Table of Contents
The Top 20 Digital Marketing Terms You Should Know
For this number, we ’ ve avoided creating a selling dictionary of basic terms such as “ social media, ” “ web site, ” or “ ad. ” rather, we ’ ve focused on digital marketing terms that raw and have marketers alike may have overlooked or be fuzzy on. We besides have a bias toward terms that aren ’ thymine just buzzwords but have some kernel behind them. If that sounds like a tilt you ’ re interest in, let ’ s jump in .
1. Conversion rate
conversion rate is the percentage of customers, or potential customers, that take a specific natural process. The “ specific action ” can be anything from opening an e-mail, to signing up for a show, to making a purchase. Since many commercialize efforts focus on compelling a customer to take that next measure in the sales funnel, conversion pace is an crucial marketing metric unit. As a seller, it ’ randomness crucial to be able to contextualize conversion rate data. average conversion rates vary greatly depending on market channel and industry. For example, Marketing Sherpa inquiry found that the median web site conversion rate for the professional or fiscal services diligence was 10 %, while the retail or ecommerce industry was entirely 3 % .
2. Push marketing
Push market refers to marketing efforts designed to send a target message to a given set up of potential or existing customers. Examples of push market include targeted electronic mail campaigns, television receiver and radio ads, and line-of-sight marketing using digital signage within brick-and-mortar locations .
3. Pull marketing
besides called inbound marketing, pull market refers to market efforts designed to “ pull ” or attract sales prospects to your web site, brand, and products or services. Examples of pluck market include SEO ( search engine optimization ) and social media market .
4. Customer acquisition
Digital marketing is all about customer acquisition and retention. Customer acquisition refers to all of the sales and market activities involved in obtaining a customer .
5. Customer acquisition cost (CAC)
Customer skill cost ( CAC ) tells you the average price of acquiring a customer. You can calculate CAC using this formula : sales and marketing expenses ÷ total number of customers = CAC CAC is crucial because, coupled with CLV ( customer life respect ), it can tell you a lot about the electric potential profitableness of your commercial enterprise model .
6. Customer lifetime value (CLV)
Customer life value ( CLV ) tells you the total of tax income a customer generates for your business. CLV is sometimes referred to as life customer respect ( LVC ). There are a count of different ways to calculate CLV, but here ’ s one of the simple : average purchase amount × frequency of purchases × customer lifespan = CLV here are a few rules of thumb you can use to analyze your occupation model using CLV and CAC :
- If CLV divided by CAC is higher than one, each incremental customer is costing you money.
- If CLV divided by CAC is less than one, each incremental customer is bringing in money.
- Generally, having a CAC that’s about a quarter to a third of your CLV is considered a good foundation for profitability. If your CAC costs are lower than that, you may be under-investing in customer acquisition.
7. Search engine optimization (SEO)
Search engine optimization ( SEO ) is one of the most common marketing terms digital marketers encounter. Simply put, SEO is the work of increasing the total and quality of traffic to your web site from amateur web search results. The “ amateur ” separate is important ; SEO excludes paid search .
8. Search engine marketing (SEM)
Search engine market ( SEM ) is the process of increasing the sum and timbre of traffic to your web site using SEO and paid advertisements. In dim-witted terms, SEO + paid search results = SEM.
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9. Search engine results page (SERP)
Search engine results page ( SERP ) is the page of results a drug user sees when they type a terminus into a search engine. broadly speaking, the higher your SERP rank and file for a given term, the more likely a drug user is to click on your result .
An impression is an case of a while of on-line content being shown. Often, the term is used in the world of paid on-line ads. For exemplar, clickthrough rate ( CTR ) is calculated using clicks and impressions .
11. Clickthrough rate (CTR)
Clickthrough rate ( CTR ) is the share of clicks a campaign receives proportional to the number of impressions. A higher CTR often implies that campaigns are resonating more efficaciously with viewers. The formula for CTR is : (clicks on a campaign ÷ total campaign impressions) × 100 = CTR For example, if a given ad campaign has 5 clicks and 500 impressions, the CTR is 1 % : ( 5 ÷ 500 ) × 100 = 1 .
12. Cost per mille (CPM)
price per mille ( CPM ) is one of the few pieces of marketing slang to use Latin. “ Mille ” is Latin for “ thousand, ” and CPM means cost per thousand impressions. CPM is often used for setting the price of a given give ad campaign .
13. Cost per click (CPC)
cost per click ( CPC ) is the selling slang that refers to the cost of each snap in a paid search crusade. With the CPC model, you pay based on clicks as opposed to impressions. CPC is popular on pay-per-click platforms such as Google Ads .
14. Customer relationship management (CRM)
Customer relationship management ( CRM ) is the process of construction, wield, and enhancing an administration ‘s relationship with its customers. For many digital marketers, CRM software is an important aspect of effective CRM because the proper software can enable scalable contact management, customer cleavage, automation of market efforts, and sales analytics .
15. Content management system (CMS)
A content management system ( CMS ) is a type of software designed to simplify the action of creating a web site and publish content. CMS software, such as the very democratic WordPress platform, can help streamline everything from content management, to SEO, to user management .
16. Marketing analytics
Marketing analytics and digital selling go hand in hand. market analytics, or digital market analytics, is a data-driven approach to the measurement of marketing potency. With the data marketers can capture from social media, web forms, and other mediums, market analytics can enable insights that make future campaigns more effective .
17. Bounce rate
bounce rate is the ratio of how many users “ bounce ” after visiting your web site. A “ bounce ” is a sojourn to your locate that doesn ’ thymine involve the user visiting any early pages or taking any other actions. That is, they land on a single page and exit. All else equal, a depleted bounce rate is better than a high bounce rate, but this is another piece of marketing terminology where context very matters. For model, you can expect press releases, contact pages, and product pages to have significantly different bounce rates. After all, a exploiter probable landed on those pages for very different reasons .
18. Return on investment (ROI)
revert on investment ( ROI ) is the share of return key made on a given investment. While there are enough of marketing-specific metrics you ’ ll come across as you work through the market serve, it ’ randomness important not to overlook the fundamentals, such as ROI. Of course, the heavily share of ROI in the populace of market is attributing sales to a given commercialize campaign. How can you know precisely what nudged the customer to make the purchase ? unfortunately, there is no unmarried clear-cut answer to this wonder for every case. however, marketing analytics tools and electronic mail market software such as Mailchimp can help you attribute returns to specific campaigns .
19. A/B Test
A/B tests, sometimes referred to as split-run tests, are tests where two different versions of the lapp thing are tested and measured for effectiveness. In the world of digital market, the “ thing ” being tested is much a network page, sociable media campaign, electronic mail campaign, digital ad, or sign-up form. To effectively A/B test, digital marketers need to control for all variables except the one they ’ rhenium testing, look to avoid diagonal in the manner the examination is delivered, and appropriate a large enough sample size. In many cases, CRM software or electronic mail marketing software can help with A/B test implementation .
20. Customer segmentation
Customer division, besides known as commercialize division, is the serve of categorizing and segmenting customers based on different criteria. The objective of customer cleavage is to enable you to group customers based upon their needs, interests, and budget arsenic well as their likely rate to your commercial enterprise. By properly segmenting your customer liaison information, you can send more target and utilitarian data that your customers are more likely to find compel. For case, proper customer cleavage is a big depart of creating an effective e-mail blast. You may besides boost your conversion rates and overall marketing ROI.
Remember to understand the “why” behind each term
While memorizing a list of marketing terms to know has its benefits, understanding the “ why ” behind each terminus is more significant. As you go through any number of terms like this, be certain the “ why ” makes common sense to you. For example, customer cleavage matters because it enables you to send more useful and target information to your potential customers. similarly, ROI, CAC, and CLV help you understand the profitableness of your efforts. By focusing on the “ why, ” you can better understand how to contextualize the term and make certain you focus on using it ( or not ) to further your market efforts .