In marketing, there’s a lot of jargon to get your head around. Sometimes the terms used are self-explanatory, but other times you might be left scratching your head. We’ve all felt like this at some point, that’s why we decided to make a top ten list of commonly used marketing terms that you may encounter.
A/B Testing – This is when two or more variables such as a web page, app, page element, are shown to users at random, and statistical analysis is then used to determine which of the variables functions better for the goal set by the company testing.
Bounce rate – A Bounce Rate is a term used to analyse web traffic. It represents the percentage of visitors who enter your site and then leave, rather than staying on your site and viewing other pages or taking action. The lower your bounce rate the better. If it’s low, that means visitors are staying on your website and engaging with your content.
Buyer Persona – A buyer persona is a researched-based character that depicts what their average customer might look like. It could include information on how they spend their days, what they do for a living, and how they make decisions.
B2B – B2B stands for business to business. This is when a business makes a commercial transaction with another business. An example of B2B could be a restaurant owner ordering products from a local butcher.
B2C - B2C stands for business to consumer. For example, this happens when you go and buy a McDonald's or a new shirt from amazon. You deal directly with a business and receive their goods or services.
Call to Action - A call to action is something designed to prompt a response or ‘action’ from whoever sees it. An example could be something as simple as ‘buy now’ at the end of a marketing email.
Conversion – A conversion is when a customer completes a desired action. This could be buying your product, signing up for your email campaign or following your social media account.
Conversion Rate – Conversion rate is calculated by seeing how many people fulfil the desired action. For example, if you want 10 people to push a button and five people do, then you would have a 50% conversion rate.
Cost per conversion – This is a metric used to measure how much money it costs to get a customer to make a conversion. For example, if a campaign cost £300 and generated 10 conversions, the cost per conversion would be £30.
Customer Acquisition – Customer acquisition is the process of bringing in new customers to your business and convincing them to buy or use your product or service.
Customer Lifetime Value – A customer's lifetime value refers to the total worth of a customer over the whole period of their relationship with a company. It can be calculated by working out the average amount they spend on a product or service, the number of purchases that customer makes, and the average length of their relationship with your business.
Demographics - Demographics are data measurements that can help you determine your target audience. An example of a demographic would be age, sex, race, or religion.
Digital Marketing - Digital marketing is when companies take themselves online to promote their products or services. By doing this, they’re able to connect to potential customers through a wide range of digital platforms such as mobile, email, social media, and web advertising.
eCommerce – eCommerce refers to the buying and selling of goods and services over the internet. Think Amazon, eBay, transactional websites and more. There are also places like Fiverr and Upwork.
Infographic – An infographic is a graphic visual that’s able to present data and information in a quick, informative, easily digestible and aesthetically pleasing way. These are great for use on social media platforms such as Instagram and LinkedIn.
Key Performance Indicator – A key performance indicator, or KPI for short, is a quantifiable measure that is used to evaluate the success of an organisation, marketing campaign, financial performance, etc.
Landing Page – A landing page is often the page a potential customer will see after clicking an ad from an email campaign or social media promotion. This page is used to retain your audience and encourage them to take further action. Having a good landing page is crucial to increase conversions and generate higher revenue.
Marketing Funnel – The term Marketing Funnel refers to a series of stages a customer goes through before a conversion. There are many different models of the marketing funnel, but they will generally contain the stages of awareness/intention, interest, desire, and action.
Return on Ad Spend – Your return on ad spend (ROAS) is a metric used to measure the amount of revenue generated from the money you’ve spent on advertising.
There are (unfortunately) hundreds of terms used in marketing, but hopefully this quick list will equip you with some basic know-how so that you can navigate through the treacherous waters of the marketing world. At Iocea, it’s our job to know all these terms and more, so to avoid the headache of adding all this vocabulary to your dictionary, why not get in touch and let us do all the heavy lifting? We’ve got a team of dedicated marketing specialists ready to take your business to new heights. Click here to get in touch today.