Let's talk

Key Terms Defined: DigitalSuits Glossary

The most common concepts in ecommerce, software development, and AI

A terms

  • AI agentAn AI agent is a software program that employs AI to do activities and pursue objectives on behalf of people.
  • AI chatbotAn AI chatbot is a software that uses AI, NLP, and ML to produce useful, similar to humans replies.
  • AI inferenceAI inference is the processing of previously unseen data by an AI model based on the knowledge it acquired during training.
  • Average Order Value (AOV)Average order value (AOV) is the average amount of money customers spend per transaction.

B terms

  • Bounce RateBounce rate is the percentage of website visitors who leave a site after viewing only one page without performing a specific action, such as clicking a link or opening another page.
  • Business-to-Business (B2B)Business-to-Business (B2B) is a model where transactions, services, or trade take place between two companies instead of between a company and a consumer.
  • Business-to-Customer (B2C)Business to Consumer (B2C) refers to firms that offer their products or services directly to individuals and customers through intermediaries for personal use rather than to other organizations.

C terms

  • Cart abandonmentCart abandonment is when customers add items to their cart but leave without completing the purchase.
  • CheckoutCheckout is the point when a customer sees the final details of their order and proceeds with a payment.
  • Conversion Rate Optimization (CRO)Conversion rate optimization is the process of enhancing the percentage of website visitors who take a specific action.
  • Cross-sellingCross-selling is a marketing and sales technique that implies offering supplementary products based on customer interest.
  • Customer lifetime valueCustomer Lifetime Value (CLV) is the average profit a business makes over the whole period of the relationship with a customer.
  • Customer retentionCustomer retention is the ability of a company or product to retain customers during a certain period of time.

D terms

  • Digital transformationDigital transformation is the process of implementing digital technologies across different company domains to optimize processes and boost efficiency.
  • Direct-to-Consumer (D2C)Direct-to-Consumer (D2C) is a business model where businesses sell products directly to consumers without any third party.

E terms

  • ERPERP (Enterprise Resource Planning) is software that lets run multiple business processes, such as HR, supply chain, and manufacturing, under one roof.

F terms

  • Fine-tuningFine-tuning is the process of adapting a pre-trained AI model for a specific task based on new data.

G terms

  • Generative AIGenerative Artificial Intelligence is a kind of AI that uses patterns found in existing data to produce new text, pictures, audio, and video materials.
  • Gift cardA gift card is a prepaid card or digital code that customers can use to purchase products or services at a specific retailer.

H terms

  • Headless commerceHeadless commerce implies using the frontend and the backend of an online store separately for enhanced flexibility and performance.

L terms

  • Large Language Model (LLM)A large language model (LLM) is a type of artificial intelligence trained to predict the next word in a sentence to generate human-like texts.

P terms

  • Product bundlesProduct bundles are offers that consist of multiple store items sold as a single discounted package.
  • Product details page (PDP)Product details pages are ecommerce web pages that describe items of an online store’s catalog.
  • Progressive Web App (PWA)PWA is a web application with capabilities similar to native mobile apps, such as installability and access to device features.
  • Prompt engineeringPrompt engineering is the process of creating detailed requests for LLMs to make them generate the best possible response.

R terms

  • Retrieval-Augmented Generation (RAG)Retrieval Augmented Generation (RAG) is a hybrid AI technique used in AI development services that combines text creation and information retrieval to provide outputs that are more precise and contextually grounded.

S terms

  • Shopify Checkout ExtensibilityShopify Checkout Extensibility is a feature introduced by Shopify that enables merchants to customize their checkout process with greater flexibility, efficiency, and security.
  • Shopify FlowShopify Flow is an ecommerce automation tool that allows Shopify merchants to create workflows that automate tasks, processes, and marketing activities.
  • Shopify HydrogenShopify Hydrogen is a React-based framework for building custom Shopify storefronts using a headless commerce approach.
  • Software as a service (SaaS)Software as a service (SaaS) is a business model that enables using software solutions via the Internet for a subscription fee.