These five factors create the acronym for Dave McClure’s mobile growth strategy, also known as the AARRR Pirate Metrics framework. (Why ‘Pirate’ Metrics? Say the acronym out loud and notice the pirate-like pronunciation.) McClure, a Silicon Valley investor and multi-startup founder, developed this framework to help young companies narrow their focus on metrics that are specifically attributed to the health of their business and to accurately analyze data that measures the success of their marketing and project management.

Let’s take a closer look at these five factors.

Acquisition

Acquiring new customers sets the stage for success and enables business expansion. To achieve this, it’s important to understand how users discover your product. By analyzing the channels through which users discover your product, such as social media platforms, word of mouth, or search engines, businesses can adapt their marketing strategies accordingly. Understanding consumer behaviour will allow you to implement more deliberate systems to better reach your targeted consumers and reduce the friction to purchase/compel them to buy.

An example of an app displayed in the Apple App Store.

Activation

A user's first impression of an app or website is a critical moment in shaping their perception, usage, and referrals regarding the product. This means that in order to ensure success in the future stages, a user needs to have a positive first-hand experience. This is done by creating an intuitive model that engages the user. Avoid lengthy forms, complex tutorials, or leaving users in the dark without explanations. Ensuring the process is simple, gradual, and smooth will result in a better overall user experience from start to finish.

By delivering high value, user-targeted experiences, users are more likely to activate and fully engage with the platform, thereby creating a strong foundation for future cross-commodity sales opportunities.

Displaying successful messaging within an app as a toast notification.

Retention

After creating a positive user experience on your website or app, determine how the user returns. Showcase what sets you apart from competitors and emphasize the benefits users gain by choosing your app or website. Differentiating yourself and delivering value will help to foster customer loyalty. 

Deriving current analytics from your app’s data is an immensely powerful tool when considering user retention. It helps identify feature usage, errors, and enhances the overall user experience. Utilizing this information allows you to continually improve on features you know the user keeps coming back for, aids in determining areas that require innovation, and preemptively identifies areas that need addressing before they impact users. By prioritizing personalized enhancements and user experience, you establish strong, long-term client-customer relationships.

An in-app prompt to entice a user to return to the app.

Revenue

Profit generation is a key component of sustainable growth. Generating revenue allows you to reinvest in your business, develop new features, and scale your operations to support continued growth. Find out what drives your revenue and take advantage of those features in order to maximize that revenue stream. 

A mobile product is an excellent source of revenue, offering a variety of income opportunities. By incorporating promotional items like coupons and flyers, you not only boost your brand promotion but also entice users to shop with you. Simplify the purchasing experience with easy payment options like Apple or Google Pay, creating an effortless, user-friendly experience, allowing customers to check out with a single touch within your app.

Utilizing mobile features to increase a user's spend within the app.

Referral

The final factor in establishing a consistent growth strategy is user referrals. Are users telling others about you and their experience? Users sharing positive experiences is a great way to acquire new customers and build a reputation. Determine how you are going to motivate users to tell others about your app or website to set yourself up for continued growth and success. 

A common strategy is to prompt users after they’ve successfully completed an event in the app to then rate their experience and/or take them to the app store to leave a review. Anything from making or receiving a purchase to signing up for a loyalty program are typically indicators the user is enjoying the product and may encourage others to try it out for themselves.

An example of how a user may be referred to your app.

By focusing on these five factors, you can establish a solid strategy for creating a mobile or web experience that results in increased revenue, customer loyalty, and cross-commodity sales. It is essential to consider how users find and engage with your product, the user experience, and what sets your product apart from competitors. By following these steps, companies can ensure that they are on track to achieving their growth objectives and setting themselves up for long-term success.