Below are a selection of important terms and definitions to help you better understand product metrics.
Churn is a measurement of the percentage of accounts that cancel or choose not to renew their subscriptions. A high churn rate can negatively impact Monthly Recurring Revenue (MRR) and can also indicate dissatisfaction with a product or service.
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Customer Acquisition Cost, or CAC, measures how much you’re spending to acquire new customers. Analyzing CAC in conjunction with LTV or MRR is a common way to discover whether or not a company is operating efficiently.
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Iterative testing refers to the process of making small changes or updates to a product and testing them against predefined...
A key performance indicator, or KPI, refers to a metric which is used to determine performance or progress toward a...
Lifetime Value (LTV) is an estimate of how much revenue an account will bring in over its lifetime. LTV, when used alongside an efficiency metric like Customer Acquisition Cost (CAC), is a critical metric when gauging the cost efficiency of a given acquisition strategy.
Monthly Recurring Revenue (MRR) is a measurement of revenue generation by month. This metric is often considered “the holy grail...
Net Promoter Score (NPS) is a tool used to gauge customer satisfaction with a product or service. With NPS, users...
Objectives and key results, or OKRs, are a model for setting business objectives and measurable outcomes. The objectives, or the "O" are high-level goals, while the "KR" represent measurable key results. Objectives and Key Results help teams come up with ambitious but measure-able objectives.
Usability testing is the process by which product designers and user interface designers can evaluate how users interact with a...
Vanity metrics are statistics that look positive, but don’t necessarily translate to any meaningful business results. Examples include quantity of...