Glossary

What is Expansion Revenue?

Expansion revenue in SaaS refers to the additional recurring revenue generated from existing customers through upsells, cross-sells, and add-ons. Adapting offerings to meet evolving needs is crucial for financial growth and deepening customer relationships. Calculating expansion revenue involves subtracting the beginning monthly recurring revenue (MRR) from the ending MRR, focusing only on existing customers.

What is Net Dollar Retention (NDR)?

NDR measures revenue changes from existing customers, revealing expansions, contractions, and churn, offering insights crucial for growth. Calculated by adjusting starting revenue with expansions and subtracting churned revenue, NDR is pivotal for sustaining growth and customer satisfaction, demanding strategies like enhancing customer success initiatives and optimizing pricing to overcome challenges.

What is Revenue Backlog?

Revenue backlog in SaaS is the unrecognised revenue a company expects to earn from existing customer contracts, crucial for predicting future revenue streams and aiding in financial planning. This backlog is fundamental for setting sales targets, making strategic decisions, and managing resource allocation, ultimately influencing the company's financial health and growth trajectory.

What is a Customer Effort Score?

Customer Effort Scores (CES) are pivotal metrics that gauge the effort required by customers when using a company's products, services, or support channels, focusing on the ease of interaction rather than just satisfaction. These scores are instrumental for businesses as they provide insights into customer experience, predict loyalty and retention, and spotlight areas needing improvement to reduce customer friction.

What are Product Feature Requests?

Product feature requests, which come from sources such as support tickets and social media, drive innovation by aligning development with user needs. Prioritizing these requests involves assessing their ROI, feasibility, and fit with the product vision. Effective integration into the development roadmap and transparent communication with stakeholders are crucial for maintaining product relevance and customer trust.

What are Customer Lifecycle Stages?

The customer lifecycle stages are a crucial framework for businesses aiming to thrive in today's business landscape. Each stage presents unique challenges and opportunities, from capturing initial interest to nurturing loyal advocacy. In this guide, we explore the six key stages - acquisition, onboarding, adoption, growth, retention, and advocacy - offering actionable strategies and insights to drive success.

What is User Adoption?

This article delves into factors influencing adoption rates, such as product usability and onboarding processes, and offers tactics like personalized onboarding, continuous engagement, and leveraging user feedback to optimize adoption. Learn how to measure success through key metrics like activation rate and retention rate, and leverage data analytics for enhanced user experiences.

What is Customer Churn Software?

Ever wondered how businesses keep customers from leaving? Enter customer churn software – the answer to predicting and preventing customer exits. With its powerful analytics and tactics, it transforms customer engagement, driving growth. But choosing the right software is key. Discover how it turns potential losses into lasting relationships and sustainable growth.

What is a Customer Health Score?

Unlike traditional metrics, CHS offers a comprehensive view of customer relationships, encompassing usage metrics, engagement levels, and support interactions. Learn how CHS drives growth and retention by serving as an early warning system and enabling proactive engagement. Explore strategies for constructing and utilizing CHS effectively, while navigating challenges like data accuracy and scalability.