Customer Success Glossary

Industry Term Name	Docs Summary
NRR (Net Revenue Retention)	Measures revenue growth from existing customers, accounting for expansions and churn.
MRR (Monthly Recurring Revenue)	Tracks predictable monthly subscription revenue for SaaS businesses.
NPS (Net Promoter Score)	Gauges customer loyalty and satisfaction through likelihood to recommend.
Negative Churn	Occurs when expansion revenue exceeds lost revenue from churned customers.
ICP (Ideal Customer Profile)	Defines the target customer characteristics best suited for the product or service.
GRR (Gross Revenue Retention)	Measures retained revenue from customers before expansions.
CSM (Customer Success Manager)	A role focused on managing customer relationships and ensuring success.
EBR and QBR (Executive & Quarterly Business Reviews)	Regular meetings to review customer health and business outcomes.
Customer Segmentation	Categorizing customers based on attributes for tailored strategies.
CSAT (Customer Satisfaction)	Measures customers’ happiness with a product or service.
CLV or LTV (Customer Lifetime Value)	Total revenue expected from a customer relationship.
Customer Onboarding	Process of integrating new customers to ensure success.
Customer Health Score	A metric indicating the overall status and risk level of a customer.
Annual Contract Value (ACV)	Average annual revenue generated per customer contract.
Churn Rate	Percentage of customers or revenue lost over a period.
Bookings vs. Billings vs. Revenue	Differentiates between contracted sales, invoiced revenue, and recognized revenue.
Backlog	Revenue committed but not yet recognized.
ARPU (Average Revenue Per User)	Average revenue generated per customer or user.
ARR (Annual Recurring Revenue)	Predictable yearly subscription revenue in SaaS.
Renewal	The process of extending customer contracts or subscriptions.
Product Adoption	Measuring how customers use and accept the product.
Upsell and Cross-sell	Strategies to increase revenue by selling more or additional products.
Customer Lifecycle	Stages a customer goes through during their relationship with a company.
KPI (Key Performance Indicator)	Metrics used to measure success against goals.
Net Dollar Retention (NDR)	Measures overall revenue retention including expansions and contractions.
Account Expansion	Growth of existing customer accounts through upsell or cross-sell.