Pirate Metrics
Dave McClure (500 Startups Founder) came up with Pirate Metrics (also know as AARRR) and first presented it in 2007 at Ignite Seattle. Below is the video of this presentation, and you can find the original post here.
Following is a visual model of the framework:
The Framework from a funnel perspective:
| Element | Function | Relevant metrics |
|---|---|---|
| Acquisition | Generate attention through a variety of means, both organic and inorganic | Traffic, mentions, cost per click, search results, cost of acquisition, open rate |
| Activation | Turn the resulting drive-by visitors into users who are somehow enrolled | Enrollments, signups, completed onboarding process, used the service at least once, subscriptions |
| Retention | Convince users to come back repeatedly, exhibiting sticky behavior | Engagement, time since last visit, daily and monthly active use, churns |
| Revenue | Business outcomes (which vary by your business model: purchases, ad clicks, content creation, subscriptions, etc.) | Customer lifetime value, conversion rate, shopping cart size, click-through revenue |
| Referral | Viral and word-of-mouth invitations to other potential users | Invites sent, viral coefficient, viral cycle time |
References
Recommended Books
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Lean Analytics - by Alistair Croll, Benjamin Yoskovitz Use Data to Build a Better Startup Faster 
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Measure What Matters - by John Doerr How Google, Bono, and the Gates Foundation Rock the World with OKRs
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