E-commerce Analytics Glossary

Clear definitions of the metrics, models, and concepts that power modern e-commerce analytics.

Predictive LTV (pLTV)

A forward-looking estimate of customer lifetime value based on behavioral signals, purchase history, and statistical models.

Related: Predictive LTV

Customer Lifetime Value (LTV)

The total revenue a customer generates throughout their entire relationship with a business.

Related: Profit Intelligence

Creative Fatigue Score

A composite metric (0-100) that measures how much an ad creative's performance has degraded due to audience overexposure.

Related: Creative Studio

Cohort Retention

The percentage of customers from a specific acquisition group who continue purchasing over successive time periods.

Related: Retention Intelligence

Customer Health Score

A composite score (0-100) that indicates how likely a customer is to remain active, based on purchase behavior, engagement, and support interactions.

Related: Retention Intelligence

Churn Prediction

The use of statistical models and machine learning to identify customers who are likely to stop purchasing or cancel their subscription.

Related: Retention Intelligence

AI Recommendations Engine

An automated system that analyzes business data to surface prioritized, actionable recommendations ranked by expected revenue impact.

Related: AI Recommendations

Smart Segmentation

Natural language-powered customer segmentation that allows operators to define audience segments using plain English queries.

Related: Smart Segmentation

Ads Autopilot

AI-powered ad campaign management that automatically optimizes targeting, bidding, creative rotation, and budget allocation across Meta and Google Ads.

Related: Ads Autopilot

Unit Economics

The direct revenues and costs associated with a single customer or transaction, including CAC, LTV, contribution margin, and payback period.

Related: Profit Intelligence

Contribution Margin

The revenue remaining after subtracting all variable costs (COGS, shipping, payment processing, returns) from a sale.

Related: Profit Intelligence

Dunning Management

The systematic process of communicating with customers to collect failed or overdue subscription payments before they result in involuntary churn.

Related: Retention Intelligence

Involuntary Churn

Customer loss caused by payment failures, expired cards, or billing issues rather than a deliberate decision to cancel.

Smart Dunning

AI-powered payment recovery that uses machine learning to optimize retry timing, communication channels, and messaging for each individual customer.

Win-Back Campaign

A targeted marketing campaign designed to re-engage and reactivate customers who have churned or become inactive.

Related: Retention Intelligence

RFM Analysis

A customer segmentation method that scores customers based on three dimensions: Recency (last purchase), Frequency (purchase count), and Monetary value (total spend).

Related: Smart Segmentation

Revenue Churn vs Customer Churn

Revenue churn measures the percentage of recurring revenue lost in a period, while customer churn (logo churn) measures the percentage of customers lost-two related but distinct metrics.

Net Revenue Retention (NRR)

The percentage of recurring revenue retained from existing customers over a period, accounting for expansion, contraction, and churn.

Subscription Analytics

The practice of measuring and analyzing subscription business KPIs-including MRR, churn, expansion revenue, and customer lifecycle metrics-to drive data-informed decisions.

Return on Ad Spend (ROAS)

The revenue generated for every dollar spent on advertising, calculated as revenue divided by ad spend.

Related: Ads Autopilot

Marketing Attribution

The process of identifying which marketing channels, campaigns, and touchpoints contribute to a conversion or sale.

Related: Attribution

First-Party Data

Data collected directly from your customers through your own channels - website behavior, purchase history, email engagement, and surveys.

Related: Smart Segmentation

Shopify Analytics

The built-in reporting tools in Shopify, plus third-party analytics platforms that connect to Shopify for deeper insights into revenue, customers, and marketing performance.

Related: Profit Intelligence

AI for E-commerce

Artificial intelligence applications designed specifically for online retail - from personalization and analytics to automated ad management and email campaigns.

Related: AI Recommendations

Customer Acquisition Cost (CAC)

The total cost of acquiring a new customer, including ad spend, creative production, agency fees, and the portion of team salary dedicated to acquisition.

Related: Profit Intelligence

Churn Rate

The percentage of customers or subscribers who stop doing business with a company during a given time period.

Related: Retention Intelligence

Customer Retention Management

The systematic approach to keeping existing customers engaged, reducing churn, and increasing customer lifetime value through data, automation, and personalized experiences.

Related: Retention Intelligence

Subscription Cancellation Reasons

The stated and actual reasons why subscribers cancel, which drive retention strategy and cancellation flow design.

Related: Retention Intelligence

Payback Period (CAC Payback)

The number of months it takes for a customer's cumulative contribution margin to exceed their acquisition cost - the point where a customer becomes profitable.

Related: Profit Intelligence

Incrementality

The true causal contribution of a marketing channel or campaign to outcomes that would not have occurred otherwise - measured by isolating advertising-induced lift from baseline conversions that would have happened anyway.

Related: Attribution

Attribution Modeling

The set of rules and statistical methods used to assign credit for a conversion across the marketing touchpoints that contributed to it, from simple last-click to multi-touch and data-driven probabilistic models.

Related: Attribution

Media Efficiency Ratio (MER)

A blended marketing efficiency metric that divides total revenue by total ad spend across all channels - the complement to per-channel ROAS, designed to reveal aggregate marketing health without attribution distortion.

Related: Profit Intelligence

Monthly Active Users (MAU)

The number of unique users who interact meaningfully with a product or service in a given 30-day period - the standard engagement metric for subscription, SaaS, and app businesses, distinct from total subscribers or registered accounts.

Related: Retention Intelligence

See These Concepts in Action

On Finsi, these metrics are calculated once, with one set of definitions, and AI agents read from them to propose what to do next. A person approves each change, and every action is recorded.

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