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All termsGROWTH & ACQUISITION

Sales Funnel

Also known as: Conversion Funnel · AARRR · Pirate Metrics

DEFINITION

The staged progression a prospect moves through: Awareness → Acquisition → Activation → Retention → Revenue → Referral.

In depth

Dave McClure's AARRR (Pirate Metrics) reframes the funnel as five stages. Each stage has its own metric: Acquisition = visits, Activation = signup, Retention = weekly return, Revenue = paid conversion, Referral = invites sent.

Weakest stage determines overall growth. No point optimising the top if the middle leaks.

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Last reviewed 14 April 2026 by Abhi Verma.