Plain-English definitions for every metric and tactic we touch.
31 terms across metrics, channels, tactics, and compliance. Each definition is one sentence at the top, then the context you actually need. Written for operators, not search engines.
Metrics
15 termsAbandoned Cart Rate
Abandoned cart rate is the percentage of shoppers who add items to a cart but leave without purchasing. Historically 65–75% across e-commerce.
Annual Recurring Revenue (ARR)
Annual Recurring Revenue (ARR) is the annualized, predictable subscription revenue. MRR × 12, adjusted for annual contracts.
Average Order Value (AOV)
Average Order Value (AOV) is the average revenue per order across a defined period. Total revenue divided by total orders.
Cart Recovery Rate
Cart recovery rate is the percentage of abandoned carts that successfully complete purchase after a recovery touch (email, SMS, voice, or retargeting).
Checkout Abandonment
Checkout abandonment is the share of shoppers who reach the checkout page but leave before completing payment. A narrower, more recoverable metric than cart abandonment.
Churn Rate
Churn rate is the percentage of customers who stop paying or stop buying within a defined period. The inverse of retention.
Conversion Rate (CR)
Conversion rate is the percentage of visitors who complete a target action. Typically purchase, signup, or lead form submission.
Customer Acquisition Cost (CAC)
Customer Acquisition Cost (CAC) is the total sales and marketing spend required to acquire one new paying customer over a defined period.
Customer Lifetime Value (LTV)
Customer Lifetime Value (LTV) is the total revenue a customer is expected to generate over the entire relationship with your business.
Gross Margin
Gross margin is the percentage of revenue remaining after subtracting cost of goods sold (COGS). What's left to cover everything else.
LTV:CAC Ratio
The LTV:CAC ratio is the value of a customer divided by the cost to acquire them. The headline efficiency metric of any subscription or e-commerce business.
Monthly Recurring Revenue (MRR)
Monthly Recurring Revenue (MRR) is the predictable, normalized monthly revenue from all active subscriptions.
Payback Period
Payback period is how long it takes for the gross profit from a customer to repay the cost of acquiring them. Usually measured in months.
Retention Rate
Retention rate is the percentage of customers who continue to buy or subscribe over a defined period. The inverse of churn.
Return on Ad Spend (ROAS)
Return on Ad Spend (ROAS) is the revenue generated per €1 of advertising spend. Total revenue from ads ÷ total ad spend.
Channels
6 termsAI Voice Agent
An AI voice agent is a software system that conducts real-time phone conversations using a synthesized voice and large language model reasoning.
IVR (Interactive Voice Response)
IVR is the legacy telephony system that lets callers navigate a menu of options via touch-tone or voice. "press 1 for sales, 2 for support."
SMS Marketing
SMS marketing is the use of text messages to promote products, recover carts, and engage customers. Typically as part of a multi-channel flow.
Text-to-Speech (TTS)
Text-to-Speech (TTS) is the AI technology that converts written text into natural-sounding spoken audio in real time.
Voice Cloning
Voice cloning is the technique of generating a synthetic voice that matches a specific person's voice using a short sample (often 10–60 seconds).
WhatsApp Business API
The WhatsApp Business API is Meta's enterprise messaging interface for sending templated and conversational WhatsApp messages at scale.
Tactics
6 termsDunning
Dunning is the process of communicating with customers about overdue invoices or failed payments. Typically escalating from gentle reminder to formal demand.
Lead Qualification (BANT)
Lead qualification is the process of evaluating an inbound prospect against a fit framework like BANT. Budget, Authority, Need, Timing. Before passing to a sales rep.
No-Show Rate
No-show rate is the percentage of booked appointments where the customer fails to attend. A major source of lost revenue for clinics, salons, and service businesses.
Post-Purchase NPS
Post-purchase NPS is the practice of asking customers 7–14 days after delivery how likely they are to recommend your product on a 0–10 scale.
Speed to Lead
Speed to lead is the time elapsed between a prospect submitting an inbound inquiry and the first sales response. The single highest-leverage variable in inbound conversion.
Win-back Campaign
A win-back campaign is a marketing or sales sequence aimed at reactivating customers who have stopped buying or subscribing.
Compliance
4 termsData Processing Agreement (DPA)
A Data Processing Agreement (DPA) is the legal contract between a data controller (you) and a data processor (your vendor) defining how personal data may be handled.
EU AI Act
The EU AI Act is the European Union's comprehensive regulation of AI systems, including specific disclosure requirements for AI-generated voice and content interacting with humans.
GDPR (General Data Protection Regulation)
GDPR is the EU privacy regulation governing collection, processing, and storage of personal data for any organization handling EU residents' information.
TCPA (Telephone Consumer Protection Act)
The TCPA is the US federal law governing telemarketing calls, automated dialing, and SMS. Requiring prior express written consent for many forms of outreach.
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