A Pirate's Guide to Analytics | Video
In the Pirate Skills world, "AARRR" stands for:
- Acquisition - How to get customers to buy your product
- Activation - How customers start using your product
- Retention - How long customers use your product
- Referral - How many customers generate new customers
- Revenue - How much value you capture from your customers
Being crystal clear on what those numbers are for your business right now is essential if you want your startup to survive and thrive. Not knowing your KPIs (Key Performance Indicators) is like searching for a black cat in a dark room. You might "believe" that the cat is there, but you don't know. Using Analytics tools is like turning on a flashlight.
Example: You spend 100€ on Facebook Ads and send people to your product website. Do you know who / how many ...
- signed up and how much that costs? (Acquisition)
- get the first value out of your product? (Activation)
- are still around after 30 days? (Retention)
- recommend it successfully to friends? (Referral)
- create a positive ROI (Return-on-Investment) for you? (Revenue)
Let's take this example one level further: Yes, you spend 100€ on Facebook Ads, but which Euros were well invested in which were wasted? Do you know...
- which part of your selected audience was best? (Gender, Age, Interests...)
- which campaign was most successful?
- which ads engaged people, which ones were boring?
- where did your ads appear and how did it affect the performance?
If you know those things you will learn so much faster and have an edge over the competition. So let's look at some of the most useful tools we have available for free:
- Google Analytics (from Basics to Enhanced E-Commerce)
- Facebook Analytics (from Pixel to SDK)
P.S.: We have started the Growth Sprint here in Cologne. The idea is simple:
- WORK one day per month on your growth challenges
- Have MENTORS around to help with problems
- No distracting talks .. just sweet HUSTLE