Below are a selection of important terms and definitions to help you better understand product metrics.
What is AARRR? AARRR framework is an acronym for a set of five user-behavior metrics that businesses should be tracking:...
What Is Annual Recurring Revenue (ARR)? Annual recurring revenue (ARR) refers to all ongoing revenue for a product or business,...
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.
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.
Key performance indicators, or KPIs, are quantitative metrics that organizations use to track and analyze performance or progress toward business...
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.
What Is Monthly Recurring Revenue? Monthly recurring revenue (MRR) is a calculation of revenue generation by month. Many Software-as-a-Service (SaaS)...
What is a Net Promoter Score? A net promoter score is a method of using a single survey question to...
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.
What are Product Analytics? The term product analytics refers to capturing and analyzing quantitative data through embedded tools that record...
What Are Product Metrics? Product metrics, sometimes called key performance indicators, are quantifiable data points that an organization tracks and...
What Is Retention? Customer retention refers to a company’s or product’s ability to retain customers over time. If a company...
What Does Retention Rate Mean? In marketing and product management, retention rate refers to the percentage of customers who continue...
What Does Turnover Rate Mean? For a product or marketing team, turnover rate refers to the percentage of customers lost...
What Are Vanity Metrics? Vanity metrics are statistics that look spectacular on the surface but don’t necessarily translate to any...
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