“A statistical measurement of a process’s ability to produce output within the specified limits.”
Commercial Off-the-Shelf [COTS]
5 October 2019 by Phillip Johnston • Last updated 9 June 2021
Cost of Goods Sold [COGS]
“The total amount of money spent to produce the inventory divided by the number of units in inventory. COGS includes assembly, freight, logistics, duties, marketing, etc.”
Customer Lifetime Value [CLV]
“Total profit made from a customer, including hardware, software subscriptions, and other revenue sources.”
Customer Acquisition Cost [CAC]
“For a given period, the cost spent on acquiring more customers divided by the number of all customers acquired.”
Attach Rate
The percentage of users that subscribe to an additional service after purchasing an initial product.
Annual Recurring Revenue [ARR]
The value of the recurring revenue of a business’s term subscriptions normalized for a single calendar year.
Third-Party Logistics [3PL]
“Refers to using a third-party service provider that managers logistics such as warehousing, inventory, shipping, and order fulfillment.”