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Glossary

Omni-channel Commerce &
Subscription Glossary

Learn the key terms and metrics that power DTC, customer communication, and revenue operations.

201Terms Defined
12Categories

Showing 201 of 201 terms

A

A2P

Application-to-Person

SMS Marketing

Messaging sent from an application or software to a person's mobile device, as opposed to person-to-person (P2P) messaging.

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Abandoned cart

Abandoned cart

E-commerce

A cart where a shopper added items but left before buying.

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ACH payment

ACH payment

Checkout

An electronic bank-to-bank transfer in the US, used for direct debits, payroll and some recurring payments.

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Affiliate

Affiliate Partner

Affiliates

An individual or business that promotes products in exchange for a commission on sales they generate through unique tracking links or codes.

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Affiliate Disclosure

Affiliate Disclosure

Affiliates

Required statement informing audiences that content includes affiliate links and the creator may earn commissions from purchases.

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Affiliate Link

Affiliate Tracking Link

Affiliates

A unique URL assigned to each affiliate that tracks clicks and conversions, attributing sales to the correct partner.

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Affiliate Network

Affiliate Network

Affiliates

A platform that connects brands with affiliate publishers, handling tracking, reporting, and payments for affiliate programs.

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Agent Productivity

Agent Productivity

Support

Metrics measuring how efficiently support agents handle customer inquiries, including tickets per hour and handle time.

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Agentic AI

Agentic AI

AI

AI that plans and carries out multi-step tasks toward a goal, using tools and checking results, instead of only answering a single question.

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AI Agent

AI Agent

AI

An autonomous AI system that can execute tasks, make decisions, and interact with other systems without human intervention.

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AI Customer Service

AI Customer Service

AI

Using artificial intelligence to automate and enhance customer support through chatbots, suggested responses, and intelligent routing.

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AI guardrails

AI guardrails

AI

Rules and limits that keep an AI agent safe and on-policy, such as which tools it can use, what it may say and which actions need approval.

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AI hallucination

AI hallucination

AI

When an AI model states something false or made up as if it were true.

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AI memory

AI memory

AI

What an AI agent remembers across conversations and tasks, such as customer history, team practices and approaches that worked.

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AI Personalization Engine

AI Personalization Engine

AI

Machine learning systems that automatically customize content, offers, and experiences for individual customers at scale.

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AI playbook

AI playbook

AI

Written, step-by-step instructions an AI agent follows for a specific kind of task, like handling a warranty claim.

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AI resolution rate

AI resolution rate

Support

The share of customer conversations an AI agent fully resolves without a person stepping in.

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Ambassador Program

Brand Ambassador Program

Influencer

A long-term partnership program where selected individuals consistently represent and promote a brand in exchange for compensation, products, or perks.

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Anchor Date

Subscription Anchor Date

Subscriptions

The recurring date each month or period when subscription billing and delivery is scheduled to occur.

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Annual subscription

Annual subscription

Subscriptions

A subscription paid once a year, either for a year of access or for a year of deliveries.

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AOV

Average Order Value

Revenue

The average amount spent each time a customer places an order. Increasing AOV is a key lever for revenue growth without acquiring new customers.

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Approval workflow

Approval workflow

AI

A rule that makes an AI agent wait for a person's approval before certain actions, such as large refunds, uploads or sending messages.

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ARPU

Average Revenue Per User

Revenue

The average amount of revenue generated per subscriber over a specific period. Calculated by dividing total revenue by the number of active subscribers.

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ARR

Annual Recurring Revenue

Revenue

The annualized value of recurring revenue from subscriptions. Calculated as MRR × 12. A key metric for forecasting and valuation.

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Attribution

Revenue Attribution

Affiliates

The process of determining which marketing touchpoint deserves credit for a conversion. Can be first-touch, last-touch, or multi-touch.

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Audit trail

Audit trail

AI

A record of every step an AI agent or user took: what it looked at, what it changed and when.

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Auto-renewal

Auto-renewal

Subscriptions

When a subscription renews automatically at the end of each billing cycle or term unless the customer cancels.

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Auto-Response

Automated Response

AI

AI-generated replies to customer inquiries that can fully resolve issues or provide immediate acknowledgment.

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Automatic payments

Automatic payments

Subscriptions

Payments taken automatically from a customer's saved card or bank account on a schedule they agreed to.

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Autonomous agent

Autonomous agent

AI

An AI agent that can complete tasks without step-by-step instructions, deciding what to do next based on the goal and what it observes.

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C

Cart Abandonment

Cart Abandonment

Checkout

When a shopper adds items to their cart but leaves the site without completing the purchase. Average rate is ~70%.

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Cart recovery

Cart recovery

E-commerce

Reaching out to shoppers who abandoned their cart, usually by email or text, to bring them back to finish the purchase.

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Chat Widget

Chat Widget

Support

The interface element on a website that allows visitors to initiate and conduct live chat conversations with support agents.

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Chatbot

Customer Service Chatbot

Support

An automated conversational interface that uses AI or rules to answer customer questions and perform actions without human agents.

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Checkout abandonment rate

Checkout abandonment rate

Checkout

The share of shoppers who start checkout but do not finish.

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Checkout Conversion

Checkout Conversion Rate

Checkout

The percentage of customers who start the checkout process and complete their purchase.

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Churn Prediction

Churn Prediction

AI

Using machine learning to identify subscribers who are likely to cancel, enabling proactive retention interventions.

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Churn Rate

Customer Churn Rate

Retention

The percentage of subscribers who cancel their subscription during a given period. Lower churn rates indicate better customer satisfaction and product stickiness.

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Click-Through Rate

Click-Through Rate (CTR)

SMS Marketing

The percentage of message recipients who click on a link in the message, indicating engagement and interest.

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COGS

Cost of goods sold (COGS)

Revenue

Cost of goods sold: the direct cost of making or buying the products you sell.

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Cohort Analysis

Cohort Analysis

Retention

A method of analyzing customer behavior by grouping them into cohorts based on when they subscribed, allowing you to track retention curves over time.

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Commission

Affiliate Commission

Affiliates

The payment an affiliate receives for driving a sale or conversion. Can be a percentage of sale value or a flat fee.

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Computer use

Computer use

AI

An AI agent working on a computer the way a person would: running code, handling files and using websites through a browser.

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Connected devices

Connected devices

Subscriptions

Physical products linked to an app or online service, often sold with a subscription for refills, content or premium features.

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Consumption Rate

Product Consumption Rate

Subscriptions

The speed at which customers use up a product, used to optimize delivery schedules and predict reorder timing.

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Content Rights

Content Rights

Influencer

The legal permissions to use influencer-created content beyond the original post, including in ads, website, and other marketing materials.

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Conversational AI

Conversational AI

AI

AI that understands and responds to people in natural language across chat, text, email and voice.

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Conversational commerce

Conversational commerce

Communication

Selling and serving customers through conversations, such as text, chat, WhatsApp or voice, often with AI.

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Conversational SMS

Conversational SMS

SMS Marketing

Two-way text messaging that enables real conversations between brands and customers, often powered by AI for scale.

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Conversion Rate

Conversion Rate

Affiliates

The percentage of visitors who complete a desired action (purchase, signup, etc.) out of total visitors.

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Cookie Duration

Affiliate Cookie Duration

Affiliates

The time window during which an affiliate receives credit for a sale after a customer clicks their link.

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Copilot

AI Copilot

AI

An AI assistant that works alongside human operators, suggesting responses, surfacing insights, and automating routine tasks.

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Creator Brief

Creator Brief

Influencer

A document provided to influencers outlining campaign goals, messaging guidelines, content requirements, and brand standards.

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Creator Economy

Creator Economy

Influencer

The ecosystem of independent content creators, platforms, and tools that enable individuals to monetize their audience and content.

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Cross-Sell

Cross-Sell

Checkout

Recommending related or complementary products to a customer based on their current selection or purchase history.

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CSAT

Customer Satisfaction Score

Communication

A metric measuring customer satisfaction with a product, service, or interaction. Typically measured on a 1-5 or 1-10 scale.

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Customer acquisition cost

Customer acquisition cost (CAC)

Revenue

The average amount you spend to win one new customer, including ads, discounts and marketing costs.

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Customer engagement score

Customer engagement score

Retention

A score that sums up how actively a customer interacts with your brand, from purchases and portal visits to email clicks and messages.

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Customer portal

Customer portal

Subscriptions

A secure page where customers manage their account and subscriptions: skip, swap, change frequency, update details or cancel.

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Customer winback

Customer winback

Retention

Bringing former customers or subscribers back, usually with a personal offer and an easy way to restart.

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M

Macros

Support Macros

Support

Pre-written response templates that agents can use to quickly reply to common customer inquiries.

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Meal kits

Meal kits

Subscriptions

A subscription that delivers pre-portioned ingredients and recipes, or prepared meals, on a recurring schedule.

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Memberships program

Memberships program

Subscriptions

A paid program that gives members extra perks, such as member pricing, free shipping or early access, for a recurring fee.

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Micro-Influencer

Micro-Influencer

Influencer

A content creator with 10,000-100,000 followers who typically has higher engagement rates and more niche audiences than larger influencers.

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MMS

Multimedia Messaging Service

SMS Marketing

Text messages that include multimedia content like images, GIFs, videos, or audio files, enabling richer marketing communications.

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Model Context Protocol

Model Context Protocol (MCP)

AI

An open standard that lets AI apps like ChatGPT and Claude connect to business software and use its tools safely. Often shortened to MCP.

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Monthly subscription

Monthly subscription

Subscriptions

A subscription billed and usually delivered once a month.

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MRR

Monthly Recurring Revenue

Revenue

The predictable revenue a business can expect to receive every month from active subscriptions. Calculated by multiplying the number of subscribers by the average revenue per user (ARPU).

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Multi-agent system

Multi-agent system

AI

Several AI agents with different jobs that work together and hand tasks to one another.

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Mystery Box

Mystery Box Subscription

Subscriptions

A subscription model where customers receive a curated selection of products chosen by the brand, often themed or based on preferences.

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P

Partial shipping

Partial shipping

E-commerce

Fulfilling one order in more than one shipment, for example when some items are out of stock.

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Pause

Pause Subscription

Subscriptions

The ability to temporarily suspend a subscription for a specified period without fully canceling. Helps retain customers who need a break.

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Payment API

Payment API

Checkout

An interface that lets software create charges, save payment methods and manage refunds programmatically.

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Payment gateway

Payment gateway

Checkout

The technology that securely captures payment details at checkout and sends them to the payment processor.

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Payment method

Payment method

Checkout

How a customer pays, such as a credit or debit card, PayPal, Shop Pay, Apple Pay, a bank transfer or buy now, pay later.

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Payment processor

Payment processor

Checkout

The company that moves payment data and funds between the customer's bank, the card networks and the merchant's bank.

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Payout

Affiliate Payout

Affiliates

The disbursement of earned commissions to affiliates. Can be via PayPal, bank transfer, or store credit.

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PCI compliance

PCI compliance (PCI DSS)

Checkout

Following the Payment Card Industry Data Security Standard (PCI DSS), the security rules for any business that stores, processes or transmits card data.

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Personalization

AI Personalization

AI

Using AI to customize content, offers, and experiences for individual customers based on their behavior and preferences.

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Phygital subscription

Phygital subscription

Subscriptions

A subscription that combines physical products with digital experiences, such as a product plus app content or online classes.

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Points

Loyalty Points

Loyalty

A virtual currency earned through purchases or activities that can be redeemed for rewards, discounts, or products.

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Points Liability

Points Liability

Loyalty

The financial obligation a company has for unredeemed loyalty points, which must be accounted for on the balance sheet.

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Post-Purchase Upsell

Post-Purchase Upsell

Checkout

An offer presented to customers immediately after completing their purchase, allowing them to add items without re-entering payment.

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Predictive Analytics

Predictive Analytics

AI

Using historical data and machine learning to forecast future customer behavior, such as churn risk or purchase likelihood.

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Predictive Reordering

Predictive Reordering

Subscriptions

Using AI to predict when customers will need product refills based on their individual usage patterns and behavior.

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Prepaid Subscription

Prepaid Subscription

Subscriptions

A subscription model where customers pay upfront for multiple billing cycles (e.g., 3, 6, or 12 months) typically at a discounted rate.

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Pro-rated billing

Pro-rated billing

Subscriptions

Charging only for the part of a billing cycle a customer actually uses, for example after an upgrade or a mid-cycle change.

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Proactive Chat

Proactive Chat

Support

Automatically initiating chat conversations with website visitors based on their behavior to offer assistance or drive conversions.

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Product bundles

Product bundles

E-commerce

Several products sold together as one item, often at a discount.

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Product margin

Product margin

Revenue

The profit on a product after its direct costs, shown as a share of its price.

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R

Reactivation

Subscriber Reactivation

Retention

The process of re-engaging churned subscribers to resume their subscription. Often involves win-back campaigns and special offers.

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Recurring billing

Recurring billing

Subscriptions

Charging customers automatically on a set schedule for an ongoing product or service.

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Recurring commerce

Recurring commerce

Subscriptions

Any model where customers buy the same products or services again on a repeating basis, including subscriptions, memberships and auto-replenishment.

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Recurring payment

Recurring payment

Subscriptions

A payment that repeats on a set schedule using a saved payment method.

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Recurring subscription products

Recurring subscription products

Subscriptions

Products bought on a set schedule through recurring payments, such as supplements, coffee, pet food or skincare.

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Redemption

Loyalty Redemption

Loyalty

The process of exchanging accumulated loyalty points or rewards for discounts, products, or other benefits.

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Referral Program

Customer Referral Program

Loyalty

A program that incentivizes existing customers to recommend your brand to friends and family in exchange for rewards.

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Repeat customer

Repeat customer

E-commerce

A customer who has bought from you at least twice.

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Replenishment

Auto-Replenishment

Subscriptions

Automatic reordering of consumable products based on predicted usage or scheduled intervals to ensure customers never run out.

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Resolution Time

Resolution Time

Communication

The total time from when a customer inquiry is received until the issue is fully resolved.

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Retention Rate

Customer Retention Rate

Retention

The percentage of customers who remain subscribed over a period. Calculated as (Customers at End - New Customers) / Customers at Start × 100.

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Retrieval-augmented generation

Retrieval-augmented generation (RAG)

AI

A technique where an AI looks up relevant documents or records first, then writes its answer from what it found. Often shortened to RAG.

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Revenue recognition

Revenue recognition

Revenue

The accounting rule for when revenue counts as earned. For prepaid subscriptions, revenue is recognized as each delivery ships, not when the cash arrives.

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RevOps

Revenue Operations

E-commerce

A business function that aligns marketing, sales, and customer success operations to drive efficient revenue growth.

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ROAS

Return on ad spend (ROAS)

Revenue

Return on ad spend: the revenue earned for each dollar spent on advertising.

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Routing

Ticket Routing

Support

The automatic assignment of support tickets to appropriate agents or teams based on rules, skills, or workload.

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S

Scheduled AI task

Scheduled AI task

AI

Recurring work an AI agent runs on a schedule, like a daily order review, that reports only when something needs attention.

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Seeding

Product Seeding

Influencer

The practice of sending free products to influencers with no obligation to post, hoping for organic content and reviews.

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Sentiment Analysis

Sentiment Analysis

AI

AI-powered analysis of text to determine the emotional tone (positive, negative, neutral) of customer messages.

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Shopify Plus

Shopify Plus

E-commerce

Shopify's enterprise e-commerce platform offering advanced features, higher API limits, and dedicated support for high-volume merchants.

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Short Code

Short Code

SMS Marketing

A 5-6 digit number used for high-volume SMS messaging. Offers higher throughput but requires carrier approval and is more expensive.

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Skip

Skip Delivery

Subscriptions

The ability for subscribers to skip their next scheduled delivery without canceling their subscription. A key feature for reducing churn.

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SKU

Stock Keeping Unit

E-commerce

A unique identifier assigned to each distinct product and variant, used for inventory management and tracking.

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SLA

Service Level Agreement

Support

A commitment to respond to or resolve customer issues within specific timeframes, often with different targets by priority.

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SMS Campaign

SMS Campaign

SMS Marketing

A targeted text message marketing initiative sent to a subscriber list with specific goals like driving sales or promoting an offer.

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SMS Flow

SMS Automation Flow

SMS Marketing

An automated sequence of text messages triggered by customer actions or events, like welcome series or abandoned cart reminders.

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SMS Marketing

SMS Marketing

SMS Marketing

Using text messages to send promotional content, offers, and communications directly to customers' mobile phones.

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SMS Segment

SMS Segment

SMS Marketing

A unit of SMS billing. Standard SMS messages are limited to 160 characters; longer messages are split into multiple segments.

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Sponsored Content

Sponsored Content

Influencer

Content created by influencers that is paid for by a brand and must be disclosed as advertising (#ad, #sponsored).

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Sub-ID

Affiliate Sub-ID

Affiliates

Additional tracking parameters affiliates can add to their links to track performance of different campaigns, placements, or content.

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Subscribe & Save

Subscribe and Save

Subscriptions

A subscription model where customers receive regular deliveries of products at a discounted price compared to one-time purchases.

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Subscriber churn

Subscriber churn

Retention

Subscribers who stop their subscription in a given period, whether they cancel or their payments fail.

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Subscription box

Subscription box

Subscriptions

A box of products delivered on a regular schedule, either curated by the brand or chosen by the customer.

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Subscription business model

Subscription business model

Subscriptions

A business model where customers pay on a recurring schedule for ongoing products, services or access.

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Subscription cancellation flow

Subscription cancellation flow

Retention

The steps a subscriber goes through when they cancel, often including a reason survey and save offers like a skip, swap, discount or pause.

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Subscription commerce

Subscription commerce

Subscriptions

Selling products or services on a recurring schedule instead of as one-time purchases.

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Subscription economy

Subscription economy

Subscriptions

The growing share of commerce that runs on recurring payments rather than one-time sales.

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Subscription fatigue

Subscription fatigue

Retention

When customers feel overwhelmed by too many subscriptions and start canceling, often the ones that feel least flexible or least valuable.

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Subscription Frequency

Subscription Delivery Frequency

Subscriptions

How often subscription orders are delivered—weekly, bi-weekly, monthly, or custom intervals based on product type and customer preference.

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Subscription management

Subscription management

Subscriptions

Everything involved in running subscriptions after the sale: billing, schedules, changes, payment recovery and cancellations.

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Subscription Portal

Customer Subscription Portal

Subscriptions

A self-service interface where subscribers can manage their subscription, update payment methods, modify delivery schedules, and make changes.

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Surprise and delight

Surprise and delight

Loyalty

Giving customers unexpected extras, like a free gift or handwritten note, to build loyalty.

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Swap

Product Swap

Subscriptions

The ability for subscribers to exchange products in their upcoming delivery for different items, increasing flexibility and satisfaction.

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