Revolutionizing Startup Marketing: A Comprehensive Analysis of 9 Frameworks for Effective Strategies (Part 2)

Given the rising standards of living and increasingly stringent product requirements, startups and marketing professionals require the support and integration of valuable tools to succeed.

This article, ITI Fund will delve into popular and widely-used strategic frameworks for businesses.

4. AARRR Pirate Metrics

AARRR, or Pirate Metrics, is a framework developed by Dave McClure to help startups track and analyze their users’ purchase journeys. It stands for:

• Acquisition: Where do potential customers (social networks, blogs, …) recognise the business?
• Activation: What step will the prospect likely take when visiting the launch site? Depending on the business, this could include signing up for an account, downloading gifts in exchange for emails, filling out a profile, and more.
• Retention: Are they return to the startup’s website after leaving? If yes, how many times?
• Revenue: How does a startup make money from its customers? Consider metrics like Conversion Rate, box size, LTV, etc. or customer lifetime value.
• Referral: Customers can indirectly communicate the business to their acquaintances to reduce CAC or user acquisition costs when satisfied.

5. Lean Analytics

The Lean Analytics framework, developed by Alistair Croll and Ben Yoskovitz, is a comprehensive approach to measuring and analyzing business performance, particularly relevant for startups. It focuses on the following:

• Empathy: During the product development stage, startups need to spend most of their time listening to customers, empathizing with their concerns, and getting as much feedback as possible. Once a business has identified a problem that can be solved to produce a minimum viable product (MVP), it can move on to the next stage.
• Engagement: focus on event engagement and customer retention. Once the startup has a specific interaction base and a reduced attrition rate, it can continue to step three.
• Coverage: Before trying to attract users through spending a lot on advertising, startups should focus on existing customers. The business can move to stage four as the organic growth rate improves.
• Revenue: startups need to pay attention to the cost of attracting customers with the money they spend to buy the product; when the business reaches the revenue target, they can move to the final stage.
• Scale: the startup has a specific position in the market it targets. It is time for the company to increase revenue from the current market and consider entering the new market.

6. Hook Model

The Hook model, developed by Nir Eyal, founder of 500 Startups, is based on the idea that products become part of a user’s routine and are used more frequently:

Trigger

The trigger is the first step in the hook model; it comes in two forms:

• External: tells users what to do next by including information in their environment.
• Internal: tells the user what to do next through associations stored in their memories.

To build a habit-shaping product, a startup must understand which user emotions are closely linked to internal triggers and know how to leverage external stimuli to push them to action.

Action

• A trigger is needed for a purchase to occur when the user is able and motivated to take action.
• Establish a clear trigger, improve user ability, and provide appropriate motivation to facilitate a purchase.
• Human behaviour is driven by three core motivations: seeking gratification and avoiding pain, seeking hope and avoiding fear, and seeking social acceptance while avoiding rejection and exclusion.

Variable Reward

• When self-determination is threatened, users feel constrained by not having a choice. Retaining users requires preserving their sense of self-determination.
• Experiences that rely on finite randomness may become predictable over time, leading to a loss of appeal.
• Random rewards must be carefully designed to satisfy users’ needs while creating a desire to return to the business.

Investment

• Unlike the action section, the investment stage involves anticipating future rewards.
• People tend to become interested in a product when they invest in it, as they overestimate their efforts, seek consistency with past behaviours, and avoid cognitive dissonance.
• Investment increases the likelihood of users returning by enabling value to accrue in content, data, followers, reputation, or skills.

Contact:

• •  itifund.com
  •  (+84)90 998 3699
  •  info@itifund.com
  •  fb.me/ITIFund