SaaS Glossary

Discover performance marketing terms.

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AARRR (Acquisition, Activation, Retention, Referral, Revenue)

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 (ACV)

Annual contract value reflects the average contract value over one financial year for such multi-year contracts.

Average Revenue Per User

The average revenue per user (or ARPU) is the measurement of the average income that your company earns from each customer/ active user.

Buyer Persona

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.

Customer Churn Rate

Customer churn rate is the percentage of customers that unsubscribed or stopped using your services/ product during a period of time.

Customer Retention Cost

Businesses spend a lot of money to retain clients through customer service, customer engagement, technologies such as chatbots, training, etc.

Deal Velocity

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.

Elevating Your Sales Strategy with Product Qualified Leads: Definition, Importance, and Conversion

Leads who have seen the product's value through a free trial or freemium model are considered Product Qualified Leads (PQLs).

Harnessing the Power of Marketing Qualified Leads

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.

How to Align Your Product Market Fit: A Brief to Achieving Product-Market Fit

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.

How to Measure and Improve Your Return on Advertising Spend (ROAS) for Maximum Marketing Efficiency and ROI.

In digital and mobile advertising, return on ad spend (ROAS) is a key performance indicator (KPI).

How to Use Annual Recurring Revenue (ARR) to Drive Sustainable Growth for Your Business

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.

Maximizing Customer Lifetime Value through Targeted Lifecycle Marketing Strategies

In lifecycle marketing, you cater to each user by meeting them at their specific customer journey.

Maximizing Your Monthly Recurring Revenue: Strategies for Growth and Sustainability

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.

Payback Period: What it is, Why it is Important in SaaS, and How to Calculate it.

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.

Sales Qualified Leads

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.

Understanding the Importance of Calculating Your Customer Acquisition Cost (CAC)

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.

What is Pipeline Marketing and How to Implement it for Effective Lead Management?

Lead generation has evolved into pipeline marketing, which considers the complete sales funnel in terms of revenue.

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