This document introduces an updated framework called "Pirate Metrics 2.0" for visualizing and measuring key business metrics. The framework models a business as a "Customer Factory" that turns unaware visitors into happy, paying customers through acquisition, activation, retention, revenue, and referral. It depicts the customer journey in a nonlinear graph and identifies two "hotspots" - nodes with the most lines entering or leaving. This helps simplify complex concepts and identify bottlenecks to growth. The framework also shows three "Engines of Growth" - paid, sticky, and referral - to help businesses focus on scaling.

1. AARRR
METRICS 2.0

2. A Brief History
Dave McClure
500 Startups

3. ACQUISITION
ACTIVATION
RETENTION
REVENUE
REFERRAL
Unaware visitor
Passionate Happy Customer
Pirate Metrics as a Marketing Funnel

4. ACQUISITION
ACTIVATION
RETENTION
REVENUE
REFERRAL
Challenge 1: Funnels lack emotion
70%
30%
3%
2%
1%

5. ACQUISITION
ACTIVATION
RETENTION
REVENUE
REFERRAL
Challenge 2: Customer journeys are non-linear
When does referral happen?
Or Here?
Here?
Here?

6. ACQUISITION
ACTIVATION
RETENTION
REVENUE
REFERRAL
Challenge 3: Hard to internalize complex concepts
What’s my engine of growth?
Where is value created?
Where do I focus first?

7. So I redrew Pirate Metrics…

8. Pirate Metrics as a Customer Factory Blueprint
A metaphor for your
business model

9. Metrics are people first

10. Easier to visualize the job of the business model

11. The Job: Turn unaware visitors into happy customers
Happy passionate
customers
Unaware visitors

12. How You Do This:

13. How You Do This:
Acquire raw
materials

14. Create customer
value
How You Do This:

15. Deliver customer value
through your Happy
Customer Loop
How You Do This:

16. Capture Value through your
Monetization Engine

17. Trigger the
Referral Loop

18. Helps simplify complex concepts

19. Notice two hotspots
Node with the
most number of lines
leaving
Node with the
most number of lines
entering

20. Customer value creation is a causal step

21. It causes:
People to spend
more time with you

22. It causes:
People to spend
more money with you

23. It causes:
People to refer others
to you

24. The inverse is also true:
People leave you
negative reviews
People leave and
don’t come back
People ask for
refunds

25. Helps Unlock the 3 Ways to Grow Your Business
Your Customer Factory

26. Engines of Growth
PAID
STICKY
REFERRAL

27. PAID Engine of Growth

28. STICKY Engine of Growth

29. REFERRAL Engine of Growth

30. Can be mapped to any type of business
The Lean Canvas App Customer Factory

31. Makes for the perfect metrics dashboard

32. Helps identify bottlenecks

33. And achieve breakthrough

34. IN STORES JUNE 14TH. BUY THE BOOK:
“Before you can prioritize waste, you have to
be able to see the factory floor.”
- Ash Maurya, Scaling Lean
Master the Key Metrics for
Startup Growth (AKA Traction)
SCALING LEAN
GET MORE FROM ASH AT LEANSTACK.COM