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Measure progress

Pirate metrics (AARRR)

Also called AARRR, Pirate funnel

Follow customers through acquisition, activation, retention, referral and revenue, and pick one metric for each stage to find the leak.

  • Time45 to 75 minutes
  • People2 to 8 people
  • Steps3

What it's for

A product grows when people find it, get value quickly, keep coming back, tell others and pay. Pirate metrics name those five stages, so a team can measure each one and see where most people drop out. The biggest leak is usually the best place to work next.

Define each stage for your own product. Activation for a messaging app (sending a first message) looks nothing like activation for accounting software (sending a first invoice).

AcquisitionVisitors and sign-ups by channel

they try it

ActivationShare who reach first value

they come back

RetentionShare still active a month on

they tell others

ReferralInvites sent and accepted

they pay

RevenueConversion to paid, revenue per user

Back to acquisition: they bring the next people

How to run it

  1. Define each stage15 min

    What it means for your product to acquire, activate, retain, get a referral from and earn from a customer.

  2. Pick one metric each15 min

    One number per stage, and today's value if you know it.

  3. Find the leak15 min2 votes each

    Where do the most people drop out between stages? Vote, then agree what to try.

Tips

  • Fix activation and retention before spending more on acquisition. Pouring people into a leaky product is expensive.
  • Revenue doesn't have to come last. In many products people pay before they refer anyone.

Where it comes from

Coined by investor Dave McClure, later founder of 500 Startups, in his 2007 talk Startup Metrics for Pirates. The name comes from how the acronym sounds.