Most start-ups we speak to despite with reservoirs of funding are clueless on how to deploy their $ for exponential growth.
They don’t see the big picture… they attack growth haphazardly
Here’s the AARRR framework we adopted to systematically
grow users and profits —
A: Acquisition – where / what channels do users come from?
A: Activation – what % have a “happy” initial experience?
R: Retention – do they come back & re-visit over time?
R: Referral – do they like it enough to tell their friends?
R: Revenue – can you monetize any of this behavior?
The KEY here is to divide and conquer. You do this by optimizing each and every stage in order to experience exponential growth.
Here’s how it works —
Scenario #1: Say you focus solely on growing users. You grew user acquisition by 60%. And zero growth for other stages. Growth at the end of the month: 60%
vs Scenario #2:
You grew every stage by 5%. This compounds and adds up quickly means 5x5x5x5x5= 3125% ROI by the end of the month.
This is where the magic begins.
Plus, it’s so much easier to grow 5% vs 60%.
Happy Growth Hacking.
Credits to the AARRR framework goes to Dave McClure.