Growth hacking is about finding your bottlenecks and relentlessly optimizing them. Pirate Metrics, also known as AAARRR (Awareness, Acquisition, Activation, Retention, Revenue, Referral), is a proven framework to do just that. Named for the “ARRR!” sound it makes, this model breaks the customer journey into six stages, each with its own key performance indicators (KPIs). Originally coined by Dave McClure for startups as a five-metric AARRR model, an initial Awareness stage was later added to form the full AAARRR funnel. In this guide, we’ll explain each stage of Pirate Metrics, the specific KPIs to measure, and growth hacking tactics – including unique examples from Ourgreenfish’s MarTech solutions – to accelerate growth at every stage.
No one can enter your funnel if they haven’t heard of you. The Awareness stage is about expanding your brand’s visibility and reach at the top of the funnel. Nurturing awareness is critical – if no one knows about your product, they won’t become customers. Key awareness KPIs focus on how many people encounter your brand and content:
These metrics are typically tracked via analytics tools (Google Analytics, social insights, etc.) to gauge brand exposure. Strong awareness means more potential users entering the next stage.
Acquisition is about turning awareness into new users or leads. It measures how effectively your marketing efforts convert interested prospects into sign-ups or customers. Key acquisition KPIs include the quantity and quality of new contacts coming in and the efficiency of your conversion process:
Tracking these metrics (often via a CRM like HubSpot and marketing automation) shows which channels and campaigns bring in the most (and best) new users. For example, a low visit-to-signup conversion rate might signal a need to improve your landing page or offer. Acquisition data helps prioritize marketing investments for the highest return.
Activation gauges how many acquired users have their first successful experience – the “aha!” moment when they realize your product’s value. If users don’t reach this point quickly, they may disengage and leave. Common activation KPIs include:
The goal is to guide new users to value as fast as possible – through onboarding tutorials, personalized walkthroughs, etc. A well-activated user is far more likely to become a satisfied, retained customer (and eventually generate revenue and referrals).
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Retention is about keeping users engaged over time. It’s much more cost-effective to retain a customer than acquire a new one, so strong retention drives sustainable growth. Key retention KPIs include:
High retention indicates happy customers and a good product-market fit. These metrics, tracked via product analytics and CRM, tell you if users are coming back consistently. If retention is lagging (or churn rising), growth hackers might deploy win-back campaigns, add loyalty rewards, or improve customer support to increase satisfaction. Notably, improving retention also boosts referrals, as long-time loyal customers are more likely to recommend you to others.
Revenue metrics measure how growth translates into income. After all, growth isn’t just about user counts – it must be sustainable and profitable. Important revenue KPIs include:
Analyzing revenue-focused metrics ensures your growth hacks are contributing to the bottom line. For example, tracking MRR and ARPU can reveal opportunities for upselling or pricing optimizations. Data on revenue, combined with customer acquisition cost, also helps calculate ROI for your growth initiatives. The aim is to steadily increase revenue per customer and overall revenue growth rate as your user base expands.
Referral metrics show how much your existing customers drive new customer acquisition via word-of-mouth. When customers become advocates, your growth can compound at low cost. Referral KPIs include:
High referral numbers mean your customers are effectively marketing for you – the ultimate growth hack. Companies encourage this through referral programs (for example, incentives for inviting friends) and by simply providing great service that turns customers into “fans.” Monitoring referral data (via surveys, tracking invite links, social listening, etc.) helps you identify your most enthusiastic promoters and the channels where referrals happen. A strong referral loop can dramatically lower your cost of acquisition and accelerate growth.
Pirate Metrics guide where to apply creative growth hacks. By examining which AAARRR stage is weakest, growth teams can ideate and experiment on that area. Here are a few real-world strategies – including Ourgreenfish’s MarTech capabilities – that leverage Pirate Metrics:
References : Business Explained. (2024). Marketing Frameworks Explained. Retrieved from https://business-explained.com/shop/marketing-frameworks-explained/
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