Omni-channel Commerce & Subscription Glossary

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

Terms Defined
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Terms Defined
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Showing 236 of 236 terms

A

A2P

SMS Marketing

Application-to-Person

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

Abandoned cart

E-commerce

Abandoned cart

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

Accrued revenue

Revenue

Accrued revenue

Revenue you have earned by delivering a product or service but have not yet billed or been paid for.

ACH payment

Checkout

ACH payment

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

Add to cart

E-commerce

Add to cart (ATC)

The action of putting a product in an online shopping cart, and the button that does it. Add-to-cart rate measures how many visitors take that step.

Affiliate

Affiliates

Affiliate Partner

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

Affiliate Disclosure

Affiliates

Affiliate Disclosure

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

Affiliate Link

Affiliates

Affiliate Tracking Link

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

Affiliate Network

Affiliates

Affiliate Network

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

Agent Productivity

Support

Agent Productivity

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

Agentic AI

AI

Agentic 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.

AI Agent

AI

AI Agent

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

AI answering service

Phone

AI answering service

A service that uses AI to answer a business's calls when the team can't, such as after hours or when lines are busy.

AI Customer Service

AI

AI Customer Service

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

AI guardrails

AI

AI guardrails

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.

AI hallucination

AI

AI hallucination

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

AI memory

AI

AI memory

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

AI Personalization Engine

AI

AI Personalization Engine

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

AI playbook

AI

AI playbook

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

AI receptionist

Phone

AI receptionist

An AI agent that answers a business's phone, greets callers, works out what they need and handles it or passes the call to the right person.

AI resolution rate

Support

AI resolution rate

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

Ambassador Program

Influencer

Brand Ambassador Program

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

Anchor Date

Subscriptions

Subscription Anchor Date

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

Annual subscription

Subscriptions

Annual subscription

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

AOV

Revenue

Average Order Value

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

API

E-commerce

Application programming interface (API)

A defined way for one piece of software to ask another for data or to take an action, without a person clicking through screens.

Approval workflow

AI

Approval workflow

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

ARPU

Revenue

Average Revenue Per User

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

ARR

Revenue

Annual Recurring Revenue

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

Attribution

Affiliates

Revenue Attribution

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

Audit trail

AI

Audit trail

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

Auto-renewal

Subscriptions

Auto-renewal

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

Auto-Response

AI

Automated Response

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

Automatic payments

Subscriptions

Automatic payments

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

Automatic renewal law

Subscriptions

Automatic renewal law (ARL)

A state law that sets rules for subscriptions and other offers that renew and charge customers automatically until they cancel.

Autonomous agent

AI

Autonomous agent

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.

C

Call recording consent

Phone

Call recording consent (one-party and two-party)

The legal rules on who must agree before a phone call can be recorded. Some US states need one person's consent, others need everyone's.

Cart Abandonment

Checkout

Cart Abandonment

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

Cart recovery

E-commerce

Cart recovery

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

Cash back

Loyalty

Cash back rewards

A reward that returns part of what a customer spent, as money, store credit or a card statement credit.

Chat Widget

Support

Chat Widget

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

Chatbot

Support

Customer Service Chatbot

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

Checkout abandonment rate

Checkout

Checkout abandonment rate

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

Checkout Conversion

Checkout

Checkout Conversion Rate

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

Churn Prediction

AI

Churn Prediction

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

Churn Rate

Retention

Customer Churn Rate

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

Click-Through Rate

SMS Marketing

Click-Through Rate (CTR)

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

COGS

Revenue

Cost of goods sold (COGS)

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

Cohort Analysis

Retention

Cohort Analysis

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

Commission

Affiliates

Affiliate Commission

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

Computer use

AI

Computer use

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

Connected devices

Subscriptions

Connected devices

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

Consumption Rate

Subscriptions

Product Consumption Rate

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

Content Rights

Influencer

Content Rights

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

Conversational AI

AI

Conversational AI

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

Conversational commerce

Communication

Conversational commerce

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

Conversational SMS

SMS Marketing

Conversational SMS

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

Conversion funnel

E-commerce

Conversion funnel

The steps a shopper takes from first visit to purchase, and how many people drop off at each step.

Conversion Rate

Affiliates

Conversion Rate

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

Cookie Duration

Affiliates

Affiliate Cookie Duration

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

Copilot

AI

AI Copilot

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

Creator Brief

Influencer

Creator Brief

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

Creator Economy

Influencer

Creator Economy

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

Cross-Sell

Checkout

Cross-Sell

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

CSAT

Communication

Customer Satisfaction Score

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

Customer acquisition cost

Revenue

Customer acquisition cost (CAC)

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

Customer engagement score

Retention

Customer engagement score

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

Customer portal

Subscriptions

Customer portal

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

Customer winback

Retention

Customer winback

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

M

Macros

Support

Support Macros

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

Meal kits

Subscriptions

Meal kits

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

Memberships program

Subscriptions

Memberships program

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

Merchant account

Checkout

Merchant account

A business bank account that lets you accept card payments. Card sales settle into it before the money reaches your regular bank account.

Micro-Influencer

Influencer

Micro-Influencer

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

MMS

SMS Marketing

Multimedia Messaging Service

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

Model Context Protocol

AI

Model Context Protocol (MCP)

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

Monthly subscription

Subscriptions

Monthly subscription

A subscription billed and usually delivered once a month.

MRR

Revenue

Monthly Recurring 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).

Multi-agent system

AI

Multi-agent system

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

Mystery Box

Subscriptions

Mystery Box Subscription

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

P

Partial shipping

E-commerce

Partial shipping

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

Pause

Subscriptions

Pause Subscription

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

Payment API

Checkout

Payment API

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

Payment gateway

Checkout

Payment gateway

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

Payment method

Checkout

Payment method

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

Payment processor

Checkout

Payment processor

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

Payout

Affiliates

Affiliate Payout

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

PCI compliance

Checkout

PCI compliance (PCI DSS)

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

Personalization

AI

AI Personalization

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

Phygital subscription

Subscriptions

Phygital subscription

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

Points

Loyalty

Loyalty Points

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

Points Liability

Loyalty

Points Liability

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

Post-Purchase Upsell

Checkout

Post-Purchase Upsell

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

Predictive Analytics

AI

Predictive Analytics

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

Predictive Reordering

Subscriptions

Predictive Reordering

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

Prepaid Subscription

Subscriptions

Prepaid Subscription

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

Pro-rated billing

Subscriptions

Pro-rated billing

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

Proactive Chat

Support

Proactive Chat

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

Product as a service

Subscriptions

Product as a service (PaaS)

A business model where customers pay a recurring fee to use a physical product, often with upkeep, upgrades or refills included, instead of buying it outright.

Product bundles

E-commerce

Product bundles

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

Product detail page

E-commerce

Product detail page (PDP)

The page in an online store that shows one product, with its photos, description, price, options and the button to buy it.

Product margin

Revenue

Product margin

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

R

Reactivation

Retention

Subscriber Reactivation

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

Recurring billing

Subscriptions

Recurring billing

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

Recurring commerce

Subscriptions

Recurring commerce

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

Recurring payment

Subscriptions

Recurring payment

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

Recurring revenue

Revenue

Recurring revenue

Revenue you can expect to come in again on a schedule, such as subscription renewals, memberships and repeat contract payments.

Recurring subscription products

Subscriptions

Recurring subscription products

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

Redemption

Loyalty

Loyalty Redemption

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

Referral Program

Loyalty

Customer Referral Program

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

Renewal rate

Retention

Subscription renewal rate

The share of subscriptions due to renew in a period that actually renew and get paid.

Repeat customer

E-commerce

Repeat customer

A customer who has bought from you at least twice.

Replenishment

Subscriptions

Auto-Replenishment

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

Replenishment subscription

Subscriptions

Replenishment subscription

A subscription that re-ships products customers use up, such as coffee, vitamins or pet food, on a schedule that matches how fast they run out.

Resolution Time

Communication

Resolution Time

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

Retention Rate

Retention

Customer Retention Rate

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

Retrieval-augmented generation

AI

Retrieval-augmented generation (RAG)

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

Revenue recognition

Revenue

Revenue recognition

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

RevOps

E-commerce

Revenue Operations

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

ROAS

Revenue

Return on ad spend (ROAS)

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

Routing

Support

Ticket Routing

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

S

Save rate

Retention

Cancellation save rate

The share of subscribers who start to cancel but stay after seeing an offer, such as a pause, skip, swap or discount.

Scheduled AI task

AI

Scheduled AI task

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

Seeding

Influencer

Product Seeding

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

Sentiment Analysis

AI

Sentiment Analysis

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

Shopify Plus

E-commerce

Shopify Plus

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

Short Code

SMS Marketing

Short Code

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

Skip

Subscriptions

Skip Delivery

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

Skip rate

Retention

Subscription skip rate

The share of scheduled subscription orders that subscribers skip in a period.

SKU

E-commerce

Stock Keeping Unit

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

SLA

Support

Service Level Agreement

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

SMS Campaign

SMS Marketing

SMS Campaign

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

SMS Flow

SMS Marketing

SMS Automation Flow

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

SMS Marketing

SMS Marketing

SMS Marketing

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

SMS Segment

SMS Marketing

SMS Segment

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

Sponsored Content

Influencer

Sponsored Content

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

STIR/SHAKEN

Phone

STIR/SHAKEN caller ID authentication

A set of standards US phone carriers use to sign calls and confirm the caller ID number is real, to fight spoofed robocalls.

Sub-ID

Affiliates

Affiliate Sub-ID

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

Subscribe & Save

Subscriptions

Subscribe and Save

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

Subscriber churn

Retention

Subscriber churn

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

Subscription box

Subscriptions

Subscription box

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

Subscription business model

Subscriptions

Subscription business model

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

Subscription cancellation flow

Retention

Subscription cancellation flow

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

Subscription commerce

Subscriptions

Subscription commerce

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

Subscription economy

Subscriptions

Subscription economy

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

Subscription fatigue

Retention

Subscription fatigue

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

Subscription Frequency

Subscriptions

Subscription Delivery Frequency

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

Subscription management

Subscriptions

Subscription management

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

Subscription Portal

Subscriptions

Customer Subscription Portal

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

Surprise and delight

Loyalty

Surprise and delight

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

Swap

Subscriptions

Product Swap

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

T

Take rate

Revenue

Take rate

The share of each sale a platform keeps as fees. For subscription apps, it is the commission or transaction fee charged on every renewal.

TCPA

SMS Marketing

Telephone Consumer Protection Act

US federal law regulating telemarketing calls and text messages. Requires express written consent for marketing messages.

Ticket

Support

Support Ticket

A record of a customer inquiry or issue that is tracked through the support process from creation to resolution.

Ticket Deflection

Communication

Ticket Deflection

The practice of resolving customer inquiries before they become support tickets, through self-service, FAQs, or automation.

Tiered discounts

E-commerce

Tiered discounts

Discounts that grow as customers buy more, such as 10% off two items and 15% off three.

Tiered Rewards

Loyalty

Tiered Loyalty Program

A loyalty structure where customers unlock better rewards and benefits as they reach higher spending or engagement levels.

Toll-Free Number

SMS Marketing

Toll-Free Number

An 800-series number that can be used for both voice and SMS. Requires verification for SMS use.

Toll-free verification

SMS Marketing

Toll-free texting verification

The review US carriers require before a business can send texts from a toll-free number. Unverified toll-free texts are blocked.

Tool use

AI

Tool use

An AI agent's ability to call software tools, such as looking up an order, issuing a refund or running a report, instead of only producing text.

Trial period

Subscriptions

Trial period

A limited time when customers can try a product or service, free or discounted, before a paid subscription begins.

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