Jargon-Busting 15 Marketing Terms

Marketing is notorious for its buzzwords. From “omnichannel” to “CAC” and everything in between, marketers often sound like they’re speaking a different language. If you’ve ever nodded along without fully grasping the terminology, you’re not alone. This article breaks down some of the most common marketing jargon and explains what it really means in practical, everyday terms.

 

1. Funnel

In context: “we need to optimise the funnel”

The “funnel” is a way of describing the customer journey from start to finish – from first hearing about your brand to making a purchase and everything in between. At the top are lots of people who become aware of you, and at the bottom are the few who actually buy. Marketers talk about “moving people down the funnel”.

 

2. Conversion

In context: “our conversion rate is up 2%”

A conversion is simply when someone takes a desired action, such as buying a product, signing up for a newsletter or downloading an app. Conversion rate is the percentage who did that action out of everyone who had the chance.

 

3. ROI 

In context: “we need to prove ROI on this campaign”

ROI (return on investment) is a measure of whether the money you spent was worth it. If you spend £1,000 on ads and make £5,000 in sales from them, your ROI is positive. If you only make £500, then it’s negative.

 

4. CAC

In context: “our CAC is too high”

CAC (customer acquisition costs) refers to how much it costs, on average, to get one new customer. If you spend £10,000 on ads and gain 100 customers, your CAC is £100. Lower CAC is a good thing, essentially.

 

5. LTV

In context: “we need to increase LVT”

LVT, also referred to as customer lifetime value, is the total money a customer is expected to spend with your business over the time they remain loyal to you. If someone buys a £50 subscription every month for two years, then their LVT is £1,200.

 

6. Omnichannel

In context: “we should take an omnichannel approach”

Omnichannel means being present across all the different places your customers might interact with you – like social media, website, email, apps or even physical stores – and making the experience feel consistent.

 

7. KPI

In context: “our KPIs for this quarter are engagement and revenue”

KPIs, also known as key performance indicators, are simply the most important numbers you’re tracking to measure success. For example, a social media KPI might be the number of followers gained, while a sales KPI might be revenue.

 

8. CTR

In context: “the CTR on that ad is strong”

CTR, also known as the click-through rate, is the percentage of people who clicked on a link or ad after seeing it. If 1,000 people saw your ad and 50 clicked, your CTR is 5%, for example.

9. Bounce rate

In context: “our bounce rate is too high”

Bounce rate shows the percentage of people who have visited your website but left without doing anything else. If 100 people land on your homepage and 70 leave immediately, then your bounce rate is 70%, which is far too high. The lower the bounce rate, the better.

 

10. Retargeting

In context: “we’ll use retargeting to capture lost traffic”

Retargeting is when ads are shown to people who have already visited your website but didn’t buy anything. It’s a way to remind them to come back and complete their purchase.

 

11. A/B testing

In context: “let’s A/B-test that subject line”

A/B testing is when you try two versions of something (like an email subject line or webpage) to see which one performs better. It’s like a science experience for marketing.

 

12. Organic vs. paid traffic

In context: “we’re seeing more organic traffic this month”

Organic traffic refers to people who found your website naturally, such as via Google search or word of mouth. In contrast, paid traffic refers to people who came because you paid for them to see an ad in the search engines or on social media.

 

13. Engagement

In context: “we need to boost engagement on social”

Engagement means how people interact with your content – likes, comments, shares and clicks, for example. High engagement means more people are interested in what you’re posting, which is always a good thing.

 

14. CTA

In context: “we need a stronger CTA on the landing page”

A CTA, otherwise known as a call to action, is the part of your content where you tell people what to do next. You could put statements and orders in, such as “buy now”, “contact us”, “sign up” or “download”, to name just a few.

 

15. Churn

In context: “our churn rate increased this quarter”

Churn refers to customers who stop using your product or service. For subscription businesses, it’s how many people cancel each month, for instance.

 

Kumo is a dedicated digital marketing agency with a team of specialists at the helm of everything we do. Based in the heart of Nottingham, we’re pleased to serve clients throughout the country, regardless of the industry or sector you work in. We have a wealth of marketing services available, including SEO, PPC, content writing, website design and more. If you would like further information, get in touch with a member of our friendly, knowledgeable team today – we’re always happy to hear from you.