Asynchronous. Not happening at the same time.
Average Contract Value “ACV”. The recurring value of a customer contract over any 12 month period. ACV excludes one time revenues.
Churn. The rate at which customers stop doing business with an entity, for example, the percentage of service subscribers who discontinue or do not renew their subscriptions within a given time period.
CLV. Popular abbreviation for Customer Lifetime Value. An estimate of the average revenue that a customer will generate throughout their lifetime with the entity.
Cost Center. A department within a business that does not directly add to profit but still costs the organization money to operate.
CSM. Customer Success Manager
Customer Acquisition Cost (CAC). The costs associated with winning a new customer.
Cost to Serve (CTS). Often referred to in SaaS as Cost to Serve are the direct costs associated with the production and delivery of goods sold by your company.
Executive Business Review. A meeting between the business and their customer which is often held quarterly but can be held at any frequency.
Health score. A metric used by Customer Success teams to determine whether an account is healthy or at-risk.
Impact. Effect or influence. A change, which is a result or consequence of an action or other cause.
Implementation. The process of putting a decision or plan into effect so that it becomes a reality. Often a way to explain the customer onboarding process.
Net Revenue. The gross sales of an entity, adjusted by subtracting direct selling expenses such as returns, discounts and commissions.
Onboarding. The action or process of integrating a new customer with the products and services after purchasing.
SaaS. Popular abbreviation for either “Software as a Service” or “Sales as a Science”.
SMB. An abbreviation for small and medium-sized business, sometimes seen as small and midsized business typically with under 100 employees.
Mid Market. Businesses that often have 100-999 employees.
Enterprise. Businesses that often have over 1000 employees and/or are on the fortune 500 list.
Upsell. Upselling is a sales technique used to get a customer to spend more by buying an upgraded or premium version of what’s being purchased.
Ref. 1. Blaisdell, M. (2019) The History of Customer Success – Part 1. Customer Success Association.
Ref. 2. Blaisdell, M. (2018, December 1). Customer Success Management: The Development of a Profession. Software Business Growth.
Ref. 3. Zoltners, A., Sinha, PK., Lorimer, S.E. (2019) What is a Customer Success Manager? Harvard Business Review.
Ref. 4. Schrage, M. (2017, April 18). What Most Companies Miss About Customer Lifetime Value. Harvard Business Review.
Ref. 5. Atkins, C., Gupta, S., & Roche, P. (2018, January 25). Introducing Customer Success 2.0: The New Growth Engine. McKinsey.com.
Ref. 6. van der Kooij, J. (2020, April 24). The Use of Remote Selling in Enterprise Sales. Winning By Design.
Ref. 7. Gallo, A. (2014, October 29). The Value of Keeping The Right Customers. Harvard Business Review.
Ref. 8. van der Kooij, J.J. (2018) The SaaS Sales Method: Sales as a Science.
Ref. 9. Ursu, Brian. (2018, Nov 8). Einstein’s Theory of Compound Interest. Intentional Wealth Advisors.
Ref. 10. Clear, J. (2019). This Coach Improved Every Tiny Thing by 1% and Here’s What Happened. JamesClear.com.
Ref. 11. van der Kooij, J., Pizarro, F. (2018) Blueprints of a SaaS Sales Organization.
Ref. 12. Skok, David SaaS Metrics 2.0 A Guide for Measuring and Improving What Matters.
Ref. 13. Valchev, Konstantin (2020, April 20) Cost of Goods Sold (COGS) for Software-as-a-Service (SaaS) Business.
Ref. 14. Miller, A., Vonwiller, B., & Weed, P. (2016, October 26). Grow Fast or Die Slow: Focusing on Customer Success to Drive Growth. McKinsey.
Ref. 15. Knowledge@Wharton. (2018, February 12). Why Customer Retention Lies at the Heart of Corporate Valuation. Knowledge@Wharton. Retrieved February 8, 2021.
Ref. 16. McCarthy, D., & Fader, P. (2018). Customer-Based Corporate Valuation for Publicly Traded Noncontractual Firms. Journal of Marketing Research, 55(5), 617-635.
Ref. 17. Curtain, M. (2016, July 21). In an 8-Hour Day, the Average Worker is Productive for This Many Hours. Inc.
Ref. 18. Du, R. Y., Netzer, O., Schweidel, D. A., & Mitra, D. (2021). Capturing Marketing Information to Fuel Growth. Journal of Marketing, 85(1), 163-183.
Ref. 19. Keiningham, T. L., Cooil, B., Andreassen, T. W., & Aksoy, L. (2007). A Longitudinal Examination of Net Promoter and Revenue Growth. Journal of Marketing, 71(3), 39-51.