RGM® Glossary · Finance & Unit Economics
Growth Glossary — Definition
SHT LETTER-OF-INTELetter of Intent (LOI)
Non-binding agreement on key acquisition terms. A working definition from the RGM marketing glossary.
Non-binding agreement on key acquisition terms.
- Term
- Letter of Intent (LOI)
- Field
- Finance & Unit Economics
- Category
- Finance & Unit Economics
Common mistakes
Keep this in mind.Four failure modes recur with Letter of Intent (LOI). Name them and they are easy to design around.
- No segments. Treating Letter of Intent (LOI) as one number for all. Break it out before you trust it.
- No anchor. Quoting Letter of Intent (LOI) without a starting point. Always pair it with a baseline.
- Wrong target. Treating Letter of Intent (LOI) as the goal. The goal is the outcome it predicts.
- Bad compares. Benchmarking Letter of Intent (LOI) with no adjustment. Account for the model differences first.
Common questions
What is Letter of Intent (LOI)?
Non-binding agreement on key acquisition terms. Settle what Letter of Intent (LOI) covers first; the strategy follows from there.
Why does Letter of Intent (LOI) matter?
Letter of Intent (LOI) shows up in budget reviews and channel reporting. Use it loosely and teams pull apart; use it precisely and the numbers line up.
Where does Letter of Intent (LOI) get used?
Teams put Letter of Intent (LOI) to work on a spend split, a metric, or a head-to-head call. See the Calm walk-through above.
What is the most common mistake with Letter of Intent (LOI)?
Using Letter of Intent (LOI) flat across every segment and showing it without context. Both make a guess look exact.
- What is Letter of Intent (LOI)?
- Non-binding agreement on key acquisition terms. Settle what Letter of Intent (LOI) covers first; the strategy follows from there.
- Why does Letter of Intent (LOI) matter?
- Letter of Intent (LOI) shows up in budget reviews and channel reporting. Use it loosely and teams pull apart; use it precisely and the numbers line up.
- Where does Letter of Intent (LOI) get used?
- Teams put Letter of Intent (LOI) to work on a spend split, a metric, or a head-to-head call. See the Calm walk-through above.