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    Growth Marketing Glossary

    Essential definitions and concepts for growth marketing, SaaS metrics, and optimization strategies. Your comprehensive reference for growth terminology.

    15 terms found

    Annual Recurring Revenue (ARR)

    Metrics

    The total amount of recurring revenue that a SaaS business expects to receive annually from its current customer base, calculated by multiplying Monthly Recurring Revenue (MRR) by 12.

    Related Terms:

    MRR
    Revenue
    Subscription

    Customer Acquisition Cost (CAC)

    Metrics

    The total cost of acquiring a new customer, including all sales and marketing expenses divided by the number of customers acquired in a given period.

    Related Terms:

    LTV
    Unit Economics
    Marketing

    Customer Lifetime Value (LTV)

    Metrics

    The predicted net profit attributed to the entire future relationship with a customer, typically calculated as average revenue per user times gross margin divided by churn rate.

    Related Terms:

    CAC
    Churn
    Revenue

    Monthly Recurring Revenue (MRR)

    Metrics

    The amount of recurring revenue that a business can expect to receive every month from its current subscribers or customers.

    Related Terms:

    ARR
    Revenue
    Growth Rate

    Churn Rate

    Metrics

    The percentage of customers who stop using a service during a given time period, calculated as (customers lost / total customers at start) × 100.

    Related Terms:

    Retention
    LTV
    MRR

    Product-Market Fit (PMF)

    Strategy

    The degree to which a product satisfies strong market demand, often measured through customer retention, growth rate, and user satisfaction metrics.

    Related Terms:

    Market Research
    Product Development
    Customer Validation

    Conversion Rate Optimization (CRO)

    Optimization

    The systematic process of increasing the percentage of website visitors who complete a desired action, such as signing up for a trial or making a purchase.

    Related Terms:

    A/B Testing
    Landing Pages
    Funnel

    Product-Led Growth (PLG)

    Strategy

    A go-to-market strategy where the product itself is the primary driver of customer acquisition, conversion, and expansion.

    Related Terms:

    Freemium
    Self-Serve
    Product-Market Fit

    North Star Metric

    Strategy

    A single metric that best captures the core value your product delivers to customers and drives sustainable business growth.

    Related Terms:

    KPIs
    OKRs
    Growth Metrics

    Expansion Revenue

    Revenue

    Additional revenue generated from existing customers through upselling, cross-selling, or increasing usage of the product.

    Related Terms:

    Upselling
    Customer Success
    Net Revenue Retention

    Activation Rate

    Metrics

    The percentage of new users who complete key actions that indicate they've experienced the core value of your product during their initial usage period.

    Related Terms:

    Onboarding
    Time to Value
    User Journey

    A/B Testing

    Optimization

    A controlled experiment methodology where two versions of a webpage, app, or feature are compared to determine which performs better for a specific goal.

    Related Terms:

    Experimentation
    Statistical Significance
    Conversion Rate

    Cohort Analysis

    Analytics

    A behavioral analytics technique that groups users based on shared characteristics or experiences within a defined time period to track their behavior over time.

    Related Terms:

    User Retention
    Lifetime Value
    Behavioral Analytics

    Freemium Model

    Strategy

    A pricing strategy where basic product features are provided free of charge, while advanced features require a paid subscription.

    Related Terms:

    Product-Led Growth
    Conversion Funnel
    Monetization

    Net Promoter Score (NPS)

    Metrics

    A customer satisfaction metric that measures the likelihood of customers to recommend your product to others, scored from -100 to +100.

    Related Terms:

    Customer Satisfaction
    Customer Loyalty
    Product-Market Fit