Key Terms Defined: DigitalSuits Glossary

An AI agent is a software program that employs AI to do activities and pursue objectives on behalf of people.

An AI chatbot is a software that uses AI, NLP, and ML to produce useful, similar to humans replies.

AI inference is the processing of previously unseen data by an AI model based on the knowledge it acquired during training.

Average order value (AOV) is the average amount of money customers spend per transaction.

Bounce 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) is a model where transactions, services, or trade take place between two companies instead of between a company and a consumer.

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.

Cart abandonment is when customers add items to their cart but leave without completing the purchase.

Checkout is the point when a customer sees the final details of their order and proceeds with a payment.

Conversion rate optimization is the process of enhancing the percentage of website visitors who take a specific action.

Cross-selling is a marketing and sales technique that implies offering supplementary products based on customer interest.

Customer Lifetime Value (CLV) is the average profit a business makes over the whole period of the relationship with a customer.

Customer retention is the ability of a company or product to retain customers during a certain period of time.

Digital transformation is the process of implementing digital technologies across different company domains to optimize processes and boost efficiency.

Direct-to-Consumer (D2C) is a business model where businesses sell products directly to consumers without any third party.

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

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

Generative Artificial Intelligence is a kind of AI that uses patterns found in existing data to produce new text, pictures, audio, and video materials.

A gift card is a prepaid card or digital code that customers can use to purchase products or services at a specific retailer.

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

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.

Product bundles are offers that consist of multiple store items sold as a single discounted package.

Product details pages are ecommerce web pages that describe items of an online store’s catalog.

PWA is a web application with capabilities similar to native mobile apps, such as installability and access to device features.

Prompt engineering is the process of creating detailed requests for LLMs to make them generate the best possible response.

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.

Shopify Checkout Extensibility is a feature introduced by Shopify that enables merchants to customize their checkout process with greater flexibility, efficiency, and security.

Shopify Flow is an ecommerce automation tool that allows Shopify merchants to create workflows that automate tasks, processes, and marketing activities.

Shopify Hydrogen is a React-based framework for building custom Shopify storefronts using a headless commerce approach.

Software as a service (SaaS) is a business model that enables using software solutions via the Internet for a subscription fee.