Acquisition: How do customers find you? Who are they? Usually takes the form of a Call-to-Action -> opt-in list.
Activation: How do you get a customer to care? How many do? Usually takes the form of a secondary CTA -> ???
Retention: How many customers are returning? Who isn’t? Usually happens after Activation.
Referral: How can customers become advocates? How many are advocates? Usually leads to another Acquisition.
Revenue: How many customers convert? Who didn’t? How much was made and how much did it cost?
Opt-out
A user is added by default and needs to request to be removed. Examples: a bought list or a list you built yourself.
Opt-in
A user requests to be added. Conversion rates are much higher for opt-in lists but are more difficult to build. Example: an email list built with a Subscribe form (or social media follows).
Permission-based marketing list
Usually an email or subscriber list of potential customers that have opted-in to (i.e. given permission to be added). This is usually the goal of the Acquisition stage.
CPA
Cost per Acquisition. How much does it cost to generate a first-time sign-up. Costs can involve PPC ads, traditional advertising, sales staff, etc.
Customer Funnel
A measurement of the journey customers take through the sales process of a business, usually from acquisition to the first sale. Can be qualitative (gut feeling) or quantitative (statistical).
Key Takeaways
The specific definition of each of the AARRR stages is very situational and will dependent on how high you (or a business) sets the bar.
Startups are often very interested in pirate metrics, specifically CPA. As a potential developer for a startup, it’s a good idea to become familiar with the terminology.
Permission-based marketing lists should be considered a valueable asset, often more important than the sales themselves.
2. Organic social media campaigns
Learning Objectives
Compare general pirate metrics to their social media counterparts.
Discuss the role of social media in the life-cycle of a business.
Find a good example of a local business effectively using an organic social media campaign.
Business-to-Customer services/relationships. For example, local restaurants selling to customers.
B2B
Business-to-Business services/relationships. For example, food supplier selling to local restaurant.
PPC
Pay-per-click advertising. Ads that you pay for when a user clicks on them and is directed to a landing page. For example, Facebook, Instagram and Google Ads all run on the PPC model.
CPM
Cost per thousand impressions. A term used when you pay by the page view. This is an older model that is rarely used online (unless you’re a successful Youtuber).
Media Buy
The amount of money a business budgets for the purchase of PPC ads.
ROI
Return on Investment. Is the value worth the price you’re paying?
Conversion Rate
The number of sales divided by the number of ad clicks (%).
Key Takeaways
Most PPC platforms use some form auction system to set the price of a click.
Conversion rates are a key metric to measuring ROI and is usually tricky to set up, depending on what you’re converting.
General tips:
add scarcity (“This month only!”),
focus on the visual hierarchy of your Call to Action,
geo-target your ads!
Open lab-time
Trivia: Did you know Erica is a social media consultant?
Dailies
Submit today’s Codepen/repo/gist to the Dailies section (in Assessments) in Brightspace.
