The SAAS world: Jargon
The ultimate guide to the jargon in the SAAS world from Google Analytics to Finance terminology
ACMR – Annualised committed monthly revenue. Committed monthly revenue x 12
ARPU – Average Revenue per user. The average amount paid across all products per customer
CAC – Cost of acquiring customers. The number of months it takes to recover the cost of acquiring a new customer.
Churn – The number of customers who leave during a month as a percentage of the total number of customers at the start of that month
CMR – Committed gross monthly revenue
LTV – Lifetime value. Net revenue of a customer over their lifetime
MAC – Marketing cost of acquiring customers. The number of months it takes to recover the marketing costs of acquiring a new customer.
SAC – Sales cost of acquiring customers. The number of months it takes to recover the sales costs of acquiring a new customer
Account – Company
Contact – Person at Company (Account)
Lead – Raw Prospect (company/person you’ve never pursued in the past)
Lead source – Website / upload / inbound call
Opportunity – Potential sale of product to Account and Contact
CPA – Cost Per Action. How much you pay for each sale, click, form fill.
CPC – Cost Per Click. How much you pay every time a visitor clicks on your ad. It depends on your product and your market and the competition. To keep costs down only bid on relevant keywords.
CTR – Click Through Rate. The rate at which people are clicking on ads.
First Click – allocates all credit to the first touchpoint the user had with the site. This is an option for relatively unknown brands, where discovery is key.
Last-click – Allocates all credit to the last touchpoint before conversion.
Linear – Allocates credit evenly across all channels in the funnel.
Time Decay – Allocates credit where touch points closest to the time of the sale get a higher allocation. This option might suit businesses with very short conversion funnels.
Agile – A methodology that “allows for changing requirements over time by using cross-functional teams – incorporating planners, designers, developers and testers – which work on successive iterations of the product over fixed time periods. The work is organised into a backlog that is prioritised into exact priority order based on business value.”
Kanban – A methodology that encourages ‘just in time’ delivery
MVP – Minimum viable product. A product with just enough features to satisfy early customers, and to provide feedback for future development.
Scrum – A short daily meeting to discuss priorities and problems the team is working on
Sprint – A short period of intense work on a piece of work which is then ‘shipped’