The world of digital marketing can be confusing from an outside perspective due to the volume of technical jargon and acronyms used by those in the industry. To help with your journey we have collated a list of the most important acronyms to ensure you understand exactly what is going on.
AOV – Average order value – (AOV can be calculated by dividing your revenue by the volume of orders. Increasing your AOV is a good way of increasing your overall net profit. This can be done by better merchandising, up-selling or specific deals and offers)
CLV – Customer lifetime value – (CLV is important as it establishes the total value a customer is worth to your business. With this figure you can determine the value of new customers allowing for a more accurate target CPA)
CPA – Cost per acquisition / action – (An online advertising pricing model where the advertiser pays for each specific action or acquisition)
CPC – Cost per click / conversion – (An online advertising pricing model where the advertiser pays for each specific click or conversion)
CPL – Cost per lead – (An online advertising pricing model where the advertiser pays for an explicit sign-up from an interested consumer)
CPM – Cost per thousand – (An online advertising pricing model where the advertiser pays a set price per 1000 views)
CR – Conversion rate – (CR is the proportion of visitors to a website that complete a certain goal. The figure is obtained by dividing the number of goal achievements by visits. It will vary by the source traffic is generated from and is largely based on the user experience. With attention CR can go up and is often a quick way to increase net profit)
CTA – Call to action – (a CTA is a banner, button or type of graphic or text designed to prompt a user to click it. A good CTA will draw potential customers in whilst ensuring relevancy)
CTR – Click-through rate – (CTR is a way of measuring the success of an online advertising campaign. It is calculated by dividing impressions by clicks x100. A higher CTR will drive more traffic to your website)
GA – Google Analytics – (A service offered by Google that generates detailed statistics about a website’s traffic and measures conversion and sales data)
KPI – Key performance indicator – (a KPI is a type of performance measurement organisations use to evaluate their success or the success of a particular activity)
LTV – Lifetime value – (LTV is a prediction of the net profit attributed to the entire future relationship with a customer. Increasing a customer’s LTV is a good way of growing net profit and can be done by improving a customer’s relationship with the business)
MVT – Multivariate testing – (Also known as A/B Testing. MVT is a process by which multiple components of a website or marketing campaign can be tested in a live environment)
PPC – Pay per click – (An internet advertising model used to direct traffic to websites where advertisers pay the publisher when the advert is clicked)
PR – PageRank – (PageRank is a algorithm that assigns a numerical weighting to each URL on a search engine. These URLs are ranked by relevance to the keyword queried)
ROI – Return on investment – (ROI measures the rate of return on money invested in an economic entity in order to decide whether or not to undertake an investment. It is calculated by dividing net profit by cost of investment x100)
SEM – Search engine marketing – (A form of internet marketing that involves the promotion of websites by increasing their visibility in search engine results pages through optimisation and advertising)
SEO – Search engine optimisation – (The process of affecting the visibility of a website or a web page in a search engines natural or un-paid search results. Higher natural placement on a search engine is very useful as it increases the likelihood of customers visiting your website)
SERP – Search engine results page – (The listing of results returned by a search engine in response to a keyword query)
USP – Unique selling proposition – (The factor or consideration presented by a seller as the reason that one product or service is different from and better than that of the competition)
UV – Unique visitor – (A statistic describing a unit of traffic to a website that counts each visitor only once over a time frame)
UX – User Experience – This refers to the way in which a visitor to your site experiences your site. This covers every little detail from appearance to navigation. Site’s which are difficult to use make it more likely that potential customers will try elsewhere.