Glossary: customer service & e-commerce terms

The 24-hour window is the period after a customer message during which you can reply freely on WhatsApp; after that, an approved template is required.

24/7 coverage means customer service is reachable at any time of day or night, often via a combination of AI and distributed teams.

2FA is an extra layer of security that requires a second verification step beyond a password, such as a code from an authenticator app.

A/B testing is a method where you compare two variants of something (e.g., an email, chat message, or landing page) to see which one performs better.

Affiliate marketing is a partnership model where you as a business pay a commission to partners (affiliates) who refer customers to you.

Agent utilization measures what percentage of their available time agents actually spend on customer conversations.

An AI chatbot is an automated conversational agent that answers customer questions using artificial intelligence. In customer service, an AI chatbot handles repetitive questions so your team can focus on more complex issues.

AI hallucination is the phenomenon where a language model generates confident-sounding but factually incorrect or fabricated information.

Analytics is the collection, measurement, and analysis of data to gain insight into behavior and performance — from website visitors to customer service metrics.

An API is a technical interface that allows different software systems to communicate and exchange data with each other.

An API key is a unique code an application uses to identify and authenticate itself when calling an external API.

ARR is the predictable annual revenue from subscriptions — simply MRR multiplied by 12.

An audit log is a chronological record of all actions users take in a system, used for security, compliance, and troubleshooting.

An auto-responder is an automatically sent message that informs customers when your team is offline or will answer a question later.

Automation in customer service means setting up rules and workflows that perform tasks automatically, such as assigning tickets, sending follow-up emails, or escalating urgent questions.

Average Handle Time is the average time an agent spends fully resolving one customer inquiry, from start to close.

B2B stands for business-to-business: trade or services between businesses. In B2B customer service, expectations are often higher, with longer relationships, more complex questions, and SLA agreements.

B2C stands for business-to-consumer: direct sales or services from a business to the end consumer. E-commerce and online stores are typical B2C businesses.

A backlog is the buildup of open, unhandled customer inquiries waiting for a reply or resolution.

A blocklist is a list of contacts, email addresses, or numbers that are barred because they cause spam, abuse, or unwanted contact.

Bounce rate is the percentage of sent emails that fail to deliver, for example due to an invalid address or a full mailbox.

A broadcast list is a group of contacts that receives the same message at once, for example via WhatsApp or email, while keeping conversations individual.

A BSP is a company officially recognized by Meta that provides access to the WhatsApp Business API and helps businesses with integration, verification, and management.

Business hours are the set times your customer service is actively reachable, used to manage expectations and drive automations.

CAC is the average cost to acquire one new customer, including marketing and sales spend divided by the number of new customers.

A call to action is a clear prompt for the visitor to take a specific action, such as 'Start free trial', 'Order now', or 'Contact us'.

A canned response is a pre-saved reply agents can insert with one click to answer common questions quickly and consistently.

Cart abandonment is an online order a customer built but never completed, often due to hesitation, cost, or a technical hurdle.

A chat transcript is the full, text-based record of a customer conversation, used for reference, quality control, and training.

A chat widget is the clickable chat window that appears on a website, letting visitors start a conversation with a business directly.

Chatbot handoff is the moment a conversation is seamlessly transferred from an AI chatbot to a human agent.

The checkout is the payment process in an online store where the customer completes their order: filling in address details, choosing a payment method, and confirming the order.

Churn is the percentage of customers who stop using a product or service within a given period, usually calculated monthly or annually.

Churn prediction uses data and patterns to forecast which customers are likely to cancel, so you can intervene proactively.

Click-Through Rate is the percentage of recipients who click a link in an email or ad, a key measure of your content's relevance.

A click-to-chat link is a URL that, when clicked, opens a WhatsApp conversation directly with a specific number, usable on websites, in bio links, or ads.

Click-to-WhatsApp ads are Facebook and Instagram ads that open a WhatsApp conversation directly when clicked, instead of linking to a website.

A confidence score indicates how certain an AI model is of its own answer, used to decide whether a response can be sent automatically or needs review first.

A contact center is the central place where all customer contacts across multiple channels come together, from phone to chat and social media.

Conversation-based pricing is the model Meta uses to bill WhatsApp messages: per 24-hour conversation window instead of per individual message.

Conversion is the moment when a website visitor performs a desired action, such as making a purchase, filling out a form, or requesting a demo. Good customer service increases your conversion rate.

Cookies are small files that a website places on a visitor's computer or phone to remember information, such as login details or shopping carts.

CRM stands for Customer Relationship Management: managing customer relationships and interactions. A CRM system centralizes customer data, conversations, and purchase history in one place.

Cross-selling is a sales technique where you offer additional or related products alongside the product the customer is already buying or has bought.

CSAT is a method for measuring customer satisfaction. After an interaction, you ask the customer to give a rating, usually on a scale of 1 to 5. The average gives you your CSAT score.

Customer Effort Score measures how much effort a customer had to put in to get their issue resolved — the lower the score, the smoother the experience.

A customer health score is a composite score indicating how healthy a customer relationship is, and whether there's a risk of churn.

The customer journey is the full path a customer takes, from first encountering your brand to purchase and everything after.

Customer Success is a proactive discipline focused on helping customers achieve their goals with a product, rather than just resolving problems.

A dashboard is an overview page that displays the most important metrics and KPIs of your customer service in real-time: open tickets, response times, customer satisfaction, and team performance.

A Data Processing Agreement is a mandatory legal document between a business and a software vendor that processes personal data on its behalf, per GDPR.

A data retention policy defines how long data is kept before it's automatically deleted or anonymized.

Deflection rate measures the percentage of customer questions resolved through self-service or a chatbot, without human agent involvement.

Digital CX covers all digital interactions a customer has with a brand, from website to chatbot to social media, and how seamless that experience feels.

Double opt-in is a confirmation step where a contact must explicitly confirm consent again after signing up, usually via a confirmation link or message.

A drip campaign is a series of pre-set messages automatically sent over a period of time, often triggered by a customer action.

Dropshipping is an e-commerce model where you sell products without holding them in stock — the supplier ships directly to the customer.

E-commerce is the online sale of products or services through an online store or platform. Good customer service is one of the most important differentiating factors for e-commerce businesses.

Email deliverability is the percentage of sent emails that actually reach the recipient's inbox, instead of landing in spam or not arriving at all.

Email marketing is sending commercial or informational emails to a list of recipients to acquire, inform, or retain customers.

Encryption makes data unreadable to unauthorized parties, both in transit and at rest.

Escalation is the process of forwarding a customer question to a higher level or specialist team when the original agent cannot resolve the issue.

Escalation rate is the share of conversations passed on to a higher support level or specialist, often an indicator of complexity or chatbot limits.

Expansion revenue is extra revenue generated from existing customers through upsells, cross-sells, or upgrades, without acquiring new customers.

First Contact Resolution measures the percentage of customer questions resolved during the very first interaction, with no follow-up needed.

First Response Time (FRT) is the time between the moment a customer reaches out and the first reply from your team. It is one of the most important KPIs in customer service.

A free trial gives potential customers temporary full access to a product so they can experience its value before paying.

Freemium is a business model where a basic version of a product is free, and customers pay for extra features or higher limits.

Fulfillment covers all steps after an order: from picking and packing to shipping and, if needed, return processing.

A funnel is a model that describes the customer journey from first contact to purchase, where a portion of visitors drops off at each stage.

The GDPR (General Data Protection Regulation) is the European privacy law that determines how businesses may collect, store, and process personal data of customers.

A helpdesk is software that lets you centrally manage, answer, and follow up on customer questions. It offers features like ticketing, automation, reporting, and multichannel communication.

Intent recognition is the AI technique that lets software understand what a customer actually wants to achieve with a message, regardless of exact wording.

An internal note is a message within a conversation that's visible only to your team, not to the customer.

iPaaS is a cloud platform that lets you connect different applications and exchange data between them without writing code, like Zapier or Make.

IVR is an automated phone menu that routes callers via keypad or voice input to the right department or information.

A knowledge base is an online collection of articles and guides that lets customers find answers to common questions on their own.

KPIs are measurable indicators that show the performance of your customer service. Common KPIs include First Response Time, CSAT, NPS, resolution rate, and average handling time.

A landing page is a web page specifically designed to convert visitors to a desired action, such as a purchase, sign-up, or demo request.

Live chat is a communication channel that allows visitors to chat with your customer service in real-time, directly on your website. It is the fastest channel for customer service and increases conversion.

A Large Language Model is an AI model trained on massive amounts of text that can understand and generate human language.

A loyalty program rewards returning customers with points, discounts, or exclusive perks to encourage repeat purchases.

LTV is the total revenue an average customer generates over the entire relationship with your business.

Machine learning is a form of artificial intelligence where software learns from data and recognizes patterns without being explicitly programmed.

Meta Business Manager is Meta's central platform for businesses to manage their Facebook, Instagram, and WhatsApp Business accounts.

MRR is the predictable, recurring revenue a SaaS business generates each month from subscriptions, excluding one-time income.

Multichannel means you offer customer service across multiple channels: email, WhatsApp, live chat, social media, and phone. Customers choose the channel that suits them best.

NLU is the AI discipline focused on understanding the meaning and context of human language, the foundation under modern chatbots.

No-code refers to tools that let users build workflows, apps, or automations through a visual interface, without needing programming skills.

NPS measures customer loyalty by asking: 'How likely are you to recommend us to a friend or colleague?' The result is a score from -100 to +100.

Net Retention Rate measures how much revenue you retain and grow from existing customers, excluding new customers.

Omnichannel is a customer service strategy where every channel — email, WhatsApp, chat, social — is connected, so customers never have to repeat themselves.

Onboarding is the process of familiarizing new customers or users with a product or service so they quickly experience its value.

Open rate is the percentage of recipients who actually open a sent email, a basic measure of your subject line and timing effectiveness.

Opt-in is the explicit consent a customer gives to receive messages from you, for example via WhatsApp or email.

Peak hours are the times when the most customer traffic comes in, crucial to recognize for capacity planning and staffing.

Personalization is adapting content, offers, and communication based on individual customer data, behavior, and preferences.

Predictive analytics uses historical data and statistical models to forecast future events or trends, such as ticket volume or churn.

Proactive chat is actively starting a conversation with a website visitor based on their behavior, like lingering on the checkout page.

Product-Led Growth is a growth strategy where the product itself is the primary driver of acquisition, conversion, and retention, rather than sales.

Prompt engineering is the discipline of crafting instructions to an AI model to get the desired, reliable output.

Queue time is the time a customer spends waiting before an agent picks up the conversation.

Rate limiting is a technique that caps the number of API requests within a timeframe, to prevent abuse and keep systems stable.

A referral program rewards existing customers who bring in new customers, often with a discount, credit, or other incentive for both parties.

Renewal is the moment a customer extends a subscription or contract, a critical moment for a SaaS business's revenue security.

Renewal rate is the percentage of customers who renew their subscription at the end of a contract period, instead of canceling.

Reopen rate is the share of closed tickets that get reopened, often because the issue wasn't fully resolved.

Resolution time is the time between opening and fully closing a ticket, and is a key indicator of your customer service efficiency.

The return policy describes the conditions under which customers can return products. A clear return policy is essential for e-commerce and reduces the pressure on your customer service.

Reviews are ratings and experiences that customers leave about your products or service, visible to potential buyers.

The right to erasure gives individuals the right under GDPR to have their personal data deleted by an organization.

RMA stands for Return Merchandise Authorization: the formal process by which a customer gets approval to return a product.

Routing is the automatic assignment of incoming customer inquiries to the right team or agent, based on predefined rules.

SaaS is a software model where customers use an application over the internet on a recurring subscription, without installing or maintaining anything themselves.

Segmentation is dividing your customer base into groups based on shared characteristics, such as behavior, location, or purchase history.

Self-service means customers can resolve their own questions through a knowledge base, chatbot, or customer portal, without agent involvement.

Sentiment analysis is an AI technique that detects the emotional tone of text — positive, negative, or neutral — to gauge customer mood.

SEO is optimizing your website so it ranks higher in search engines like Google, attracting more organic (free) traffic.

A shared inbox is a central place where all customer messages from different channels come together, so your entire team can work on them collaboratively without messages being missed or answered twice.

An SLA is an agreement about the service level you deliver: for example, maximum response times, availability percentages, and resolution times. SLAs are primarily used in B2B.

An SLA breach occurs when a customer inquiry isn't answered or resolved within the agreed response time.

Spam score is a rating email providers assign to a message to estimate how likely it is to be spam, affecting deliverability.

SSL (Secure Sockets Layer) is a security protocol that encrypts the communication between a website and the visitor, recognizable by the lock icon and 'https://' in the URL.

SSO is an authentication method that lets users access multiple applications with one set of credentials, without logging in separately each time.

A sub-processor is a third party engaged by a processor to process (part of) personal data, such as a hosting provider.

Support tiers distribute customer inquiries across levels of increasing complexity, with simple questions handled by Tier 1 and complex issues escalating to higher tiers.

Tags are labels you assign to conversations or tickets to categorize, filter, and analyze them by topic.

Ticket snoozing means temporarily hiding a conversation from your active inbox until a specific moment or event occurs.

Ticket status shows what stage a customer inquiry is in, such as open, in progress, pending, or closed.

A ticket system is software that converts customer questions into tickets: numbered requests that you can assign, prioritize, track, and handle until they are resolved.

Ticket volume is the total number of incoming customer inquiries in a given period, across all your channels.

A touchpoint is every moment a customer interacts with your brand, from an ad to a support conversation.

Triage is the process of quickly assessing and prioritizing incoming customer inquiries by urgency and impact.

Unsubscribe rate is the share of recipients who opt out of your communication after receiving a message.

Upselling is a sales technique where you offer a customer a more expensive or better version of the product they are considering. It increases the average order value.

Uptime is the percentage of time a service or website is actually available and reachable for users.

UTM parameters are small pieces of text added to a URL to track which campaign or source brought a visitor to your site.

UX is the total experience a user has when interacting with your product, website, or service — from navigation to customer service.

Voice of Customer is the systematic collection and analysis of customer feedback to improve products, service, and policy.

VoIP is a technology that lets you make phone calls over the internet instead of through a traditional phone line.

A WABA is the official business account businesses need to use the WhatsApp Business API and communicate with customers at scale.

A webhook is an automatic notification sent when an event occurs. It lets you connect your helpdesk to other systems without manual actions.

The WhatsApp Business API is the professional version of WhatsApp for businesses. It lets you send and receive WhatsApp messages through your helpdesk, with support for multiple agents.

A WhatsApp catalog is a product listing that customers can browse directly inside a WhatsApp conversation, complete with photos, prices, and descriptions.

The green checkmark next to your business name on WhatsApp Business shows customers that Meta has verified your account as an official, trusted company.

A WhatsApp QR code is a scannable code that, when scanned, opens a WhatsApp conversation directly with a pre-filled message, handy for offline-to-online contact.

WhatsApp quality rating is a score (high, medium, low) Meta assigns to your business number, based on customer feedback and blocks.

A WhatsApp template is a pre-approved message format businesses use to reach customers outside the 24-hour window, such as order confirmations or appointment reminders.

White-label means a product is offered under another company's brand name, with no visible trace of the original vendor.

Workforce management is the process of forecasting customer demand and scheduling enough agents to meet that demand.