10 Marketing Terms Every Business Should Know

Small business owner marketing jargon is essential to promoting your online business. This guide is a great place to start studying the definitions of basic marketing terms. Understanding basic marketing terms is a good foundation for learning online marketing. The marketing terms listed here are some of the most important and overused words and jargon used by digital marketers and entrepreneurs.

Marketing terms every business

Call to action

A call to action is a message that prompts the user to take an action, something like “Sign Up”, “Buy Now”, “Add to Wish List”, etc. Users must be presented with a clear call to action. Otherwise, even the most interested people will leave your website without making a purchase.

Conversion

When a user takes the desired action, we say they’ve converted. Although all businesses want users to buy something from them, conversions don’t always mean purchases. Depending on the goal of your marketing campaign, a conversion could be a registration on your website, answering a survey, subscribing to a newsletter, etc.

Conversion ratio

The conversion rate can be determined when you measure the drop from one step to the next. For example, the percentage of people who created an account out of the total number of downloads of a mobile app, or the percentage of people who bought something out of the total number of people who clicked a button.

Conversion rate optimization

Through conversion rate optimization techniques, business owners can identify roadblocks in the user journey and remove them to create a smoother process that leads to more conversions. Conversion rate optimization techniques include text changes, color changes, different CTA buttons, landing page changes.

Remarketing

Most users won’t convert on their first visit. But that doesn’t mean they are lost. If a user shows interest in the product/service you offer, you can retarget them with special offers.

Recommendations

Word of mouth can be even more effective than advertising. A referral is essentially an online version of word of mouth. Customers who enjoy using your products/services will refer you to their friends, who are now more likely to buy from you than if they had just seen an ad.

Customer acquisition cost

Customer acquisition cost is the amount of money you spent to convert a user.

Customer lifetime value

Some customers will buy from you only once, some customers will return. Some customers will spend a lot of money on your website, while others will only buy the cheapest products. CLTV is the total amount of money a customer has spent on your website since becoming your customer. Determining customer lifetime value for each customer is important because it helps you identify who your most loyal customers are.

Offers

When you use paid campaigns on Facebook or Google, you are bidding against other businesses that want to advertise their products to the same users. Bid management tools allow you to automate CPC for different campaigns to get the best results with the least resources.

Pay per click

Pay per click is an online marketing method where businesses pay a fee for each click on one of their ads. PPC marketing is extremely effective and usually much cheaper compared to offline marketing. It allows advertisers to bid on the placement of an ad in a search engine’s sponsored links when someone searches for a keyword that is related to their business offering.

Conclusion

Marketing is a dynamic and constantly evolving field. New marketers often struggle with new terminologies they may not have heard of before.