Glossary

Glossary

Terms we use in growth, operations and compliance work, defined the way we apply them.

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A

Activation rateActivation rate is the share of new users or customers who reach the first value moment, an action the business defines as proof the product worked for them, within a set time after sign-up.
Attribution modelAn attribution model is the rule a company uses to decide how much credit for a sale or a lead goes to each marketing touchpoint the customer interacted with before converting.
Average order value (AOV)Average order value (AOV) is the revenue from orders in a period divided by the number of orders placed in that period.
Average revenue per user (ARPU)Average revenue per user (ARPU) is the revenue a business earns in a period divided by the average number of active users or customers in that period.

C

D

DAU/MAU ratio (stickiness)DAU/MAU ratio, often called stickiness, is the average number of daily active users divided by the number of monthly active users for the same month, showing how many days a month a typical user comes back.

F

Fractional executiveA fractional executive is a senior leader, such as a CMO, CFO or COO, who works for a company part time and on contract instead of as a full-time hire, usually a set number of days a week.

H

HADI loopA HADI loop is a four-step cycle for testing a growth idea: Hypothesis, Action, Data, Insight, run in that order so a team learns something specific from every test instead of just running it.

K

KPI treeA KPI tree is a diagram that breaks one top-level goal, such as revenue, down into the smaller metrics that drive it, so each team can see which number they own.

L

LTV to CAC ratioThe LTV to CAC ratio is customer lifetime value divided by customer acquisition cost, showing how many dollars of margin each dollar spent on winning a customer returns.

M

N

O

Operations auditAn operations audit is a structured review of how work, money and decisions actually move through a company, done to find where a process breaks down before deciding what to fix.

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Patient no-show ratePatient no-show rate is the share of booked appointments in a period where the patient neither attended nor cancelled in advance, out of all appointments booked for that period.

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S

Share of voice (SOV)Share of voice (SOV) is a brand's portion of all visibility in its category, measured as the brand's impressions, mentions or ad spend divided by the category total for the same channel and period.

U

Unit economicsUnit economics is the revenue and cost of a single customer or transaction, isolated from the rest of the business, so a company can see whether that one unit is profitable on its own.