Marketing: it’s a crucial part of business that every single company has to deal with at some point or another. It’s what brings customers and clients to you, gets your products or services seen, and what helps to make your business well-known. However, the world of marketing isn’t all that simple. Just like with many fields, the marketing world has its own lingo that can sometimes be difficult to master for those who are new to it. That’s where we come in. Our Columbus marketing agency worked hard to determine the most useful marketing terms for people to know and created a blog series to help define and explain these terms, offering marketing help to all those that need it. The first post in our series will only cover letters A-C, but does so comprehensively.
This type of testing involves taking two versions of the same web page or application and comparing them side-by-side to determine which has the better performance. A/B testing is most commonly conducted in email marketing, varying the copy or subject; calls-to-action, varying word choice or colors; and on landing pages, varying the content. You’ll most likely hear this term when discussing the progress of your various marketing campaigns with your marketing agency.
Analytics is the data of your initiatives i.e., website visitor reports, PPC, social media, etc. collected and analyzed for trends. Programs then use this information to make better informed marketing decisions. Analytics is all about discovering the patterns in data. Our Columbus marketing agency uses analytics to monitor our progress with our clients various marketing campaigns.
B2B is the term assigned to businesses like Google and Oracle that sell to other companies. This is one of the most common marketing terms you’ll see floating around.
B2C, similar to B2B, is the term assigned to businesses that sell directly to consumers. Common examples would be Amazon, Nike, and Apple, all of which are primarily B2C businesses.
The bounce rate on a website refers to the percentage of visitors who go to a page on your website, but leave without clicking anything or visiting another page on your site. High bounce rates can affect your conversion rates.
The bounce rate on emails, however, refers to the rate of undeliverable emails. A high bounce rate here would mean that your email lists have invalid or expired email addresses, making them out of date.
A call-to-action refers to any type of web link (button, image, text link, etc.) designed to entice visitors to go to a landing page and become a lead for you. These are commonly referred to as CTAs and typically say something like “Subscribe Now” or “Get Your Quote Today.” Your marketing agency will use CTAs to encourage visitors to become a lead, like bait.
The churn rate is a metric that helps to measure the numbers of customers you retain and their value. In order to calculate your churn rate, you or your marketing agency can take the number of lost customers during a specific time frame and divide that number by the total number of customers that you had at the beginning of said specific time frame.
- Example: A business has 800 customers at the beginning of the month, but only 650 by the end of the month, their churn rate would be: (800-650)/500 = (150)/800 = 18.75%
The churn rate helps you determine where you stand in terms of your customer acquisition costs. If your customers aren’t sticking around long enough to cover those costs, than you have a problem.
Click Through Rate
The click through rate refers to the percentage of visitors to your website that clicks through your website to find the next part of your marketing campaign. If you need a little marketing help, you can determine your CTR by taking the total number of clicks that your webpage or CTA receives and dividing that by the number of places where people can click (i.e., number of page views, emails sent, etc.)
The conversion rate refers to the percentage of people who performed some desired action on your website, like filling out a form or signing up for an email list. The higher your conversion rate, the better your webpages are performing.
Conversion Rate Optimization (CRO)
Similar to search engine optimization, which most people in the marketing world have at least heard of, conversion rate optimization is the process wherein you or your marketing agency improve the conversion rate of your website through key optimization principles, design techniques, and testing. It’s the process of improving your website’s user-experience, encouraging your visitors to convert to customers. There are a number of ways CRO can be used in a marketing strategy; most commonly, it’s used on websites or landing pages to improve their conversion rate, but it’s also possible to apply it to your CTAs, social media, and more.
The CPL helps you to determine the cost your marketing agency to get a lead. This number factors into your customer acquisition cost.
Our Columbus marketing agency keeps a close eye on both the CPL and customer acquisition costs, as do most other marketing agencies.
It takes quite a bit of time, effort, and dedication to create all of your own content, that’s where crowdsourced content comes in. Crowdsourced content is content created by experts, freelancers, or professional writers that you pay for, rather than trying to keep up with writing all your content yourself. This can prove to be a faster and easier way of keeping up with your content and ensuring it’s well-written and well-researched. Many businesses utilize crowdsourced content for marketing help and even some marketing agencies.
Customer Acquisition Cost (CAC)
The customer acquisition cost is the total number of your sales and marketing costs. In order to determine your CAC, choose a specific time period (year, quarter, or month), then add the following numbers: the amount you spent on program or advertising + total spent on salaries + total spent on commissions + total spent on bonuses + overhead costs, and divide that number by the number of customers you had in your specified time period.
- Example: You spent a total of $500,000 on all your sales and marketing in a month. You added 50 customers in that time period, as well. $500,000/50 = $10,000 CAC for that month.
The CSS is what gives your website the style it has; it controls fonts, colors, and background images. The acronym CSS stands for Cascading Style Sheets. Your CSS affects the tone of your website and the mood you’re evoking in your visitors. It affects their view of your company, especially those that find you through your website originally. It also helps your webpage to adapt appropriately to different screen sizes.
This concludes the first portion of our series on marketing words explained and defined. We hope that this has helped make it easier for you to understand the marketing side of your business and navigate it with more confidence and ease. Stay tuned on our blog over the next week as our Columbus marketing agency defines the rest of our crucial marketing terms through the rest of this series.