Introduction to EBITDA EBITDA, short for Earnings Before Interest, Taxes, Depreciation, and Amortization, is a widely recognized measure of company’s profitability. It provides a snapshot of a company’s operating performance, stripped of the effects of financing decisions, asset bases and tax environments. Specifically, EBITDA excludes interest, taxes, depreciation, and amortization, leaving what’s often considered the […]
What is Contribution Margin
Understanding Contribution Margin The world of business can seem complex, with various jargons and formulas. One of those essential business terms is Contribution Margin (CM), a vital concept used in managerial accounting for decision making. Essentially, the contribution margin is a cost accounting concept that lets a company determine the profitability for individual items that […]
What is Gross Margin
What is Gross Margin? Understanding financial terms can appear daunting, especially in the business realm. However, concepts like gross margin are not as complicated as they might seem. With clarity and preciseness, this article will unfold the meaning of gross margin, its calculation, and its significance in making business decisions. Understanding the Concept of Gross […]
What is ARPU (Average Revenue Per User)
Understanding ARPU (Average Revenue Per User) In a simpler world, ARPU means exactly what it sounds like: it’s the average revenue generated per user or customer within a specific time period. But for anyone looking to delve deeper, ARPU is a critical performance metric used in many industries, especially in the telecommunications sector, online services, […]
What is Churn Rate
Understanding Churn Rate Churn rate, sometimes known as attrition rate, is a business metric that calculates the number of customers who leave a product over a given period of time, divided by the remaining number of customers. It is a critical factor in determining the customer retention of a company, a key element that affects […]
What is NPS (Net Promoter Score)
Introduction to NPS (Net Promoter Score) The Net Promoter Score (NPS) has emerged as a key metric for understanding customer experiences and gauging customer loyalty. Organizations worldwide rely on NPS to gather insights about their customer’s perceptions. Simply put, NPS is a metric that measures the willingness of customers to recommend a company’s products or […]
What is LTV (Lifetime Value)
Understanding LTV (Lifetime Value) You might have heard the abbreviation LTV before, especially in the business world, and wondered what it stands for. LTV, or Lifetime Value, refers to the total net revenue a company expects to earn from a customer over the duration of their relationship. It’s a prediction of the net profit associated […]
What is Sales Funnel
Understanding The Sales Funnel A sales funnel, often referred to as a “conversion funnel,” is a methodological system or a roadmap that companies leverage to guide prospective customers through their customer journey. It’s a marketing concept that outlines the journey a customer undergoes from the initial contact point with a business until the completion of […]
What is Lead Generation
Understanding Lead Generation Lead generation is an integral part of any company’s sales and marketing strategies. It’s a process that involves attracting and converting strangers and prospects into individuals interested in your products or services. In simple terms, leads are potential customers who have shown interest in what your company offers and have provided their […]
What is Influencer Marketing
Understanding Influencer Marketing Influencer marketing is a modern and innovative strategy that businesses implement to reach their target audience. This marketing method involves collaborations between businesses and influencers. Influencers are individuals who have a strong online presence and following. They possess the power to influence others’ opinions and buying decisions due to their authority, expertise, […]