Glossary
Plain-English definitions of the CRO and Revenue Intelligence vocabulary.
MetricsAdd-to-Cart Rate: Definition and FormulaAdd-to-cart rate is the share of product viewers who add an item to their cart. Here is the formula and why it isolates product page health from checkout.Glossary · 2 min readMetricsAverage Order Value (AOV): Definition and FormulaAverage order value (AOV) is the average revenue per order. Here is the formula, a worked example, and why AOV is one of the highest-leverage ecommerce metrics.Glossary · 2 min readMetricsBounce Rate: Definition and What It Means in GA4Bounce rate is the share of visits with no meaningful engagement. Here is how GA4 redefined it, why to read it with care, and how it relates to conversion.Glossary · 2 min readMetricsCart Abandonment Rate: Definition and FormulaCart abandonment rate is the share of carts that are never purchased. Here is the formula, the ~70% industry average, and why most of it is recoverable.Glossary · 2 min readMetricsCheckout Conversion Rate: Definition and FormulaCheckout conversion rate is the share of started checkouts that become orders. Here is the formula, and why it isolates checkout from the rest of the funnel.Glossary · 2 min readMetricsConversion Rate: Definition, Formula and BenchmarksEcommerce conversion rate is the share of visitors who buy. Here is the formula, how to read it, typical ranges, and why it is the funnel's headline metric.Glossary · 2 min readMetricsCustomer Lifetime Value (CLV): Definition and FormulaCustomer lifetime value (CLV) is the profit a customer generates over their whole relationship. Here is the formula, a worked example, and why it guides spend.Glossary · 2 min readMetricsData-Driven Attribution: Definition and How It WorksData-driven attribution assigns conversion credit across touchpoints from your own data. Here is how it differs from last-click, and its limits.Glossary · 2 min readMetricsDunning: Definition and How It Recovers Failed PaymentsDunning is the process of recovering failed payments through smart retries and updates. Here is how it works, and why it reclaims revenue you already earned.Glossary · 2 min readMetricsFirst-Party Data: Definition for EcommerceFirst-party data is information you collect directly from your customers. Here is what it is, how it differs from third-party data, and why it now matters more.Glossary · 2 min readMetricsGross Margin: Definition and FormulaGross margin is the share of revenue left after the cost of goods. Here is the formula, a worked example, and why it sets your break-even and true profit.Glossary · 2 min readMetricsIncrementality: Definition and How to Measure ItIncrementality is the revenue a channel actually caused, over what would have happened anyway. Here is how to measure it, and why it beats attribution alone.Glossary · 2 min readMetricsMinimum Detectable Effect (MDE): DefinitionMinimum detectable effect (MDE) is the smallest lift an A/B test can reliably catch. Here is what it means, how it sets sample size, and why to decide it first.Glossary · 2 min readMetricsRevenue Per Visitor (RPV): Definition and FormulaRevenue per visitor (RPV) is the average revenue each visit generates. Here is the formula, why it beats conversion rate alone, and how to improve it.Glossary · 2 min readMetricsROAS (Return on Ad Spend): Definition and FormulaROAS is revenue divided by ad spend. Here is the formula, how it relates to ACOS and break-even, and why a high ROAS can still lose money without margin.Glossary · 2 min readMetricsStatistical Significance: Definition for A/B TestingStatistical significance tells you whether an A/B test result is real or chance. Here is what the p-value and confidence level mean, and why they matter.Glossary · 2 min readFoundationsRevenue LeakA revenue leak is a specific, fixable point on the path to purchase where buying intent is lost. Here is a precise definition, a worked example, and how leaks are pricedGlossary · 2 min read