Discover performance marketing terms.
AARRR metrics (also known as pirate metrics) is a method for analysing the performance of a business that focuses on customer satisfaction. Growth hackers utilise the metrics created by venture capitalist Dave McLure, analysts, consultants, and business owners to increase profitability.
Annual contract value reflects the average contract value over one financial year for such multi-year contracts.
Projected income from sales of a product or service over the course of a year is known as annual recurring revenue saas. Companies that sell subscriptions every year use this statistic to forecast yearly earnings.
The average revenue per user (or ARPU) is the measurement of the average income that your company earns from each customer/ active user.
A buyer persona portrays your ideal consumer or target market. In essence, it describes your prospective buyer's traits, pain points, incentives, and other relevant data.
Track Contracted Annual Recurring Revenue (CARR) to better plan your strategies and resources. Learn more about this financial metric here.
How efficient are your marketing efforts? Cost per MQL can help you understand the effectiveness of your marketing strategies.
Customer Acquisition Costs, abbreviated as CAC, are the sum of money that a software as a service (SaaS) company spends trying to persuade potential clients to purchase its software or service. The term "total cost" refers to the amount of money spent on sales and marketing, which includes the cost of personnel and programs.
Customer churn rate is the percentage of customers that unsubscribed or stopped using your services/ product during a period of time.
Customer lifetime value helps you evaluate your customer acquisition, retention, and marketing strategies. Learn more about CLV here.
Businesses spend a lot of money to retain clients through customer service, customer engagement, technologies such as chatbots, training, etc.
Deal velocity measures the speed from drafting a contract to getting it signed. It is a smaller part of sales velocity, which covers the total duration from the first interaction to the onboarding.
In lifecycle marketing, you cater to each user by meeting them at their specific customer journey.
MQL to SAL conversion rate calculates the percentage of people successfully converting from MQLs to SALs. Know more about this marketing metric here.
Declining employee productivity? Implement marketing automation to boost productivity and achieve next-level growth.
A potential customer who has been evaluated by the marketing team and fits the criteria necessary to be sent to the sales team is referred to as a b2b marketing-qualified leads, abbreviated as MQL.
Monthly Recurring Revenue (MRR) is your business's predictable monthly revenue from active subscriptions. It excludes one-time costs but includes discounts, coupons, and recurring add-ons.
The payback period is the amount of time it takes for a project to reach the point where there is neither a loss nor a profit, also known as the breakeven point.
Lead generation has evolved into pipeline marketing, which considers the complete sales funnel in terms of revenue.
Simplify software development processes with PaaS. Learn about PaaS, its workings, and how it benefits businesses.
A product is said to have achieved product-market fit when enough of the target demographic is buying, using, and recommending the product to others to continue growing and making money for the company.
Leads who have seen the product's value through a free trial or freemium model are considered Product Qualified Leads (PQLs).
Do you follow a product led go to market strategy? If not, kickstart your journey now with the basics of product-led GTM strategy.
In digital and mobile advertising, return on ad spend (ROAS) is a key performance indicator (KPI).
Think of SaaS magic number as the performance metric that indicates your efficiency. Click to learn more about this magic number.
Are you tracking your company’s profitability? Here’s how the sales efficiency ratio can help you create a better sales process and boost your revenue.
A sales-qualified lead depicts a person who is ready to buy your product/ service. This person is aware of your product and is in the decision-making stage.
Building an efficient sales process isn’t enough in SaaS. Track the sales velocity metric to make faster sales and win over the competition.
Discover how (SLAs) establish clear expectations between service providers and customers, safeguarding service quality, reliability, and performance.
How effective are your customer acquisition efforts? Find out by tracking your signup-to-customer rate.
Are you converting enough signups to PQLs? This key performance indicator can help you keep a track. Find out more.
Explore Subscription Revenue Gross Margin, its calculation, and its importance in SaaS businesses.
Learn about Total Addressable Market - a metric that helps SaaS businesses estimate the maximum revenue generated from a specific market.
Tracking the financial health of your business is crucial. Click to learn more about the what, how, and why of Total Contract Value.
Total Subscription Bookings can help you gauge your potential for future revenue growth. Learn more about the importance of this metric in SaaS.
Value-based pricing is an effective pricing strategy. Learn more about this pricing strategy and its importance in SaaS.
Setting benchmarks for conversion rates? Track the Visitor-to-Signup Rate to compare conversion rates against competitors. Learn more about the metric here.
