SaaS loves jargon.
Half the time it’s useful. The other half, it’s something vague someone said in a meeting that everyone pretended to understand.

But when you’re working in a growing SaaS company, you can’t afford to misinterpret the basics. ARR affects runway. CAC affects margins. A tiny change in churn can flip a forecast. And yet most glossaries explain things in ways that are somehow more confusing.

This one won’t.
Everything here is written simply, clearly and in plain English.
If you want a deeper look at what search engines now care about in content, you might also like what AI search actually sees.

Let’s get into it.

How to use this glossary

You can scroll and skim, or jump to the section you need.
Inside each section, definitions are alphabetical.

This glossary covers:

  • Core SaaS business terms
  • Product and engineering terms
  • Go-to-market and revenue terms
  • SaaS marketing terms
  • Customer success and onboarding terms
  • Finance and performance terms
  • AI and automation buzzwords
  • A short “buzzwords to avoid” section

If you want to understand why some SaaS content lands and some doesn’t, how AI rewrote the content funnel is a useful next read.

Core SaaS business terms

ARR (Annual Recurring Revenue)

Your predictable subscription revenue over a year. If MRR is your heartbeat, ARR is your blood pressure.

Activation

The moment someone becomes meaningfully engaged with your product. Not just signing up — actually using it.

Adoption

How consistently customers use your product. High adoption means your product becomes part of their workflow.

Churn

Customers leaving. There are two types: logo churn (customers lost) and revenue churn (revenue lost). Both matter.

DAU / WAU / MAU

Daily, weekly and monthly active users. Measures how “alive” your product is.

Expansion Revenue

Revenue from existing customers buying more — upgrades, add-ons, extra seats.

MRR (Monthly Recurring Revenue)

Your predictable monthly subscription revenue.

Retention

How well you keep customers. High retention = a healthy SaaS business.

Stickiness

How hard it is for a customer to leave because your product is so deeply embedded.

Product and engineering terms

API (Application Programming Interface)

The way software talks to other software.

Backlog

A running list of product tasks, bugs and features.

Deployment

Releasing a new version or update to users.

Integration

Connecting your product with another tool so data flows between them.

Onboarding

The guided steps that help a new user understand your product.

Roadmap

A prioritised plan of what the product team will build next.
(The roadmap your sales team shows prospects is usually a different one.)

Sprint

A short period of work where a team ships a defined set of tasks.

Uptime

How often your product is available without issues.

Go-to-market and revenue terms

ICP (Ideal Customer Profile)

The type of customer who brings the most value and costs the least to support.

Outbound

Sales-led outreach (calls, emails, sequences).

Inbound

Leads that come to you through marketing, SEO or referrals.

Pipeline

All the deals your sales team is actively working.

TAM / SAM / SOM

Different ways of measuring your market size.
TAM: total possible market
SAM: the segment you can realistically serve
SOM: the share you can realistically win

Deal Velocity

How fast deals move through your sales process.

SaaS marketing terms

AEO (Answer Engine Optimisation)

Optimising content for AI search tools, not just traditional search engines. If you’re curious where search is heading, read SEO isn’t dead — it just grew up.

Content Marketing

Creating helpful, educational content to attract and nurture potential customers.

Conversion Rate

The percentage of people who take an action you want (sign up, book a demo, download something).

Funnel

The stages someone goes through before becoming a customer.
If you want a clear breakdown of how it’s changing, see how AI rewrote the content funnel.

Nurture Sequence

A series of emails that move someone closer to buying.

Onboarding Flow

Guided steps that help new users get value quickly.

Positioning

The story you tell about who you help, what you solve and why you’re different.

Customer success and onboarding terms

CSM (Customer Success Manager)

The person responsible for helping customers get continuous value.

Health Score

A measure of how likely a customer is to stay, expand or churn.

Activation Point

The moment a customer experiences real value.

Adoption Rate

How deeply customers use your product features.

Touchpoint

Any moment your team interacts with a customer — email, call, in-app message.

Finance and performance terms

Burn Rate

How fast your company is spending money.

CAC (Customer Acquisition Cost)

How much it costs to acquire one paying customer.

Gross Margin

Revenue minus the cost of delivering your product.

Runway

How long your company can operate before running out of cash.

Unit Economics

A model that shows whether you make or lose money per customer.

Payback Period

How long it takes to recover your CAC.

AI, automation and buzzwords

AI (Artificial Intelligence)

Software that can make decisions, predictions or content based on patterns.

Generative AI

AI that produces content, images or outputs based on your input.

LLM (Large Language Model)

The AI model behind tools like ChatGPT.

Embeddings

Numerical representations of text that help AI understand meaning.

Automation Layer

The workflows that automate tasks across different tools.

Orchestration

Coordinating multiple tools or systems to work together automatically.

If you want a clearer explanation of how AI evaluates online content, see what AI search actually sees.

When buzzwords hurt more than they help

Most SaaS buzzwords started out useful. Over time, many became filler.
“Synergy.”
“Scalable.”
“Next-gen.”
If you ever want to check whether your content is actually saying anything, how to fix AI-generated content is a good filter.

If you want clearer SaaS content

Clear writing is a competitive advantage.
The companies who win in SaaS aren’t the ones using the fanciest acronyms — they’re the ones who can actually explain what they do.

If you want help building a consistent content engine, this is a good starting point: What is a content retainer?.

If you need both strategy and execution, a Visibility Package or Fractional Content Lead can take it off your plate.

A headshot of Alice Xerri, Founder & Fractional Content Lead @ AX Content.

About the author

Alice Xerri is the founder of AX Content, a Melbourne-based content consultancy helping businesses build from the ground up, one piece of content at a time.

She works with brands across finance, tech, and professional services to turn complex ideas into clear, confident content that drives growth.

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