AARRR: Internet entrepreneurs must master the indicators

How does a start-up company do data analysis? Web analytics tools in the indicators of thousands of, in the end to what data to start? In addition to traffic and conversion rate, what data is related to the growth of the company? Maybe you can start by understanding aarrr metrics. Aarrr Metrics is a set of indicators presented by Dave McClure, founder of 500Startups, a well-known incubator center in Silicon Valley, which describes the behavior of users at different stages, and we can take a look at the current situation of career development.

　　What is AARRR?

Aarrr is a set of indicators from the user life cycle perspective, defined as follows:

Acquisition (access to users): Users from a variety of pipelines to visit.

Activation (become a valid customer): After the first visit, the user uses some of the main features we provide, rather than looking at them and leaving.

Retention (user retention, return visit): The user visits again.

Referral (user referral): The user likes the products or services we offer and recommends that others use them.

Revenue (user pays): The user decides to pay for the purchase of our products or services.

Aarrr_metrics

Acquisition: The beginning of everything

When our services began to operate and the marketing activities began to run, users started pouring in from a variety of pipelines. This is the beginning of everything: no one to come, no one has the opportunity to know more about our products and services, but also not to talk about what profit. Today's pipeline is very diverse, so be careful to set up tracking procedures to identify traffic from different pipelines for further optimization. The flow of diversion is usually the responsibility of the marketer and must be tried to find different pipelines, including:

(1) the highest CP value;

(2) capable of impulse;

(3) The highest conversion rate under the same cost.

The conversion rate here is not just a purchase, but a proportion of the various stages that are included in the AARRR, which can be measured.

　　Activation: The customer is on the door, and then what?

The customer is on the door! Do you have a little stroll? Have you ever tried to meet our service? Did you use some of the main features? Just visiting is not enough, visitors must complete some things, only to be more understanding of what we provide products or services, they will be in the mind to calculate what is not cost-effective, they have no demand ... And so on. If the interest of the customer is aroused, they may want to make the relationship go a step further: perhaps registering, perhaps downloading the trial software we have provided, maybe reading three news in a row ... Or something else that we think is important.

In view of the different industrial characteristics, we should set a more appropriate activation measurement index. For example, if it is Dropbox, it will be to track customers who have downloaded the client software, have read the page introduction text of the customer, have completed the registration of the customer ... and other behaviors. If some pipes bring in visitors activation too low, then you may want to look back on whether these are the right channels, the right group. Activation can be subdivided into more steps or metrics, tracking improvements for each step, or using usability testing, A/B testing to continue to optimize.

　　Retention: Let Customers love

If the customer is satisfied with the experience of the first visit, then they will probably come to us again when they have the same demand in the future. However, the frequency of visit is also related to the industry characteristics, with the purchase cycle, for example: people visit the frequency of news sites and visit car rental site frequency must be different, so in planning retention, it is necessary to examine the industrial characteristics to design, and to examine the retention rate of different time-length. Like in the gaming app industry, you'll often observe 30-day retention, 7-day retention, the next day retention rate, and more.

Even if the customer is satisfied with the first experience, it may be because of a variety of factors, but not to visit (perhaps just forget). At this time, we can design some automated e-mails to remind our customers of our existence. There are several planning directions for automated mail:

According to the customer's life cycle in the service: just registered customers can send teaching articles, the more hands-on customers can encourage them to explore new features ... Wait a minute.

Provide weekly and monthly status reports: Regularly report the current situation to users, such as SlideShare will regularly send you the amount of views, downloads, encourage people to share the film more actively.

triggered by different events: added to the shopping cart but not purchased? Tracked a friend and never logged in? Come back now ~ (Wave)

　　Referral: Good things to share with good friends

Recommendation is a part of what we must pay attention to, except because the community website is popular, many people will share on it, the friend's recommendation is often more persuasive than the advertisement. If customers are satisfied with this experience, why not encourage them to share it? Programmer Inn Www.proginn.com is an example of using a friend recommendation to quickly grow: when the referral of friends to join, they can get the capacity reward, so there will be motivated to actively promote, the invited friends can also be rewarded, it will not feel like simply being used. From the recommended traffic, can be subdivided: how many people are recommended to each user on average? Proportion of successful referrals? What is the recommended conversion rate? Which types of users prefer to recommend? More influential? How to design the recommended reward mechanism? There are many optimization directions that can be tried.

　　Revenue: Business exists to profit

What is our profit model? There are many businesses that profit from selling goods and services, so it is important to make sure that each stage is successful in the process of browsing the product, adding to the cart, paying for it, and monitoring the completion ratio, bounce rate, and so on for each step. In the case of the freemium model, in addition to paying attention to the proportion of paid users, the contribution of each paid user, it is also important to ensure that the free-to-pay process is smooth, and that consumers have no doubts. If it is through advertising, then it may not be focused on the revenue indicator, but try to increase traffic and stickiness, in order to increase the exposure of advertising.

The above is a brief introduction to the various elements of AARRR, but also a slight mention of the direction can be optimized, and finally there are a few things to remind: must ensure that all data are responsible, the data is only the result, can not tell you the reasons behind, to find out why should consider some qualitative research, should think about the priority of these data. For example, most startup should focus on activation and retention, to confirm that their products really solve some people's pain point.

AARRR: Internet entrepreneurs must master the indicators