) describes an information security (infosec) system that provides a single point of protection ...

  • attack vector

    An attack vector is a path or means by which an attacker or hacker can gain access to a computer or network server in order to ...

SearchHealthIT

SearchDisasterRecovery

  • risk mitigation

    Risk mitigation is a strategy to prepare for and lessen the effects of threats faced by a business.

  • call tree

    A call tree is a layered hierarchical communication model that is used to notify specific individuals of an event and coordinate ...

  • Disaster Recovery as a Service (DRaaS)

    Disaster recovery as a service (DRaaS) is the replication and hosting of physical or virtual servers by a third party to provide ...

SearchStorage

  • cloud storage

    Cloud storage is a service model in which data is transmitted and stored on remote storage systems, where it is maintained, ...

  • cloud testing

    Cloud testing is the process of using the cloud computing resources of a third-party service provider to test software ...

  • storage virtualization

    Storage virtualization is the pooling of physical storage from multiple storage devices into what appears to be a single storage ...

Close