Category: Glossary

What is a Plan Downgrade? A plan downgrade occurs when a customer moves from a higher-tier plan to a lower-tier plan, typically with fewer features, lower usage limits, or reduced support. While it might seem like bad news, understanding downgrades is crucial for managing your business effectively. 👆 By the way, an interesting fact: Studies…

What is a Plan Upgrade? A plan upgrade occurs when a customer moves from a lower-tier plan to a higher-tier plan, typically with more features, higher usage limits, or better support. It’s a key driver of growth for many businesses, especially in the SaaS world. 👆 By the way, an interesting fact: Some studies suggest…

What is a Cohort? A cohort is a group of users who share a common characteristic or experience within a defined time period. For example: All customers who signed up in January 2023 Users who made their first purchase during the Black Friday sale Subscribers who joined after a specific marketing campaign 👆 By the…

What Are Professional Services in SaaS? Professional Services in SaaS refer to the additional support, consulting, and customization services offered alongside a SaaS product. It’s like having a team of expert co-pilots to help you navigate and get the most out of your shiny new software jet! Why They Matter Understanding Professional Services in SaaS…

What Is It? ARPA, which stands for Average Revenue Per Account, is a metric that tells you how much revenue you’re generating from each customer account on average. It’s like finding out the average bill at your restaurant – are your customers ordering the whole menu or just nibbling on appetizers? Why It Matters Understanding…

What Is It? Channel Trials refer to the number of product or service trials initiated through specific marketing channels. It’s like tracking which doors your guests are using to enter your party – are they coming through the front door (organic search), the side entrance (social media), or sneaking in through the window (referrals)? Why…

What Is It? Earned traffic refers to visitors who come to your website or platform as a result of your brand’s reputation, content quality, or word-of-mouth marketing. It’s like having a crowd show up to your party because they heard it’s the place to be, not because you handed out flyers! Why It Matters Understanding…

What Is It? Paid traffic refers to visitors who come to your website or landing page as a result of paid advertising efforts. It’s like putting up billboards on the internet superhighway, but you only pay when someone takes the exit to your site! Why It Matters Understanding and leveraging paid traffic is crucial because…

What Is It? Cumulative Trials represents the total number of users who have started a trial of your product or service from the beginning of your business up to a specific point in time. It’s like a running tally of everyone who’s ever said, “Sure, I’ll give it a try!” The Formula 🧮 Cumulative Trials…

What Is It? “Months to Recover CAC” (also known as CAC Payback Period) is the number of months it takes for a company to earn back the cost of acquiring a new customer. It’s like figuring out how long it takes for a new customer to go from being an expense to becoming profitable. The…