methodatlas

Growth Planning tool

Pirate Metrics AARRR

Diagnoses a product growth path through Acquisition, Activation, Retention, Referral and Revenue.

Diagnoses a product growth path through Acquisition, Activation, Retention, Referral and Revenue.

Core question
Where does the customer funnel lose people, and which stage should improve?
Plan Pirate Metrics (AARRR)Method guide
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Participants
2-8
Time
1-2 h Setup, laufend

The steps are a practical sequence; adapt them to the method’s purpose and available evidence.

A paper-based illustration representing Pirate Metrics (AARRR) with its core stages and visible working result.

  1. Cohort

    Define product path and cohort

    Choose audience, entry cohort, observation window and the relevant AARRR relationships for this product.

  2. Events

    Operationalize events and stages

    Define Acquisition, Activation, Retention, Referral and Revenue with events; specify numerator and denominator for each transition.

  3. Conversion

    Analyze cohorts and conversion

    Calculate stage conversion with consistent cohort rules and inspect missing data and segment differences.

  4. Experiment

    Investigate constraint and experiment

    Choose a meaningful drop-off, validate its plausible cause and run one experiment with a guardrail and evaluation window.

Revisit the model when evidence, context or outcomes change. Record what changed and why.

A good fit when

Use it when: Growth Teams, SaaS Funnels. The group can provide the evidence and authority the method requires.

Ideal for

  • Growth teams
  • SaaS funnels
  • Marketing and product alignment

Not good for

  • Non-digital systems without funnel data
  • Architecture decisions

Outputs

  • AARRR measurement plan

    Product-specific events, cohorts, conversion rates and next growth hypothesis.

  • Prioritized growth hypothesis

    Recorded scope, date, participants, source version, owner, changed assumptions, and the reason for each revision.

AARRR event and measure map

Fictional worked example

Fictional monthly cohort funnel for an appointment product: Acquisition 1,000 eligible landing visits; Activation 180 complete a first booking; Retention 90 book again within the defined return window; Referral: 12 invited people book; Revenue: 75 bookings generate revenue. Invented figures. Stages may overlap; document denominators, event definitions and cohort windows before comparing rates.

AARRR event and measure map
AARRR-StufeEventMetricCohort / window
AcquisitionEvent, numerator, denominator and window for this stageEligible landing-page visitVisits / eligible audienceMonthly entry cohort
ActivationEvent, numerator, denominator and window for this stageFirst booking confirmedFirst bookings / visitsSame entry cohort
RetentionEvent, numerator, denominator and window for this stageAnother booking in windowRepeat bookers / first bookersPredefined return window
ReferralEvent, numerator, denominator and window for this stageInvitee booksInvitees booking / invitationsInvited cohort
RevenueEvent, numerator, denominator and window for this stageBooking generates revenueRevenue / paying bookingsSame period

  1. 1. Event

    Acquisition
    Eligible landing-page visit
    Activation
    First booking confirmed
    Retention
    Another booking in window
    Referral
    Invitee books
    Revenue
    Booking generates revenue

  2. 2. Metric

    Acquisition
    Visits / eligible audience
    Activation
    First bookings / visits
    Retention
    Repeat bookers / first bookers
    Referral
    Invitees booking / invitations
    Revenue
    Revenue / paying bookings

  3. 3. Cohort / window

    Acquisition
    Monthly entry cohort
    Activation
    Same entry cohort
    Retention
    Predefined return window
    Referral
    Invited cohort
    Revenue
    Same period

Fictional monthly cohort funnel for an appointment product: Acquisition 1,000 eligible landing visits; Activation 180 complete a first booking; Retention 90 book again within the defined return window; Referral: 12 invited people book; Revenue: 75 bookings generate revenue. Invented figures. Stages may overlap; document denominators, event definitions and cohort windows before comparing rates.

AARRR Metrics · Dave McClure

First step

Choose audience, entry cohort, observation window and the relevant AARRR relationships for this product.

Open the method guide

Good to do first

A paper-based illustration representing North Star Metric with its core stages and visible working result.
Growth
North Star Metric

Supplies the guiding metric around which the funnel is built.

Where to go next?

Funnel Analysis workspace showing the question, observations, and next decision.
Growth
Funnel Analysis

Investigates a conspicuous AARRR drop as its own flow in detail.

Growth Experiment workspace showing the question, observations, and next decision.
Growth
Growth Experiment

Tests the prioritized growth hypothesis with a small intervention.

Deep dive

Purpose

For products with complex usage paths, overall growth alone is too coarse to reveal bottlenecks. Pirate Metrics breaks the relationship with the product into consecutive stages and shows where the funnel actually leaks.

How it works

Metrics are viewed along the entire activation and retention path so not only new contact but also friction and return become visible. This lets measures per stage be prioritized more precisely. The model makes growth legible as an operational chain.

In detail

Pirate Metrics make growth legible as a sequence of relationships instead of just looking at overall numbers. The clean separation of stages is decisive, so a drop-off doesn't stay disguised as a marketing problem when activation or retention is actually weak. The model holds up once every stage gets its own diagnosis and experiment logic.

Facilitation

Define the transitions between Acquisition, Activation, Retention, Revenue, and Referral using the same event logic that will later apply in tracking too. The decisive moment is when a fuzzy funnel turns into clear stages with measurable transitions. As a result, one weak stage, a plausible cause, and exactly one next growth bet are enough.

The method guide walks execution through 4 phases, timing, 4 pitfalls, and clear stop criteria.

Open method guide

Your perspective

Does this method help with your work?

Your feedback helps shape the next improvements to methodatlas.

Sources and topics

Topics
GrowthMetricsExperiments
Sources
AARRR Metrics · Dave McClureslideshare.netSlideshare presentation by Dave McClure; introduces the AARRR metrics Acquisition, Activation, Retention, Referral, Revenue.
In playbooks
Set Up a Growth Experiment LoopMove from a funnel problem to hypothesis, experiment, measurement, and next growth decision.
Artifact templates
Pirate Metrics AARRR: WorksheetPrepare the decision, source evidence and next review.
markdown

pirate-metrics-working-template.md

Prepare the decision, source evidence and next review.

Pirate Metrics AARRR: Worksheet

Question

To be confirmed

Desired outcome

To be confirmed

Scope

Run the method Time: See catalog planning range; no universal duration.

Complete this worksheet on paper or in your own document during the work.

Preparation for this scope

Method setup

  • Materials: Shared visual workspace, source evidence, and an agreed decision question.
  • Roles: Growth/product, analytics, marketing, engineering, customer support.
  • Advance information: Collect existing data, examples, constraints and relevant stakeholder perspectives.
  • Overall time needed: 90–150 min to define and diagnose; instrumentation and experiments need separate plans.
  • Setup: Choose product, audience, acquisition channels and cohort window. Define observable events for Acquisition, Activation, Retention, Referral and Revenue. Calculate rates with explicit numerators, denominators, time windows and cohort rules. Compare stages and segments to locate a meaningful drop-off; verify instrumentation. Select one experiment addressing a diagnosed constraint and define its outcome measure.

Prepare for the work steps

Cohort: Define product path and cohort

  • Audience, business model and analytics events

Events: Operationalize events and stages

  • Tracking plan, business rules and analytics

Conversion: Analyze cohorts and conversion

  • Instrumented events, data quality and segments

Experiment: Investigate constraint and experiment

  • Funnel analysis, qualitative evidence and team capacity

AARRR event and measure map

AARRR-StufeEventNumerator / denominatorCohort / window
Acquisition
Activation
Retention
Referral
Revenue
  • Acquisition: Event, numerator, denominator and window for this stage
  • Activation: Event, numerator, denominator and window for this stage
  • Retention: Event, numerator, denominator and window for this stage
  • Referral: Event, numerator, denominator and window for this stage
  • Revenue: Event, numerator, denominator and window for this stage

Define event, numerator, denominator, cohort and time window per stage.

AARRR Metrics · Dave McClure

Cohort: Define product path and cohort

Expected artifact: Measurement frame

Measurement frame

Entry:

...

  • Is the funnel fitted to the product and time window?

Events: Operationalize events and stages

Expected artifact: AARRR event dictionary

AARRR event dictionary

Entry:

...

  • Are events observable and unambiguous?

Conversion: Analyze cohorts and conversion

Expected artifact: Funnel with sources and rates

Funnel with sources and rates

Entry:

...

  • Are window and denominator comparable for each rate?

Experiment: Investigate constraint and experiment

Expected artifact: Prioritized growth hypothesis

Prioritized growth hypothesis

Entry:

...

  • Does the experiment test the suspected cause, not activity?

Open questions and next steps

...

Method guide: https://methodatlas.meierhoff-systems.de/en/methods/pirate-metrics/run-sheet

Alternatives and neighbors

Fitting alternatives with decision guidance, followed by other related methods.

All methods
Paper illustration of a journey map with four connected phases, several experience lanes and a point marked for closer investigation.
UX Research
Customer Journey Mapping

Instead of Pirate Metrics AARRR, when you want to understand behavior, emotions, and obstacles along an actual user journey.

Paper illustration for Flywheel.
Growth
Flywheel

Maps a recurring growth loop, marks friction points, and derives reinforcing levers.

A/B Testing workspace showing the question, observations, and next decision.
Growth
A/B Testing

Tests variants under controlled conditions, keeps the decision log clean, and summarizes results in a learning summary.

Paper illustration of Hooked Model with its method-specific working model.
Growth
Hooked Model

Models trigger, action, variable reward, and investment loops to understand and design repeat usage responsibly.

Paper illustration of Counter Metrics with its method-specific working model.
Product Strategy
Counter Metrics

Moves target group, value, goals, and priorities toward a concrete result through "name the main metric", "collect possible unintended side effects", and "use counter metrics alongside the main metric in reviews".

Paper illustration of HEART Framework with its method-specific working model.
UX Research
HEART Framework

Moves observations, needs, and patterns toward a concrete result through "define a goal for each HEART dimension", "identify signals for each goal", and "agree on a review cadence".

Constraints and origin
MediumWorkshop + async1-2 h Setup, laufend

Profile

Method form
Planning tool
Participants
2-8
Time
1-2 h Setup, laufend
Maturity
Established
Origin
Dave McClure
Funnel Analysis workspace showing the question, observations, and next decision.
Next up: Funnel Analysis