Adlega Blog:

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. 👆 Fun fact: Studies show that customers who…

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. 👆 Fun fact: Some studies suggest that upgrades can account…

What Is a Cohort in Business? 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 👆 Fun…

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 ARPA? 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 ARPA Matters Understanding your ARPA…

What Are Channel Trials? 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)?…

What Is Earned Traffic? 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. Why Earned Traffic Matters Understanding and leveraging earned traffic is crucial because it helps you: Build sustainable, long-term growth Establish credibility and trust with your audience Reduce dependence on…

What Is Paid Traffic? 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 Paid Traffic Matters Understanding and leveraging paid traffic is crucial because…

What Is Cumulative Trials? 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. The Formula for Cumulative Trials🧮 Cumulative Trials = Sum of all trial starts from day 1 to the present 👆…

What Is Months to Recover CAC? 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…

What Is LTV/CAC Ratio? The LTV/CAC ratio is a comparison between the Lifetime Value (LTV) of a customer and the Customer Acquisition Cost (CAC). It tells you how much value you’re getting back for every dollar spent on acquiring a new customer. Formula for LTV/CAC Ratio 🧮 LTV/CAC Ratio = Lifetime Value (LTV) / Customer…

What Is CAC (Customer Acquisition Cost)? CAC, or Customer Acquisition Cost, represents the total cost of convincing a potential customer to buy your product or service. Basic Formula for CAC 🧮 CAC = Total Sales, Marketing, and Related Costs / Number of New Customers Acquired 👆 Fun fact: Studies show it can cost five times…