Dave McClure developed a model of startup metrics simply called AARRR. The name was made from first letters of 5 metrics that represent customer’s behaviors: Acquisition, Activation, Retention, Revenue, and Referral.

Very important for a startup growth is to separate those 5 metrics and monitor them to learn how you can see which of them need to be busted. You startup depends on optimization of all of these metrics and that’s what we call growth hacking.

Learning about AARRR is a must. Only then will you know what is wrong with your startup, and you’ll be able to fix it.

I will give you an example with one pizzeria. The owner opened a pizza place in New York and after few months his business was still poor. He put the blame on a guess that people in New York don’t like pizza (that is impossible).

Actually, every startup blames someone or something. Maybe it’s a bad location, bad storefront, bad interior, bad pizzas, high prices or many other things.

Good location is very important – that is how potential customers can see you. Storefront should look great – in a way that customers get a desire to go in, to tickle imagination – what is inside? Interior must give a comfortable feeling to customers. Courtesy and politeness of personal must be in highest level – that is how customers feel respected.

The menu should look interesting, be comprised of high-quality food and the price should be affordable for all (or most). Only after all these conditions are met, you can expect from customers to come again and to spread the word among their friends.

I found this example and I will share it with you:

“Michelin 1 star restaurant chain called Ding Tai Fong focuses on every part of the detail. They optimize everything. They are so detailed that when you are paying for the bill, the cash change they give back to you is always new so that you don't get your hands dirty. So they have someone who goes to the bank every morning to get brand new cash to start the day off. It's something as subtle as this, but this way, people love their whole experience from beginning to end and come back again or tell their friends.”

The same thing is with websites, blogs, and all online products. If you don’t have great FrontPage, good menu, excellent material and all things that users will return and share with friends then is time to start to make some changes.

I hope I was helping you with this article, and that you will continue to follow my work.

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