How to identify bottlenecks that hinder growth in your product?
How do your users come to the product by following which steps? At which stage do they take ownership of the product or decide to stop using it? How long do they stay engaged with the product? Do they come back to use the product again, or do they recommend it to others?
Understanding how prospective users behave when trying to grow your business or product and identifying bottlenecks becomes critical during the growth stage. Dave McClure’s brainchild the Pirate Funnel, or in other words the AAARRR approach helps us understand the interaction of users with the product.
What is the Pirate Funnel?
We call the approach to measuring users based on these KPIs and sequencing a funnel.
A — Awareness: How many people have you reached?
A — Acquisition: How many people visited your site?
A — Activation: How many did you activate or subscribe?
R — Retention: How many came back or made a repeat payment?
R — Revenue: How many are consuming or have started making payments?
R — Referral: How many recommended it to others?
(Retention and revenue may change positions depending on the dynamics of the product.)
