How to Grow Your Business With AARRR Model & Best PowerPoint Templates

How to Grow Your Business With AARRR Model

Launching your own product isn’t the easiest thing to do. It’s not just cutthroat competition which might weigh you down. New entrepreneurs can find it hard to get the basics right and that can result in a failed business venture. AARRR model provides a mechanism to help your business grow and be successful over a period of time.

aarrr model

Source: AARRR PowerPoint Templates by SlideModel

What is AARRR Model?

AARRR model, also called the Pirate Metrics, was an acronym coined by a venture capitalist by the name of Dave McClure. It is a simplified model to understand metrics for each stage of a user becoming a customer and someone who refers a brand. AARRR stands for the five stages of the conversion funnel i.e. Acquisition, Activation, Retention, Revenue and Referral.

The AARRR as a Funnel

The image below shows the funnel of the AARRR model. The AARRR framework is used to measure and optimize each of the five phases of the customer funnel.

1. Acquisition

Acquisition is the first phase. It describes how people find a product and become customers. Since AARRR focuses on each phase holistically, it is important to look at the complete process of Acquisition. This not only includes looking at your website visitors but how they become customers. For example, a customer might have found your website via a specific keyword and landing page, this might have developed interest in the product. Here is an example: Customer visits your website -> watches a promotional video on the webpage -> signs up to be contacted by the sales team -> gets a call from the sales team -> visitor is converted to a customer.

2. Activation

What will make your business a success and retain customers is your customer journey, i.e. the sum of interactions a customer has with a company and brand. Activation is the first experience. It is not enough that a customer starts buying your product or begins using your service. If the experience isn’t satisfactory, you will lose that customer. To make it short, Activation involves the customer engagement. For example, Facebook suggests you friends to add, since more friends can lead to greater engagement and keep users tied to the service.

3. Retention

This is the phase when you want to retain customers. There are various means by which businesses do this. For example, by sending email alerts to show users that the business is worth the money by making the product or service useful for them through various opportunities to use the product effectively. Similarly, blog posts, events, webinars, short-term offers and special benefits for paid customers are used to retain customers. A good example of retention is the current challenge being faced by Netflix to retain users in the wake of various competitor services such as Amazon Prime and Hulu, as well as new services like Disney+. In order to retain users, Netflix is producing new content like its acclaimed fantasy series The Witcher. Such shows are being deemed by critics as an attempt by Netflix to stay relevant amidst cutthroat competition.

4. Revenue

It is important to make your business profitable enough to stay afloat. Many businesses despite making short-term gains fizzle out due to their inability to earn decent revenue in the long-run. For example, some mobile games are free to install, however, customers need to pay for additional features or an ads free interface. It is essential in this case to earn a decent revenue by making customers spend some money on the app features. The same can be said for streaming services like Hulu and Netflix, which offer some kind of free or limited time offer to attract users.

A few steps that organizations can take to improve revenue is to use ads from pay per click and pay per view services, to offer a more enhanced premium service, encourage subscriptions, etc.

5. Referral

This is the phase where you can encourage people to help your business grow. Affiliate programs are a great way to offer some kind of monetary incentive to people for referring new customers. Affiliate programs usually generate paying customers for which a percentage of the initial financial gain is shared with the affiliate. Similarly, campaigns, contests and marketing emails are some of the methods used by businesses.

aarrr metrics

Source: AARRR PowerPoint template by SlideModel

AARRR Framework Presentation by Dave McClure

Here is a presentation by Dave McClure which explains AARRR framework in a nutshell, with some valuable advice regarding how to grow your business.

Best AARRR Diagrams & PowerPoint Templates

To make presentations regarding the AARRR model, you can use the following presentation templates.

AARRR Metrics Funnel Diagram for PowerPoint

This is a seven-slide presentation template which provides a slide each for the five phases of the AARRR model. Moreover, it provides two slides with a brief overview of the model. This includes the opening and closing slide. You can customize the AARRR diagrams in this template to explain the model or the five phase funnel for your business.

Go to Download AARRR Metrics Funnel Diagram for PowerPoint

aarrr metrics powerpoint template

Source: Example of AARRR PowerPoint template by SlideModel with 100% editable fields

5 Level Semi Transparent Funnel Diagram for PowerPoint

This is a five-stage funnel diagram template which can be used for making presentations about the AARRR framework. You can edit each of the five phases to discuss the model and create a comprehensive final slide which summarizes everything.

Go to Download 5 Level Semi Transparent Funnel Diagram for PowerPoint

five level semi transparent funnel diagram for powerpoint

Source: Semi-transparent funnel diagram PowerPoint template by SlideModel

5 Level Funnel Diagram Concept for PowerPoint

If you want to make your slides more colorful and eye-catching, you can use this funnel diagram template for making a five step AARRR model. The sample diagrams attribute a single color to each stage of the funnel, which you can customize in PowerPoint. The template also offers useful icons for the sales funnel.

Go to Download 5 Level Funnel Diagram Concept for PowerPoint

five level funnel diagram concept for powerpoint

Final Words

The AARRR model serves as a framework to help businesses, particularly startups to map out and plan the growth of their business right from acquisition, activation to retention, referral and revenue. The AARRR model emphasizes the need to holistically look into each phase of the framework; in order to not only attract customers but understand what drives your business by attracting customers. Moreover, it enables businesses to understand how to retain them in the long-run for generating the required revenue to make your business a success.

About Farshad

IT professional, communications specialist and Blogger!

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