Boost Your Marketing with Pirate Funnel Metrics: AARRR Explained

In any situation that involves decision-making, whether professional or personal, every step must be justified based on something concrete. From the beginning of the concern until the final moment, different influences and situations interfere in the purchasing decision to be made. When we talk about marketing strategies, the scenario is similar. And to better understand and ensure that the final decision is something positive, we rely on the pirate funnel.

You may not have heard this term, but the practical part will certainly make you understand the importance and strong presence of this strategy in different companies in your daily life.

To learn more about what this funnel is and what important metrics to consider in your evaluation, continue reading!

Pirate Funnel Metrics

Pirate metrics are, in simple terms, a practical way of categorizing different metrics and KPIs (Key Performance Indicators) used in a strategy. The main objective is to analyze the life cycle of a potential consumer within the structure built to attract and win them over.

The funnel is used as an analogy because it involves gradual steps, filtering from the largest quantity to a number more qualified for the objective in question. Going through each step and funneling along the way, the pirate metric is organized by acquisition, activation, retention, revenue and recommendation.

This type of funnel is essentially used to understand the consumer journey and find bottlenecks to then improve the strategy.

Inbound marketing strategy and the pirate funnel strategy

Important for every marketing strategy focused on acquiring and converting leads, inbound marketing is similar to the AARRR strategy. In the first, the organization is carried out in three phases: top, middle and bottom. Formatted as a funnel, the actions carried out are based on allocating attention and qualified content to each of the stages.

Once the pirate funnel is complemented, the complementary strategies can be overlapped and analyzed together so that the planning has an even clearer objective for each of the stages.

Image: Pirate Funnel: Key Marketing Metrics for Analyzing Results

User journey map

To correctly adapt the processes and stages, it is necessary to have well-defined questions such as where the potential customer is in the funnel. Creating content to feed each of the needs implicit in the trajectory, the user's purchasing journey map appears as a way of identifying the lead's location in the funnel and the following stages.

This way, it is possible to understand the processes and appropriately program the actions that will keep this user in the process until the final objective: conversion to a customer. With the map, the team is always one step ahead, equipped with what is necessary to solidify the relationship and resolve possible issues to be raised.

Understanding in a practical way where the leads acquired during the process are and how qualified they are is essential for possible problems to be resolved and, during the process, there are more gains than losses of potential customers, thus improving the rate of conversion.

Journey mapping also allows you to identify friction points and opportunities at each stage. This helps prioritize improvements that reduce friction and increase conversion, ensuring that each user interaction is more efficient and contributes to progress in the funnel.

Sales funnel: AARRR stages and metrics

At each stage of the journey, the AARRR funnel has values ​​and variants to consider. This is because each stage has an objective and, consequently, results to be obtained from the actions performed by users throughout its useful life.

Without measuring and analyzing these metrics, the work cannot be optimized or even corrected according to the bottlenecks that would be indicated for improving the correction of each stage.

In Dave McClure's original formulation, the AARRR funnel appears in the following order: acquisition, activation, retention, referral, and revenue. Maintaining this sequence makes it easier to compare with market benchmarks.

To think about how to carry out the next steps efficiently and generate positive numbers for the defense of the process, it is necessary to keep in mind what to analyze after each step in the user map. Below, check out what should be analyzed so that it receives due attention from the team!

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A - Acquisition

In the initial stage of the pirate funnel, the goal is to understand how users arrived at the website. This means analyzing which channels are bringing in the most qualified leads, how long they spend interacting with the content, which pages generate the most engagement, and how they respond to calls to action.

The main metrics are: new users and sessions (GA4), leads acquired, traffic by channel, engagement rate (sessions longer than 10 seconds, two or more pages, or one key event), bounce rate (inverse of engagement), and customer acquisition cost (CAC) based on the source.

A - Activation

Activation is the moment a user perceives value in a product or service and takes the first meaningful action, such as testing a feature, completing a registration process, or exploring a free trial. This step is crucial because it determines the likelihood of the user continuing their journey.

Relevant metrics include: time between arrival and activation, the number of new users who tried the service or product, and the number of users who converted after this initial experience.

R - Retention

Retention measures the ability to keep users active and engaged over time. More than just one-off visits, it's crucial to observe whether customers continue to return, consume content, and purchase services. This analysis shows whether the relationship is solid and whether the sales pipeline is configured to maintain the audience's attention.

The main metrics are: average dwell time of active leads, retention rate, churn (the percentage of users who stop using or cancel), and the customer lifetime value.

R - Revenue

Revenue is the metric that proves the strategy's effectiveness, as the ultimate goal of the Pirate Funnel is to generate sustainable financial returns. To achieve this, it's necessary to analyze not only the conversion of users into customers, but also the efficiency of each acquisition.

The key metrics are: customer acquisition cost (CAC), customer lifetime value (LTV), LTV/CAC ratio—which indicates sustainability—CAC payback (time required to recoup the acquisition investment), and the number of conversions from the free to the paid model.

R - Recommendation

Recommendations demonstrate how satisfied customers contribute to the organic expansion of a business by recommending the service to others. This stage has significant growth potential, as it broadens the customer base spontaneously and at low cost. Referral programs, loyalty programs, and customer experience strategies can be used to encourage this.

Key metrics include: number of users who recommended the service, leads generated from referrals, conversion rates of these referrals, and tools such as Net Promoter Score (NPS) and viral coefficient (K-factor), which measure loyalty and network effect.

Explore the possibilities!

With the pirate funnel and its efficiency metrics, it is possible to understand consumer behavior and adapt the strategy so that the product and/or service increasingly finds its place in the market. Now that you understand the importance of carrying out the entire sales process in an organized way to obtain the best results, it is important to study how to put them into practice and explore each of the metrics to enhance results and correct possible execution errors.

Key learnings about the pirate funnel (AARRR) in marketing: The pirate funnel (AARRR), created by Dave McClure, organizes key metrics to analyze the customer journey: Acquisition, Activation, Retention, Revenue, and Referral. It helps identify bottlenecks, optimize strategies, and improve conversions throughout the customer lifecycle. When combined with inbound marketing, the funnel aligns content and actions with each stage of the buyer’s journey, supported by customer journey mapping. Each stage brings critical indicators such as CAC, LTV, churn, and NPS, which guide measurement and strategy adjustments. Applying AARRR alongside CRO testing and behavioral analysis enables data-driven decisions, higher engagement, and sustainable business growth.

Understanding the consumer and how your strategy impacts their behavior is fundamental to the health and prosperity of every company. Do you want to know more about this planning and its importance in practice? Read the post “AARRR: Pirate Metrics in Marketing Strategies”!

Pirate Funnel (AARRR): How to Use Metrics to Boost Marketing Results

What is the Pirate Funnel (AARRR) in digital marketing?

The Pirate Funnel, also known as AARRR, was created by Dave McClure and organizes key metrics to understand the customer journey. It is made up of five stages: Acquisition, Activation, Retention, Revenue, and Referral. Each stage analyzes user behavior and highlights bottlenecks in the process. This structure is widely used in digital marketing to guide data-driven decisions, improve conversions, and achieve sustainable growth, making it a practical framework for startups and established businesses alike.

What are the main metrics of the Pirate Funnel?

The Pirate Funnel metrics are divided into five stages. In Acquisition, businesses analyze where users come from and which channels bring the most qualified leads. Activation measures whether users experience value during their first interaction. Retention focuses on keeping them engaged over time. Revenue evaluates how much income each user generates and the efficiency of acquisition. Finally, Referral tracks customer loyalty, word of mouth, and advocacy, using tools like NPS, discount programs, and viral coefficient (K-factor).

How does inbound marketing relate to the Pirate Funnel?

Inbound marketing works through three stages: top, middle, and bottom of the funnel, delivering content according to each phase of the customer journey. The Pirate Funnel complements this approach by adding specific metrics to measure if strategies are effective. By combining inbound with AARRR, businesses can better align campaigns with user needs, nurture leads with personalized actions, and optimize performance at every stage. This connection creates a stronger, more measurable marketing strategy.

How does the user journey map connect to the Pirate Funnel?

A user journey map identifies where leads are in the funnel and what actions are needed to move them forward. When combined with the Pirate Funnel, it provides clarity on touchpoints, pain points, and opportunities to optimize engagement. This integration helps marketing teams design more efficient interactions, reduce friction, and create personalized experiences. As a result, businesses can improve retention, increase conversion rates, and build stronger customer relationships throughout the journey.

Which metrics should be analyzed in each stage of AARRR?

In Acquisition, measure traffic by channel, customer acquisition cost (CAC), engagement rate, and sessions. In Activation, track time to first action, sign-ups, or trial usage. Retention should monitor churn rate, return visits, and average session time. Revenue requires analyzing lifetime value (LTV), CAC, LTV/CAC ratio, and payback period. Finally, in Referral, look at NPS, referral program results, K-factor, and conversion of referred leads. Each metric gives visibility into efficiency and areas that need adjustment.

Why is applying the Pirate Funnel important for businesses?

Applying the Pirate Funnel helps companies transform raw data into actionable strategies. By focusing on AARRR metrics, businesses can identify bottlenecks, optimize conversion paths, and build long-term growth. It improves ROI, boosts customer retention, and drives organic expansion through referrals. More than just a framework, AARRR empowers teams to make informed decisions, align marketing and sales efforts, and create sustainable strategies that strengthen both brand and revenue.