references/metrics-frameworks.md
A supporting file of the product-analytics skill.
Metrics Frameworks
AARRR (Pirate Metrics)
AARRR breaks the product journey into five stages.
- Acquisition
- How users discover the product
- Example metrics: signups, CAC, channel conversion
- Activation
- First meaningful value moment
- Example metrics: activation rate, time-to-first-value
- Retention
- Ongoing user return behavior
- Example metrics: D7/W4 retention, rolling retained users
- Revenue
- Monetization and value capture
- Example metrics: conversion to paid, ARPU, expansion revenue
- Referral
- Organic growth from existing users
- Example metrics: referral rate, invite conversion, K-factor
North Star Metric Framework
North Star = metric capturing long-term customer value delivered.
North Star Criteria
- Reflects real user value
- Sensitive to product improvements
- Predictive of sustainable growth
- Understandable across functions
Example North Star Metrics
- Collaboration SaaS: weekly active teams
- Marketplace: successful transactions per active buyer
- Content product: hours of qualified consumption
Input Metrics
Track levers that influence the North Star:
- Acquisition quality
- Activation quality
- Engagement depth
- Retention durability
HEART Framework
HEART is a UX-oriented framework from Google.
- Happiness: satisfaction, NPS, perceived quality
- Engagement: interaction depth/frequency
- Adoption: first-time use of features/products
- Retention: return behavior over time
- Task Success: completion rate, error rate, time on task
HEART + Goals-Signals-Metrics
- Goals: what UX outcome you want
- Signals: observed behavior indicating movement
- Metrics: measurable indicator for each signal
Framework Selection Guide
| Situation | Recommended Framework |
|---|---|
| Early growth and funnel bottlenecks | AARRR |
| Company-wide strategic alignment | North Star |
| UX and product quality optimization | HEART |
| Mixed maturity org | North Star + AARRR operational layers |
Example: B2B SaaS Product
- North Star: weekly active accounts completing core workflow
- AARRR operational metrics:
- Acquisition: qualified signups
- Activation: % accounts completing setup in 7 days
- Retention: W8 retained accounts
- Revenue: paid conversion and expansion rate
- Referral: invited teammate activation rate
- HEART for onboarding redesign:
- Task Success: onboarding completion rate
- Happiness: onboarding CSAT