Learn The 10 SaaS Terms That Are Essential For Every Founder

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Annual Recurring Revenue

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CAC Payback Period

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Customer Lifetime Value

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Cross-Selling

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Expansion MRR

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Gross MRR Churn Rate

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Product-Market Fit

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SQL

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TAM

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Customer Segmentation

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Explore our SaaS Glossary with 25+ terms that a founder should know!

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Learn The 10 SaaS Terms That Are Essential For Every Founder

Annual Recurring Revenue

ARR is a metric used to measure the total revenue that a SaaS company expects to generate from its subscriptions.

CAC Payback Period

CAC payback period measures how quickly a company recovers its customer acquisition costs to assess acquisition success

Customer Lifetime Value

CLTV means the total expected sales a customer will generate throughout the business relationship with a company.

Cross-Selling

Cross-selling is a sales strategy where companies offer additional products/services to existing customers to increase revenue.

Expansion MRR

A metric used to measure the additional MRR generated by existing customers in a given month

Gross MRR Churn Rate

Gross MRR churn rate is used by SaaS companies to estimate revenue losses from service downgrades.

Product-Market Fit

The product’s alignment with a well-defined market that has a pressing need that the product can effectively address.

SQL

SQL indicates when a potential customer is ready to purchase its products

TAM

TAM is the potential revenue from a market’s full customer base and guides companies to allocate resources for launching new products.

Customer Segmentation

Customer segmentation categorises SaaS company’s customers based on parameters like tech, products and business goals.

Explore our SaaS Glossary with 25+ terms that a founder should know!