Category: Glossary
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Balance Sheet
Think of a Balance Sheet as a financial snapshot of your business at a specific moment in time. It’s like a photo that captures what your company owns (assets), what it owes (liabilities), and what’s left over for the owners (equity). Let’s dive in and see what makes this financial statement tick! A Balance Sheet…
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P&L (Profit and Loss Statement)
The P&L, or Profit and Loss Statement, is like a report card for your business’s financial performance. It shows you how much money your company made (or lost) over a specific period. Let’s break it down! A P&L statement typically includes: Revenue – the money you’re bringing in from sales. Expenses – what it costs…
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Plan Downgrade
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…
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Plan Upgrade
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…
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Cohort Analysis
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…
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Professional Services in SaaS
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…
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ARPA (Average Revenue Per Account)
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…
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Channel Trials
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…
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Earned Traffic
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…
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Paid Traffic
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…