Marketing
Attracting, communicating with, and converting audiences into customers.
CAC
Customer Acquisition Cost
How much it costs, on average, to win a new customer.
CAC also shows up in
Compared to LTV to find out whether the business model is sustainable in the long run.
Used to evaluate whether it's worth investing more in a specific prospecting channel.
LTV
Lifetime Value
How much revenue (or profit) a customer generates during the entire time they stay a customer.
LTV also shows up in
Used in recurring revenue projections and to justify investment in retention.
Guides retention decisions: features that increase usage time increase LTV.
Conversion funnel
The stages someone goes through from first learning about something to actually buying or using it.
Conversion funnel also shows up in
Used to understand at which onboarding step users abandon the product.
Represents the stages of a negotiation, from first contact to signed contract.
Persona
A semi-fictional profile that represents a real type of customer, used to guide decisions.
Persona also shows up in
Used to prioritize features by thinking about the needs of a specific user profile.
Used to adapt the sales pitch to different buyer profiles.