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Growth Method

Entrepreneurs need to ask the right questions: how can I measure and optimize each step of my funnel to grow quickly and expand my customer base? One simple answer is: AARRR. AARRR is a wonderful framework to help you better understand your consumers. It’ll help you measure your funnel and enable you to optimize it for the better.

Acquisition is the first contact point with a customer and your product or website. Your marketing has worked to this point and you’ve successfully pulled a visitor from what they were originally doing and now you have their attention.

They have viewed your landing page or homepage, and perhaps clicked around and maybe even read a blog post.


Activation is that magical time between when a customer discovers your product and when they fall in love with it. It’s the “AHA!” moment where the value of your product clicks, where ambivalence becomes habit and you have a real user on your hands.


Customer retention, or keeping people around after they sign up or download your app, is how you turn your success with acquisition and activation into growth.


One of the most powerful ways to drive your company’s growth is through referrals. That’s because referrals are frictionless–users are happy to exchange them if they’re getting something out of it–and because the new customers you get come pre-qualified. A friend has told them your product is worth trying out, and that will encourage them to stick around and try it out longer than your average new user.


Revenue is probably the easiest stage to remember. It is when your contact finally takes the plunge to swap out some of their money for some of your products.

The best way to increase revenue is to get more value from your customers than it costs to acquire them. This is governed by the LTV:CAC ratio. Lifetime value (LTV) is how much you earn from your customer over their entire time spent using your product. Your customer acquisition cost (CAC) is what you spent on sales, marketing, meetings, steak dinners, etc. to get that customer.

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