AAARRR
A customer lifecycle model (also called “pirate metrics”): Awareness, Acquisition, Activation, Revenue, Retention, Referral. Used to find bottlenecks and choose what to improve next.
Definition
A customer lifecycle model (also called “pirate metrics”): Awareness, Acquisition, Activation, Revenue, Retention, Referral. Used to find bottlenecks and choose what to improve next.
More context
AAARRR is a way to map the customer journey as a set of measurable stages. The point is not the acronym itself—it’s using a shared model to locate the current bottleneck, choose experiments that move that bottleneck, and avoid optimizing parts of the funnel that don’t constrain growth.
Why it matters
Without a shared lifecycle model, teams often optimize local metrics (e.g. clicks) while the real constraint sits elsewhere (e.g. activation or retention). AAARRR makes bottlenecks visible and keeps prioritization honest.
How to use it
Define each stage in your context, pick one KPI for the current bottleneck stage, and run the four-phase process against it in weekly/biweekly cycles.
Common pitfalls
Treating AAARRR as a “generic funnel template” without definitions, or spreading effort across all stages at once instead of focusing on the constraint.
Related terms
- Bottleneck — The biggest constraint limiting growth right now. The growth team finds the bottleneck, solves it using the process, and then moves on to the next one.
- KPI (Key Performance Indicator) — A measurable number used to guide decisions and evaluate progress. The first step in the process is choosing a KPI that can be measured periodically.
- Four-phase process — The core operating cycle: Analysis → Hypothesis → Prioritization → Testing. Repeat each cycle consistently.
- Testing cycle — A recurring cadence (often weekly or biweekly) where you run the four-phase process end-to-end and document learnings.