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Glossary

Here’s an exhaustive list of metrics categorized into Marketing, Product, Finance, Sales, Important Metrics, and Insights. Each metric is detailed with definitions and formulas:

Marketing Metrics

  1. Customer Acquisition Cost (CAC)
    Total cost of acquiring a new customer.
    Formula: (Marketing + Sales Expenses) ÷ New Customers Acquired.
  2. Click-Through Rate (CTR)
    The percentage of people who clicked on a link compared to those who saw it.
    Formula: (Clicks ÷ Impressions) × 100.
  3. Cost Per Lead (CPL)
    The cost of generating a single lead.
    Formula: Total Marketing Spend ÷ Total Leads.
  4. Marketing Qualified Lead (MQL)
    A lead that has been vetted by the marketing team as likely to become a customer.
  5. Return on Ad Spend (ROAS)
    The revenue earned for every dollar spent on ads.
    Formula: Revenue from Ads ÷ Ad Spend.
  6. Impressions
    The total number of times an ad or content is displayed, regardless of interaction.
  7. Lead Conversion Rate
    The percentage of leads that convert into paying customers.
    Formula: (Converted Leads ÷ Total Leads) × 100.

Product Metrics

  1. Daily Active Users (DAU)
    The number of unique users interacting with the product daily.
  2. Monthly Active Users (MAU)
    The number of unique users interacting with the product monthly.
  3. Feature Adoption Rate
    The percentage of users who adopt a new feature.
    Formula: (Users Using the Feature ÷ Total Users) × 100.
  4. Time to Value (TTV)
    The time it takes for a customer to realize the value of the product after initial use.
  5. Error Rate
    The frequency of errors or bugs encountered by users.
    Formula: (Number of Errors ÷ Total Actions) × 100.
  6. Retention Rate
    The percentage of users who continue using the product over time.
    Formula: [(Customers at End – New Customers) ÷ Customers at Start] × 100.
  7. Net Retention Rate (NRR)
    Measures customer retention and expansion revenue, accounting for churn and upgrades.
    Formula: [(Starting MRR + Expansion MRR – Churned MRR) ÷ Starting MRR] × 100.

Finance Metrics

  1. Annual Recurring Revenue (ARR)
    The yearly subscription revenue for a SaaS product.
    Formula: MRR × 12.
  2. Monthly Recurring Revenue (MRR)
    The predictable monthly subscription revenue.
    Formula: Number of Subscribers × Average Revenue Per Subscriber.
  3. Gross Margin
    The percentage of revenue remaining after accounting for the cost of goods sold (COGS).
    Formula: [(Revenue – COGS) ÷ Revenue] × 100.
  4. Burn Rate
    The rate at which a company spends its cash reserves.
    Formula: Monthly Expenses ÷ Available Cash.
  5. Runway
    The amount of time a business can operate before running out of cash.
    Formula: Cash Reserves ÷ Monthly Burn Rate.
  6. Customer Lifetime Value (CLV)
    The total revenue a customer is expected to generate during their relationship with the company.
    Formula: Average Revenue Per Customer × Customer Lifespan.

Sales Metrics

  1. Lead-to-Customer Rate
    The percentage of leads that become customers.
    Formula: (Customers ÷ Leads) × 100.
  2. Win Rate
    The percentage of sales opportunities converted into closed deals.
    Formula: (Closed Deals ÷ Opportunities) × 100.
  3. Sales Cycle Length
    The average time it takes to close a deal.
    Formula: Total Time to Close All Deals ÷ Number of Deals.
  4. Average Deal Size
    The average revenue generated per deal.
    Formula: Total Revenue from Deals ÷ Total Number of Deals.
  5. Quota Attainment
    The percentage of sales targets met by the sales team.
    Formula: (Achieved Sales ÷ Sales Target) × 100.

Important Metrics

  1. Churn Rate
    The percentage of customers who cancel subscriptions over a period.
    Formula: (Customers Lost ÷ Total Customers at Start) × 100.
  2. Net Promoter Score (NPS)
    Measures customer loyalty and satisfaction based on the likelihood of recommendation.
    Scale: -100 to +100.
  3. Expansion Revenue Rate
    Revenue growth from upgrades, cross-sells, or additional purchases.
    Formula: (Expansion Revenue ÷ Total Revenue) × 100.
  4. Customer Engagement Score (CES)
    A composite metric that tracks user activity and feature usage.

Insights Metrics

  1. Cohort Analysis
    Analyzing customer groups over time to understand behavior and retention patterns.
  2. Benchmarking
    Comparing your product’s metrics against industry standards to gauge performance.
  3. Revenue Forecasting
    Predicting future revenue trends based on historical data and market conditions.
  4. Customer Feedback Loop
    Collecting and integrating customer insights to refine products and services.