How to Use the AARRR Framework or Pirate Funnel to Grow Your Business

Data 360 Network
11 min readMay 22


pirates, flag, skull

Any business that wants to flourish needs to attract and retain customers. The key issue is typically how to attract new clients while keeping the ones you already have.

The Pirate Funnel System is a framework to solve these issues by outlining the processes required to expand your company in a clear, visual manner so that you know where to focus your resources.

The Pirate Funnel System makes it easier to expand a business by employing an explicit AARRR formula that can be applied to any firm and any industry. Because you don’t need access to all of your competitors’ data or their sales processes, the method is also simple to duplicate. Any organization seeking to expand its clientele and increase revenue can use the piracy funnels metrics and structure.

The six steps of the Pirate Funnel System are as follows: awareness, acquisition, activation, retention, referral, and revenue. A business can concentrate on any step when it is ready to expand. The activation metrics determine each step. By utilizing additional steps in this technique, growth hackers can be sure they are headed in the right direction.

Any organization, anywhere on the globe, may simply grow a business because the Pirate Funnel System generates income and is simple to use. We’ll talk about its significance and how to use the Pirate Funnel Formula to expand a business in this article.

conversion funnel, sales process, marketing funnel

What Is The Formula For The Pirate Funnel?

Regardless of industry, the pirate funnel is a framework for expanding a business. Its fundamental tenet is to establish a product or service (often a collection of products or services), then figure out how to market them, raise consumer awareness of them, and then find, engage, and keep customers. The growth hacking community uses this formula to expand businesses.

By eliminating the usual strategic milestones that most organizations set in place, such as capital investment, marketing strategy, and sales targets, the business owner can concentrate on specific goals like acquiring or growing a firm.

The Pirate Funnel Strategy is a step-by-step manual for expanding your company. A well-known product or service serves as the foundation of the strategy. The following stages are: awareness, acquisition, activation, retention, referral, and revenue.

Because you can concentrate on your achievements rather than just planning and achieving goals, the Pirate Funnel Formula enables you to work within your budget without going over. This is the primary distinction between the operation of the regular strategic plan and the pirate funnel system.

For instance, if you “acquired” 500 customers over the course of these 12 months, you can rejoice since your sales and revenue will rise by X percent each month.

pirate ship, sea, moon

The Pirate Funnel’s five or six metrics (also known as the AAARRR Framework or AARRR)

We will now talk about the metrics that are typically used in businesses. These parameters form the basis of the pirate funnel.

Awareness (not usually in the pirate funnel; occasionally it’s just AARRR)

The target audience, or your potential consumers, must be aware of the product or service because this is the first step of the pirate funnel. A crucial stage of the pirate funnel is this. Here, potential customers form their first opinion of your product or service. What percentage of customers are aware of your offering? Is the product or service popular in the marketplace? These are some of the inquiries you need to make at this stage.

Through traditional marketing channels, a good or service is exclusively accessible to those who fit specific requirements. With the Pirate Funnel, you may present your product or service to people in a variety of ways and through a variety of channels, ensuring that everyone is aware of it.

The Pirate Funnel uses digital marketing techniques (social media, search engine optimization) to develop awareness targeted at a certain audience, as opposed to raising awareness via an advertisement and then hoping that they will enjoy it.


A potential buyer (or an existing customer) will now be interested in purchasing the product or service after it has been established and has passed the awareness stage. In a conventional business, you would have to sell an existing good or service to a new client. The Pirate Funnel gets rid of this difficulty. The net promoter score (NPS) can accurately forecast the anticipated buy-in rate of potential customers.

Once you have raised awareness, buyers must purchase the good or service in order to turn them into paying clients. The Pirate Funnel can focus on your prospects and then close deals.


The prospect has used your product or service and made a purchase. The Pirate Funnel is now in the beginning its activation phase. Increased engagement, more interest, strengthened loyalty, and increased conversion of prospects into active, paying customers are all benefits of content, video, and other digital marketing methods.


You must keep a prospect as an active client when they become one in order to expand your business. An active customer is someone who uses your product or service on a regular basis. In order to promote client interaction and strengthen loyalty, The Pirate Funnel offers technologies that facilitate retention.


Once a consumer has been kept, you must thank them for their loyalty by giving them something worthwhile. A gift card, a discount, or another in-kind incentive are a few examples of this.

This “something of value” in the context of the pirate funnel is content. The sales pitch you hear from conventional marketing funnel advertising strategies is not your normal one. With the Pirate Funnel, you have a greater chance of making sales since your customers will be motivated to make additional purchases and/or keep using your product or service as a result of the benefits your content provides!

Here, potential customers form a second opinion on your product or service. A new customer observes a good or service they desire being used, enjoyed, and put into action. After the customer’s journey, they spread the word about how fantastic it is, you can approach this new client for more business.


The Pirate Funnel’s final stage is this. The second buyer purchases from you again and tells their friends, family, and coworkers about your goods or services. More business will come your way as you receive more recommendations. In the end, it lowers the likelihood of you losing customers or clients.

The pirate funnel is another innovative method, as you can see. It’s a brilliant strategy since it gets rid of all the obstacles that stand in the way of sales, such as the need to first market an already-existing good or service. The pursuit of new sales through a novel strategy of purchase funnel is both exhilarating and difficult.

Why use the framework AAARRR?

You might be thinking, “Why would I need to learn about the pirate funnel?”

It will assist you in:

Customer journey mapping that works

You must comprehend what your users and consumers do after making a purchase from you in order to create a customer journey map solution that works. You may start creating a practical, actionable customer journey map by using The Pirate Funnel to collect all the data you need!

Make a “realistic” marketing plan for your company.

You can develop a new, useful customer acquisition plan that will aid in the expansion and success of your company with the aid of The Pirate Funnel. You will be able to concentrate on what works when it comes to clients and their behavior rather than spending money on conventional marketing strategies. Your intended buyers will be able to pay you more money!

Boost existing clients’ trust.

A lot of people are wary of providing their clients with new information. They believe it to be excessively hazardous and that you could lose clients.

You may advance this strategy with the Pirate Funnel because you don’t have to inform your clients of anything they don’t already know! Just make it an enjoyable and interesting experience for them using the information you’ve obtained so far!

Lower the cost of customer acquisition.

You can concentrate on the clients you already have by using the pirate funnel tool. Finding new clients does not have to be a time- and money-consuming endeavor. The Pirate Funnel will lower your customer acquisition cost instead of wasting time and energy at networking events, waiting for customers to call you, or spending hours on the phone.

Make a visible sales funnel for your clients.

You may make a visible sales funnel for your clients using the Pirate Funnel. This will boost their confidence in you and, ideally, encourage them to keep making purchases from your company website. Why would they not? They will be able to determine just how much money they may save with your company after you have given them all the information!

Take advantage of your consumers’ actions.

You may take advantage of your consumers’ behavior and begin using the insights from this data after you have all that knowledge about them. You’ll be able to determine what motivates their behavior if you have full control and access to all of the behavioral data you possess and are aware of how they came to be interested in your brand or company. Utilize this information to develop new sales strategies for your clients!

Increase the customer lifetime value (CLV or CLTV) significantly.

Additionally, the Pirate Funnel significantly raises the customer’s lifetime value. On your initial encounter, the majority of your clients will be sold! You may employ behavioral learning strategies and keep your clients for a lot longer by using the Pirate Funnel, which will increase their lifetime value.

In addition to tracking CLV, you may also utilize CVR metrics (customer value ratio) to analyze how quickly leads become customers and where, allowing you to improve and optimize your marketing efforts and increase conversions.

CLV stands for customer lifetime value.

How to Use the AARRR Framework’s Pirate Funnel to Grow Your Business

How can you use the Pirate Funnel to expand your business? Let’s go over the next steps and procedures…

Define your target market (the group you want marketing funnels to attract). Identifying your target market should be your first step. These are the folks you wish to bring into your company as clients. What issues do they have? Who are the perfect clients for you? How can you determine if that individual is real and a potential customer?

You’ll need to ascertain the characteristics, requirements, and preferences of your target market. These solutions can be discovered through surveys, psychographics, and other research tools. You can also get in touch with former clients.

The (A)AARRR-steps in full

You will complete the AARRR steps once you have identified your target market and its requirements. You will be given a step-by-step process for creating your client acquisition funnel stage as a result. You must implement a funnel feeding method. To put it another way, you need to increase traffic to your funnel and make sure that leads are continuously entering it.

You must consider how your company currently generates revenue while you complete the AARRR steps. Do you have a consistent source of income? To determine how these customers will convert into clients, make use of the information you discovered in the first phase.

The client acquisition marketing funnel stages is largely a cycle of behavioral learning, so keep that in mind as well. The next time a consumer wants to make a purchase, you’ll use your product or service to show them how to do it.

wine, wine bottle, old wine bottle

Recognize your bottleneck.

You must identify your bottleneck after completing the AAARR funnel steps. Your clients will struggle the most with this step in the middle of certain stages of your customer acquisition funnel. What might be the root of this? What can you do to make this part of your funnel better?

You’ll be able to keep more of your customers by identifying and addressing your bottleneck, which will decrease the likelihood that they will leave. Additionally, you’ll be able to attract and retain more clients!

Stop questioning your ability. Act as though you are by being aware of it.


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