Glossary

Machine learning is a subset of artificial intelligence that involves the development of algorithms allowing computers to learn from and make decisions based on data. It's used for tasks like spam filtering, image recognition, and predictive analytics.

A marketplace is a digital platform or website where multiple third-party sellers can list and sell their products or services to customers. It acts as an intermediary, facilitating transactions between buyers and sellers while providing a centralised location for a wide range of offerings. Marketplaces often handle logistics, payment processing, and customer support, offering a convenient and diverse shopping experience for customers and a scalable sales channel for sellers.

A metric is a quantifiable measurement or data point used to assess specific aspects of performance or operations. Metrics provide detailed insights into various operational areas and help monitor progress and trends. Unlike KPIs, which are strategic indicators, metrics are more focused on specific processes or activities. Examples of metrics in the SaaS and e-commerce sectors include monthly recurring revenue (MRR), customer acquisition cost (CAC), customer churn rate, conversion rate, average order value (AOV), and website traffic. Metrics are crucial for tracking performance, identifying areas for improvement, and making data-driven operational decisions.

An MVP is a version of a new product with enough features to satisfy early adopters and provide feedback for future development. It's a cost-effective way to test a product in the market.

Mobile commerce, or m-commerce, refers to the buying and selling of goods and services through smartphones and tablets. It's an advancement of e-commerce, enabling people to conduct transactions on the go.

MRR is similar to ARR but broken down to a monthly level. It's the predictable revenue a company can expect every month from its subscriptions or recurring services.

NPS is a customer loyalty metric that measures how likely customers are to recommend a company, product, or service to others. It's determined by asking customers a single question: "How likely is it that you would recommend our company/product/service to a friend or colleague?" Customers respond on a scale from 0 to 10, and based on their responses, they are classified into three categories: Promoters (9-10), Passives (7-8), and Detractors (0-6).

An NDA is a legal contract creating a confidential relationship between parties to protect any type of confidential and proprietary information. It enforces that the information shared for specific purposes won't be disclosed to others.

Omnichannel is a multichannel sales approach that provides customers with a seamless shopping experience, whether they're shopping online from a mobile device, desktop, or in a physical store. It integrates touchpoints and connects the dots between online and offline platforms.

Order acquisition cost (OAC) refers to the average cost incurred by a company to process and fulfil a customer's order. It includes expenses associated with order management, packaging, shipping, and customer support, providing insights into the cost efficiency of order fulfilment processes.

Organic growth refers to the growth of a business achieved through its own resources and efforts, without any acquisitions or mergers. It includes growth from existing and new businesses.

PPC is an online advertising model in which advertisers pay each time a user clicks on one of their online ads. It's commonly associated with first-tier search engines like Google Ads and Bing Ads.

A payment gateway is a technology that captures and transfers payment data from the customer to the acquirer and then transfers the payment acceptance or decline back to the customer. It's a crucial component for e-commerce websites to facilitate online transactions.

In e-commerce, personalisation is the process of tailoring the shopping experience to individual customers. This can be based on their behaviour, demographics, or purchase history, and it can improve customer satisfaction and sales.

A pivot is a fundamental change to a business model, often after the realisation that the previous model will not work as expected. Start-ups often pivot when they find a different customer need that provides a better market opportunity.

Post-money valuation is a company's estimated worth after outside financing and capital injections are added to its balance sheet. It includes the pre-money valuation plus the amount of new equity received from outside financing.

Pre-money valuation is the value of a company before it goes public or receives external funding or financing. It's important for determining the equity that investors receive as a result of their investment.

Preference shares, also known as preferred shares, are a type of equity security that gives holders priority over common shareholders in terms of dividends and asset distribution.

A private equity (PE) firm is a company or fund that invests in and acquires private companies in order to generate returns. PE firms typically provide capital, strategic guidance, and operational expertise to portfolio companies, aiming to enhance their value and profitability before exiting the investment.

Product-led growth (PLG) is a go-to-market strategy where the success and growth of a business are primarily driven by the value and quality of its product or service. In a PLG approach, the product itself becomes the primary driver for customer acquisition, retention, and expansion, leveraging user experience, product features, and viral loops to fuel growth. By prioritising product excellence and customer satisfaction, businesses aim to organically attract and retain customers, leading to sustainable growth and market success.

Product-market fit represents the stage at which a product or service satisfies the needs and demands of a specific target market. It indicates a strong alignment between the offering and customer requirements, leading to market acceptance, customer satisfaction, and sustainable growth.

R&D tax credits are a government incentive in the UK that encourages and rewards companies for investing in research and development activities. They provide financial benefits to businesses engaged in eligible R&D projects by reducing their tax liability or providing cash refunds. R&D tax credits are applicable to various industries, including the SaaS and e-commerce sectors, and can help businesses offset costs associated with innovation, technological advancements, and product development.

Responsive design is a web design approach that ensures web pages render well on different devices and window or screen sizes. It's particularly important in e-commerce, as more consumers use mobile devices for online shopping.

Rest of world (ROW) refers to international markets outside the home country or a specific geographic region. It represents global market opportunities beyond local or regional markets, allowing businesses to expand their reach and tap into new customer segments or regions.

Retargeting is a type of online advertising that helps businesses stay in front of bounced traffic after they leave a website. It involves showing tailored ads to users who have already visited or taken action on your website.