The RARRA framework is Thomas Petit and Gabor Papp’s answer to crowded markets with high acquisition costs such as the mobile apps market. Similar to the AARR framework, the application of RARRA will also have different implications on your company depending on which business model you use from the following options: direct to consumer, two-sided, freemium, advertising, software-as-a-service or razor and blades.
Retention
Do your app downloaders get addicted to your app?
The goal at this stage is to ensure the downloader falls in love with the app and uses it again and again.
- Direct to Consumer/Two-sided business model: the customer browses products on the app
- Freemium model: the customer uses the subscription free area
- Advertising: the customer consumes the content you provide
- Software-as-a-service: the customer uses the contract free area
How to measure retention?
- Check the app’s retention rate
How to improve retention?
- Fix bugs on the app
- Improve usability of the app
Activation
Do your app downloaders actually use the app?
Depending on the goal of your app, activation might be very similar to the retention stage but mean the following for your company:
- Direct to Consumer/Two-sided business model: app users purchase a product or subscription to a service
- Freemium model: app users subscribe to the free version
- Advertising: app users consume the content you provide
- Software-as-a-service: the client signs a contract
How to measure activation?
- Direct to Consumer/Two-sided business model: app users purchase or download apps
- Freemium model: app users subscribe to the free version
- Advertising: app users consume the content you provide
- Software-as-a-service: app users sign up
How to improve activation?
- Keep the app as simple and as intuitive as possible
Referral
How do I turn my app users into ambassadors?
Tesla is one of the companies that has mastered this. They have a referral programme of their own that provides attractive incentives unique to each customer. However, a referral programme will only work if the product or service offered provides high customer satisfaction.
How to measure referral?
- Viral Coefficient
How to improve referral?
- Improve the quality of product/service
- Provide an easy and attractive referral program
Revenue
How to increase revenue?
Revenue is generated as a result of retention, activation and referral. Depending on your business model, you can increase revenue by taking the following actions.
- Direct to Consumer/Two- sided business model: improve the Average Transaction Value
- Freemium model: move from the basic paid version to the premium paid version
- Advertising: increase the frequency of content consumption
- Software-as-a-service: upsell the higher subscription to the client
How to improve revenue?
- Direct to Consumer/Two-sided business model:
- Add a cross-selling section on the product page
- Minimum order amount for free delivery
- Freemium model: introduce a free trial of premium version
- Advertising:
- Add new content (for example videos for a newspaper)
- Add alerting (function)
- Software-as-a-service: introduce a free trial of the higher subscription level
Acquisition
Where do your app users come from?
How to measure acquisition?
As the goal of driving traffic to your website/app store is to encourage app downloads, KPIs such as CPA are the most relevant way to measure the effectiveness of your acquisition. Tools such as attribution help mitigate the costs and provide an insight the real efficiency of each channel.
How to improve acquisition?
- Build your acquisition budget based on the CPA
Contact me:
Share on: