ARRR Funnel Pricing
Align pricing to the ARRR funnel so acquisition and retention stay balanced.
Quick checklist
- Keep entry pricing aligned with activation.
- Use upgrades to reinforce retention value.
- Limit price increases during retention dips.
- Track funnel conversion by tier.
- Review funnel metrics quarterly.
Step-by-step
- Map pricing tiers to funnel stages.
- Identify drop-offs in activation or retention.
- Adjust entry tier limits and messaging.
- Model price increases against churn risk.
- Re-test conversion after changes.
What to watch
- High activation but low retention signals value gaps.
- Aggressive price increases can break retention.
- Weak upsell paths reduce revenue expansion.
Common mistakes
- Treating pricing as acquisition only.
- Ignoring retention impacts of discounting.
- Mixing funnel metrics across segments.
