Category: Glossary

What is the B2B Model? B2B stands for Business-to-Business, where companies primarily sell products or services to other businesses rather than to individual consumers. Think of it as businesses being the backstage crew that helps other businesses put on their show. Common types of B2B businesses include: Software providers Manufacturing suppliers Professional services Office equipment…

What is ROI? ROI measures the profitability of an investment relative to its cost. In simple terms, it tells you how much money you made (or lost) on an investment compared to how much you put in. It’s like asking, “For every dollar I invested, how many dollars did I get back?” The basic formula…

Unit economics in SaaS is all about understanding the revenues and costs associated with a single customer over their entire lifecycle. It’s the building block of a SaaS company’s financial health. In the SaaS world, unit economics typically revolves around these key metrics: Customer Acquisition Cost (CAC): How much it costs to acquire a new…

Unit economics is all about understanding the revenues and costs associated with a single unit (customer) of your product or service. It’s the building block of your business’s financial health. Here’s what unit economics typically includes: Revenue per unit: How much money you make from selling one unit Cost per unit: How much it costs…

What is Click-through Rate (CTR)? Click-through Rate is a metric that measures the percentage of people who click on a specific link or call to action out of the total number who view it. In other words, it’s how often people who see your ad or link actually click on it. The formula is straightforward:…

What is a CTA? A Call to Action (CTA) is a marketing term for any design element or text that prompts a user to take a specific action. It’s the “Now what?” of your content or ad, giving clear direction on what you want the user to do next. Common types of CTAs include: Buttons:…

What is Cost per Click? Cost per Click (CPC) is a digital advertising model where you pay each time a user clicks on your ad. It’s the digital equivalent of paying for each person who walks into your store, rather than paying for a billboard that everyone sees but few act on. The basic formula…

What is Cost Per Lead? Cost Per Lead (CPL) is a marketing metric that measures how much it costs to generate a new lead. A lead is a potential customer who has shown interest in your product or service by taking a specific action, like filling out a form or requesting more information. The formula…

What is A/B Testing? A/B testing, also known as split testing, is a method of comparing two versions of a webpage, app interface, email, or any other marketing asset to see which one performs better. It’s like setting up a friendly competition between two ideas to see which one wins the audience’s heart (or clicks).…

What is a Trial? In business, a trial is a period during which a potential customer can use a product or service, usually for free or at a reduced cost, before deciding whether to become a paying customer. It’s the digital equivalent of dipping your toe in the water before jumping in. Common types of…