Internet Marketing Glossary: A List Of Digital Terms You Need To Know – 2020 Ready (Part 11: Startups)

This Internet Marketing Glossary is a comprehensive digital marketing jargon glossary.


Retention – AARRR

Retention, which is a part of the AARRR (Acquisition, Activation, Retention, Revenue, Referral) framework, refers to the ability to make customers come back for repeat purchases. While we recognize conversion as the ultimate goal in ecommerce, but one-time customers do more harm than good.

A good retention rate means that customers are satisfied with the products and services.

Here are some methods to boost that elusive retention rate:

  1. Customer service – The first and most important part of retaining your customers. If you have bad customer service, then visitors won’t care how good your product or service is. Learn to provide virtual shopping assistance (proactive), follow up after delivery, and maintain customer support all throughout. Treat your visitors like kings and queens and watch them become your best buds.
  2. Rewards vs. Loyalty programs – Loyalty programs are good, but reward programs are the best you can offer your customers. Give them gifts for their first purchase, birthday, one-year anniversary on your site, etc.

Ressurection – AARRR

Reactivation of dormant customers can go a long way in improving a business or a company.

In an ever-competitive market where companies are looking to outdo and out class each other, retaining one’s existing cost and making effective efforts to reactivate the dormant ones can go a long way in making a company gain the competitive edge amongst its competitors and become successful.

In looking to reactivate a particular customer, factors that have led to the customer’s dormancy cannot get ignored. Factors like price and quality of product and service offered, poor customer services and so on could lead to a customer’s deactivation. These factors should not be ignored but checked mate. A company should strive to reactivate such dormant customers because in the long run, it is cost effective and cheaper to reactivate a customer than to get a new one. Analysis shows that it costs 5 times more to acquire a new customer than to reactivate an existing one.

Customer reactivation is a business strategy companies should embrace because it appeals to various products and services as well as different consumers and markets. In itself, reactivation is an undergrowth of retention marketing, and in comparison, to other customer attraction schemes, it possesses the largest rate of return of investments.

Referral – AARRR

Referrals occur when the current visitors bring new visitors to the merchant’s business. Dave McLure, views referral as when someone goes to your website and the new visitor makes some action.

For Dave, it doesn’t have to be a purchase. Referrals are frictionless meaning that the customers are happy to spread the news if they’re getting something out of it. It acts as a confirmation of customer satisfaction or an acquisition of a new lead.

Referrals work so well because people like to follow people they know they can trust. If a trusted friend or family share the product, they’re most likely to do the same. This method is traditionally known as “word of mouth.”

Here are some tips to enhance referrals:

  • Provide complete, valuable information to your customers – Sale offers are good, but if that’s all they are seeing, then people are likely to leave your site/page
  • Too many emails/Irritating social media presence – Proactiveness is good. However, brands should draw a fine line between trying to sell and being insensitive to customers
  • Cluttered site and no “wishlist” option available – This layout is vital as people are likely to stay away from “text-y” sites. Also, if there’s no “wishlist” on the site, there is no opportunity to gift a friend or family.

Acquisition – AARRR

Customer acquisition is designed to attract consumers and business with the intent of converting them into new customers.

This process simply refers to acquiring new consumers and customers. It involves gaining new consumers by persuading them to take advantage of a new product or service. Customer acquisition is the building block of any company because with customers, the company is non-existent.

The primary goal of customer acquisition looks at spending the least amount of money as well as the smallest amount of work to procure the highest number of customers.

In getting the highest optimal results, customer acquisition needs to gets planned strategically. In employing strategic methods, some methods are more effective than others in terms of meeting the required target and cost. A customer acquisition plan entails identifying potential quality customers, validating the potential customers so see if they match the company’s specifications and if they do, building a strong cordial relationship with them.

An effective customer acquisition enhances the growth of the company as well as helping the company cost-effectively acquire the most beneficial customer. Analysis shows that customer acquisition cost more than customer retention. So, when you acquire these customers, efforts should be made to ensure that they are retained.

Activation – AARRR

Market activation entails most marketing activities a company or a business firm deploys.

It is used to give life and value to a market brand service or commodity through the use of planned and coordinated campaigns and avenues that take complete advantage of the wide array of marketing communications tools to improve and increase results and ensure the high returns in market investments made by customers.

Market activation aims to make consumers act via campaign; it seeks to drive consumers into actions through experiences and interactions. One thing to note is that in delivering optimal results and high return of investments, a market activation has to be led strategically. Strategically-planned market activation ensures market and business objectives and goals are met and completed before deadlines.

One of the key importance of market activation is that it allows businesses to improve their profit range and meet up with their objectives and goals. The benefits of strategically led market activation include: presenting consumers with the right piece of information at the right moment, attracting the most viable consumer at the key point in their decision-making process, and spotting the best avenue and opportunities in the market cycle.


The Acquisition, Activation, Retention, Referral, Revenue, simply AARRR, is a framework that was first made for startups. AARRR measures and optimizes your funnel (a buyer’s journey) that greatly helps you grow and expand your customer base in a quick time.

Let’s break down each section below:

  1. Acquisition – Users come to the product and sign-up through various channels. In a SaaS method, this works as registration for a “Free Trial.” The best thing to do in this first step is to operate on Traffic Acquisition so you can bring lots of qualified leads to your site. You can also do a CRO or Conversion Rate Optimization.
  2. Activation – After they sign-up, you need your new customers to utilize your product. Keep in mind that they can sign up and not use your product. So in order for them to start using your product, you must have a good onboarding program that will help them get started.
  3. Retention – Using your product is good. Regularly using them is better. People can only use your product once, get bored, and will never come back. That’s ad spend wasted for a one-time customer. Talk with them, get their feedback, and let them know you exist.
  4. Referral – The stage when they talk about your products to their friends. It’s a win-win situation for them – they invite their friends to use your product, and they get something in return.
  5. Revenue – The part where you start gaining money and offer them a monthly or yearly plan with discounts, guarantees, upsells, etc.


Originally posted 2019-03-14 22:11:33.

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