The 12 business terms I use most frequently
Here are the 12 business terms I use most frequently to ensure my user research findings resonate with key stakeholders. Using terms that directly align with core business objectives is paramount to achieve greater impact AND inspire action. It bridges the gap between what we learn and the strategic decisions that drive growth, efficiency, and innovation.
Return on Investment (ROI): Demonstrate how UX improvements can lead to higher customer satisfaction, leading to increased "retention rates" and "lifetime value" (LTV)
Cost-Benefit Analysis: Highlight how investment in UCD can reduce long-term development costs by identifying potential issues early on.
Product Lifecycle: Use research to inform where a product stands in its lifecycle and how it can be evolved to meet changing market demands.
OKRs (Objectives and Key Results): Framework for setting, supporting, and tracking goals and outcomes.
KPIs (Key Performance Indicators): Metrics used to evaluate success at meeting and supporting key business objectives.
LTV (Lifetime Value): The total revenue a business can expect from a single customer account throughout the business relationship.
CAC (Customer Acquisition Cost): The cost associated with converting a customer to buy a product/service, including research, marketing, and other expenses.
MRR (Monthly Recurring Revenue): Regular income a business can expect each month from customers.
Churn Rate: The percentage of customers or subscribers who cancel or do not renew their subscriptions during a given timeframe.
Gross Margin: The difference between revenue and cost of goods sold, divided by revenue, expressed as a percentage. (aka "mark-up")
ROI (Return on Investment): A measure to evaluate the "efficiency" or "profitability" of an investment.
SWOT Analysis (Strengths, Weaknesses, Opportunities, Threats): A strategic planning technique used to identify and analyze the internal and external factors that will impact an org's competitiveness.
I strongly encourage researchers to translate their learning into business terms. It's not just about making our findings accessible; it's about making them actionable. Applying the terms our stakeholders use ensures that our research plays a pivotal role in shaping business strategy and driving meaningful change. It also demonstrates you understand the role our studies plan in bigger business.
Integrating user research into the business narrative can elevate the role of your UXR in driving business success.
