# Growth & GTM Glossary

> Definitions of growth, GTM, and product metrics and concepts.

- This is the markdown version of: https://www.productgrowth.blog/glossary (cite that URL)
- 26 entries

- [Activation Rate](https://www.productgrowth.blog/p/activation-rate) — Activation rate is a crucial metric in product-led growth, reflecting how many of your new users reach a key milestone or experience a "wow moment" with your product.
- [Annual Recurring Revenue (ARR)](https://www.productgrowth.blog/p/annual-recurring-revenue-arr) — Annual Recurring Revenue (ARR) is a crucial metric in product-led growth, especially for subscription-based businesses.
- [CAC Payback Period](https://www.productgrowth.blog/p/cac-payback-period) — CAC payback period is the number of months of gross profit it takes to recover the cost of acquiring a customer. Under 12 months is healthy for most SaaS.
- [Churn Rate](https://www.productgrowth.blog/p/churn-rate) — The rate at which customers or revenue leave — the leak in your bucket.
- [Cohort Analysis](https://www.productgrowth.blog/p/cohort-analysis) — Cohort Analysis is a powerful method used to track and understand the behavior of specific groups of users (cohorts) over time.
- [Conversion Rate](https://www.productgrowth.blog/p/conversion-rate) — Conversion rate is a key metric in understanding how effective your marketing and sales efforts are at turning prospects into customers. In a product-led growth strategy, it’s crucial because it helps you measure the efficiency of your customer acquisition funnel, from initial interest to actual usage of your product.
- [Cost Per Lead (CPL)](https://www.productgrowth.blog/p/cost-per-lead-cpl) — Cost Per Lead (CPL) is a critical metric in your product-led growth strategy.
- [Customer Acquisition Cost (CAC)](https://www.productgrowth.blog/p/customer-acquisition-cost-cac) — Customer Acquisition Cost (CAC) is a key metric in understanding the efficiency of your product-led growth strategy. It tells you how much money you need to spend to acquire a new customer. This is crucial because the lower your CAC, the more profitable your growth can be.
- [Customer Lifetime Value (LTV)](https://www.productgrowth.blog/p/customer-lifetime-value-ltv) — Customer Lifetime Value (LTV) is a critical metric in product-led growth, representing the total revenue a business can reasonably expect from a single customer account throughout their relationship with the company.
- [Customer Lifetime Value to Customer Acquisition Cost Ratio](https://www.productgrowth.blog/p/customer-lifetime-value-to-customer) — The Customer Lifetime Value to Customer Acquisition Cost (LTV Ratio) is a critical metric in product-led growth, providing insights into the profitability and efficiency of your customer acquisition efforts.
- [Daily Active Users (DAU)](https://www.productgrowth.blog/p/daily-active-users-dau) — Daily Active Users (DAU) is a fundamental metric in product-led growth that measures the number of unique users who interact with your product or service on a daily basis.
- [Engagement Rate](https://www.productgrowth.blog/p/engagement-rate) — Engagement Rate is a metric that measures the level of interaction and involvement users have with your product or content.
- [Expansion Revenue](https://www.productgrowth.blog/p/expansion-revenue) — Expansion revenue is a crucial metric in product-led growth, representing the additional revenue generated from existing customers through upselling, cross-selling, and add-ons.
- [Feature Adoption Rate](https://www.productgrowth.blog/p/feature-adoption-rate) — Feature Adoption Rate is a metric that measures the percentage of users who adopt and regularly use a specific feature within your product.
- [Freemium](https://www.productgrowth.blog/p/freemium) — Freemium is a business model where a product or service is offered for free, but additional features, services, or content are available through paid subscriptions or one-time purchases.
- [Lead Scoring](https://www.productgrowth.blog/p/lead-scoring) — Lead Scoring is a process used to rank prospects based on their perceived value to your business.
- [Monthly Active Users (MAU)](https://www.productgrowth.blog/p/monthly-active-users-mau) — Monthly Active Users (MAU) is a key metric in product-led growth that measures the number of unique users who engage with your product or service within a given month.
- [Monthly Recurring Revenue (MRR)](https://www.productgrowth.blog/p/monthly-recurring-revenue-mrr) — Monthly Recurring Revenue (MRR) is a key metric in product-led growth, especially for subscription-based businesses.
- [Net Promoter Score (NPS)](https://www.productgrowth.blog/p/net-promoter-score-nps) — Net Promoter Score (NPS) is a widely used metric that measures customer satisfaction and loyalty.
- [Product Qualified Lead (PQL)](https://www.productgrowth.blog/p/product-qualified-lead-pql) — A Product Qualified Lead (PQL) is a potential customer who has experienced meaningful value from using your product through a free trial, freemium model, or a limited-feature version.
- [Retention Rate](https://www.productgrowth.blog/p/retention-rate) — Retention rate is a key metric in product-led growth, measuring how well your product keeps users engaged over time. A high retention rate indicates that users find ongoing value in your product, which is crucial for long-term growth and profitability.
- [Revenue Per User (RPU)](https://www.productgrowth.blog/p/revenue-per-user-rpu) — Revenue Per User (RPU), also known as Average Revenue Per User (ARPU), is a key metric that measures the average amount of revenue generated by each user or customer over a specific period.
- [Time to Value (TTV)](https://www.productgrowth.blog/p/time-to-value-ttv) — Time to Value (TTV) is a crucial metric that measures the time it takes for a customer to realize the value of a product after starting to use it.
- [User Onboarding Rate](https://www.productgrowth.blog/p/user-onboarding-rate) — User Onboarding Rate measures the percentage of users who successfully complete the onboarding process after signing up for your product.
- [UTM (Urchin Tracking Module)](https://www.productgrowth.blog/p/utm-urchin-tracking-module) — UTM parameters are tags added to the URLs of your marketing or promotional content.
- [Website Traffic](https://www.productgrowth.blog/p/website-traffic) — Website traffic refers to the number of visitors that come to your website. It’s a fundamental metric in understanding how well your product-led growth strategies are working. High website traffic indicates strong interest and awareness of your product, while low traffic can signal the need for better marketing and outreach efforts.

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