Pirate metrics are a simple but powerful growth model for startups, defined by its acronym in English: Acquisition, Activation, Retention, Referral and Revenue, which are read as AARRR, referring to a pirate cry.
It is important to understand pirate metrics, because only when you understand all the metrics can you understand what is the exact point where the start-up of a startup is wrong, so you do not need to guess and go around making erroneous assumptions. When you understand these metrics you know exactly which part is wrong and malfunctioning, so it can be fixed.
- Acquisition: Acquisition is the first contact that is made with users through the web. It can range from viewing the homepage to reading a blog article. Many page views and a low bounce rate are indicators of the acquisition going well.
- Activation: This happens when a visitor deliberately has their first interaction with the company. One way to measure it is when a customer signs up, this being a clear sign that they like what they see on the page.
- Retention: When a user visits a page again. It can be seen in the frequency with which a user returns to the page after a period of time. The higher, the better.
- Reference: Occurs when current visitors recommend new users to come to a page. To find it, the number of mentions made of a company on social networks must be measured.
- Revenue: These are the result of a customer making a purchase on the website. If it is growing, it usually means that the other four metrics work correctly.