LR3 - Consumer Journey in a product led business

LR3 - Consumer Journey in a product led business

Yu-Kai Chou has introduced the Octalysis framework in the field of Game Theory. Within this framework, he describes a series of four stages that players typically go through during gameplay before deciding to exit the game. These stages are known as "Discovery," "Onboarding," "Scaffolding," and "End Game."

Yu-Kai Chou highlights that players can either progress through all phases or exit early. However, he also emphasizes the applicability of these stages to different domains and their relevance in understanding user engagement beyond gaming.

Much like the Octalysis framework, the marketing funnel also proposes a series of stages in a customer's journey. This funnel typically consists of stages such as "Awareness," "Consideration," "Conversion," "Loyalty, Retention", and "Advocacy".

Upon delving into concepts such as gamification, marketing funnels, and related theories, I sat down to simplify and establish analogies between these phases and the journey of a product. Through the identification of shared patterns and fundamental principles, I happen to come up with a user journey funnel that can be applied to any consumer-targeted product.

LR3 - The User Journey Funnel

LR3, which stands for "Lead, Revenue, Retention, and Religion" represents a simplified framework encompassing the four key stages of a user journey as consumers progress through different phases in their interaction with a product.


The first stage, "Lead," involves attracting and capturing the attention of potential customers, creating awareness and interest in the product. The lead stage is also closely analogous to the Discovery phase in Yu-Kai's phases.


The second stage is "Revenue," which signifies the moment when the product successfully delivers its initial value experience to the consumer and generates revenue. Unlike the traditional sales funnel, where the transactional action typically occurs at the end, the inclusion of "Revenue" as the second stage in LR3 indicates a focus on the longer-term consumer journey and acknowledges the importance of ongoing customer value and lifetime engagement rather than solely focusing on one-time transactions.

To transform a product's journey into a brand, the first conversion, which can be any meaningful engagement leading to potential revenue, serves as the moment when a customer experiences the initial value. This could include their first purchase, subscription sign-up, or participation in a free trial. By prioritizing a positive and valuable experience during this initial conversion, businesses lay the foundation for customer loyalty, repeat purchases, and brand recognition.


In the third stage, "Retention," the focus is on cultivating repeat purchases and continued engagement from satisfied customers. The goal is to establish a habit of using the product and generate consistent revenue. Specifically, in terms of value, retention refers to the sustained appreciation experienced by the consumer after consistently receiving the expected value from the product. By consistently delivering value and meeting or surpassing customer expectations, businesses can foster customer loyalty and retention, which are vital for long-term success and revenue generation.


In the "Religion" stage of the LR3 framework, satisfied customers become advocates and actively promote the product. They form close communities, engage in social events, and purchase merchandise, contributing to positive word-of-mouth and referrals. This stage represents a deep sense of loyalty and passionate support for the brand.

If your business can induce the same excitement that sports does to its fans, you will not be short of customers. - Unknown


Raving Fans are those customers who are so overwhelmed or floored by the service they received that they simply can't stop telling everyone about it. - Ken Blanchard and Sheldon Bowles (Raving Fans)


The LR3 (Lead, Revenue, Retention, Religion) framework offers a simplified approach to comprehending and optimizing the user journey thus enabling products to strategize their efforts in attracting, retaining, and leveraging customers as brand advocates.

Furthermore, the framework highlights the importance of identifying areas of user churn and reassessing the product's value offering for the specific segment of users in each stage of the LR3 framework. This helps businesses pinpoint where users may be dropping off or experiencing difficulties, allowing for targeted improvements to increase retention and drive user satisfaction.

By continuously evaluating and adjusting the value proposition based on the needs and behaviors of users in each stage, businesses can enhance the overall user experience, increase customer loyalty, and foster advocacy. This iterative process supports the growth and success of the product, ensuring its alignment with user expectations and maximizing its impact in the market.

LR3 and D4 Drives

Considering human drives while assessing each stage of the LR3 framework in Human-Centered and Behavioral Design helps plan activities that align with user motivations. By focusing on the concentration of users at different stages, businesses can work on creating raving fans by tailoring experiences to meet their needs, foster loyalty, and build long-lasting relationships.

Read about the D4 Drives

Image Credits
Image by storyset on Freepik and Unsplash