Customer Acquisition Cost (CAC)

Customer Lifetime Value (CLV)

Customer Lifetime Value (CLV), also known as LTV, is the total net revenue a business can expect to earn from a single customer account over the entire duration of their relationship. It factors in purchase frequency, average order value, gross margins, and retention duration, making it a fundamental input for acquisition budget decisions, pricing strategy, and customer success investment.

Return on Investment (ROI)

Return on Investment (ROI) is a performance measure used to evaluate the efficiency or profitability of an investment. Calculated as (net profit ÷ cost of investment) × 100, it expresses return as a percentage of the original outlay, making it possible to compare the value of different investments on a common scale.

Conversion Rate

Conversion rate is the percentage of visitors who complete a desired goal — such as signing up, purchasing, or submitting a form — out of the total number of visitors in a given period. It is one of the most direct measures of how effectively a website or campaign turns interest into action.

Word-of-Mouth Marketing

Word-of-mouth marketing (WOMM) is marketing driven by satisfied customers voluntarily recommending a product or service to others — through personal conversations, online reviews, social posts, or direct referrals — without paid promotion. It is widely regarded as the most trusted and cost-effective form of marketing because the endorser has no financial incentive and speaks from genuine personal experience.

Referral Marketing

Referral marketing is a growth strategy that encourages existing customers to recommend a product or service to people in their network, typically in exchange for an incentive or reward such as a discount, credit, or cash bonus. Unlike organic [[word-of-mouth-marketing|word-of-mouth]], referral marketing formalises and amplifies recommendations through a structured programme with defined incentives and tracking.