AARRR method: what is it and how does it work?

aarrr-method:-what-is-it-and-how-does-it-work?

You need to constantly work on business development, try new chips and technologies, otherwise you can not only fall behind competitors, but also lose profits. Do you need it? Right, no. Therefore, to help you fight for a place in the sun, we have prepared an article about the AARRR method.

Let’s see what this beast is and how it works:

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The AARRR (Acquisition Activation Retention Referral Income) method determines the success of a project using a conversion funnel. This method was introduced by Dave McClure in 2007, his second name is Pirate Metrics.

AARRR consists of 5 stages:

  1. Attraction
  2. Activation
  3. Hold
  4. Recommendation
  5. Income

5 stages of the AARRR method

Each step is a metric that shows how effectively user interaction is configured. If, for example, you do not have a special bonus in the form of a discount or bonus for a potential client, then the percentage of people who leave your site will increase significantly. Therefore, it is necessary to find as many contact points as possible. This is the main essence of the AARRR method.

Let’s analyze each stage in more detail:

1. Attraction

Attracted users – this is all who came to your site, your total traffic.

To do this, you can use all available channels: web online page positioning, contextual advertising, publishing materials on third-party resources, speaking at topical conferences and webinars, social networks, working with partners, etc. But you shouldn’t rush into the pool with Begin to appreciate how each channel fits your business.

For example, the b2b segment with products of industrial value has nothing to do in social networks. Of course, you can try to attract an audience, but the response will be extremely low.

After you decide on the method of attraction, do not forget to track the results for each channel. It is necessary to understand the effectiveness of your actions. Statistics can be viewed in Yandex.Metrica, google Analytics and end-to-end business intelligence systems.

Cut off sites that do not work well or are unreasonably expensive. To evaluate the effectiveness, calculate the price of the attracted lead. To do this, divide your costs by the number of transitions from the channel.

Example: Publishing an Article in an online Edition

Paid a copywriter for an article of 1,000 rubles.
Accommodation cost 4 000 rubles.
There were 130 transitions from the channel

Price per lead: (1000 4000) / 130 = 38.46 rubles.
For one attracted user, we paid 38.46 rubles.

2. Activation

Active users are those who performed any actions you need on the site (subscription, purchase, registration, callback order, etc.)

Push to action as follows:

– Bonus materials

Think of what is valuable and interesting you can offer site visitors as a gift. In order to receive such a “bun”, users must be ready to leave their email or register a Personal Account.

bonus materials on the site

– Newsletter subscription

If a visitor voluntarily subscribed to the newsletter, then this is a good way to make him a loyal customer. You can motivate to subscribe using quality content. If the site has a lot of useful articles and videos that are really interesting, then there is a chance that you will get user contacts.

subscription form

By the way, are you subscribed to our newsletter ?

– Subscribe to push notifications

Considered the fastest way to get subscribers. Simply install the script on your website, and the system will automatically build the database. Such notifications will be sent to subscribing clients on the desktop.

push notification subscription

– Subscribe to the official page of the company in social networks

If a user subscribes to your community, it means that he is interested in what you are doing. In addition, perhaps in the future, when he finds out your company better, he will order services.

For potential clients to subscribe to your official page, you can offer a discount for joining the group, publish useful materials, invite for online broadcasts, etc.

official company page in social networks

– Test access or free demo service

People love different free chips, the response is very good. For example, on our site there is a form that allows users to get a mini-audit site for free. After recommendations for improving the site we get loyal customers.

free audit form

As you work on this stage, remember that the more clearly you state the target action, the better the response will be. Read the article on how to set up a call to action correctly here .

If the forms do not click or activate bonuses, then we recommend that you look at the Yandex.Metrick WebVisor. After that, it will be clear at what stage users leave the site.

As a result, the main indicator that determines the effectiveness of the page will be the conversion. To calculate the conversion for each page, you need the number of users who performed the target action, divided by the total attendance for a certain period and multiplied by 100%.

Example:

798 users passed to the landing page
74 users clicked on the “Get a consultation” button

Conversion: 74/798 * 100% = 9.27%

It is impossible to say which conversion is normal, because for each topic these are completely different numbers. For example, for a site that sells cars, with a attendance of 500 people and a conversion of 5%, this is a multi-million profit. And for a resource that sells jewelry and has the same conversion rates, the profit will be ten times lower.

3. Hold

At this stage, users become regular visitors to the site, returning there again and again. They may try free products, read articles, but do not buy them yet.

Even registration does not guarantee that the person will return to your resource. Therefore, it is important to constantly warm up the interest of a potential client. To do this, send useful information (articles, videos, etc.) using the tools:

– Email distribution

A good way to remind customers about the company. But in order for the newsletter to meet all your expectations, you need to follow 4 rules:

  1. Collect your base. Do not buy at all.
  2. Develop an interesting proposal.
  3. Correctly arrange a letter: the theme, style, design, location links.
  4. Write so that you want to read the message from cover to cover.

But besides the above, do not forget to monitor the effectiveness of their work. The easiest way is to enter the data (the number of formal replies, the opening of the letter, the date of sending, the info page, etc.) in Excel or create a document in google Doc. So you can evaluate the effectiveness of the chosen strategy.

In addition, periodically clean the database from inactive subscribers. The most important thing is not quantity, but quality. Agree, there is no point in a large database of addresses, if no one reads your letters.

How to work with e-mail marketing, read the series of articles .

– Push notifications

About this method has already been higher. Here it is important not only to make you subscribe to notifications, but also to keep the user. It may seem that there is nothing difficult in this, but as a rule, site owners who use this chip are divided into three types:

  1. Install the script and do not send messages. Unfortunately, this situation often happens. It so happened that I signed up for push-notifications of an interesting company for me, but in six months I never received a single notification.
  2. Too often send push notifications. Without a good reason, you don’t need to use this tool, otherwise you may get tired of your subscribers too quickly. Bottom line: a large percentage of formal replies.
  3. Send messages at regular intervals. Golden mean. I recommend to adhere to this strategy. Inform subscribers about important news only.

How to set up on your site push-notifications, see here .

In addition to mailings on the basis of subscribers, use other channels of retention. These include:

– Social networks

If you want subscribers to return to your site from social networks, then follow these rules:

  1. Write interesting content and put links to your site at the end of the post. No ideas, then see the article and get inspired.
  2. Spend live broadcasts. Users like to take part in such events.
  3. Download the video. They are well ranked, that is, in the news feed of the social network they give preference to just such content. As a material, you can capture the stages of your work, situations from the office, etc.
  4. Encourage discussion. Post polls, ask opinions of your subscribers on controversial issues.
  5. Design community. All of the above is meaningless if your community does not have an optimized title, cover, and a good description. Therefore, I recommend to pay attention first to this item, and then proceed to the promotion in social networks .

– Retargeting

A type of advertising that is configured to users who committed the target action on the site, and then it left.

For example, you wanted to relax on Seliger and were looking for a house. We looked at the site of one of the camp sites, clicked on the “Book” button, and then left the site. After that, advertising for the service you wanted to order will start following you.

retargeting example

If the site has less than 300-400 visitors per day, then it does not make sense to set up retargeting. The effort spent will not have the expected effect. The exceptions are the b2b segment sites with a large average check.

At this stage, it is important to track how many users return to the site, what they do and what pages they visit.

The next two steps, Recommendation and Revenue, can change places depending on the subject of the business. In the classic version of Dave McClure, the Recommendation phase first starts, as shown in the picture at the beginning of the article. This is explained by the fact that users leave links in social networks to the company’s website, where they want to order a product or service.

We will consider the model when the company receives income, and then the recommendation. Therefore, we proceed further:

4. Income

Everything is simple: the main metric that shows the success of the project is profit. This may be a paid subscription, purchase of goods or payment for additional features of the service, etc.

At this stage, attracted users become full-fledged customers and can recommend your company to their friends. Therefore, to get a good review, you need to work on the following indicators:

  • high level of customer service;
  • good quality of goods and services;
  • Special offers and after sales service.

Even if you follow all these three points, there is no guarantee that the client will recommend the company to his friends and relatives. Let’s move on to the next step.

5. Recommendation

Users are starting to advise you. They are no longer just ready to buy, but also share their experience with others.

Good customer reviews will positively affect the reputation of the business. To make it easier for users to disseminate information, put on the website the Share in Social Networks button:

button "share in social networks"

At this stage it is necessary to track brand references on the web. As a result, you can notice three situations:

1. Did not find any reviews . Either you were looking badly, or nobody really writes about you. This is also suspicious for potential customers who decide to test the integrity of the company. There may be doubts.

2. A lot of negative, it would be better not looking . Yes, this situation also happens. But do not give up and despair. Give an official response on behalf of the company to all questions. Just stick to the rules:

  • do not delete a review, it will only piss off a person;
  • be respectful and do not go personal in any way;
  • unsubscribe about the timing of the issue;
  • do not use the word “problem”, replace it, for example, with the word “question”.

3. About you respond well . It’s cool, but just in case, make sure you check all the sites.

Crowd-marketing solves all these situations – it will help young companies to create a positive image, dilute the negative with positive and expand the reach of the audience through publications on other resources.

Instead of output

The AARRR method will work perfectly not only for companies that have long been on the market, but also for those who recently launched their project. Also, this method helps to track how successful your business is on 5 main metrics. And if you notice that at a certain stage, the indicators are deteriorating dramatically, then it is an obvious bell that you need to make changes in business processes. If you do not have time to promote your business, contact us – we will help!