D2C Glossary

Average Order Value (AOV)

It is the average amount a store or online customer spends per order. To calculate it, we divide the total active revenue by the number of orders.

Net Promoter Score (NPS)

It is the average amount a store or online customer spends per order. To calculate it, we divide the total active revenue by the number of orders.

Return on Ad Spend (ROAS)

Return on ad spending is a market indicator that reveals the percentage of revenue received for every dollar spent on advertising.

Cost Per Acquisition (CPA)

It is the typical cost to land one client. We obtain cost per acquisition by dividing the total marketing costs with the number of new customers.

Cost-Per-Order (CPO)

The average cost to generate one order. To obtain it, divide the marketing expenses by the tidal number of orders.

EBITA

EBITA indicates earnings before interest, taxes, and amortization. It means the extent of a company's profitability and operational efficiency, excluding interest, taxes, and amortization.

Monthly Recurring Revenue (MRR)

The predictable monthly income from customers through active subscriptions or regular billing. It indicates the financial and growth potential of subscription-based businesses.

Annual Recurring Revenue (ARR)

It is the yearly income from active subscriptions or contracts. It helps businesses to predict future revenue and track growth and stability.

Conversion Rate Optimisation (CRO)

It is a process where we optimize web pages or apps to increase the percentage of visitors who carry out a desired action, like making a purchase.

Repeat Purchase Rate

The percentage of customers who make more than one purchase. It measures customer loyalty and satisfaction.

Contribution Margin (CM)

The revenue left after deducting variable costs from sales. It measures the profitability of a product before fixed costs.

Customer Lifetime Value (LTV)

It is the total revenue a company expects to make from a consumer over time. It helps in understanding customer value.

Click Through Rate (CTR)

The total primary cost of obtaining a customer and the additional costs incurred during the sale is known as customer acquisition cost. It evaluates marketing efficiency.

Contribution Margin (CM)

The moment a customer starts the checkout process on an online store, indicating potential intent to purchase.

Split Testing (A/B Test)

It means looking at two versions of an app or website side by side to see which one gets more users or sales.

Stock Keeping Unit (SKU)

Under stock management, there is a code assigned to a specific product to differentiate it from other similar products. It helps track products and manage stock efficiently.

Harmonised Tariff Code (HTC)

We use a global code to categorize items in trade. It determines tariffs and ensures smooth custom processing.

Cost Of Goods (COGS)

The business incurs making costs to produce goods for the market. It includes materials and labors but excludes indirect expenses.

Return On Investment (ROI)

It is a financial metric to measure the investment's profitability. To obtain it, divide the net profit by investment cost.

Terms Of Service (TOS)

The rules and guidelines that people must follow before they can use a service. It outlines rights and responsibilities.

Above The Fold

The content visible on the web page without scrolling. It is a prime factor for attracting and engaging visitors immediately.

Churn Rate

The percentage of customers who stop using a service over a period. It helps measure customer retention and loyalty.