ND037 GPMND C1 L2 A06 AARRR Framework V3

in this section we're going to use the r framework to analyze growth along the user journey so what is the r framework so what is the aarrr or r framework the r framework is a growth framework that breaks down business growth by the user journey into different phases and there are five main phases based on this framework acquisition activation retention revenue and referral each phase represents a part of a user journey so let's walk through each phase and look at some examples the acquisition phase refers to ways that potential users discover the product so think

of this phase as ways to expose the product to the right audience some examples of acquisition might be using search engine results by ensuring that your product shows up when users search for relevant keywords you can help potential users discover the product another way is social media by using social media shares you can help other users discover the product that their social network is using another way is to use referral program so that existing users can invite new users to join the platform it is basically targeting potential users through word-of-mouth growth the activation phase this

refers to efforts to help potential users to realize the product value and become a user so the idea is after a user is exposed to the product we want to be able to show the user the value and encourage them to become a user so some examples of activation might be a very enticing and strong landing page with testimonials that convince users to sign up for an account on the website or something like a promotional effort you know offering extra credit or free trial when a user subscribes to a plan the retention phase this is

the phase where we want to engage and delight users so they become loyal active users and don't leave the product or platform some examples of retention efforts might include building features that encourage actions of engagement now actions of engagement it depends on what the product is but for example let's say we have a content-based product engagement actions would mean showing relevant content so they come to the product to view the content offering options for the users to post and contribute to the product or creating a powerful search function so users are interacting with our product

and finding information that they need the referral phase this refers to ways for existing users to share the product with others now there is a bit of an overlap between referral and acquisition since referral is an acquisition activity that drives new users to the product so some examples of referral might be a collaborative tool might have built-in features to make it easy for you to invite co-workers to join the product it makes the product more valuable and it drives growth at the same time another example could be a shareable link that allow non-users to access

the product it makes sharing easy so it not only makes the product experience better but it also drives new users to the product which is why we say referral kind of relates to acquisition here last but not least the revenue phase this is referring to ways that the business generates revenue and this can happen actually during the activation or retention or other phases as well we'll take a look at some examples it could be having users sign up for a paid account right the monetization actually happens during the activation phase in this example or it

could be charging users a platform fee to unlock more features or capabilities and this is an example where monetization happens during the retention phase or you could also monetize by showing advertisements on the platform to gain revenue and the idea is that the more user traffic you get the more ad revenue you gain we've walked through the entire r framework and discussed acquisition activation retention revenue and referral so let's tie this all back into the bigger picture the r framework breaks down business growth into these five stages based on the user journey to help analyze

the as-is state of the business by understanding the current landscape as is we are setting ourselves up for success to develop a growth plan that takes us to the ideal to be state