Growth 85’s Customer Success Glossary
A living document of common terms and definitions
Welcome to Growth 85’s living glossary for customer success. Life can be confusing with language from accounting, sales, marketing, professional services, and other traditional teams. Use this document as a quick reference for all those three-letter acronyms and fancy buzz words.
Annual Recurring Revenue (ARR)
The total subscription-based revenue that is normalized for period of one year. This does include one-time fees such professional services.
Application Program Interface (API)
A set of commands and resources used to interact with a software. APIs are most commonly used for building integrations between software.
Annual Contract Value (ACV)
The total contract amount minus one-time fees divided by the number of years in the contract.
Average Revenue per Unit (ARPU)
The amount of revenue generated per defined unit. Units are commonly users, but can be applied to any unit used in the business.
