The Ultimate Marketing Terms Dictionary
Plenty of people work in marketing even though they may have studied something else in college. And while it’s easy enough to learn on the job, there can often be moments where you’ll feel left out of the loop — say, for example, when someone mentions “needing to A/B test the CTR and CRO in order to minimize the CPL.” Say what?
If you feel a bit lost on some of the marketing jargon and acronyms, this guide from Hubspot will help you out. It has a gigantic list of marketing terms and their definitions. Take a look at the full dictionary here and learn a few helpful terms below:
“A semi-fictional representation of your ideal customer based on market research and real data about your existing customers. While it helps marketers like you define their target audience, it can also help sales reps qualify leads. (Learn more about developing buyer personas here.)
The percentage of people who completed a 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.
Lifetime Value (LTV)
A prediction of the net profit attributed to the entire future relationship with a customer. To calculate LTV, follow these steps for a given time period:
- Take the revenue the customer paid you in that time period.
- Subtract from that number the gross margin.
- Divide by the estimated churn rate (aka cancellation rate) for that customer.
For example, if a customer pays you $100,000 per year where your gross margin on the revenue is 70%, and that customer type is predicted to cancel at 16% per year, then the customer’s LTV is $437,500. (Learn more here.)
Return on Investment (ROI)
A performance measure used to evaluate the efficiency and profitability of an investment, or to compare the efficiency and profitability of multiple investments. The formula for ROI is: (Gain from Investment minus Cost of Investment), all divided by (Cost of Investment). The result is expressed as a percentage or ratio. If ROI is negative, then that initiative is losing the company money. The calculation can vary depending on what you input for gains and costs.
Today, marketers want to measure the ROI on every tactic and channel they use. Many facets of marketing have pretty straightforward ROI calculations (like PPC), but others are more difficult (like content marketing).
User Experience (UX)
The overall experience a customer has with a particular business, from their discovery and awareness of the brand all the way through their interaction, purchase, use, and even advocacy of that brand. To deliver an excellent customer experience, you have to think like a customer, or better, think about being the customer. Learn more here.”