Revenue seems like the one part of the AARRR metrics that shouldn’t need explaining. More money = better, right? It hardly takes a rocket scientist to know that.
But as you’ve probably figured out by now, my personal bias is towards starting with metrics where you can immediately translate them into a natural-language statement (“this means X customer type is more likely to pay us”).
So instead of talking about customer lifetime value or average revenue per user, I’m going to talk about revenue in terms of two simple questions you should be asking to start with:
- What percentage of Activated customers have given us money, even once?
- What types of customers were more likely to give us money?
These are both fairly short-term questions, but what I like about them is that they can immediately narrow where you should focus on improving next.