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Marketing terms every business owner needs to know

It’s really important, as a business owner, that you have a basic knowledge and understanding of these marketing terms. They will help you understand how well you are marketing your business. Let’s start to understand and improve your marketing right now.

A/B Testing

This is the process of comparing two variations of a single variable to determine which performs best in order to help improve marketing efforts. In other words, which experiments are more successful. For instance, this is often done in email marketing with variations in the subject line or copy for example.

Call-to-action (CTA)

A call-to-action is a text link, button, image, or some type of web link that encourages a website visitor to visit a landing page and become leads. Some examples of CTAs are “Subscribe Now” or “Download the Article Today”

Churn Rate

A metric that measures how many customers you retain and at what value. To calculate churn rate, that the number of customers you lost during a certain time frame, and divide that by the total number of customers you had at the very beginning of that time frame. (Don’t include any new sales from that time frame.)

Clickthrough Rate (CTR)

The percentage of your audience that advances (or clicks through) from one part of your website to the next step of your marketing campaign. As a mathematic equation, it’s the total number of clicks that your page or CTA receives divided by the number of opportunities that people had to click.

Conversion Rate

The percentage of people who completed the desired action on a single web page, such as filling out a form. Pages with high conversion rates are performing well, while pages with low conversion rates are performing poorly.

Cost-per-Lead (CPL)

The amount it costs your marketing organisation or campaign to acquire a lead. This factors heavily into CAC (customer acquisition cost) and is a metric marketers should keep a keen eye on.

Key Performance Indicator (KPI)

A type of performance measurement companies uses to evaluate an employee’s or an activity’s success. Marketers look at KPIs to track progress towards marketing goals, and successful markets constantly evaluate their performance against industry-standard metrics.

Return on Investment (ROI)

A performance measure is used to evaluate the efficiency and profitability of an investment, or to compare of an investment, or to compare the efficiency and profitability of multiple investments.

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