Diagnose the Funnel Before You Fill It
Use AARRR to identify whether acquisition, activation, retention, referral, or revenue is the current startup growth bottleneck.
The startup has 4,000 monthly visitors, 500 signups, 60 activations, 24 week-two retained users, 1 referral, and 8 paid accounts. AARRR: Acquisition -> Activation -> Retention -> Referral -> Revenue The common trap is buying more acquisition before checking whether qualified users reach the first value moment. Acquisition 4,000 visitors produce 500 signups, a 12.5% visitor-to-signup rate. Acquisition is not perfect, but it is not the first major leak. Enough people are trying the product to inspect downstream behavior. Activation 60 of 500 signups activate, a 12% signup-to-first-value rate. This is the first sharp drop. The team should investigate whether…
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