A–C

Acquisition cost (CAC). What you spend to win one new customer. Marketing spend ÷ new customers.

Average transaction value (ATV), average ticket. Revenue ÷ number of purchases.

Breakage. Rewards, points or gift card value that are never used.

Cashback. A share of spend returned to the customer as credit for the next purchase.

Churn rate. The share of customers who stop buying in a period. 100% − retention rate.

Cohort. A group of customers who started in the same period, followed over time.

Customer lifetime value (CLV, LTV). Total a customer spends over the relationship. Average spend × visits per year × years. Calculator.

Customer retention rate (CRR). (Customers at end − new customers) ÷ customers at start. Calculator.

D–L

Earn rate. How fast customers earn, such as 1 point per ₱50.

Frequency. How often a customer buys in a period.

Give-back rate. Reward cost ÷ spend needed to earn it. Most small shops aim for 2–5%.

Gross revenue. Total sales before refunds and discounts.

Lapsed customer. One who hasn't returned in longer than usual.

Loyalty liability. The value of points, punches and cashback customers have earned but not spent.

M–R

Membership. A paid or free club with perks for a period.

Monetary value. In RFM, how much a customer has spent.

Net revenue. Gross revenue minus refunds.

Punch card / stamp card. A card that earns a reward after a number of stamps.

Recency. In RFM, how long since the last purchase.

Redemption rate. Rewards redeemed ÷ rewards earned (or ÷ customers eligible).

Repeat purchase rate. Customers who bought more than once ÷ all customers. Calculator.

Return on investment (ROI). (Gain − cost) ÷ cost. Marketing ROI calculator.

RFM analysis. Scoring customers on Recency, Frequency and Monetary value. Guide.

S–Z

Segment. A group of customers who share a trait or behaviour.

Tier. A level in a VIP program (Silver, Gold) with different perks.

Win-back. A message or offer to a customer who stopped coming.