Glossary

Definitive references for the customer retention, loyalty program, and wallet pass concepts that matter for local businesses.

• RFM Segmentation
  Classifies customers into 11 behavioral segments using Recency, Frequency, and Monetary value.
• Customer Lifetime Value (CLV / LTV)
  Customer Lifetime Value (CLV, also written LTV) is the total revenue a single customer generates over the entire relationship with a busines.
• Apple Wallet Pass
  An Apple Wallet pass (formerly Passbook) is a digital card stored natively in the iPhone Wallet app — the same place Apple Pay cards, boardi.
• Repeat Purchase Rate
  Repeat Purchase Rate (RPR) is the percentage of customers who make at least one additional purchase after their first.
• Customer Acquisition Cost (CAC)
  Customer Acquisition Cost (CAC) is the total cost a business spends to acquire one new customer.
• Customer Churn Rate
  Customer Churn Rate is the percentage of customers who stop buying within a given period.
• Net Revenue Retention (NRR)
  Net Revenue Retention (NRR) is the percentage of recurring revenue retained from existing customers over a period, including expansion (upse.
• Average Order Value (AOV)
  Average Order Value (AOV) is the average dollar amount spent per transaction.
• Cohort Retention Analysis
  Cohort Retention Analysis groups customers by the month they were acquired and tracks what percentage remain active each subsequent month.
• Google Wallet Pass
  A Google Wallet pass is a digital card stored natively in the Google Wallet app on Android (and iOS for select pass types) — the same place .
• Digital Stamp Card
  A digital stamp card is a loyalty program where customers earn a stamp per qualifying transaction and redeem a free or discounted reward aft.
• Tiered Loyalty Program
  A Tiered Loyalty Program rewards customers progressively as they reach higher spend or visit thresholds (commonly Bronze → Silver → Gold or .
• Cashback Program
  A Cashback Loyalty Program rewards customers with a percentage of their spend (typically 2-10%) as credit toward future purchases.
• Referral Program
  A Customer Referral Program rewards existing customers for bringing in new customers, typically with a give-get reward structure ("Give $25,.
• Punch Card
  A Punch Card is a loyalty card where each transaction earns a physical or digital "punch" toward a reward (typically 5-10 punches for a free.
• Wallet Pass Install Rate
  Wallet Pass Install Rate is the percentage of customers offered a wallet pass who actually install it.
• Rebook Rate
  Rebook Rate is the percentage of customers who book their next appointment at or before checkout from the current visit.
• Recall Automation
  Recall Automation is a healthcare-industry term for the automated reminder system that tells patients when their recurring appointment is du.
• Maintenance Plan Attach Rate
  Maintenance Plan Attach Rate is the percentage of customers who sign up for the annual or seasonal maintenance plan offered by service busin.
• Reactivation Campaign
  A Reactivation Campaign is a marketing sequence designed to win back customers who have stopped purchasing.
• Segment of One
  Segment of One is the marketing aspiration where each individual customer receives unique offers, content, and timing based on their specifi.
• Champion Customer
  A Champion Customer is the top RFM segment — recently active (R5), frequently visiting (F4-5), high-spending (M4-5).
• Can't Lose Them (RFM Segment)
  Can't Lose Them (R1, F3-5, M3-5) is the RFM segment of customers who were previously frequent and high-spending but have not transacted rece.
• Conversion Rate Optimization (CRO)
  Conversion Rate Optimization (CRO) is the systematic process of increasing the percentage of visitors or customers who take a desired action.