“Aarrr, aarr!” Perhaps you've seen these interjections in an adventure film whose central theme is pirates. However, despite being usually related to the way of speaking of these “high seas bandits”, they perhaps they were not truly used in real history, in addition, quite possibly, they were popularized by the work of actor Robert Newton, in the version of the classic “Treasure Island”, adapted for television in the 1950s.
Despite this, however fictitious these interjections may be and however dubious their origins, they have in themselves generated their own offspring in a different context. Today, they have, within the marketing universe, a very real and applicable connotation and whose principles are translated into acronyms, which, in turn, symbolize five conversion metrics guided by analysis of digital user behavior.
Maybe this story evolved too quickly, right? So, continue reading with us to discover everything about the AAARR Funnel and the importance of these pirated metrics for a marketing strategy!
How did the AAARR Funnel come about?
Let's start at the beginning. Dave McClure, investment partner at 500 Global accelerator, and Silicon Valley investor, realized that many startups failed because they focused their attention on superficial metrics that did not necessarily provide information that could convert into results for their businesses.
And convert, in this case, is the keyword for the emergence of this model. It is an architecture designed to optimize your conversion rate, which can even work very well with a good marketing strategy CRO.
That said, McClure established a new way of looking at the marketing funnel — or flywheel, according to current parameters — making use of just 5 metrics based exclusively on user behavior and their life cycle as a consumer, which continue to make sense even more than a decade after their development.
The term flywheel gained traction in 2018 as an alternative to the linear funnel, emphasizing momentum and customer-driven growth. The approach was discussed in depth by the Harvard Business Review and helps align Marketing, Sales, and Customer Success under a continuous cycle.
Image: ARRR: How to apply pirate metrics to the marketing funnel
The pirated metrics
As with several other marketing theories broken down into letters and/or acronyms, such as Kotler's 4 Ps, McClure divided his model following the same playful and functional pattern: 5 letters, one for each phase of the funnel.
In some contexts, teams adopt RARRA (retention-first) to prove value early and reduce churn before scaling acquisition. It doesn't replace AARRR; it's a useful variation when channels are saturated or CAC is high.
Are they:
A - Acquisition
The first type of measurement in this funnel corresponds to the acquisition channels used to capture leads or, later, customers. Here, the question to be asked is: “how are users getting to my website?”
There are different means by which this purchasing process can occur. Content marketing strategies, such as landing pages, newsletters and blog posts, are essential, as are social media, SEO and SEM.
This step follows the logic of being based on 3 conversion criteria, on which you should focus your efforts. Are they:
- Actions that perform best;
- Actions that generate greater volume of traffic;
- Lower cost shares.
A - Activation
At this stage, some user behaviors related to the quality of their experience on your business website are measured.
The main observation to be made at this stage should be: “Are these visitors taking the actions I want within my website?”
The focus, then, should be on providing the user with a pleasant first experience as an initial way to impact your purchasing decision process and facilitate your onboarding. But how to measure this?
Some interesting indicators are:
- Time spent on the website;
- Number of clicks on links and buttons;
- Number of accesses to other pages on the website;
- Number of subscriptions to your newsletter;
- Number of material downloads.
These are some examples of what you can measure at this stage, but feel free to choose your criteria.
As a general rule, Don’t forget to do A/B testing. If possible, do many of them to actually make improvements that have positive effects on the user journey.
A great way to optimize the metrics at this stage is to use CRO mentioned previously and whose implementations seek, precisely, to analyze, identify and carry out positive actions to increase your conversion rate.
Read too:
- CRO – Conversion Rate Optimization: what is it, how does it work?
- Landing pages and lead conversion: how to take advantage of opportunities
- How to increase the conversion rate in the sales funnel? Understand!
R - Retention
Once you've managed to attract visitors to your website and given them a good first experience, it's time to take the next step: making them maintain their interest in your product/service and interact with your offers again.
To achieve this, the oldest and most traditional digital relationship strategy still remains useful: email marketing.
Ensure, when acquiring your lead's contact, that it will become part of a flow of automation where you will be nourished with content that will be interesting to you and that will keep you warm enough to advance within your purchasing journey or even repeat this process.
There's no universal cadence for onboarding or nurturing emails. Ideally, you should define your email cadence based on your objective (onboarding, nurturing, re-engagement), user behavior, and A/B testing, adjusting frequency and spacing based on performance throughout the sales funnel.
R - Revenue (revenue)
No strategy can be considered efficient when there is no return, right? Therefore, the focus of this phase of the funnel is to measure whether users have generated revenue for your company.
It is important to analyze the ways in which a user can generate this revenue, and this largely depends on what your business model is like.
To make monitoring easier, use an updated LTV/CAC guide: in addition to the calculation, it provides guidance on how to interpret the relationship and improve growth efficiency with a focus on healthy unit economics.
One way to measure this is to make an LTV/CAC (Lifetime Value per Customer Acquisition Cost) relationship and monitor reference values.
R - Recommendation (referral)
There are certain strategies that we can call incomparable. And the biggest example of these is perhaps recommendation marketing, in which a user becomes an advocate for your business and makes a point of recommending it to other consumers.
The popular “word of mouth” is the oldest and most efficient way of marketing products and services, with the attribute of social proof as its flagship and remaining extremely consistent.
Here, it is interesting to monitor the number of backlinks that exist for your website, as well as mentions on social networks, reviews and testimonials. Furthermore, strategies such as generating discount codes and/or promotions based on recommendations are extremely welcome.
There is, however, the suggestion that you don't go out trying to make your business viral without the guarantee that it is good and works, otherwise it could be shooting yourself in the foot.
To measure the true propensity to recommend, track the Net Promoter Score (NPS). It complements mentions, reviews, and backlinks by indicating, in a comparable way, how many customers are willing to recommend your brand, a valuable input for referral and advocacy programs.
4RevOps: AARRR Funnel Solutions
Now that you understand the functionality of pirated metrics, you may be wondering how to implement them within your business, after all, in addition to a specialized team for analysis, you will also need to make use of the appropriate tools. To this end, 4RevOps appears as an option for carrying out this type of service.
As a very experienced company in the marketing, automation and artificial intelligence sector, Mkt4edu has the best professionals and the most up-to-date tools to provide this solution.
Key takeaways from AARRR: The AARRR Funnel, also known as "pirate metrics," was created by Dave McClure to help companies focus on metrics truly linked to conversion and growth. Comprising five stages—Acquisition, Activation, Retention, Revenue, and Referral—the model guides everything from lead acquisition to loyalty and brand referrals. Each stage measures user behaviors, such as traffic source, initial engagement, retention, revenue generation, and spontaneous brand advocacy. More than an analytical framework, AARRR serves as a strategic guide for increasing conversions, improving ROI, and scaling businesses. Applied correctly, it transforms data into assertive decisions and ensures sustainable results in digital marketing.
Do you want to know more about how to use our expertise to meet your needs? Get in touch and find out how this and other services can make sense to help you bring results!
AARRR Funnel: Questions and Answers About Pirate Metrics in Digital Marketing
What is the AARRR Funnel in digital marketing?
The AARRR Funnel, also known as “pirate metrics,” was created by Dave McClure to measure the user journey with a focus on conversions. It divides the process into five stages: Acquisition, Activation, Retention, Revenue, and Referral. The main goal is to track user behavior from the first interaction until they become loyal customers and brand advocates. Unlike vanity metrics, AARRR emphasizes indicators that truly reflect sustainable business growth and long-term customer value.
How does the Acquisition stage of the AARRR Funnel work?
Acquisition measures how users find your brand or website. This can happen through SEO, social media, paid ads, blogs, or referrals. The key is to identify which channels drive the most traffic and which deliver the best ROI. By analyzing acquisition sources, businesses can prioritize investments in the most effective channels. Strong acquisition is crucial because it builds the foundation for the next funnel stages, ensuring that enough users are available to be engaged, retained, and converted into customers.
What does the Activation stage in AARRR mean?
Activation evaluates whether users have a positive first experience with your brand. This includes actions such as signing up for a newsletter, clicking on links, downloading resources, or exploring multiple pages. A successful activation shows that the user sees immediate value. Conversion Rate Optimization (CRO) strategies play a key role here by improving usability, design, and content. These adjustments enhance engagement, reduce friction, and significantly increase conversion rates at the beginning of the journey.
How does Retention work in the AARRR Funnel?
Retention measures whether users return and continue interacting after their first experience. It is directly tied to engagement and customer loyalty. Email marketing, automation, and personalized content are powerful tools to nurture leads and maintain interest. High retention reduces churn, increases customer lifetime value (LTV), and boosts recurring revenue. In digital marketing, improving retention often has a stronger financial impact than constantly acquiring new customers at a high cost.
What does Revenue represent in the AARRR Funnel?
Revenue refers to the value generated when leads finally convert into paying customers. It assesses whether acquisition, activation, and retention efforts are turning into profit. Key metrics here include Customer Acquisition Cost (CAC), average order value, and Lifetime Value (LTV). The LTV-to-CAC ratio is a fundamental measure of sustainable growth. When customers generate predictable and recurring revenue, businesses achieve better scalability and long-term profitability.
How does Referral work in the AARRR Funnel?
Referral is when satisfied customers become advocates and recommend your brand to others. This can be tracked through testimonials, reviews, social media mentions, backlinks, or referral programs. Net Promoter Score (NPS) is another key measure of referral potential. Word-of-mouth marketing remains one of the most powerful drivers of trust and growth, as it reduces acquisition costs and strengthens brand authority. A positive customer experience is the foundation for successful referrals and organic growth.
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