The basic concept is based on 5 types of measurements of user behavior:
- A: Acquisition – where / what channels do users come from?
- A: Activation – what % have a “happy” initial experience?
- R: Retention – do they come back & re-visit over time?
- R: Referral – do they like it enough to tell their friends?
- R: Revenue – can you monetize any of this behavior?
via Product Marketing for Pirates: AARRR! (aka Startup Metrics for Internet Marketing & Product Management) – Master of 500 Hats.