Framework Principles

The AARRR framework stands for

• Acquisition: How are users finding your product? This covers all channels through which potential customers first learn about your product (e.g., SEO, paid ads, social media).

• Activation: Are users experiencing the value of your product? This measures the user’s first interaction or meaningful engagement (e.g., signing up, onboarding).

• Retention: Are users coming back? This focuses on keeping users engaged with your product after their initial activation (e.g., weekly/monthly active users).

• Referral: Are users spreading the word? A great product encourages users to refer others, turning your customers into a marketing channel (e.g., referral programs).

• Revenue: Are you making money? This tracks the conversion of active users into paying customers and the lifetime value of those customers.

Practical Application

Sample companies

• Dropbox uses AARRR by offering free storage space for referrals (Referral), ensuring seamless onboarding (Activation), and running targeted ads (Acquisition).

• Slack has strong user retention by providing ongoing value through integrations and user engagement features.