Growth
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October 14, 2024

From Acquisition to Revenue: Using AARRR Metrics to Drive B2B Growth

Michel Gagnon
Michel Gagnon
CEO of Stun&Awe

The startup market is brutal. Just acquiring leads? That’s not gonna cut it anymore. With long sales cycles, more decision-makers than you can count, and a constantly changing digital landscape, figuring out where to put your focus can feel like you’re juggling flaming torches. But there’s a way to keep your marketing and sales teams on the same page and your revenue moving in the right direction: AARRR metrics.

Originally coined as “Pirate Metrics” (yes, it’s pronounced like a pirate growl), AARRR is a framework that helps companies — whether they’re scrappy startups or established B2B leaders — understand and optimize every stage of the customer journey. If you’re tired of aimlessly tweaking things and hoping for the best, it’s time to use a data-driven strategy that actually works.

What Are AARRR Metrics?

AARRR metrics break the customer journey into five stages:

  1. Acquisition: How are people finding you?
  2. Activation: Are they sticking around and engaging?
  3. Retention: Do they keep coming back, or are they ghosting you?
  4. Referral: Are your customers so happy they’re shouting your name from the rooftops?
  5. Revenue: Are you getting the most value out of each customer relationship?

By looking at these stages, you can see exactly where your leads or customers are getting stuck, losing interest, or — worse — dropping off completely. It’s like having a cheat sheet for pinpointing issues and fixing them fast.

Why AARRR Metrics Matter for B2B Growth

In B2B, the stakes are even higher. You’re not selling to one person with a credit card; you’re navigating a maze of stakeholders, approvals, and budgetary discussions. It’s easy for leads to get lost in the process, for deals to stall, and for inefficiencies to pile up. But AARRR metrics help you zero in on what’s working and what’s holding you back.

Let’s break it down a bit more:

  • Acquisition: Are your ads pulling in the right leads, or are you throwing money into a black hole?
  • Activation: Are those leads booking demos or just poking around on your site and disappearing?
  • Retention: Are customers sticking around, or are they slipping through your fingers after a few months?

Each stage gives you a clearer view of your funnel, so you can focus on what really matters instead of guessing.

Real-World Examples of AARRR in Action

Here’s how some B2B companies have used AARRR metrics to solve their biggest growth problems:

Example 1: HubSpot’s Onboarding Revamp

HubSpot was generating tons of leads for its CRM software, but many weren’t making it past the free trial. After digging into their Activation metrics, they realized that users who didn’t hit key milestones in their first week were unlikely to convert. So, they retooled their onboarding process — adding guided product tours and sending out personalized tips. The result? Activation rates shot up, conversions followed, and HubSpot had more long-term customers.

Example 2: Drift’s Retention Strategy

Drift found that retention rates for their smaller customers were lower than expected. By analyzing their Retention metrics, they discovered that these customers weren’t using key features. To fix this, Drift launched a customer success program complete with video tutorials and personalized onboarding. Engagement increased, and retention rates went up too.

The One Metric That Matters (OMTM)

But here’s the kicker: sometimes even five metrics can feel like too many. That’s where the One Metric That Matters (OMTM) comes in.

The OMTM concept is simple. Instead of scattering your attention across multiple priorities, focus the entire organization on just one metric that will make the most impact this month or quarter. For example, if you’re drowning in unqualified leads, your OMTM might be “qualified leads per month.” For that period, every team — marketing, sales, product — is aligned to move the needle on that one number.

We’ve seen firsthand how this focus pays off. At GrowthLeap.io and StunAndAwe.com, we implemented a chat bot to generate new leads and get a better understanding of what our prospects wanted. That focus on a single metric — converting chat visitors to leads — helped us tailor our content, refine our messaging, and ultimately grow faster.

In our Fast-Track Innovation workshop, we teach clients the value of using a common playbook across the entire company. This way, everyone — from sales to engineering — speaks the same language and can rapidly test new ideas with less risk. This is exactly what we did at Plista, an adtech company. For one quarter, every department — product, sales, engineering, and customer success — focused on improving the activation rate for new leads. The result? They worked in sync, cut down on miscommunication, and boosted the number of leads that converted into active users.

Applying AARRR Metrics to B2B Growth

Adapting the AARRR framework to B2B isn’t a copy-paste job from B2C. You’re dealing with longer sales cycles, bigger budgets, and way more decision-makers. In our Growth Marketing Course, I walk you through each metric with real-life experience and a set of strategies to improve those metrics. Here’s how you can apply AARRR metrics to each stage:

1. Acquisition: Targeting High-Value Accounts

Forget about quantity. You want quality leads that actually fit your ideal customer profile. Use Account-Based Marketing (ABM) to engage high-value accounts with personalized outreach. You can also create internal growth loops — when one department loves your product, it’s easier to spread the word to other departments.

Key Strategies:

  • Use ABM to zero in on high-value accounts.
  • Create internal growth loops by encouraging referrals across different departments within existing clients.

2. Activation: Getting to the “Aha!” Moment

Getting leads to the “aha!” moment is crucial. For B2B, that might mean personalized demos, hands-on onboarding, or industry-specific case studies that show value right away.

Key Strategies:

  • Tailor demos to solve each prospect’s unique problems.
  • Use engagement tools like Intercom or Pendo to track user behavior and follow up accordingly.

3. Retention: Keeping Customers Hooked

Retention is where it all pays off. You’ve spent time and money getting that customer — don’t lose them now. Use Retention metrics to catch any signs of disengagement and jump in before it’s too late.

Key Strategies:

  • Schedule regular QBRs (Quarterly Business Reviews) to keep the pulse on customer satisfaction.
  • Track usage to spot potential churn risks and intervene proactively.

4. Referral: Building Growth Through Happy Customers

B2B referrals are like gold. Formalize the process and incentivize customers to spread the word with referral programs or co-marketing opportunities.

Key Strategies:

  • Launch a structured referral program to reward customers for bringing in new business.
  • Use case studies and success stories to showcase value and drive word-of-mouth growth.

5. Revenue: Maximizing Lifetime Value

In B2B, revenue is tied to long-term contracts and high-value deals. Use Revenue metrics to understand which clients have the most growth potential and create upselling and cross-selling strategies that maximize their lifetime value.

Key Strategies:

  • Identify high-value clients for tailored upselling and cross-selling.
  • Develop customized solutions that grow as your clients’ needs evolve.

Bottom Line: AARRR and OMTM for Sustainable B2B Growth

AARRR isn’t just a set of metrics — it’s a strategy that can transform your B2B growth trajectory. But to get the most out of it, you need focus. That’s where the OMTM comes in. By uniting your team around one key metric, you eliminate distractions and drive meaningful progress.

Ready to apply AARRR metrics and the OMTM to your business? Pick your key metric, align your team, and watch your B2B growth take off — without all the guesswork.