The B2B SaaS go-to-market glossary
28 go-to-market terms B2B SaaS founders actually use, defined in plain English. Each page gives the definition, the formula where there is one, a worked example, what changes between pre-revenue and €1M ARR, the common mistakes, and Mazo's rule of thumb.
Positioning & ICP
- Ideal customer profile (ICP)
The type of company that gets the most value from your product and buys fastest.
- Positioning
The context that makes your product's value obvious to the right buyers.
- Jobs to be done (JTBD)
The progress a customer "hires" your product to make in a specific situation.
- Beachhead market
A narrow first segment you aim to win outright before expanding to neighbouring ones.
- Product-market fit (PMF)
Being in a good market with a product that satisfies it — visible in flattening retention.
- Go-to-market strategy (GTM strategy)
Your plan for who you sell to, what you replace, how you price and how buyers find you.
Pricing & packaging
- Annual contract value (ACV)
The yearly subscription value of one customer contract, excluding one-time fees.
- Value metric
The unit you charge by, chosen so price grows as the customer gets more value.
- Packaging
How features, usage limits and services are grouped into the plans buyers choose between.
- Freemium vs free trial
A free plan with limits forever, versus full access for a limited time before paying.
Pipeline & sales
- Sales-led growth (SLG)
A motion where salespeople win customers through discovery, demos and negotiation.
- Founder-led sales
The stage when founders personally find, pitch and close customers, before any sales hire.
- Pipeline coverage
Qualified open pipeline divided by the revenue target for the same period.
- Win rate
Deals won divided by all deals closed as won or lost in the same period.
- Sales cycle
The time from a qualified opportunity to a signed customer, usually in days.
Metrics & unit economics
- Annual recurring revenue (ARR)
The yearly value of all active subscription revenue, excluding one-time fees.
- Monthly recurring revenue (MRR)
Predictable subscription revenue per month, with annual plans spread across 12 months.
- Customer acquisition cost (CAC)
Total sales and marketing spend divided by the number of new paying customers.
- CAC payback period
Months of gross-margin-adjusted revenue needed to earn back the cost of acquiring a customer.
- Customer lifetime value (LTV) and LTV:CAC
The gross profit a customer is expected to generate before churning, and its ratio to CAC.
- SaaS magic number
Annualised new recurring revenue divided by the previous quarter's sales and marketing spend.
- North star metric
The one metric that best captures the core value customers get from your product.
Product-led growth & retention
- Product-led growth (PLG)
A motion where the product itself acquires, activates, converts and expands customers.
- Activation rate
The share of new sign-ups who reach a defined first-value milestone within a set time.
- Time to value (TTV)
How long it takes a new customer to get their first real value from the product.
- Churn rate (logo vs revenue churn)
The share of customers (logo churn) or recurring revenue (revenue churn) lost in a period.
- Net revenue retention (NRR)
Recurring revenue kept from existing customers after churn, downgrades and expansion.
- Gross revenue retention (GRR)
Recurring revenue kept from existing customers after churn and downgrades, ignoring expansion.
Want the whole picture?
These terms are the vocabulary. The go-to-market strategy guide for B2B SaaS shows how they fit together, stage by stage, from €0 to €1M ARR. To apply them to your own company, try the free go-to-market tools — no account needed.
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