The Terms Every Designer must know in order to communicate with Clients, Team Leads or Product Managers 👓

ROI

Return On Investment - Metric used to analyse the efficiency of investment

i.g.) Product Redesign: 10K / Sales increased: 100K / ROI: 900%

Used when two versions of UI need to be determined (compared) which performs better. It has to be a specific element. (e.g. Position of CTA = call to action)

KPI

Key Performance Indicator- Indicator of progress towards some business goal.

How effectively a company is achieving key business objectives. To evaluate success at reaching targets.

i.g.) The number of sales, users retained, user error rate…

FMCG - Fast Moving Customer Goods

Fast Moving Customer Goods - Goods that are sold quickly at a relatively low cost.

Trade-offs

A compromise between two desirable but incompatible features.

i.g.) Adding clarity but losing on the simplicity of design

OKR

Objectives & Key Results - Redesign and launch a new website.

i.g.) Key result: Increase visitors to sign-up ratio from 10% to 20%

Acquisition

User acquisition means gaining new users for an app, platform or other services.

Regarding mobile, user acquisition is a strategy designed around generating installs.

Engagement

A metric of how much users engage with the product. Measured by a number of clicks, time spent or similar.

Retention

Product’s ability to retain customers over time. It may be improved by improving UX, customer satisfaction, product value …

Churn

The percentage of users that stop using the product in a measured period.

CLV

Customer Lifetime Value - A net profit company makes of one customer over time. Increased by building relationships, listening to customers, personalising experiences …

Competitive landscape

A description of direct and indirect competitors and their relative position at a market.

Core value

Fundamental beliefs of an organization or a business. Directs behaviour, drives decisions and serves as a company guide.

CTR

Click-Through Rate - The ratio of users who clicked on the link compared to the total number of users who viewed a page, ad or email.

Cross-selling, Upselling

Cross-selling shows customers a variety of products that could complement their needs.

Upselling offers a higher level of product.

Product Proposal

A document that describes a product, its purpose, outcome and steps necessary to complete it.

Early adaptors

Individuals or businesses that use a new product, technology or innovation before others. Important in providing feedback about product deficiencies.

Feature bloat

Adding too many features to the product or design causes an unnecessarily staffed and bloated product that is complicated, confusing or hard to use.

Friction

Points in the user journey in which they experience resistance.

i.g.) The long or complicated payment process, requires user registration or similar.