Category: Glossary

What is Inbound Marketing? Simple Definition: Inbound marketing is a strategy that attracts customers by creating valuable content and experiences tailored to them. Instead of interrupting people with your message, you help them find you when they need you. Inbound vs. Outbound Marketing Outbound Marketing (Traditional) TV commercials Cold calling Print ads Billboard advertising Unsolicited…

What Are TAM, SAM, and SOM? Think of these metrics as three concentric circles, each getting smaller and more focused: TAM (Total Addressable Market) The entire possible market for your product Everyone who could theoretically use your product Your “dream big” number SAM (Serviceable Addressable Market) The portion of TAM you can actually reach People…

Revenue, Income, and Profit: Understanding the Differences Confused about financial terms? Let’s break down the differences between revenue, income, and profit using simple examples and clear explanations. Quick Overview Think of a lemonade stand to understand these terms: Revenue: All the money you collect from selling lemonade Income: Money you receive from various sources (lemonade…

What is SEO and Why Does it Matter? Search Engine Optimization (SEO) is like making your website easier to find in the vast ocean of the internet. When someone searches for something on Google, the search engine looks through millions of websites to find the most relevant and helpful ones. Think of it like organizing…

What is Market Penetration? Simple Definition: Market penetration is the percentage of a target market that a company or product has captured. It measures how much of your potential market you’ve actually reached. Formula: Market Penetration Rate = (Number of Current Customers ÷ Total Target Market Size) × 100 Why is Market Penetration Important? Growth…

What is DAU? Simple Definition: Daily Active Users (DAU) is the number of unique users who engage with a product or service during a 24-hour period. Key Points: Counts each user only once per day Usually measured from midnight to midnight Requires clear definition of “active” Why DAU Matters Immediate Feedback Shows daily product health…

What is the DAU/MAU Ratio? Simple Definition: The DAU/MAU ratio compares your Daily Active Users (DAU) to your Monthly Active Users (MAU). It shows what percentage of your monthly users engage with your product daily. Formula: DAU/MAU Ratio = Daily Active Users ÷ Monthly Active Users Example: If your app has: 1,000 daily active users…

What are Net Billings? Simple Definition: Net billings represent the amount of money a company actually expects to receive after subtracting all deductions from gross billings. Think of it as the “real money” you’ll see in your bank account. Real-World Example: Let’s say you run an online course platform: You sell a course for $100…

What are Gross Billings? Simple Definition: Gross billings are the total amount of money a company bills its customers before any deductions, discounts, or adjustments are made. Think of it as the “full price” total of everything a company has sold or provided. Real-World Example: Imagine you’re running a small graphic design business. In one…

What is a KPI? Definition of KPI: A Key Performance Indicator (KPI) is a quantifiable measure used to evaluate the success of an organization, employee, or project in meeting objectives for performance. KPI In Simple Terms: Think of KPIs as your business’s report card. Just like how your grades show how well you’re doing in different…

What is Annual Contract Value (ACV)? Annual Contract Value (ACV) measures how much a contract is worth per year.  Key Points: Shows yearly contract value Excludes one-time fees Focuses on recurring revenue Normalizes different contract lengths 👆 By the way: ACV is different from ARR (Annual Recurring Revenue) – ACV looks at individual contracts, while…

What is Conversion Rate Optimization (CRO)? Conversion Rate Optimization (CRO) is the process of increasing the percentage of users who take a desired action on your website or app. Think of it like improving a store’s layout to get more people to buy! 🛍️ Common Conversions Include: Making a purchase Signing up for a trial…