Introduction to the Pirate Metrics – AARRR related to customer development and business model canvas in order to gain insights on how your customers behave and create an environment where you easily can validate startup hypothesis avoiding the commonly used feel good metrics.

1. There
is
no
way
back!
AARRR – PIRATE METRICS

3. WHAT IS THE PROBLEM YOU
ARE TRYING TO SOLVE?

4. WHAT IS YOUR MOST
IMPORTANT CUSTOMER
SEGMENT?

5. WHO IS YOUR BEST
CUSTOMER?

6. WHY IS THIS YOUR BEST
CUSTOMER?

7. HOW DO YOU (PLAN TO)
MAKE YOUR MONEY?

8. HAVE YOU COLLABORATED
WITH YOUR (POTENTIAL)
CUSTOMERS?

9. WHO TRIED THIS
BEFORE?

10. WHAT IS YOUR MOST
USED FEATURE?

11. THERE IS NO WAY BACK!

12. YOU’RE DOING TOO MUCH

13. DON’T HANG ON TO THINGS
THAT YOU MIGHT BUILD
SOMEDAY

14. CREATE HYPER FOCUS

15. EVERY
WEEK
KILL A FEATURE

16. TAKE OUT A FEATURE AND
MONITOR THE REACTIONS

17. Either
they
love
it
or
hate
it,
all
other
reac;ons
means
you’re
screwed
OPTIMIZE FOR
HAPPINESS

18. THERE IS NO WAY BACK!

19. Dave
McClures’
AARRR

20. Create
different
storylines
for
different
combina;ons
NARRATIVE OF YOUR
STRATEGY, PROGRESS

21. Let’s
take
a
look
at
this
meta-­‐framework
EXAMPLES

22. #1 DOGGIECOLR
Social Network for Dog Lovers
Makes money through advertising and affiliate sales of
lush dog collars.
Key business drivers
Advertising and affiliates need large traffic/page views
so growth and referral are key.

23. ACQUISITION VISIT
ACQUISITION SIGN-UP
ACTIVATION CREATE
PROFILE
ACTIVATION POST
PICTURES
COMMENT
REFERRAL SHARE
PICTURES
INVITE
FRIENDS
REVENUE BUY COLAR

24. #2 AGILESAMBA
Project management tool for Agile
startups
Makes money through monthly subscriptions. Has a free
trial period.
Key business drivers
Conversion to paid users.

25. ACQUISITION VISIT
ACQUISITION SIGN-UP
ACTIVATION CREATE
PROJECT
REVENUE UPGRADES
PAID
REVENUE CANCELS
ACCOUNT

26. Let’s
take
a
closer
look
at
this
meta-­‐framework
ACQUISITION

27. ARE YOU FISHING IN THE
RIGHT POND?

28. HOW DO YOU GET NEW
CUSTOMERS?

29. IS YOUR MESSAGE
REACHING THE RIGHT
PEOPLE?

30. ARE YOU FOCUSSING ON
THE RIGHT PEOPLE?

31. ACTIVATION

32. ARE YOU USING THE
RIGHT BAIT?

33. HOW DO YOU LAND
POTENTIAL CUSTOMERS?

34. IS YOUR MESSAGE CLEAR?

35. ARE YOU HELPING YOUR
CUSTOMERS?

36. RETENTION

37. DO YOU USE THE RIGHT
MATERIAL?

38. HOW DO YOU MAKE
CUSTOMERS STAY?

39. DO YOU OFFER THE
RIGHT EXPERIENCE?

40. DO YOU OFFER QUALITY?

41. REFERRAL

42. HOW DO YOUR FISHES
LURE IN MORE FISHES?

43. HOW IMPORTANT IS
WORD OF MOUTH?

44. HOW EASY IS IT FOR
CUSTOMERS TO SHARE
THEIR EXPERIENCES?

45. REVENUE

46. SELLING YOUR FISH

47. HOW DO YOU (PLAN TO)
MAKE YOUR MONEY?

48. ARE YOU CATCHING THE
RIGHT FISH?

49. TIME TO START
MEASURING AND LEARN

50. THERE IS NO WAY BACK!

51. Google
Analy;cs
TechCrunch
Metrics
that
make
you
feel
good
but
don’t
tell
anything…
VANITY METRICS

52. • 150
000
Users
• Numerous
superior
compe;tors
• …
Let
us
examine
Facebook…
WHAT WOULD INDICATE
SUCCES?

53. • 150
000
Users
• Numerous
superior
compe;tors
• …
• 75%
of
the
users
visit
the
site
1
or
mul;ple
;mes
a
day
• 1
month
aUer
the
launch
in
a
student
campus
they
could
acquire
90%
of
the
student
body
Let
us
examine
Facebook…
WHAT WOULD INDICATE
SUCCES?

54. Metrics that matter!
• Value
Hypothesis
à
How
do
we
add
more
value
to
our
customers
live?
• Growth
Hypothesis
à
Through
what
engine
will
we
acquire
new
customers?

55. Metrics that matter!
• Value
Hypothesis
à
How
do
we
add
more
value
to
our
cusotmers
live?
• Growth
Hypothesis
à
Through
what
engine
will
we
acquire
new
customers?
Metrics
are…
-­‐ Ac;onable
-­‐ Auditable
-­‐ Accessible

56. Fact:
New
users
are
more
engaged!
Group
users
in
month
or
week.
COHORT

57. Let
different
groups
of
customers
validate
different
new
features
A-B TESTING

58. Experiment,
validate
learning
&
change!
RATE OF VALIDATED
LEARNING

59. Viral
Coeff
=
Invites
*
Conversion
Rate
Examples:
Facebook,
Hotmail…
Focus
on
Acquisi;on
&
Referral
–
Revenu
is
side
effect
VIRAL COEFFICIENT

60. LTV
=
Cost
of
Acquiring
Customer
/
Earnings
from
that
customer
Examples:
Amazon,
Match.com…
Focus
on
Ac;va;on
&
Reten;on
–
Payment
is
central
LIFETIME VALUE (LTV)

61. Recommended Software
• Ubounce
• KISS
Metrics
• Survey.io
• Wufoo
• LinkShiUr
• …

63. WE DONT’T KNOW
ENOUGH!

64. WE’RE DOING TO MUCH!

65. Acquisi;on
Ac;va;on
Reten;on
Referral
Revenue
USE AARRR TO BUILD THE
NARRATIVE OF YOUR
STRATEGY!

66. Metrics
are…
-­‐ Ac;onable
-­‐ Auditable
-­‐ Accessible
FOCUS ON REAL METRICS

67. GO OUT AND COLLABORATE
WITH YOUR CUSTOMERS!

68. THERE IS NO WAY BACK!