A field guide to funnel metrics

The metrics below are the vocabulary of every funnel conversation. Each is simple; each has a trap.

• Conversion rateConversion rateThe share of people who take a defined next step, measured between two funnel stages (e.g. visit → signup). Always read it alongside the volume it is calculated from.View in glossary: share moving between two stages. Trap: meaningless without volume and a time window.
• MQLMarketing-qualified lead (MQL)A lead that has shown enough intent, by an agreed and written definition, to be worth a salesperson's time. A shared definition matters more than the threshold.View in glossary: a lead intent-qualified by an agreed definition. Trap: the definition drifts; agree it in writing.
• Churn rateChurn rateThe rate at which customers stop buying or paying over a given period. Small differences compound, so churn quietly sets the ceiling on growth.View in glossary: share of customers lost per period. Trap: small differences compound into a hard growth ceiling.
• AttributionAttributionHow you assign credit for a conversion to the touchpoints that led to it. Every model is a simplification: pick one, document it, and read it consistently.View in glossary: how credit is split across touchpoints. Trap: every model is a simplification; pick one and stay consistent.
• LTVCustomer lifetime value (LTV)The total gross profit you expect from a customer across the whole relationship, not a single order. It tells you how much you can afford to spend to acquire and keep them.View in glossary:CACCustomer acquisition cost (CAC)The fully-loaded cost of winning one new customer: ad spend, tools, and the people involved, divided by the number of customers acquired in the same period.View in glossary: value vs. cost of a customer. Trap: a blended figure hides your best and worst channels.