Each phase of the A.A.A.R.R.R. Funnel is managed through a metric that is called The Only Metric That Matters (OMTM):
- Awareness can be managed through:
- Number of Impressions
- SERP Positioning
- Click-through-rate (CTR)
- Acquisition can be managed through Lead Generation metrics, such as:
- Number of Unique Visitors
- New Leads
- Activation can be managed through Conversion Rate metrics, such as:
- Trial Sign-ups number
- First App Opening number
- First Web Sessions number
- eMail confirmations number
- Retention can be managed through Retention Rate metrics, such as:
- Number of Session per user
- Daily Active Users (DAU)
- Monthly Active Users (MAU)
- Revenue can be managed through metrics such as:
- Average Revenue Per User (ARPU)
- Average Revenue Per Paying User (ARPPU)
- Lifetime Value of a Customer (LTV)
- Referral can be managed through metrics such as:
- Net Promoter Score (NPS)
- K-factor (how many users I get for one customer)
- Social Shares
Aside the OMTMs used per each stage of the Funnel, there are other 3 metrics that are fundamental for monitoring its overall health:
- Customer Acquisition Cost (CAC)
- Customer Life-Time Value (LTV)
- Churn Rate: it is the inverse of the Retention Rate metrics, it is interesting to monitor and understand it to eliminate the causes of the customers to abandon the product
CAC and LTV are fundamental since the balance of the 2 defines if the business is sustainable or not.
There is a golden rule: LTV has to be S times greater than CAC (LTV > S x CAC)
In the formula, S is the Success Factor and it depends on the cost structure of the company. A usual value for S is 2.
Churn Rate is the complement of the Retention Rate metrics. This metric is interesting to monitor and understand since it allows the company to eliminate the causes for the customers to abandon the product.
Last but not least, Soft Data is very useful to understand the metrics. Therefore, Growth Hacking makes extensive usage of:
- Customer Interviews: they are open Q&A, they are useful during the product utilization. Useful tools for online Customer Interviews are
- Polls: they are
questionnaires, they are useful before and after the product utilization. Useful tools for online Polls are
- Type Forms
- Google Forms
- Survey Monkey
- Jot Form
- Zoho Survey
- Session Recordings: they are based on the recording of the user while he is using the product to improve the UX. Useful tools for online Session Recordings are
- Usability Tests: they are based on people hired for running tests on product UX. Useful tools for online Usability Tests are
- Heatmaps: they are based on highlighting the areas of the screen where the users spend more time and they are useful especially for digital products. Useful tools for online Usability Tests are
Analytics help companies to:
- Find the bottleneck of the Funnel
- Maximize the ROI out of their budget
“Would you tell me, please, which way I ought to go from here?”
“That depends a good deal on where you want to get to.” said the Cat
I guess you want to get to know how to eliminate bottlenecks of a Funnel and how to select channels that maximize the ROI of your budget.
Well, if you are headed that way, you should follow towards the Bullseye Framework!
Business Strategy | Product Marketing | Executive Master eCommerce Management | Business Innovation Master | MSc
I am driven by my personal growth and of people/contexts that surround me.
I followed a professional path in Valentino Fashion Group and Luxottica during which, thanks to the ability to understand different businesses and interests, I was able to succeed in Operations, Merchandising and Retail.
These organizations have exploited my ability to mediate and translate needs/constraints into practice, assigning me to Project Management roles.
Luxottica relied on my ability to analyze, to anticipate things and to imagine/implement solutions by appointing me in Supply Chain Management department and assigning me to the Product Management of IoT solutions for Anti-counterfeiting and Retail digitalization.
During this professional path, I also developed my leadership by managing teams to build Processes, Organizations, Systems and Governance Tools.