The digital marketing world is growing more complex by the day. As new technologies and trends are being regularly introduced in the financial services, fintech, and marketing world, an agile mindset is vital. Marketers need to know several terms in their work, with more and more added each year. This can be a heavy task. But luckily, we’ve put together a core list for you to keep in your virtual back pocket.
These are the 12 digital marketing terms you should add to your repertoire:
- Conversion rates. A conversion rate is the percentage of customers that interacted with your marketing materials, like filling out a form, clicking an email message, or purchasing a good or service. Conversion rates play an important role in analyzing the buyer journey, and can help inform your strategy in a range of channels.
- Customer lifetime value (CLV). CLV is an excellent way to measure revenue. CLV shows you how much revenue a customer creates for your business. You can calculate it in a simple formula: average purchase × number of purchases × lifespan of the customer= CLV
- Cost per mille (CPM). You can use this phrase when you want to show off your Latin. Translating to “cost per thousand,” CPM refers to the cost per thousand impressions in an ad campaign.
- Customer Relationship Management (CRM). Customer relationship management is an organization’s process for organizing, managing, and maintaining customer relationships. Because this can be a time-intensive process, CRM software is a highly effective tool for marketing teams of all sizes.
- Bounce rates. This is an important metric to keep in mind when analyzing your website. A bounce rate is the number of people who leave quickly, or “bounce,” from your website after visiting just one page. Understanding your bounce rate can help you develop more effective content strategies.
- Cost Per Click (CPC). Used most often on pay-per-click sites like Google Ads, CPC refers to the cost behind each click of a marketing campaign.
- Inbound Marketing. Inbound marketing is a marketing strategy that uses content and other marketing materials to attract customers to your website, social channels, services, or products. An inbound marketing strategy includes the use of SEO to push tailored content to potential customers, while using buyer personas, lead generation strategies, and content marketing to turn potential leads into valuable leads.
- Customer segmentation. Customer segmentation is when you categorize your customers based on specific characteristics or criteria, like their interests, needs, and value to your company. This term is helpful for sending out tailored marketing materials per their interests, i.e. email blasts or campaigns.
- A/B split test. An A/B test is when dual tests on the same deliverable are performed to measure performance. This can be a website, email blast, campaign form, or any other marketing collateral. Because specific variables need to be controlled, CRM software is an extremely helpful tool for running A/B tests.
- Buyer personas. Understanding your buyer personas is a key part of an inbound marketing strategy. These personas are semi-fictional representations of your ideal customer, including their needs, expectations, and interests. These personas help you gain a deeper understanding of your potential customers.
- Cost Per Acquisition (CPA). This digital marketing term refers to the cost it takes to acquire a single customer. It is also a great way to understand how much you are investing in each of your conversions. To calculate CPA, simply divide your campaign cost by the conversion numbers.
- Churn rate. A churn rate represents the percentage of customers who have stopped using your service or product in a certain period of time. To calculate your churn rate in a specific period, divide the number of lost customers by the number acquired.