Referral
The stage where existing users bring in new users (word-of-mouth, invites, sharing). In AAARRR, it’s the last step.
Definition
The stage where existing users bring in new users (word-of-mouth, invites, sharing). In AAARRR, it’s the last step.
More context
Referral is growth driven by existing users sharing, inviting, or recommending the product. It is typically strongest when product value is clear and activation/retention are healthy.
Why it matters
Referral can create compounding, lower-CAC growth—but usually only after earlier stages are working.
How to use it
Define a referral event, remove friction to sharing, and test referral mechanics only once activation and retention are stable enough.
Common pitfalls
Trying to “add virality” before product value is proven, or incentivizing referrals that attract low-quality users.
Related terms
- Activation — The moment a user experiences the core value (“aha moment”). In AAARRR, it’s the step where the user becomes meaningfully active.
- Retention — How well users/customers keep coming back. Strong retention compounds growth and is often a better lever than more acquisition.
- Acquisition — The “getting users/customers” stage. In AAARRR, it’s the step where people first start using or signing up.
- 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.