Mediarun Glossary
Customer
Experience, loyalty, service
16 terms in this section
CACThe cost of acquiring one paying customer: total marketing and sales budget divided by the number of new customers in the same period.CAC PaybackThe time required to recoup the customer acquisition cost from the customer's margin.CLV / LTVCustomer Lifetime Value: the total value a customer generates over the entire duration of their relationship with a business.CSATSatisfaction with a specific event — typically a 1–5 rating immediately after interacting with support or making a purchase.Churn RateThe percentage of customers who have left during a given period. Calculated either from the number of customers or from revenue value (revenue churn).Cohort RetentionRetention of users belonging to the same cohort over time.Customer Health ScoreA composite index measuring customer health based on usage, satisfaction, support, and payments.Customer LifespanEstimated average duration of the customer relationship.Expansion MRRAdditional MRR generated from existing customers through upsell and cross-sell.LTV:CACThe ratio of LTV to CAC. A healthy subscription business targets 3:1 — below 1:1, each new customer deepens the loss.MRR ChurnThe percentage of monthly recurring revenue lost due to customer cancellations.NPSScore from a single question: 'How likely are you to recommend us to a friend?' on a 0–10 scale. Percentage of scores 9–10 minus percentage of scores 0–6.Quick RatioThe ratio of new and expanded MRR to lost and downgraded MRR.Repeat Purchase RateThe percentage of customers who make a subsequent purchase.Retention RateThe percentage of customers who remain — the inverse of churn. Measured in cohorts, it shows when the customer relationship breaks down.Revenue ChurnThe percentage of revenue lost over a period.