Return on Investment (ROI)

Customer Acquisition Cost (CAC)

Customer Acquisition Cost (CAC) is the total cost of acquiring a new customer, calculated by dividing all marketing, advertising, and sales expenses over a given period by the number of new customers gained in that same period. It is one of the most fundamental unit economics metrics for evaluating the efficiency and scalability of a business.

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.

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.

A/B Testing

A/B Testing is a controlled experiment that compares two variants — A (the control) and B (the challenger) — of a web page, email, or individual element to determine which performs better on a specific metric. By randomly splitting traffic between the two versions and measuring outcomes, A/B testing replaces guesswork with statistical evidence.

Trust Score

A Trust Score is a composite metric or rating that aggregates multiple trust signals — including review volume, average star rating, recency of reviews, response rates, verified badges, and third-party certifications — into a single number or tier that represents the overall perceived trustworthiness of a business to prospective customers.