Glossary of Marketing Terms

AOV (Average Order Value) is an eCommerce metric marketers use to measure the average amount customers spend per transaction on a website or an app. The metric helps businesses gauge engagement rates and drive higher spending. AOV analysis helps marketers dive deeper into purchasing patterns and boost revenue per transaction.

Branded traffic embraces visitors to a website who arrive by directly typing in keywords that specifically reference the brand or company. This typically includes the brand's name to ensure a direct association between the search query and the business.

Breadcrumbs are interface navigational elements that enhance user experience and improve the search engine crawlability of your site.

CLTV or CLV (Customer Lifetime Value) indicates the total amount a customer is expected to spend with a business during their relationship. CLTV is a digital marketing metric that projects the long-term value of each customer, i.e. the net profit a customer would contribute to the company.

CPA (Cost Per Acquisition) gauges the average ad spend to acquire customers. The metric measures the total cost of a customer who completed an action, like sales or form submissions. CPA indicates the aggregate cost to acquire one paying customer on a campaign down the sales funnel: from the first touch point to the conversion. CPA measures the performance of paid marketing channels.

(CRO) Conversion Rate Optimization increases the percentage of website or mobile app visitors who complete a desired action like purchasing or filling out a form. CRO involves identifying and improving essential website or app elements to enhance user experience and drive conversions.

Click-Through Rate (CTR) measures the ratio of clicks an ad receives compared to the total number of times it is displayed. CTR percentage is calculated by dividing the number of clicks on an ad by the number of impressions, i,e, the times the ad is shown. CTR helps marketers evaluate ad effectiveness in driving user engagement and encouraging users to take action on a website or an app.

Censydiam is a marketing tool used to study consumer motivation. Companies leverage this business growth model when researching and developing their strategies. Censydiam wheel uncovers unmet emotional needs of consumers while diving deep into the niche and analyzing competitors. Companies leverage customer needs to ensure better positioning and pursue a standing-out communication strategy.

Churn rate measures the percentage of customers who stop doing business with a company during a specific period. The ideal churn is 5-7% annually or less than 1% monthly for established businesses. The formula is: lost customers ÷ total customers at the start x 100. Tracking churn helps companies understand customer retention and overall performance.

Client Acquisition (CAC) encompasses sales and marketing costs incurred to acquire new customers, generate leads, and obtain subscribers. CAC is the ratio between the total marketing and sales budgets and the number of successfully converted prospects. The CAC metric is essential to optimize the efficiency of customer acquisition efforts.

Conversion Rate (CVR) measures the percentage of website or app visitors who’ve completed a desired action: made a purchase or clicked on a link. CVR  shows how well companies drive user engagement and conversions. CVR percentage formula is dividing the number of conversions by the total number of visitors multiplied by 100.

Customer journey mapping visualizes customer interactions, needs, and perceptions throughout their journey with an organization. It covers four stages: awareness, consideration, decision, and loyalty. The tool helps businesses understand customer expectations and improve experiences at every touchpoint, ensuring positive interactions.

Demand generation is a marketing strategy to create awareness and stimulate interest in a company's products or services. The approach helps marketers identify consumer needs, promote offerings, and generate potential leads. The demand generation strategy embraces targeted marketing programs that drive awareness, engage the right audience, and build relationships.

Destination marketing promotes a specific location like a town, city, region, or country to attract more visitors. This type of marketing boosts tourism and generates revenue by highlighting destination benefits. Destination marketing involves strategies and actions to advertise and draw tourists to a particular place.

Dynamic content is adaptive web content that implies automatic personalization based on user data, preferences, and behaviors. It updates in real time to align with the user's profile, location, search terms, and browsing history to deliver an engaging user experience.

Favicon is a 16x16 pixel icon displayed in browser tabs, bookmarks, history, and search results. It enhances brand recognition and improves user navigation across tabs and links. A standout favicon makes your site more recognizable in Google search results and ensures a better user experience.

A Floodlight tag is an HTML code created by DoubleClick Campaign Manager. Flooding tags are used on conversion pages to track website activity. Part of Google's DoubleClick platform, Floodlight tags track conversions to optimize ad campaigns within the Google Marketing Platform.

Leads (lead gen) implies attracting and engaging potential customers to increase future sales. Effective lead generation involves interacting with your target audience to get their contact information. The strategy includes paying to display ads to attract targeted traffic to your website. The lead generation process assumes capturing your user data and nurturing the leads who share the attributes of your buyer personas.

Local SEO is a strategy to enhance your business's visibility in local Google search results. By improving search visibility, traffic, and brand awareness, local SEO helps Google understand your business location, offerings, and credibility. Effective local SEO attracts new customers, boosts organic traffic, and helps compete with local leaders by optimizing relevant local keywords.

Market segmentation is the strategic practice of dividing a target market into smaller groups. Segmentation based on demographics, needs, priorities, interests, and other psychographic and behavioral patterns lets marketers better understand and target their audience. The strategy aims to create groups of prospective buyers with shared needs to ensure enhanced targeting.

Marketing reach gauges the audience potentially targeted by an ad campaign or a marketing message. Marketing reach estimates the number of prospective customers likely to see your ad. The metric helps marketers forecast how many people will be exposed to their content across marketing channels. This is crucial to evaluate the scope of an ad campaign and distribute the marketing budget.

Net Promoter Score (NPS) measures customer loyalty by asking how likely customers are to recommend a business. The score ranges from -100 to +100, with a higher score indicating stronger loyalty. NPS = % Promoters - % Detractors. A score above 0 is good, 20+ is great, and 50+ is excellent. NPS is a key metric for understanding customer satisfaction and business performance.

Outbound links are clickable hyperlinks from your website to other sites, also known as external or outgoing links. They share your page's authority with other pages and enhance SEO by linking to credible sources used in your site's content. Effective use of outbound links enhances your site's expertise, authority, and trustworthiness (E-E-A-T) and contributes to SEO success.

Outreach marketing, aka. influencer marketing involves promoting your business to influential figures who can reach your target audience. The strategy includes pitching content to influencers with strong ties to your target market to drive brand awareness, generate leads, and engage potential customers.

Pop-ups are small windows or banners that appear over a website, allowing users to interact with forms, buttons, or links. Common in online advertising, pop-ups can be graphical user interface (GUI) elements or web browser windows. They fall into two categories: desktop/mobile dialogue boxes and online ads. Pop-ups are designed to capture user attention and drive engagement.

Pricing strategy involves analyzing market demand, production costs, and competition to maximize profits and shareholder value. Businesses use pricing strategies to set prices for products or services. Effective pricing considers consumer behavior and psychology to help businesses align prices with consumer needs and market conditions.

RACE Planning Framework outlines key online and multichannel marketing activities vital to enhancing digital marketing efforts. The framework supports the creation of comprehensive marketing plans. The RACE model is a structured approach that helps marketers reach, convert, and engage customers.

(ROAS) Return on Ad Spend measures the revenue earned for each dollar spent on advertising. It’s calculated by dividing the revenue from an ad campaign by the campaign’s cost. ROAS is a key metric to assess advertising effectiveness and optimize marketing strategies by evaluating the return generated from ad investments.

ROMI (Return on Marketing Investment) evaluates the financial effectiveness of marketing initiatives. ROMI measures how much revenue marketing efforts generate relative to the marketing spend. Marketers use the model to assess the profitability and effectiveness of marketing campaigns. ROMI helps marketers make informed decisions about future marketing investments.

ROPO (Research Online, Purchase Offline) is a buying trend where customers research products online but make the final purchase in-store. This behavior reflects how consumers use the internet to gather information and compare options before completing transactions at physical retail locations. ROPO highlights the integration of online research with offline shopping, impacting marketing and sales strategies.

Remarketing is a digital marketing tactic to target users who have previously visited or taken action on a website or an app. The strategy helps marketers engage past visitors with targeted ads to drive conversions. Marketers use remarketing to target users who've interacted with a website or social media content. That's how remarketing helps companies boost engagement and upscale conversions,

Repeat purchase rate (RPR) measures the percentage of customers who buy again after their first purchase. The RPR formula: returning customers  ÷ total customers x 100. A good RPR for e-commerce is 20% or higher, which indicates solid customer retention and satisfaction.

Retention (Retention Rate) measures the number of customers who continue paying for a company’s products or services over time. A high retention rate indicates that current customers value the product and provide a sustainable source of revenue.

SEM Marketing is a digital marketing strategy designed to enhance a website's visibility in search engine results pages, SERPs. While SEM may utilize organic search efforts to drive traffic to a website, it primarily relies on paid search advertising, like Google Ads, to display ads at the top or the bottom of search results.

SEO ROI (Return On Investment) measures the revenue generated from SEO activities relative to the cost. It’s crucial for evaluating the effectiveness of SEO efforts. SEO ROI formula: (Net Profit from SEO Campaign ÷ SEO Campaign Costs) × 100. A positive ROI indicates that organic revenue exceeds SEO costs, which indicates the financial benefits of your SEO strategy.

Share of Voice (SOV) is a critical metric for measuring a brand's visibility and presence compared to competitors across social media and advertising. It is calculated using the formula: Share of Voice = Your Brand Metrics / Total Market Metrics. This metric helps evaluate market dominance and campaign impact across multiple marketing channels.

Social listening involves monitoring and analyzing online conversations about your brand, products, or competitors. By gathering data from social platforms and forums, businesses gain actionable insights into their public perception and ongoing trends. The practice of social listening helps to understand market views, improve ad strategies, and enhance brand reputation based on social media feedback.

Target audience is the specific group of consumers interested in your product or service, based on factors like age, gender, income, location, and interests. This group of consumers is at the core of your ad campaigns and marketing efforts, ensuring that your messaging effectively reaches those most receptive to it and maximizes your advertising impact.

Web push notification is an actionable message sent from a website to a visitor's device via a browser. These are contextual, timely, and personalized messages aimed to enhance user engagement and retention. With high open and click-through rates, push notifications appear over all open windows on mobile and desktop devices, while users do not need to stay on the website to receive them.

eCommerce merchandising helps businesses display their products online to boost traffic, conversions, and sales. eCommerce merchandising is a strategic approach to enhance customer experience and drive revenue. With optimized product placements, businesses match customers with the right products and boost sales.

eCommerce search filters help customers refine search results based on specific preferences, improving navigation and increasing purchase likelihood. proper comprehension of key search query types like exact, product type, symptom/problem, feature, thematic,  compatibility queries, and slang or abbreviation-based queries is vital to optimize search functionality and boost sales on online platforms.

eCommerce subscription allows businesses to sell products or services repeatedly. The model generates consistent revenue through recurring fees, fostering long-term customer relationships. Key benefits for consumers include convenience and cost savings, while businesses enjoy predictable revenue. Subscription platforms allow to maintain a longer lifecycle of provided products or services.