Is your company looking to enhance their analytics capabilities? Many companies are learning that focusing only on a small portion of metrics doesn’t cut it. Many, especially ecommerce, are focusing on metrics like Retention and Referral to grow their business.
Let’s start by outlining the most important metrics. Then what tools or methods are best based on what you want to focus on.
Ever heard of the acronym AARRR? There’s also RRRAA which is the same thing but in reverse. We also add in our own special metric ‘E’ to make it AARRRE… too long? Let’s define the acronym:
A: Acquisition – how you’re acquiring new users or customers
A: Activation – how you’re turning a visitor into an active user or customer
R: Retention – how you’re retaining users or customers (opposite of churn)
R: Revenue – how you’re growing your total revenue and revenue per user (LTV)
R: Referral – how your users are customers are bringing in their network (virality)
E: Engagement – how frequently your users or customers are performing actions
Now comes the fun part. You get to choose, in order of priority, the order of these metrics. The ordering of these metrics will determine which tools or solutions will be at your ‘center’.
For example if you’re focusing on RRREAA then a tool focused on those metrics will be best. Out of the box I can suggest Mixpanel, since it’s a leader in the field of analyzing retention, what influences retention, and how specific users and cohorts are behaving over time. You can also easily export these audiences (cohorts) to advertising or messaging tools.
On the other hand if you’re focusing on something more like AARRRE, then a tool like Google Analytics would be a decent fit. That’s because Google Analytics does a fairly good job of measuring your acquisition channels, especially in GA4.
Here’s a simple diagram to help you understand:
Now you can see the acronym spells REARRA – unfortunately it reads as gibberish, but we see it as a helpful good rule to guide you on choosing the right analytics tool. Of course, these two tools are NOT mutually exclusive. Many companies would use both together at the same time. Rather, what this helps tell you is what reporting tool will be your core reporting tool.
This will determine the type of event tracking you will implement and what tool will be the center ‘nucleus’ that connects to your other tools such as Data Warehouses, Advertising Platforms, Messaging Platforms, CRM, and Customer Support Systems.
Checkout the integrations available to each tool out of the box below:
Do you currently use any of these other tools? This may be an important part in your tool consideration as well.
This sort of consideration is only suitable for companies that are striving to be more data-driven. If that is the case then you’re in the right place.
Contact us to schedule a free 15-minute appointment with one of our analytics experts to get a custom solution template.