Improving ARM ability significantly impacts business performance. You need to track and measure metrics to identify pain-points. Following 7 tips in these slides will help you grow.

2. ARM model is a powerful growth hacking tool
for e-commerce firms
Acquisition - attract customers,
close sale and onboard them
Retention – keep
customers coming back
Monetization – increase value
you get from customers

3. 10% improvement in each of ARM metrics leads
to 37% cumulative revenue difference in 1 year
Company A Company B
Unique visitors / month 100k 100k
Acquisition rate 8.0% 8.8%
Retention / month 20.0% 22.0%
Monetization €50.0 €55.0
-
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
1 2 3 4 5 6 7 8 9 10 11 12

4. Use following 7 tips & tricks for
ARM improvement

5. Track ARM metrics with dynamic dashboards
Performance metrics
show ability to meet KPIs
Funnel analysis
helps identify
flow of
customers and
bottlenecks
Attribution analysis shows
the most efficient channels
Dynamic dashboards
1
TRAFFIC SOURCE
Organic Google PPC LinkedIn Lead Generation Facebook Email campaign

6. Always observe impact of product changes and
marketing campaigns on all 3 ARM components
Activity Acquisition Retention Monetization
Starting base performance 8.0% 20.0% €50.0
01/16 Improved onboarding + 1.2% + 0.5% + €0.2
01/16 Retention scenario + 0.6% + 1.0% + €1.7
02/16 Checkout optimization - 0.2% + 0.7% + €2.0
02/16 Pricing model test - 0.2% - 1.0% + €0.5
03/16 New pricing model - 0.6% + 0.8% + €3.0
End of period performance 8.8% 22.0% 55.0€
… … … …
There is no silver bullet here – Improving ARM is an iterative process
2

7. Use RFM model to easily create 9 unique
segments to target …
RFM Model 1/2
GOLD
segment
Recency
FrequencyxMonetary
Retention
Monetization
Churn
Acquisition
Recency – How recently did
the customer purchase?
Frequency – How often does
he or she purchase from you?
Monetary – How much does
he or she spend?
3

8. … and combine proper message and channels
to improve conversion and LTV/CAC ratio
• Low value segments
• Cheap channels
(web, email)
• High value segments
• More expensive channels
(remarketing, call center)
RFM Model 2/2
Channels Message
• Acquisition
• Special offers, branding
• Retention
• Incentives, requesting feedback
• Monetization
• Up/cross-sell
3

9. Identify improvement areas via funnel
analysis of acquisition process
• Shows journey of
customers
• Allows to see
bottlenecks
• Requires proper
set-up
Large drop – potential
for check-out process
optimization
Funnel analysis
4

10. Use cohort analysis to look at changes in
customer behavior over time
Cohort analysis
• Cohort view
enables to see
trends
• Very powerful if
combined with an
attribution model
Underperforming
groups – possible bad
acquisition targeting
5

11. Improve retention via on-boarding email
campaign
A Client had KPI 19% for 2nd
week retention rate - a cohort
analysis showed slight
underperformance
The client decided to bring
users back by on-boarding
improvement and launched
targeted email campaign
With 70%+ open rate and
30%+ click rate significant
number, of otherwise lost
users, returned to platform
Onboarding campaign
6

12. Track spend distribution to identify core
customers and up-sell potential
Monetization
• Identify core
customers
• Calculate LTV and
CAC ratios
• Track
improvement
across segments
Number of
customers
Monthly spend (€)
Small high-spending
groups generate large
share of overall
revenues
7

13. Key things to remember:
Improving ARM ability significantly
impacts business performance
You need to track and measure metrics
to identify pain-points
Following 7 tips in these slides
will help you grow
1
2
3

14. Want to use analytics of fast-growing companies?
Visit exponea.com to learn more