Marketing Key Terms
Entrepreneurs don’t have a lot of time to become digital marketing gurus and knowledgeable in the developments of that industry – they are too busy doing that for their own businesses. Small business owners love hiring digital marketing firms, usually also small businesses, to take care of this angle of the business for them. While it is best to let the professionals do their job and benefit from their expertise, it is still a good idea to have the hang of the basic lingo. Below are three key digital marketing terms that entrepreneurs should learn:
Your online presence is every instance of your company online and on mobile apps. This is an important word and practice. Consumers turn to the internet to make final decisions on most things, whether it’s buying a new pair of shoes or finding a new investment banker. Studies have shown that 80 percent of consumers check Yelp before buying something. Signpost published a handy resource of 24 free online directories to list local businesses.
Conversion is a good word – it is a customer responding to your marketing effort. Conversion can be specifically defined many ways. Although it is typically measured in a purchase, a successful conversion can mean a lead like an email. Define this in the beginning of your marketing plan, as the goal of digital marketing is to drive conversion.
Customer Acquisition Cost (CAC)
The customer acquisition cost is the amount spent to land a new customer. If you invested $500 in your digital marketing effort and it brings in 10 new customers, then your CAC is $50 a head. New customers are exciting and they can bring in more free business via word of mouth, either directly or with a positive review, but it’s still important for you to know how much new business costs and evaluate your efforts.