Annual Contract Value: the average value of a customer contract over a year. It strongly influences which acquisition channels you can afford.
No-jargon zone
The plain-English SaaS marketing glossary.
If somebody says CAC, ACV, PLG or BOFU and you have no idea what they mean, this is the page. Knowing the acronym does not make someone a better operator. Understanding the idea does.
Annual Recurring Revenue: recurring subscription revenue expressed on an annual basis.
Monthly Recurring Revenue: recurring subscription revenue in a month.
Ideal Customer Profile: the specific company type most likely to get strong value and buy.
A representative buyer or user role inside the ICP, such as owner, operations director or administrator.
Customer Acquisition Cost: the sales and marketing cost required to acquire a new customer.
Lifetime Value: an estimate of the gross profit a customer produces over the relationship.
How long it takes for customer gross profit to repay the cost of acquiring that customer.
The point where a new customer first receives meaningful product value.
Customers or recurring revenue lost during a period.
The share of customers or revenue that remains over time.
Additional recurring revenue from existing customers through more seats, usage, locations, products or services.
Product-Led Growth: acquisition and expansion driven heavily by the product experience itself.
Proactively contacting selected prospects by email, phone, social, video or other direct methods.
Prospects coming to you through search, content, referrals, brand, communities or other attraction channels.
Account-Based Marketing: coordinated, high-touch marketing and sales focused on a defined set of valuable accounts.
The job or goal behind a query, such as learning, comparing, buying or troubleshooting.
Content or activity aimed at people close to choosing a solution, such as pricing, comparisons, alternatives and demos.
Call to Action: the next action you ask the visitor or prospect to take.
Cost of Inaction: the economic impact of leaving the current problem unsolved.
A recent event that increases the likelihood a prospect cares about a problem now.
How long it takes a new customer to reach the first meaningful result.
The percentage of people who move from one defined step to another.
An early customer who collaborates closely while the product and workflow are still being refined.