GLOSSARY OF TERMS

What is Metrica?

GLOSSARY OF TERMS

What is Metrica? GLOSSARY OF TERMS

A metric is a quantitative or qualitative indicator that reflects the success of a product or a certain characteristic of it. With its help, you can understand how relevant the product or service of the company is for users, whether it helps in solving their problems and whether they like it.

There can be a lot of categories into which metrics can be divided. For example: business metrics or marketing metrics.

Metrics can be divided into many categories. You can also highlight a thematic indicator based on the goals it helps to achieve. For example, MAU (Monthly Active Users) allows you to determine the number of active users per month.

Some of the examples of metrics:

  • LTV (Lifetime Value). It shows the profit that the client brings to the company for the entire time of working with it;
  • CAC (customer acquisition cost) – shows the amount of the company’s costs to attract a buyer. To calculate it, you need to add the sum of all marketing expenses and sales of the company for a certain period and divide this number by the number of customers you attracted.

By combining these two metrics, you can track whether the costs per customer exceed the total revenue of the company.

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