Definition
ARRR is a lifecycle framework that tracks users through acquisition, activation, retention, revenue, and referral.
Why it matters
It makes pricing tradeoffs visible by showing how changes shift conversion between stages.
Pricing implications
If activation is weak, packaging and trial length matter more than price. If retention is weak, value-based tiers help.
Measurement tips
Use consistent time windows and define one primary metric for each stage to avoid metric sprawl.
Checklist
- Define each stage in one sentence.
- Track conversion rates between stages by cohort.
- Separate new, expansion, and churned revenue.
- Monitor referral sources separately.
- Tie experiments to one stage movement.
- Review stage definitions quarterly.
- Keep activation and retention metrics aligned.
- Align ownership for each stage.