The Skill Tracker is live! Discover your strengths and work towards your dream job today.
Study Concepts and Terminology from

Become a Product Management Pro: Learn the Most Popular Terminology

Reviewed By Product Expert and Coach
Elizabeth Hogue
April 16, 2024

General Product Management Concepts & Terminology

  • MVP - Minimal Viable Product. A very basic version of a product to prove market viability.
  • POC - Proof of Concept. Usually a prototype or bare-boned model used to demonstrate an idea.
  • ROI - Return on Investment. Often a metric that measures profitability of investment, measured as a percentage.
  • Product - any platform or service created to solve a problem
  • Ecommerce Companies - companies that specialize in selling products online
  • SaaS Companies - literally “Software as a Service” - companies that specialize in a particular service, often to sell to other companies.
  • Hit - any action taken by a user visiting your product.
  • Visit (synonymous with “session”) - A 30-minute period where a user is active on your product.
  • Visitor (synonymous with “user”)- A unique user on a website. Usually due to privacy concerns  this cookie expires after 30 days.
  • CTA - Call to Action, can be any button encouraging a user to do something (Add to Cart, Learn More, etc)
  • CVR - “Conversion Rate,” can be applied to more metrics than order. (Action / Total Site Visitors)
  • OKR - Objectives & Key Results. Often used to measure success of a product team.

View Best Product Micro Certifications

don't change careers alone ad

Ecommerce Product Management Concepts & Terminology

  • PDP - Product Description Page
  • PLP - Product Listing Page, synonymous with “Collection Page”
  • ATC - Add to Cart, the rate at which users add items to cart on the website/application (Cart additions / Total site visitors)
  • OCR - Order conversion rate, the rate at which users place orders on the website/application (Orders / Total site visitors)
  • AOV - Average order value. This number is calculated by adding all the revenue from orders (sometimes removing outliers) and dividing it by total number of orders. The mean value of an order.
  • RPV - Revenue per visit (or sometimes visitor). Total revenue generated by the product divided by total number of visits (or visitors).
  • LTV - Lifetime Value. Calculated on a function of AOV * OCR * repeat orders.  

Software Product Management Concepts & Terminology

  • SaaS - maps directly to "Software as a Service"
  • RFI - Request for Information, when a user requests a demo of your product.
  • ARR - Annual Recurring Revenue, value of a single user over a year length. Example: Netflix at $20 a month would yield a $240 ARR
  • MRR - Monthly Recurring Revenue, which is the value of your users over a month (tricky!). Let’s pretend Netflix only had 100 users, their MRR would be $20 * 100 = $2,000.
  • Churn Rate - loss of customers, calculated over total customers. In the 100-user Netflix example, if they lost 5 users, their churn rate would be 5% (5/100).
  • CLV - Customer Lifetime Value, more squishy but similar to LTV in ecommerce.  

View Product Job Guides

In conclusion, familiarizing yourself with popular product management terminology is a critical step in becoming a successful product manager or joining a product pod. Understanding key concepts such as MVP, POC, and ROI will help you communicate effectively with stakeholders and make informed decisions about your product. By mastering these and other important terms, you'll demonstrate your expertise and stay ahead of the curve in the ever-evolving world of product management. Whether you're a seasoned pro or just starting out, investing the time to learn and understand these key concepts will pay off in the long run.

Elizabeth Hogue
Bridged Cofounder & Product Coach
header describing the article content
Read Full Guide
header describing the article content
Read Full Guide
header describing the article content
Read Full Guide
header describing the article content
Read Full Guide


explore careers

Find information on career paths for high-paying roles that align with your strengths and goals. Try our easy quiz to help you get started.

Help Me Pick
target skill gaps

View the skills you need to learn and develop with our state-of-the-art gap identifier. This is your next stop once you've found a role!

Get Tracking
review certifications

Learn about affordable and reputable certifications that won't break your bank. No expensive bootcamps or schooling required.

Review Certs
identify dream roles

We've vetted jobs at top companies that need talent! Easily match with companies that work with your job preferences.

Explore Roles

your ultimate
career platform

It’s almost impossible to get jobs without experience, and experience is impossible to get without a job.

We're working to change that.

Thank you! We'll be in touch soon!
Oops! Something went wrong while submitting the form.

Try entering your email again.