7 SaaS Terms Every Startup Founder Must Learn In 2024

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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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Enterprise SaaS Sales

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Product-Market Fit

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Sales-Led GTM

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TAM

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SaaS Glossary by Inc42

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7 SaaS Terms Every Startup Founder Must Learn In 2024

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.

Enterprise SaaS Sales

Enterprise SaaS sales target big corporates with complex needs, multiple decision-makers and extended sales cycles while offering high-value solutions.

Product-Market Fit

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

Sales-Led GTM

A sales-led GTM strategy is an approach where the sales team takes the lead in developing and executing the GTM strategy

TAM

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

SaaS Glossary by Inc42