Customer Renewal Rate
What is Customer Renewal Rate? Customer renewal rate, also known as customer retention rate or renewal rate, is the percentage rate at which a company’s customers extend their relationships with the company (such as a subscription or membership). It is an important indicator of a company’s growth prospects. This metric is a critical measure of…
Pay-Per-Click (PPC)
What is Pay-Per-Click (PPC)? Pay-per-click (PPC) is an online advertising model in which an advertiser pays a publisher every time an advertisement link is “clicked” on. Alternatively, PPC is known as the cost-per-click (CPC) model. The pay-per-click model is offered primarily by search engines (e.g., Google) and social networks (e.g., Facebook). Google Ads, Facebook Ads,…
Customer Engagement Score (CES)
What is Customer Engagement Score (CES)? Customer engagement score (CES), also known as engagement score, is a single quantitative metric that evaluates the engagement of customers and free trial prospects. CES is one of the key metrics for online businesses, particularly companies operating on the software-as-a-service (SaaS) business model. Unlike “offline” businesses, their online counterparts…
Tangible Net Worth
What is Tangible Net Worth? Tangible net worth is an estimate of the net worth of an entity that excludes all intangible assets such as trademarks, patents, and intellectual property, etc. The formula for calculating total net worth is as follows: Tangible net worth is used to assess a company’s actual physical net…
Restrictive Covenants
What are Restrictive Covenants? Restrictive or negative covenants are a type of non-financial covenants that limit the borrower from engaging in a certain activity or keep it from exceeding a predetermined limit. They are called “negative” debt covenants because they impose restrictions or create certain boundaries for the borrower that it is not supposed to…
Engagement Rate
What is the Engagement Rate? The engagement rate is a metric used to gauge the level of engagement generated from created content or a brand campaign. In other words, the engagement rate refers to the level of interaction with followers that is generated from content created by a user. Formula for Engagement…
Recession
What is a Recession? Recession is a term used to signify a slowdown in general economic activity. In macroeconomics, recessions are officially recognized after two consecutive quarters of negative GDP growth rates. In the U.S., they are declared by a committee of experts at the National Bureau of Economic Research (NBER). Recessions are considered a…
Theories of Growth
What are the Different Theories of Growth? 1. Classical Growth Theory The Classical Growth Theory postulates that a country’s economic growth will decrease with an increasing population and limited resources. Such a postulation is an implication of the belief of classical growth theory economists who think that a temporary increase in real GDP per person…
Secular Stagnation
What is Secular Stagnation? The term “secular stagnation” refers to a state of little or no economic growth – in other words, an environment where the economy is essentially stagnant. “Secular” in this context simply means “long term.” The term was coined by Alvin Hansen in the 1930s, during the Great Depression, and was revived…
