Acronyms from Digital Marketing for Beginners (II) aka The Power of C
Before we get into it, you need to be sure that this is the place you wanted to get to. We’re going to analyse some of the most used and important acronyms but we’re already in our second part. If you find that the term you are looking for is not at hand, visit our first article (here) or wait for our next one (yes, it looks like there will be another one). Now that the concept is clear, let’s get started.
CPA – Cost Per Action
And what do you mean by CPA?
In our previous article about PPC ads (Find it out here)we talked about how the advertiser paid depending on the number of clicks that their banner or ad had received. Well, the CPA refers to the amount the company spends on each action. We are not only talking about clicks, there are other ways to develop this technique such as paying per comment, sale or even form submitted, that is per lead(here is an article about some marketing terms that might come in handy)
CPC – Cost Per Click
And what do you mean by CPC?
It is a formula to advertise on a paid basis, and also to control advertising expenditure. A strategy widely used in digital advertising campaigns. The budget is usually limited to a certain amount, in order to calculate how many clicks or how much investment is needed to get a customer.
CPL – Cost Per Lead
What do you mean by CPL?
Without leaving the CPA concept, we find the cost per lead. The company pays when it obtains a lead, that is, when a user becomes a potential customer when he/she is interested in our product or service. They make their interest clear by leaving their details on a landing page and waits for a reply from the company. This response may vary depending on the company but can range from making a phone call to sending an email with a quote.
CR – Conversion Rate
What do you mean by CR?
It is the percentage of users who have completed the action that the company had as a goal. This objective varies depending on the company and its priority, but it can range from making a purchase to filling out and submitting a form.
CRM – Customer Relationship Management
And what do you mean by CRM?
CRM software is a company’s set of strategies for managing the database of its users and dealing with them. This could be, roughly speaking, an overview of the definition. The platform manages and brings together all important aspects; marketing, after-sales customer service and sales. Its use has multiple advantages, besides having all the information gathered and ordered in one place, it allows you to manage customer acquisition campaigns with a better segmentation.
CRO – Conversion Rate Optimization
What do you mean by CRO?
Let’s remember that conversion is, no more, no less, the point at which a user does what we intended. That is, buying some of our products or services, or subscribing to our newsletter. Whatever our goal is, conversion is the name given to the action as the user becomes a customer. Understanding this, it is obvious to see how a high conversion rate is good news for us so our efforts should focus on how to make it happen. Although CRO techniques are mostly applicable to web pages and landing pages, we can also use them in social networks or even in CTAs.
CTR – Click Through Rate
What do you mean by CTR?
For some nostalgic gamer, seeing these acronyms may bring to mind the game Crash Team Racing, where Crash Bandicoot was doing some crazy stunts with his car. But no, although he / she is not wrong, 99% of the time we are referring to the percentage of clicks.
It is a percentage that helps us to know how many users have clicked on our banner or CTA after having seen it. It is a basic KPI to know if our campaign is working as expected. A high CTR indicates that our customers are interested in our content, which is of quality, and good leads.
CLTV – Customer LifeTime Value
What do you mean by CLTV?
The lifetime value of a customer and no, we haven’t suddenly set up a funeral parlour, we are still in digital marketing. CLTV is a metric that lets us know how much revenue a customer brings us over time. The time we are referring to is their time as a customer, it can be days or years. In order to calculate this metric we need an estimated average time, and of course, the longer it is, the better it will be for the company.
CAC – Customer Acquisition Cost
And what do you mean by CAC?
In other words, the amount of money a company needs to invest to acquire a new customer. In addition, the CLTV plays an important role here, because if the customer buys again, if his / her average lifetime is longer, the investment will be more and more profitable and the CAC will be lower and lower.