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I am a big fan of AARRR. But it has one major issue: it focuses on Acquisition instead of Retention. And that will destroy your mobile startup.

  • GP

    Gabor Papp

    about 3 years ago #

    Awesome, thanks for shairng it Morgan!

  • JB

    Joseph Bentzel

    about 3 years ago #

    Good read and good contribution to a necessary discussion. Especially calling out the monopoly power of companies like Facebook that command top position in app stores.

    The application of AARRR has MANY problems, not just the sequencing of retention in the overall mix.

    And retention as a thing in itself is never primary. It has grown to be perceived that way as startups game VCs for investment based on perceived "traction".

    In short, the "freemium" model has skewed AARRR, forking it into a tool to demonstrate "growth" to VCs absent revenue.

    REVENUE is the most important.

    Revenue makes founders self-sufficient and non-dependent on investors who do things like fire founders and drop in their own players.

    After revenue it's the COST OF CREATING AND SUSTAINING REVENUE, aka marketing/sales expense or in the SaaS/cloud world, CAC that it is the most important. Startups die from high marketing/sales burn. Period.

    Keep pushing back on AARRR. You are not alone.

  • DP

    Dmitriy Provotorov

    almost 3 years ago #

    Thanks! Good approach!

  • SM

    Sarah Mathews

    11 months ago #

    I believed the customer retention is equally important as customer acquisition. If you ignore the customer retention and just focuses on the customer acquisition it will definitely leads to drastic consequences. The cost on the customer retention (on loyal customers) is far less as compared to customer acquisition. If a startup only focuses on acquisition, other core processes will surly get ignore. Take a look on the steps of customer acquisition https://mobinspire.com/key-building-a-startup-from-scratch/.