Measure & continuous improvement

Metrics review (AARRR)

Acquisition, activation, retention, revenue, referral: where the funnel leaks.

When. Before looking for a new growth lever, measure where you lose existing users.

Duration
2 h
Participants
Product, data, growth
Output
Priority funnel step
Stage
Pre-PMF · Post-PMF · Scale-up · Mature
AcquisitionActivationRetentionRevenueReferral
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Filled example

Acquisition38 trials a month,60 % from Pennylanemarketplace andreferralsPaid search bringstrials that neverinvite a technicianActivationOnly 62 % of newcompanies get 10interventions loggedin 2 weeksGuided onboardingmoved it from 55 %to 62 % in onequarterDrop-off point:inviting the firsttechnicianRetention4 % annual churnwhen invoicing isconnected in month 119 % when it is notNRR 104 %, driven byseat growth inconnected accountsRevenueARR 1.1 M€, 2 100seats at 29 €Average companygrows from 9 to 14seats in year 1 whenconnectedReferralSophie brought twocompetitors from hertrade associationNo referral mechanicin the product, allword of mouth

Example data. Fieldnote is a fictional company used to fill all 61 boards, so the examples tell one consistent story.

Post-PMF Fieldnote, the quarterly AARRR review with Karim, the data analyst, Nadia and Élise, looking for the next growth lever.

What the team took away

The funnel leaks at activation, not acquisition: the team cuts paid search and puts the quarter on time-to-first-10-interventions and month-1 invoicing connection.

How to run it

Preparation

Agenda

  1. 15 min
    Read the funnel
    Walk the five steps with the numbers. No interpretation yet, just confirm everyone reads the same figures and definitions.
  2. 25 min
    Find the leak
    Compare each conversion rate to the previous quarter and to what you would expect. Circle the single step where the drop is biggest relative to its potential.
  3. 30 min
    Segment the leak
    Data cuts the leaking step by segment: acquisition channel, plan, device, cohort. Look for one segment that behaves differently from the rest.
  4. 30 min
    Hypotheses
    Write hypotheses on why the segment leaks. Each one must name a cause you could act on within a month. Vote with three dots each.
  5. 20 min
    Commit
    Pick the top hypothesis. Define the experiment, the metric it should move, and the number that would count as success. Owner, review date in 4 weeks.

Pitfalls

Afterwards

The chosen hypothesis goes onto the experiment board and the number becomes an input metric on the North Star tree. Rerun the review monthly; change the target step only when the current one has moved.

Source : Dave McClure

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