Growth marketing can be seen as an extension of traditional marketing, a tool that dives deeper into the customer experience (and therefore requires more work to implement). One way that you can approach this growth mindset is by using the AARRR framework (also known as “Pirate Metrics” or the “Pirate Funnel”). This represents the customer lifecycle, with an emphasis on how to use this knowledge to grow your business.
Acquisition. This element considers potential customers. How many people use your website, ask questions about your products, or express interest in your services?
Question to ask: Where are potential customers looking for us?
Activation. The next step after acquisition, is activation — which occurs when people actively engage with your company. This can include anything from purchasing a product, sharing personal information for a lead, or subscribing to an email list.
Question to ask: How can I get customers to realize they want our product/service?
Retention. When customers continue to return to your business over and over again, that is considered customer retention. Naturally, organizations want to retain customers, especially after putting in so much work to get them on board in the first place!
Question to ask: How many customers stay with our company, and how can I increase that number?
Referral. Do your current clients or customers like you enough to refer you to people they know? (If so, you’ve got someone marketing for you!)
Question to ask: What makes customers advocate for our brand?
Revenue. How do your existing clients contribute to your revenue? What can you do to enhance their value to your organization throughout the customer’s time with your business?
Question: How can we increase our revenue with these customers?
The AARRR philosophy is often seen as a pipeline, and your job as a growth marketer is to move clients from the acquisition phase into the referral and revenue phases. Let’s take a look at what you’ll need to make this happen.