Regardless of the market, companies have the common goal of retaining customers at all costs. This approach is challenging to undertake, especially with long-term loyalty. It is in this type of context that the AARRR model was introduced. This is a new conversion technique within the framework of Growth Hacking.
What is the AARRR framework?
The AARRR framework is a technique related to lead conversion. It is both a metric and a method to analyze the conversion journey. Each letter refers to a given practice that influences the development of society:
- Procurement;
- Activation;
- Retention ;
- The reference ;
- Income.
Each step corresponds to a specific action, generating another sequence of activities. This allows, in the end, to get the full AARRR model. If the processes are, strictly speaking, invariable, they can, however, be optimized.
The AARRR framework model is based on old marketing techniques. The overall goal is to convert leads into loyal customers.
However, the model is more thorough in its approach. It uses the same classic conversion process but redirects the actions. This is one of the reasons why the model is mainly intended for Marketing teams.
By going through the model, experts have the opportunity to measure the conversion rate.
In addition, they will have an overview of the analyses and know what actions to put in place to optimize the conversion of prospects into mature leads. In the long term, this is a real marketing strategy.
What is the origin of the AARRR model in growth hacking?
It was in the 2000s that the AARRR model in Growth hacking became known. It was designed in the context of the start-up universe and remained the work of a Californian named Dave McClure.
Officially, the term was born during a seminar in 2007. In those times, it was referred to as Growth Hacking and quickly became a favoured tool for marketers.
Dave McClure thus gave birth to a new model of lead conversion boost. It includes the most common actions.
Of the economic model of start-ups. As a result, he merged all the achievements in this field with those of marketing.
From this comes a new concept that is simpler and easier to understand: the AARRR model. More than a conversion tool, the AARRR framework is an effective strategy for developing a business.
Unlike other conversion tools on the market, AARRR is a solution suitable for both small businesses and large companies.
The model will also serve as a lever to implement more effective marketing strategies. Dave McClure, therefore, offered a clearer and easier way to analyze a firm’s marketing performance.
The five steps of the AARRR method?
Each letter of the AARRR method corresponds to a specific stage in the conversion of customers. Precisely, these are processes with evolutionary growth depending on the market and the context in which the brand operates.
Acquisition
In this first step, the idea is to encourage Internet users to register for something. This is not explicitly defined and varies according to the merchants or the company.
It is then a question of micro-conversion. It is an indirect incentive to enter a sales funnel (the funnel) without the visitor realizing it.
Activate
Once the target is registered (newsletter, email, etc.), activating it and ensuring that it uses the product is essential.
The objective is that she becomes aware of the value of the article/service offered. This is an indirect argumentative means of convincing her that the product is helpful to her.
Retention
Through this procedure, it is time to retain customers. Once they realize the product’s value, they will be more convinced to provide more information on their profile.
One must, however, be careful with “retention.” It is essential to meet their needs while allowing them to find advantages in using the product regularly.
Referral
This step is more a question of marking the product’s image by supporting it as a reference. It is the converted customers who will take care of this task.
It is thus necessary to get people to talk about the product and to recommend it to other “potential targets.” It is a technique for optimizing organic growth.
Revenue
Since the product is well referenced, the company can now evaluate its performance and count the customers at its disposal.
Coupled with other metrics, the number of customers makes it possible to measure the influence of the product. This last phase will also allow the company to implement different, more effective sales strategies if necessary.
In summary
Generally, the AARRR Growth Hacking framework is a recommended model for marketing professionals. It is a more advanced and thorough method of carrying out the analysis of the situation of a company on all levels.
Moreover, it is a means of further conversion. It is thus part of a purely commercial framework to obtain qualified leads on the market. It also gives the possibility of increasing the turnover of a company.
The AARRR model is based on a few principles for the marketing strategy to be efficient. The goal is to create creative campaigns by adopting more relevant techniques.
By following this way of thinking, Dave McClure imposes a meticulous model in his approach. More than a conversion method, it is also about offering engaging and impactful content.
Note that all the steps provided by the model can be confusing. Depending on the context, it is possible not to follow this well-ordered action plan.
The main objective is to retain customers and constantly increase turnover. AARRR actions are simply levers and indicators to start a business well.