We have been in business many years and we work with clients of all different industries and with different levels of marketing knowledge. We even find ourselves having to go back to the books to uncover a term that pops up in conversation. In order to ensure you’re up on the marketing lingo of today, we have created a short list of the top ten marketing terms you should know.
Website Bounce Rate
The percentage of people who land on a page on your website and then leave it without clicking on anything or navigating to any other pages on your site. The best visual is to think of jumping from one trampoline to the next. When a bounce rate is high it means that someone landed on your website and then quickly bounced off. This could mean that you may have a poor conversion rate since people are not staying long enough to fully engage with your brand. Also, this rate can be thrown off if you are strictly driving people to your site to complete a form or RSVP to an event — their time on the site would be limited and they would bounce right off.
A somewhat fictional ideal customer that is created out of real world customers. Market research and real data help build the personas. These buyer personas are helpful for marketers and business owners in order to define the target audience, qualify leads and build near 1:1 communications.
Often times you’ll hear someone say “what’s the CTA?” A CTA stands for call-to-action, which is most often a text link, button, or some type of web link that encourages a website visitor to visit a landing page and then take an action. An example would be “Book Now” or “Call Now”.
When you pay a vendor (i.e. Google, Facebook, etc.) a certain amount of money every time your ad is clicked. Don’t be confused when someone refers to it as “PPC” — it’s all the same.
This is a metric that measures the number of clicks you receive on your ads per number of impressions. This metric is used in pay-per-click (PPC) campaigns. A high clickthrough rate is important to the success of your PPC campaign, as it directly impacts how much you pay every time someone clicks on your ad.
Customer Acquisition Cost
A very important calculation that you must understand since it could be an eye opener to the fate of your company. This calculation can be performed by taking your total sales and marketing cost for a specific timeframe or campaign and then dividing it by the number of new customers brought in during that time. This will give you your customer acquisition cost (CAC). For example, if you spend $20,000 on sales and marketing for a one month campaign and you added 40 customers that month, then your CAC was $500.
Customer Relationship Management
Most commonly referred to as “CRM”. Customer Relationship Management is used as a tool to manage a company’s interaction with current and potential customers. The point of CRM is to help nurture leads and to maintain consistent communication and support with current customers.
Key Performance Indicators
KPI’s are used as a form of measurement to track an activity’s or employee’s success. KPIs are set by the company or the individual managing it in order to provide metrics back. KPIs can be used to determine the success or failure of something (i.e. website traffic, RSVP to event, etc.)
Is the platform that contains the tools and support necessary to create meaningful relationships with leads. Marketing Automation allows companies to improve engagement and increase efficiency in order to grow revenue faster.
A person who visits a website at least one in a given reporting period. This person may visit your page nine times in one day, but your unique visitors won’t show every single visit. Rather, your total visits will.
Now that you are marketing experts, let us know what other terms you hear that confuse you and you would like us to provide a simple definition for.