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Growth Marketing Glossary

Everything you need to know about growth marketing

Activation Rate:

The percentage of users who complete a specific onboarding process or take a key action within a product or service. A high activation rate is essential for user retention and long-term engagement.

A/B Testing:

A method of comparing two versions (A and B) of a webpage or marketing campaign to determine which performs better. This helps optimize elements for higher conversion rates.

Advocacy Marketing:

Encouraging existing customers to promote your product or service. This often involves creating brand ambassadors who share positive experiences with their network.

Affiliate Marketing:

Affiliate marketing is a performance-based approach where businesses reward individuals or entities for each customer they bring, leveraging partnerships to enhance online sales and visibility.

Attribution Modeling:

Attribution modeling refers to the process of determining how credit is assigned to different marketing channels and touchpoints in the customer journey.

Churn Rate:

The percentage of customers who stop using a product or service within a given time frame. Managing churn is crucial for sustainable growth.

Conversion Rate:

The percentage of website visitors or users who take a desired action, such as making a purchase or signing up for a newsletter.

Customer Acquisition Cost (CAC):

The cost associated with acquiring a new customer. Calculated by dividing the total marketing expenses by the number of new customers acquired.

Customer Lifetime Value (CLV or LTV):

The predicted net profit a company expects to earn from a customer throughout their entire relationship. High CLV is essential for long-term success.

Engagement Rate:

The Engagement Rate is a key indicator within Growth Marketing, assessing the extent of interaction that content, products, or services garner from their target audience.

Free to Paid Conversion Rate:

The free to paid conversion rate quantifies the proportion of users evolving from accessing a product or service at no cost to purchasing it.

Influencer Marketing:

Collaborating with influencers who have a significant online following to promote a product or service. This leverages the influencer's credibility and audience.

Growth Hacking:

A data-driven approach to marketing that focuses on rapid experimentation and optimization to achieve sustainable growth, often through unconventional methods.

KPI (Key Performance Indicator):

Quantifiable metrics used to evaluate the success of a marketing campaign or business strategy. Examples include conversion rates, customer retention, and revenue growth.

Lead Conversion Rate:

The lead conversion rate refers to the percentage of leads that successfully convert into paying customers.

Lead Generation:

Lead generation is a critical component of growth marketing, a strategy aimed at driving sustainable business development by acquiring new customers, retaining existing ones, and increasing revenue.

LTV:CAC Ratio:

The ratio of Customer Lifetime Value (LTV) to Customer Acquisition Cost (CAC). It helps assess the efficiency and sustainability of customer acquisition strategies. A ratio higher than 1 indicates a positive return on investment.

Marketing Automation:

Marketing Automation involves leveraging software and technology to simplify repetitive marketing activities, optimize marketing processes, and evaluate the success of marketing initiatives.

Monthly Recurring Revenue (MRR):

The total revenue a company expects to receive from its subscription-based customers on a monthly basis. MRR is a key metric for businesses with recurring revenue models.

Monthly Average Revenue Per Account (ARPA):

The average revenue generated per customer account on a monthly basis. Calculated by dividing total monthly revenue by the number of active customer accounts.

NPS (Net Promoter Score):

A metric that measures customer satisfaction and loyalty by asking customers how likely they are to recommend a product or service to others.

Net New Annual Recurring Revenue (NNARR):

The net increase in annual recurring revenue after accounting for customer churn, downgrades, and upgrades. It reflects the overall growth or decline in subscription-based business models.


PPC, or pay-per-click, is a digital marketing tactic enabling businesses to pay for their website's placement in the 'sponsored' section of search engine results.

Purchase Rate:

The percentage of visitors or users who make a purchase. Analyzing the purchase rate provides insights into the effectiveness of marketing efforts and the overall appeal of products or services.

A unique URL assigned to a customer or advocate to track referrals. This link is used to attribute new customers to the referring individual.

Revenue retention rate refers to the percentage of revenue that a business successfully retains from existing customers over a specific period.

Sign-up Rate:

The percentage of website visitors or users who sign up for a service or create an account. Monitoring this metric helps optimize the user journey and identify potential friction points.

Social Proof:

The influence that the actions and opinions of others have on an individual's decision-making. Testimonials, reviews, and user-generated content are forms of social proof.

Viral Loops:

Viral loops are marketing strategies designed to exponentially increase product or content visibility and user acquisition through a process where existing users refer others, creating a self-sustaining cycle of growth and promotion.

Viral Marketing:

A strategy that relies on existing social networks to spread information rapidly. Viral marketing often involves creating shareable content that resonates with a wide audience.

Word-of-Mouth Marketing:

Promoting a product or service through customer recommendations and referrals. Positive word-of-mouth is a powerful driver of growth.


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