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Resources

Glossary

A repository of acronyms, jargon, and useful words for product and customer teams

Home>Glossary

    A

    • Active Users
    • Adoption Rate
    • Average Revenue Per User (ARPU)

    C

    • Churn Rate
    • Cohort Retention
    • Conversion Rate
    • Cross-Sell Ratio
    • Customer Acquisition Cost (CAC)
    • Customer Effort Score (CES)
    • Customer Engagement Score
    • Customer Health Score
    • Customer Lifetime Value (CLTV)
    • Customer Retention Cost (CRC)
    • Customer Satisfaction (CSAT) Score

    D

    • Daily Active Users (DAU)

    E

    • Expansion MRR (Monthly Recurring Revenue)

    F

    • First Contact Resolution Rate

    G

    • Gross MRR Churn Rate
    • Gross Retention

    I

    • Incident Volume

    L

    • Lead Velocity Rate

    M

    • Monthly Active Users (MAU)
    • Monthly Recurring Revenue (MRR)

    N

    • Net Dollar Retention
    • Net MRR Growth Rate
    • Net Promoter Score (NPS)
    • Net Revenue Retention (NRR)

    P

    • Product Qualified Leads (PQL)

    Q

    • Qualified Lead Velocity Rate

    R

    • Renewal Rate
    • Repeat Purchase Ratio
    • Revenue Churn
    • Revenue Retention

    S

    • Stickiness Ratio (DAU/MAU)

    T

    • Time to Value (TTV)
    • Trial Conversion Rate

    V

    • Value Gap

A

Active Users

Active Users are individuals who have interacted with an application or platform within a specific time frame, such as daily active users (DAU), weekly active users (WAU), or monthly active users (MAU)

Adoption Rate

Adoption Rate is the percentage of users who have adopted a product, feature, or update out of the total user base

Average Revenue Per User (ARPU)

ARPU is calculated by dividing total revenue over a period by the number of active users or customers during that same period

C

Churn Rate

Benchmarks vary significantly by segment, company stage, and contract type

Cohort Retention

Cohort Retention is a measure of how many customers from a specific cohort, or group, continue to use a product or service over time

Conversion Rate

Conversion Rate is a metric that measures the percentage of users who take a desired action

Cross-Sell Ratio

Cross-Sell Ratio is a metric that measures the average number of different products or services sold per customer within a software ecosystem

Customer Acquisition Cost (CAC)

Customer Acquisition Cost (CAC) is a metric that represents the total cost of acquiring a new customer

Customer Effort Score (CES)

Customer Effort Score (CES) is a metric that measures the ease of interaction with a product or service from the customer’s perspective

Customer Engagement Score

Customer Engagement Score is a composite metric that measures the degree and depth of a customer’s interaction with a software product

Customer Health Score

Customer Health Score is a metric that provides a comprehensive view of the health or status of a customer relationship

Customer Lifetime Value (CLTV)

Customer Lifetime Value (CLTV) is a metric that represents the total net profit a company makes from any given customer

Customer Retention Cost (CRC)

Customer Retention Cost (CRC) is a metric that represents the total cost of activities and initiatives a company undertakes to reduce customer churn and retain customers

Customer Satisfaction (CSAT) Score

Customer Satisfaction (CSAT) Score is a metric that measures how satisfied customers are with a company’s products, services, or experiences

D

Daily Active Users (DAU)

Daily Active Users (DAU) is a metric that counts the number of unique users who engage with a software product within a single day

E

Expansion MRR (Monthly Recurring Revenue)

Expansion Monthly Recurring Revenue (MRR) is a metric that measures the additional recurring revenue gained from existing customers through upsells, cross-sells, and add-ons

F

First Contact Resolution Rate

First Contact Resolution Rate is a metric that measures the percentage of customer issues that are resolved in the first interaction with customer support

G

Gross MRR Churn Rate

Gross Monthly Recurring Revenue (MRR) Churn Rate is a metric that measures the percentage of MRR lost from churned customers in a given period

Gross Retention

Gross Retention is a metric that measures the percentage of recurring revenue retained from existing customers, excluding any upsells or cross-sells

I

Incident Volume

Incident Volume is a metric that measures the total number of incidents or issues reported by users of a software product within a given period

L

Lead Velocity Rate

Lead Velocity Rate is a metric that measures the growth rate of your qualified leads from month to month

M

Monthly Active Users (MAU)

Monthly Active Users (MAU) is a metric that measures the number of unique users who engage with your software product at least once within a month

Monthly Recurring Revenue (MRR)

Monthly Recurring Revenue (MRR) is a metric that measures the total predictable revenue that a company can expect to receive on a monthly basis

N

Net Dollar Retention

Net Dollar Retention is a metric that measures the percentage of recurring revenue retained from existing customers over a given period, taking into account upsells, cross-sells, downgrades, and churn

Net MRR Growth Rate

Net Monthly Recurring Revenue (MRR) Growth Rate is a metric that measures the month-over-month percentage increase in net MRR

Net Promoter Score (NPS)

Net Promoter Score (NPS) is a metric that measures customer loyalty and satisfaction

Net Revenue Retention (NRR)

NRR provides insight into customer satisfaction and the effectiveness of a company’s upselling and retention strategies

P

Product Qualified Leads (PQL)

Product Qualified Leads (PQLs) are potential customers who have used your software product and shown high engagement or buying intent

Q

Qualified Lead Velocity Rate

Qualified Lead Velocity Rate (QLVR) is a metric that measures the month-over-month growth rate of qualified leads

R

Renewal Rate

Renewal Rate is a metric that measures the percentage of customers who choose to renew their subscription to your software product at the end of their contract period

Repeat Purchase Ratio

Repeat Purchase Ratio is a metric that measures the percentage of customers who have made more than one purchase or subscription renewal with your software product

Revenue Churn

Revenue Churn, also known as MRR (Monthly Recurring Revenue) Churn, is a metric that measures the loss of revenue due to customers downgrading or canceling their subscriptions to your software product

Revenue Retention

Revenue Retention is a metric that measures the percentage of recurring revenue retained from existing customers over a specific period

S

Stickiness Ratio (DAU/MAU)

Stickiness Ratio, calculated as Daily Active Users (DAU) divided by Monthly Active Users (MAU), is a metric that measures the engagement and retention of your software product’s user base

T

Time to Value (TTV)

Time to Value (TTV) is a metric that measures the amount of time it takes for a customer to realize value from your software product after purchase or subscription

Trial Conversion Rate

Trial Conversion Rate is a metric that measures the percentage of users who convert from a free trial of your software product to a paid subscription

V

Value Gap

Value Gap is a concept that refers to the difference between the value a customer expects from a software product and the value they actually receive