What is the AARRR funnel?

AARRR — Acquisition, Activation, Retention, Referral, Revenue — is the standard model for breaking a customer journey into measurable stages. Each stage has a conversion rate; multiplying them gives end-to-end conversion. The model's value is forcing you to identify which stage is actually leaking before you spend money fixing the wrong one.

How do you prioritize fixes in a leaky funnel?

Rank fixes by expected value: (size of the leak) × (lift you can realistically deliver) × (probability of success), divided by effort. The biggest leak is rarely the right first fix — a 50% activation problem often beats a 5% checkout problem because activation gates everything downstream.

What does the Funnel chapter mini-game teach?

You diagnose a real leaky funnel with conflicting symptoms — high traffic, low activation, decent retention — and prioritize three fixes by expected value. The game punishes intuition-led prioritization and rewards thinking in terms of stage gating and downstream multipliers.

Should you optimize the top or bottom of the funnel first?

Bottom up. Fixing acquisition before activation just sends more leads to a leaky bucket and wastes ad spend. Activation, retention, and revenue stages compound — fix them first, then turn on acquisition.

Chapter 02 · The Funnel — Growth Marketing

Growth / A Story

Ch. 02 · The Funnel

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