Pirates, Doctor Who and Digital Marketing
After recently watching a (not so great) episode of Doctor Who, I could not help but think of ways to make the episode even better. What better way than to let my mind drift and over-analyze simple life issues. This specific episode of Doctor Who involved a group of pirates on a trapped ship. What is the first thing that comes to your mind when you think of pirates? Well, probably that they are always saying “AARRR!” (for some reason). Boom! My mind instantly made a connection to a concept in Marketing Analytics that I recently read about.
The AARRR analytics framework is a great way for companies to put customers first, while still caring about growing the business. This framework allows for companies to analyze 5 areas relating to the customer lifecycle and apply strategic metrics to help promote growth. These are the 5 areas that one must analyze while using the AARRR framework:
As you can see, all of these relate to how your customer affects business growth; and all of them are definitive of the various business actions usually taken. For example, you may acquire many website visitors, but only a few of them are actually activated into customers. So it is the process of activation that is to be further analyzed. Or, you could have great customer retention, but referral seems to be lacking. This may lead one to believe that their strong customer base needs a little “nudge” into becoming advocates of the brand, thus increasing referrals.
This framework allows you to easily layout a few metrics that apply directly to each of the 5 categories. For example, Channel Volume could be used to analyze how website visitors are best acquired. Churn rates can be used to understand retention.
This is an awesome way to think about how to grow your company using a simple and structurally sound framework. As any pirate would do, a confident marketer should take ownership of this framework and use it to capture all of that treasure!