AARRR vs. RARRA: Which is Better?
If you’ve no idea what I’m talking about, it might just look like I’m asking which sound a baby makes is the cutest. 😆👼 On the other hand, if you’re familiar with those acronyms, you might know that the short answer is…🥁 neither! As a marketer, you might have your own opinion of which is more efficient but forget not that both of them might do the trick for your business, only not at the same stage. What I learnt is that using one rather than the other will depend on:
- The phase your business is in
- The goals you have for your business
- The industry it’s a part of
If it’s a new startup you’re managing, you want to start with the AARRR model since there’s no way around acquiring a customer base in the first place.
If you don’t have clients, you can’t retain them, right? If your business was just born, you’re better off prioritizing acquisition and raising awareness to make your product or service known to the audience.
The next move would be to focus on both activation and retention. That way, you’re pushing growth while retaining your existing clients. Then, you can move on to the last two R’s, referral & revenue.
Now that you’ve put all the odds in your favour by using the AARRR model, it’s time to ask yourself: where, when and how does the RARRA model fit in?
As Brian Balfour says, “Any metric that is intended to be an indicator of overall authentic growth must have retention built in. Retention is an indicator that you are delivering and building real value because they keep coming back.”
Don’t know if you’ve noticed, but businesses tend to have a hard time moving on from their initial strategy. I mean, I get it, it’s hard to shake things if they are comfortably resting their success in big Excel sheets with happy numbers. But what if those numbers could get happier? What if you could do something better than you are doing it right now? Or what if you’re doing something wrong but it’s gone under the radar…until it shows! As a business owner, you should always plan for the next issue or challenge and that requires strategising ahead.
🖊️🔑To help you figure out when to switch from AARRR to RARRA, ask yourself those questions: 🤔
📌Question 1: Is your business brand new AND does it have little competition? If so, using the AARRR model and focus on acquisition might be a good hit, given there’s little competition.
📌Question 2: Does your business fit in an industry that is saturating with competition?
📌Question 3: Do you manage to convert new prospects through paid ads BUT can’t get those new clients to the next stage of the funnel? 📈📉
📌Question 4: Are you moving inside a market that is already competitive?
📌Question 5: Is your business actually successful in a consistent way BUT you can’t seem to scale it?
📢 To conclude: Both RARRA & AARRR can manage growth. They ARE good models to follow. According to your business and the stage it’s in, you need to be mindful of the advantages one and the other can bring. For a successful growth, take in all the above-mentioned tips and switch from one model to another when the time is right.
I also suggest you use a framework like the Pirate Metrics provider to help. But ultimately, work at making a tailor-made growth strategy that fits where your business stands and leads to the goals you’re trying to achieve.
Next week, I’ll share with you my experience of how you can create a growth strategy using the RARRA framework.
In the meantime, don’t be shy to drop me some questions here below or via message.
Happy growing everyone! 🚀
