Venture Notes

Inside news from the Boston College entrepreneurship community

What is AARRR? (Hint: It’s What You Should Be Focusing On)

What is AARRR?  You very might be asking this question — much like many of the people in a summer SSC Accelerator session.

AARRR stands for Acquisition, Activation, Retention, Revenue, and Referral.  At any given point, a business should truly be focusing one of these areas and their key metrics to drive the business forward.  Depending on which of these areas you are currently in, priorities should be set accordingly.

To help with this, Duncan Walker and David LoVerme introduced a priorities matrix to help move forward.  On the horizontal axis, the degree of effort is measured. On the vertical axis, the degree of value is measured.

Ideally, everything a company does is in the upper left quadrant, where things are low effort and high value – unfortunately there are not many of these.  While high effort and low value initiatives should be avoided, it is up to the individuals to figure out what a healthy mix of high value/high effort and low effort/low value activities are.

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