What are Vanity Metrics?
Vanity metrics are performance statistics that appear impressive at a glance but don’t actually correlate to real-world traction for the business.
What is a User Story?
A user story is a well-formed, short and simple description of a software requirement from the perspective of an end-user, written in an informal and natural language. It is the main artifact used in the agile software development process to capture user requirements.
What is a Unique Selling Proposition?
A unique selling point (USP) is the differentiating factor that separates your brand, product or service from its competitors. Of course, you want this USP to represent a desirable benefit for users.
What is Total Addressable Market?
Total addressable market (TAM), sometimes referred to as total available market, refers to the size of the financial opportunity a particular product or service offers. It covers the revenue a company or organization could expect to generate if it had 100% market share and reached every single relevant customer in every market.
What is the Sunk Cost?
Much like a shipwreck, a sunk cost (by definition) cannot be recovered. Sunk costs are inevitable in business. And, because they cannot be recovered, they should not be included in any future budgets.
What is a Sales Forecast?
Sales forecasting refers to a company’s estimation of future product sales, based on a number of factors, such as historical sales data, economic trends, and other brands’ performance.
What is Return On Sales (ROS)?
The Return on Sales (ROS) is a percentage measure, used to indicate how efficiently a business transforms sales into profits, e.g. the amount of profit generated per dollar earned.
What is Return On Investment (ROI)?
Return on Investment, or ROI, shows how profitable an activity was by looking at its upfront cost versus the net profit it produced.
What Is Product Analytics?
As a term, product analytics concerns the gathering and application of key data, to determine how and why users engage with a digital product. Companies can take advantage of these insights to identify gaps in their user/customer experience, recognize opportunities for growth, and improve their products based on accurate research.
What is the Price Elasticity of Demand ?
The Price elasticity of demand refers to the change in demand for a product based on alterations to its price. For example, if a popular productivity tool’s price increases within two years of its release, will demand for the product increase, decrease, or remain the same?
What is a Penetration Pricing Strategy?
Sometimes referred to as the "land and expand" approach, penetration strategy is an approach used by companies (especially in SaaS) to penetrate or infiltrate a new market, or rapidly expand in their current market.
What is a Payback Period?
A payback period is the length of time a business expects to pass before it recovers its initial investment in a product or service.
What is Opportunity Cost?
Opportunity cost is the loss of potential gain by selecting one idea or action over another. Whenever you choose to focus on a certain activity — be that a feature builds, software update, marketing campaign or new business venture — there are inherent opportunity losses. This could be measured in time or in money.