If you’ve been in the marketing game for a while, you’re probably familiar with many of the abbreviated terms banded about in board rooms, articles and blog posts. But it can be hard to keep up with an ever-changing landscape of terminology. While you can look up definitions, today we’re decoding 10 terms every marketer should feel confident using.
- CTA = Call to Action. Simply put, a CTA is a behaviour prompt for your audience, such as ‘call today’, ‘click here’, ‘subscribe’, etc. You’ll usually see CTAs peppered through sales letters and funnels and at the end of emails or social ads.
- B2B/B2C = Business to Business/Business to Consumer. B2B and B2C describe who a business is serving or focusing its marketing efforts on, i.e., to another business or directly to the consumer.
- CVR = Conversion Rate. CVR is a percentage measurement that tells you how well your marketing campaign meets its objectives (for example, mailing list sign-ups or product sales). So, if 100 people read your blog post about your product and 20 click the link embedded in the post and purchase it, your CVR is 20%.
- CPC/PPC = Cost per Click/Pay per Click. CPC and PPC describe a type of advertising where you pay a company, such as Google or Facebook, to host online ads for your business. When someone clicks on your ad, the host charges the advertiser a fee. Cost per Click specifically refers to how much you’ll pay per click.
- TOFU/MOFU/BOFU = Top of Funnel/Middle of Funnel/Bottom of Funnel. These terms pinpoint each stage in the customer journey, from brand awareness to purchasing a product or service. Visualised as a funnel, TOFU describes the moment when a consumer discovers your business, MOFU when they’re thinking about buying from it, and BOFU when they do so.
- GTM strategy = Go to Market strategy. A GTM strategy is a blueprint that breaks down the process of launching a new product or service, from choosing an audience and formulating a content plan to when and where the launch will happen. Having a GTM is an excellent way to get everyone on the same page.
- ICP = Ideal Customer Profile. Similar to a buyer persona, which pinpoints your target audience, an ICP is often used by B2B businesses (see above) to clarify which companies they plan to target. It includes details such as location, size, sector, and revenue.
- KPI = Key Performance Indicator. A KPI refers to any way of measuring a company’s performance. Some frequently used KPIs include conversion rates, bounce rates, return on investment, and subscriber numbers.
- ROAS/ROI = Return on Ad Spend/Return on Investment. Marketing and advertising require a financial investment, often eating up much of a company’s operating budget. While ROI explains how much revenue is generated from your marketing efforts in general, ROAS specifically tracks the money flowing into your business as a result of advertising campaigns. Both assist decision-makers with analysing the cost-effectiveness of their current strategy.
- UX = User Experience. How easy is it for customers to use your website or app? Can they navigate through the pages without getting lost or confused? UX measures how customers feel about interacting with your business, allowing you to identify obstacles that could put them off purchasing.
So, there you have it – ten marketing terms to use when communicating your chosen strategy to other team members. Making friends with these concepts can also prompt new ideas when you’re developing an approach or analysing campaigns. Of course, there is a glossary of terms to learn, but starting with the basics or simply refreshing your memory is a great way to reboot your thought process.
