Last week, we started a new series to offer marketing help to those that may be new to the world of marketing. Over the course of this series of blog posts, we will be defining marketing terms that our Columbus digital marketing agency deems the most important to survive and thrive in the marketing world. As we go through the series, we hope that you will not only find it useful to you, but also bookmark it for future marketing help. Without further ado, we present to you letters E-M of our guide to understanding common marketing terms.
A well-maintained editorial calendar is a marketing agency’s best friend. This type of calendar typically includes the content you want to create (category), the topics you want to cover and when you’ll cover them, who to target with each post, and how often you need to publish to best achieve the goals of your marketing campaign. Maintaining this type of calendar can help to keep you organized, your blog well maintained, and prevent any gaps from forming in your content libraries. It can also help to prevent duplicate content.
The engagement rate refers to a social media metric that is used to describe the interactions on the content on your social media pages (likes, comments, shares) receives. Our Columbus marketing agency uses engagement rates to determine whether or not their efforts and messages are resonating with potential customers following the pages.
Evergreen content is a fancy name for timeless content that provides value to the readers no matter how far down the road they find it. This content isn’t time-sensitive, meaning it’s just as relevant ten years down the line as it is the day it’s published. This particular article is an example of evergreen content.
Friction, in the marketing sense, is the element of your website that is a hindrance to your page. This can include any element that is confusing or distracting, leads to stress or agitation for the visitors, causes a poor user-experience, or causes them to leave. Some examples of friction are the following: too much text, conflicting color schemes that are hard on the eyes, too much going on on the web pages or landing pages, distracting menus making for difficult navigation, etc.
This type of marketing refers to the activities that bring visitors in, rather than members of your marketing agency having to go out to gain the attention of your prospects. Inbound marketing is all about getting prospects to come to you: making your website easier to find, gaining your prospects’ attention, and drawing people in to your website from helpful and intriguing content. The more your content is tailored to the interests of your target audience, the more traffic you’ll gain organically overtime.
Inbound links are those links that are placed on other sites directing people to your own website. The more inbound links you get, the higher you’ll rank in search engines. Inbound links can also help to boost your referral traffic.
Key Performance Indicator (KPI)
This type of measurement is used by your marketing agency to determine an activity’s or employee’s success rate. KPIs help marketers determine how their performance compares to industry standards and monitor their progress to achieve marketing goals. Examples of KPIs are customer acquisition cost (which we explained above), homepage views, and blog traffic sources. Make sure you choose the KPI that’s right for you to determine how your marketing campaign is performing.
Keywords are what search engines like Google, Bing, and Yahoo use to rank websites on results. When choosing keywords for your SEO strategy, you want to be sure these keywords are searched frequently but aren’t challenging to rank for due to the competition and that it will appeal to your target audience.
A lead refers to a person or company who has shown or is showing interest in a service or product in some way. There are many actions that can make a person or company go from prospect to lead, including the following: filling out a form, subscribing to a blog or website, sharing contact information to have access to a better deal or coupon, sign-up for an email list, etc. Generating leads is an essential part of getting a prospect to become a customer.
Lifetime Value (LTV)
The prediction of net profit that can be attributed to a customer’s entire future relationship with your business. In order to calculate your LTV for a given time period, you need to determine the revenue paid by the customer within that time period, subtract it from gross margin, then divide that number by the estimated churn rate for that specific customer
- Example: If the specified customer pays you $100,000 per year and your gross margin on that revenue is 70%. That type of customer is predicted to cancel at a rate of 16% per year. ($100,000 – 70%) / 16% = $437,500.
The long-tail keyword is a targeted search phrase with three or more words. Long-tail keywords often includes a head term (a more generic search term) and a few additional words to help refine that search. Here’s an example:
- Long-tail keywords: Columbus marketing agency, online marketing help, marketing strategy help
Your long-tail keywords are more specific in nature, which makes the visitors they attract more likely to convert to customers due to their more concentrated interest.
This abbreviation refers to the ratio of lifetime value to customer acquisition cost, both of which we’ve already covered. Once you’ve determined your LTV and CAC, you need to figure out the ratio of the two.
- Example: If your CAC is $100,000 and your LTV is $437,500, your LTV:CAC ratio would be 4.4 to 1.
More and more people are using their phones to find what they need to nowadays, rather than computers. With that being the case, mobile marketing has become increasingly important in order for businesses to succeed. When your marketing agency mentions mobile marketing, they’re referring to the process of optimizing your marketing campaign for mobile devices.
Monthly Recurring Revenue (MRR)
When determining the revenue a subscription-based business gets each month you have to include the following things: MRR gained from upsells (referred to as net positive), MRR gained by new accounts (referred to as net new), MRR lost from cancellations (known as net loss), and, finally, MRR lost form downsells (known as net negative).
This concludes our second installment of our latest series on marketing terms. Stay tuned over the next few days for the last article of this series, including terms from letters N-W, where we end our list of terms. We hope that this series offers you some level of marketing help as you try and develop your company’s marketing strategy or just strive to discuss what needs to be done with your marketing agency.