Guide:
The AARRR framework for a subscription lifecycle that drives revenue
The AARRR framework (also known as Pirate Metrics) provides you with a five-step roadmap to acquire, activate and retain customers, motivate them to refer your business and therefore increase your revenue.
Read in our pirate metrics guide:
- How to gain awareness for your company and product and acquire new leads
- How to activate and convert customers with the right incentives
- How to keep your customers loyal and happy and optimize your customer lifetime value
- How to use your happy customers as brand ambassadors
- How to create new revenue streams and optimize your pricing
Just fill out the form and come on board!
Get your guide
What to expect
What are the pirate metrics?
The AARRR-framework is a set of five trackable metrics that identify user behavior for successful product-led growth businesses:
Acquisition/Awareness – measures how to increase awareness for your brand and products and reduce acquisition costs
Activation – measures to motivate leads to act, decrease time-to-purchase and enable a successful purchase/conversion
Retention – make sure that customers feel connected to your brand and business
Referral – motivate customer referrals and user-generated content
Revenue – manage and optimize your revenue streams, up- and cross-sell activities and other ways to increase revenue
The AARRR framework is lovingly named “pirate metrics” due to the acronym’s similarity to the pirate utterance “AARH”. It acts as a helpful map to increase revenue by optimizing the customer and subscription journey along different touchpoints.
With our guide, we aim to explain the importance of each step of the AARRR framework and provide you with actionable best practices and use cases, so you have the right tools to optimize your subscription journey.
From acquisition to lifetime value
Optimize your CAC:LTV ratio
To make sure you allocate you marketing and sales budget optimally, you need to make sure that the ratio for your customer acquisition cost (CAC) and your customer lifetime value (LTV) is ideal.
The standard ratio is 1:3, although there are experts who advise to aim for 1:4 or even 1:5 to stay flexible during less successful quarters.
A good ratio can be achieved by making sure that you focus on acquisitions that are more likely to stay loyal and spend money. There is a valid discussion to be had how much this will affect the quantity and how to attract customers who will not churn shortly after subscribing.
In our guide, we will provide you with some tips which levers usually drive a higher LTV and reduce churn.
Retention starts with conversion
Making the entire subscription journey count
It is all too easy to focus all your efforts and budgets on acquisition and new customer generation, however, there are many ways to up- and cross-sell to existing customers and especially in the SaaS sector, you need to nurture long-lasting relationships to drive the CAC:LTV ratio up.
Nurturing customer relationships also includes unpleasant topics such as managing price increases and enabling flexible pause and cancellation options.
This might seem counter-intuitive but there have been studies that show that 1 out of 5 churned customers will return to a business. Now, the easier it is to pause or cancel a subscription, the more likely these customers will subscribe again (and even recommend your business).
Read in our guide how to navigate different aspects of the subscriber journey.
Conquer your revenue goals
Download our pirate metrics guide to successfully implement the AARRR framework into your customer journeys and increase your customer lifetime value and revenue.