Many SAAS companies use the AARRR framework to understand their customer’s lifecycle.

Although this is a powerful tool, we need more granularity, an alternative framework that optimizes the user journey to drive exponential growth.

The framework was developed by Appcues.

These are the four stages of the customer lifecycle :

 

1.Evaluators

Evaluators are cautiously excited about your product as a potential solution to their problem. They don’t care about the wide range of use cases that you can address, but they are focused on how you relate to their most pressing needs.

This stage’s key goals are :

-Realice Value

-Understand the basics

 

Main challenge : Activation

It’s generally understood as the moment in which a new user realizes value from your solution.

-40-60% People who sign up never be back in the product.

-Only 44% of SaaS businesses measure activation.

What strategies and personalization actions have you implemented to increase activation?

 

2. Beginners

Beginners understand how your product can solve their main needs and provide value. This value realization is driving them to spend more time with your product and to explore its features and functionality more deeply.

This stage’s key goals are :

-Solve new user needs

 

Main challenge : Adoption

-SaaS products have only 2.8 days of activity per user per month.

-55% of businesses report that their avg user utilizes fewer than half of their features.

Adoption is synonymous with monetization.

What is your Product Adoption Indicator? To improve adoption, what tactics and customization steps have you implemented?

 

3. Regulars

Regulars have mastered the core use cases for your product and are curious about the other problems your product can solve. They have invested time, effort, and data into your product, and they consider it a key part of their workflow.

This stage’s key goals are :

-Customers have a real desire to expand into new use cases.

-Learning new features from your solution

-Create a habit.

 

Main challenge : Expansion

-It´s almost 8x cheaper to retain an existing account than it is to acquire a new customer.

-On average, SaaS companies get 34% of new ARR from upsells and expansions.

How do you decide when to initiate expansion or upgrade negotiations with your customers? What data do you use to identify those expansion opportunities?

 

4. Champions.

Champions are heavily invested in your product and care about your success. These are the people who recommend your product to their colleagues, friends, and social media followers. They have formed an emotional connection with your product and brand.

This stage’s key goals are :

-Be an advocate (NPS promoters)

-Influence roadmap

 

Main challenge : Advocacy

-Saas businesses report that 10% of their customers leave positive reviews on public platforms

-92% of B2B are more likely to purchase after reading a trusted review.

What types of benefits do you offer to champion customers? Which ways do you award them?

Consider taking action in these four stages in order to increase activation, retention, habit creation, adoption, and expansion.