What Are Pirate Metrics in Growth Marketing?
Pirate Metrics is a fun name for an innovative five-step approach to funnel optimization, first conceived by successful angel investor and entrepreneur David McClure.
Part of what makes this approach so effective is that it drives product people to look past the fancy, ivory tower metrics: customer acquisition, retention, and activation in marketing. Instead, they should be looking for acquisition, retention, and activation in the context of their business from a growth marketing lens. In other words, instead of looking at conversion as a measure of success, they should be looking at acquisition, retention, and activation as measures of failure.
If you think about it, retention and activation are quite simple concepts. They involve getting a customer, signing them up, then providing value that creates a relationship with them, and then giving them another opportunity to refer your product or service.
So many businesses think in terms of revenue and profit. The truth is, without the ability to turn a profit, a startup is destined for failure. However, many startups do not take into consideration the real-life needs of the business, the way people work in the world today, and how people will respond to your offerings if they do grow and become successful. Pirate metrics can help you identify business problems before…
