AARRR (Pirate Metrics)(AARRR)

Also called: Pirate Metrics, AARRR Funnel

TL;DR

Dave McClure's five-stage growth funnel: Acquisition, Activation, Retention, Referral, and Revenue.

AARRR breaks the customer lifecycle into five measurable stages. Acquisition asks how users find you. Activation asks how many reach a meaningful first use. Retention measures whether they keep coming back. Referral measures whether they bring others. Revenue measures whether they pay.

The value of the framework is diagnostic. By measuring conversion at each stage, a team can spot whether growth is bottlenecked by a leaky funnel, weak activation, churn, or undermonetization, and prioritize accordingly. Many teams expand AARRR with awareness on the front and expansion on the back.

Worked example

A B2B SaaS funnel for one month: 12,000 site visitors (Acquisition) → 1,800 trial sign-ups (Activation 15%) → 1,260 still using week-3 (Retention 70%) → 142 customers refer at least one teammate (Referral 11%) → 280 paid conversions (Revenue 22% of trials, $14k MRR added).

Common pitfalls

•Treating AARRR as five disconnected metrics instead of a connected funnel.
•Optimizing Acquisition while Retention is broken, pouring water into a leaky bucket.
•Picking inconsistent definitions of Activation across teams.

When this shows up in a pitch deck

Often referenced implicitly when a deck shows a funnel chart with stage-by-stage conversion. Strong B2C decks make the funnel explicit.

Related terms

Funnel Analysis

Decomposing a user journey into ordered steps and measuring conversion between each step to find the biggest drop-off.

Activation Rate

The percentage of new sign-ups who reach the product's defined aha moment within a target time window.

Retention Curve

A chart showing what fraction of a cohort is still active week-by-week or month-by-month after sign-up.

Viral Coefficient

The average number of new users each existing user invites who themselves convert into active users.

Conversion Rate

The percentage of users who complete a desired action, sign-up, purchase, upgrade, out of those who had the chance to.

Pitch deck pillar pages

Long-form deep dives on the slides AARRR (Pirate Metrics) most often shows up on.

Pitch Deck Traction Slide

Build a traction slide that proves the business is working: stage-appropriate metrics, the chart shape investors expect, and three failure patterns to avoid.

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