44+ Essential SaaS Glossary Terms and Definitions- 2020

Saas Glossary

44+ Essential SaaS Glossary Terms and Definitions

SaaS refers to those technical buzz words as well as abbreviations constantly used in the computing world. There is a need to have an understanding of these key terminologies as well as what they mean.

 Some of them are related to trade, software, investment as well as service. When you see them, you should have an understanding of what they mean. These terms are gaining momentum in the computing world such that businesses whether big, medium and small are benefiting from them.

 There are several such words you can come across, here are some of those terms you can come across with time and they are as follows:


This refers to the total time which can be in days or more which takes into account the relationship between the brand and that of its buyer. Furthermore, it can measure the average number of days or in months between the time, it is expected that the future buyer could turn and become a substantive buyer of that brand. It can refer to the period the prospect cancels. This simply refers to that average time the person in question can begin to do business with the brand.


This is the acronym for Average customer Pricing. It refers to the average price which a future buyer of any business pays or is willing to pay. 


This simply refers to the average income expected from each user. To work this out, it is ACP minus CCA. 


This is the acronym for another terminology often used in the finance world and this stands for the Annual Recurring Revenue. It is the total amount that a firm such as the SaaS outfit is going to receive annually from its business or buyers. 


This is the revenue point of A business where the total income received by the firm covers all the expenses it makes in the course of that business. At this point, the industry is not complaining of any loss and it cannot say it has made profits. The income offsets the cost.


This refers to the total value of the contract which is estimated in dollars and it covers a certain period. It includes the subscription as well as the non-subscription-based on the income of such a firm.

7.Burn Rate or BR

It is the monthly rating that a service provider, a particular new provider spends in terms of capital before they begin to earn profits from its investment. This is very important for investors because it determines the time an investor would be expecting to make A profit from its investment. It takes into consideration two kinds of rates which include net burn time and its gross counterpart.

Gross burn rate refers to the total amount of expenses the provider invests at A certain period. When it is net it means that the firm has started to spend what it is expected to invest. 

8.Contextual engagement

This is the desire of an investor. This refers to a situation where investors or business targets their messages and those messages get to the correct buyers and the messages are correct messages. It reaches to the audience at the right time and such information passes through the correct channel. When this is the case, there would be a return on investment because the message will achieve the expected objectives.

9.Buyer Acquisition Cost (CAC)

This simply refers to the amount in terms of money that a firm spends to get a single buyer. It can determine this in time. When there is more than a buyer, it refers to the total sum it took a firm to acquire buyers at a point in time this includes such costs as sales, acquisition as well as marketing expenses, and salaries. These are summed and divided by the total numbers of new buyers acquired within the period. 

10.Buyer Behavior Index (CBI)

This index is helpful for any business because it can determine how to engage the prospects, as well as your buyers, are going to be engaged in the business determined by their usage and in-product activities. 

11.Buyer Churn Rate (CCR)

This index refers to the percentage of business buyers who are lost due to their cancellation or inability to renew their subscription to the business. To determine this for any business, take into account the number of churned buyers and divide it with the total number of buyers at the commencement of the business. This can assist in working out the decline rate.

12.Buyer Engagement Touchpoint

It is also known as buyer engagement interaction. This is the moment when a buyer or a prospect contacts with your product, brand as well as your message through your devices or channels. 

13.Buyer experience CX

This represents the way a prospect or a buyer perceives a brand, firm, or product based on the interactions or engagement and touchpoints with the brand.

14.Buyer experience Era

It is the third wave of SaaS, and this is where the client evaluates, researches as well as selects or shares experiences. It has to do with the experience of the buyer as it concerns the various interactions and multiple touchpoints.

15.Buyer experience Strategy

This is the way of managing as well as assessing buyer experiences across the lifecycle of the buyer.

16.Buyer Journey

It refers to all the touchpoints which the buyer has with that brand, firm as well as product to reach a particular milestone.

17.Buyer Lifecycle

The term does with that framework which the prospect or buyer passes through while buying, considering as well as advocating and using a product or services. In all, this passes through four important stages and they include the acquisition, adoption as well as retention, and expansion stages. 

18.Buyer Lifetime Value CLV

It has to do with a prediction of the net profit which is attributable to the relationship the brand could have with the buyer in the future. This refers to the revenue generated from that client right from the time that firm attains the break-even with that client to the time the relationship terminates.

19.Buyer Onboarding

The process the buyer begins to identify with the product by subscribing or creating an account as well as being effective with the brand which includes account creation, training, as well as team member setup and integrations and assistance. This stage has to do with the process of getting the buyer to appreciate the products.

It has to do with the way of retaining the buyer and expanding the business at the same time. Expanding the business includes getting referrals. The business aims to create happy buyers and this is what this terminology is all about.

20.Buyer satisfaction metrics

The terminology relates to the degree of satisfaction that buyers get from the brand. It shows how satisfied buyers as well as how much they value the firm products, and it shows the preparedness in recommending the brand to other users. Certain metrics are involved in this category, such as buyer behavior index, buyer lifetime value, net promoter score, and so on.

Saas Glossary


An acronym for Desktop as service. It has to do with the process of using A desktop operative system to host virtual machines. 


22.Deferred Revenue

A balance sheet liability account and it refers to that cash recovered from a buyer, and it is seen as an actual revenue according to terms reached. This is not the same with cash, as cash refers to an upfront payment which is different from deferred that is yet to be recognized.

This is also considered a liability since money is received for service that is yet to be delivered. Should the buyer request the fund back, the firm could face difficulties. If the number of buyers involved is many, then it is going to be a serious issue.



A word for contacting the buyer or the client after their payment’s expiration. It is the way of reminding them of the debt payment. 


24.Days to Break-Even

This determines the number of days it could take a client to make enough revenue to take care of CAC. The term refers to how quickly the firm can recover the CAC. 


25.Days from PQL to Buyer

This also determines the number of days it can take PQL to be a buyer to the firm or brand.


26.Days from Signup to Buyer

The term refers to the number of days it takes the prospect to be converted and become a purchasing buyer.


27.Digital transformation

The terminology refers to the transition of analog and other applications of the firm to the digital format or technology. Digital life is taken over the day to day running of the firm.

28.Engagement loop

The terminology refers to the practice of using beneficial product data together with engagement tactics to convince future buyers and current buyers to engage more with the product and derives more value from it.



The terminology is the combination of premium and free. This implies that you can use this product or service free. When you are using it free, you will not use the most important features of the paid version of the product or services.


30.Free Trial

This refers to the use of a product or service free for a limited time only. At the expiration of that period, you will not be able to use that product or service again until you have paid for it. The trial period ranges from hours, days, and a few weeks.


31.Go to Market Strategy GTM

This terminology refers to the repeatable as well as scalable action plan which a firm or business can acquire as well as retain and even grow their buyers.



The term refers to Infrastructure as a Service. This means that you can use infrastructure like data storing, servers as well as the time of a processor and so on.



The acronym for Ideal buyer Profile. It simply refers to the hypothetic profile of a buyer. Such a person could be human and it can be an organization. The person must have engaged in interactions with the firm.


34.Inbound Marketing

This term refers to that marketing plan of actions that can attract buyers and not the buyers to look for it.


35.In Product Call to Action

It has to do with the buying intentions of the prospects, and it pushes the future buyer to QOL as well as conversion events.


36.Loyalty Loop

A continuous process, to deliver substantial value as well as buyer experience and this will help buyers to continue to use that product. It has to do with the adoption of new features as well as increasing usage and renewing the same as well.


37.Moment of Joy

This refers to that stage when the prospect begins to appreciate that product by having value for it. The marketing effort is achieving the objectives. and it includes moments of joy as well as recognition and rewards. The product is achieving the desired action and the prospect is benefitting from it.


38.Moment of truth 

MOT is the marketing terminology and it refers to that period when the client or the buyer starts to enjoy the product by interacting with the service, brand, or product. At this time, the user is having A positive impression of the brand.


39. MRR


                             MRR= Amount paid for Subscription period

                                    Number of months in Subscription period

40.MRR Churn Rate

This also means complete revenue churn, and it means a percentage of MRR monthly recurring Revenue lost as it concerns existing buyers at the beginning of the period the MRR is worked out. When the Churn Rate is positive, it implies loss on the part of the firm. This is because in such a situation it does not include cross-sell and upsell. 


41. PQL to buyer Rate

This refers to the PQL percent which converts prospects to buyers. To work this out, you have to divide the total number of buyers by PQL numbers. It shows you how effective the PQL conversion strategy is working.


42.Product Champion

A Product Champion knows in and out of a product and provides value to it. The person also keeps the product in Consumer’s mind.


43.Product Lifecycle

The product life cycle refers to the period of time a product is introduced into the market and used by consumers till it’s removed from the list and stopped being produced or used.


44.Unified Customer profile data

Unified Customer profile data contains all data points of Customer’s profile on the Organization’s system. It provides flexibility to the marketers to activate the data wherever and whenever they need it.


45.Velocity metrics

This is an essential factor that gauges the timeframe of a company to achieve a certain milestone.

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