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These five metrics—Acquisition, Activation, Retention, Revenue, and Referral, which form the acronym AARRR—represent the interactions of your customer with your product.

Lean Inception

Paulo Caroli

Alistair Croll and Benjamin Yoskovitz say, in their excellent book Lean Analytics: “A good metric is comparative. Being able to compare a metric to other time periods, groups of users, or competitors helps you understand which way things are moving. Increased conversion from last week” is more meaningful than “2% conversion.” A good metric is understandable. If people can’t remember it and discuss it, it’s much harder to turn a change in the data into a change in the culture. A good metric is a ratio or a rate. Accountants and financial analysts have several ratios they look at to understand, at a glance, the fundamental health of a company. You need some, too… . A good metric changes the way you behave. This is by far the most important criterion for a metric: what will you do differently based on changes in the metric?”

Radical Focus SECOND EDITION

Christina Wodtke

Where to play represents the set of choices that narrow the competitive field. The questions to be asked focus on where the company will compete—in which markets, with which customers and consumers, in which channels, in which product categories, and at which vertical stage or stages of the industry in question.

Playing to Win

A. G. Lafley, Roger Martin, A.G. Lafley, Roger L. Martin

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