Categories
Marketing Acronyms

Call To Action (CTA)

AKA:
Button

What does it mean:

Typically placed in a large button on a website or service, the Call to Action is meant to prompt an immediate response or encourage a fast sale. 

The formula:

Often an imperative verb such as ‘Call Now’, ‘Buy Today’, ‘Tell Me More’

Use it in a sentence:

To colleagues:

“Let’s A/B test the CTA on our homepage to make sure we’ve used the right words there.”

To investors:

“We know what CTA our users best respond to thanks to user surveys and campaign testing.”


At a party:

“I’ve got a CTA none of you can refuse. Who wants a SHOT?!?”

Want to learn WTF more marketing acronyms mean?

Get the book!

Categories
Marketing Acronyms

Click Through Rate (CTR)

AKA:
Campaign performance, keyword performance 

What does it mean:

Typically placed in a large button on a website or service, the Call to Action is meant to prompt an immediate response or encourage a fast sale. 

The formula:

(Clicks / Total Impressions) * 100 = Click Through Rate (CTR) %

Use it in a sentence:

To colleagues:

“Our last AdWords campaign had a CTR of less than 1%. Let’s optimize it further and target 2% next month, ”

To investors:

“We do a lot of testing on our ad creatives to find the best CTR.”


At a party:

“Do you guys ever put subliminal messages in your banner ads just to see if it improves CTR? What? Just me?”

Want to learn WTF more marketing acronyms mean?

Get the book!

Categories
Marketing Acronyms

Google Analytics (GA)

AKA:
That thing you setup once then never looked at again.

What does it mean:

It’s the most widely used and free analytics software from Google. 

Use it in a sentence:

To colleagues:

“I was looking through GA and noticed Tuesday seems our best day for conversions.”

To investors:

“Would you like access to our GA to see how our monthly traffic has improved lately?”


At a party:

“Everyone pull out your GA app and let’s see who has the most real-time visitors.”

Want to learn WTF more marketing acronyms mean?

Get the book!

Categories
Marketing Acronyms

Key Performance Indicator (KPI)

AKA:
Lead Indicator, Lag Indicator, Metric, Index, Key Figure

What does it mean:

It’s a highly measurable value that tells you how a business is achieving its main objectives. For many startups that might be revenue but can be other things such as connections made, courses completed, campaigns run, and so on.

The Formula:

Highly variable depending on the business

Use it in a sentence:

To colleagues:

“Let’s make our Objectives and Key Results (OKRs) focused on our top KPIs, revenue and new user signups.”

To investors:

“I use a custom KPI dashboard to follow our most important metrics in real time.”


At a party:

“There’s a guy at this party who works at Uber. Pretty sure their main KPI these days is lawsuits per month.”

Want to learn WTF more marketing acronyms mean?

Get the book!

Categories
Marketing Acronyms

Life Time Value (LTV)

AKA:
Customer lifetime value (CLTV)

What does it mean:

Plain and simple it’s the average revenue that each of your customers gives you over their lifetime. It’s most applicable to a recurring SaaS business model but can be used in other models. 

The Formula:

Average Monthly Recurring Revenue Per Customer (ARPU) ÷ User Churn Rate = LTV

Use it in a sentence:

To colleagues:

“Our LTV has been very flat, are there any add-on services we can start to sell to increase it?”

To investors:

“We are improving our LTV by reducing churn and selling into larger companies now.”


At a party:

“I don’t want to brag, but our LTV is higher than Dropbox.”


Want to learn WTF more marketing acronyms mean?

Get the book!


More Marketing Definitions

  1. Average Revenue Per User (ARPU)
  2. Annual Recurring Revenue (ARR)
  3. Average Order Value (AOV)
  4. Customer Acquisition Cost (CAC)
  5. Conversion Rate Optimization (CRO)
  6. Cost Per Click (CPC)
  7. Cost Per Lead (CPL)
  8. Cost Per Mille (CPM)
  9. Call To Action (CTA)
  10. Click Through Rate (CTR)
  11. Google Analytics (GA)
  12. Gross Merchandise Value (GMV)
  13. Key Performance Indicators (KPI)
  14. LifeTime Value (LTV)
  15. Monthly Recurring Revenue (MRR)
  16. Month on Month (MoM)
  17. Net Promoter Score (NPS)
  18. Search Engine Optimization (SEO)
  19. Search Engine Results Page (SERP)
  20. Social Media (SoMe)
  21. Unique Selling Proposition (USP)
  22. Urchin Tracking Module (UTM)
  23. Word of Mouth (WOM)
Categories
Marketing Acronyms

Monthly Recurring Revenue (MRR)

AKA:
Monthly Revenue, Subscription Revenue

What does it mean:

Used in subscription-based businesses it’s your total revenue from your recurring payments. Recurring is the key part when talking about MRR. It does not include one time payments for example and you would not use MRR to talk about traditional e-commerce businesses. 

The Formula:

Average Revenue Per User (ARPU) x Number of customers = MRR

Use it in a sentence:

To colleagues:

“Reducing our churn rate by 50% should have the biggest impact on improving our Monthly Recurring Revenue (MRR)”

To investors:

“Our MRR has been growing on average 20% each month for the last year.”

At a (work) party:

“Pretty sure we just spent to double our MRR to have this party. Thanks VCs! ”

Want to learn WTF more marketing acronyms mean?

Get the book!

Categories
Marketing Acronyms

Month on Month (MoM)

AKA:
Monthly change, Momentum 

What does it mean:

Used when talking about changes between monthly metrics, often revenue or user signups. 

The Formula:

This Month’s Revenue / Last Month’s Revenue * 100  = MoM % change

Use it in a sentence:

To colleagues:

“Growth of paid users MoM should be our primary focus this quarter.”

To investors:

“Our revenue has been growing on average 20% MoM for the last year.”


At a party:

“When I moved to San Francisco I hoped my business would grow MoM, but so far only my rent costs have.”

Want to learn WTF more marketing acronyms mean?

Get the book!

Categories
Marketing Acronyms

Search Engine Optimization (SEO)

AKA:
Search Optimization, Organic Search, PageRank (PR), Earned Traffic

What does it mean:

Manipulating the search results on Google for fun and profit. Essentially making your site rank higher in search for specific keywords or general topics. 

Simple formula:
In a cluster of (4) links each page would be assigned PR of ¼ or .25. So a total of 0.75 PageRank is passed on to page D to improve rankings.

A PageRank (PR) + B PageRank (PR) + C PageRank (PR) = Page D Received PageRank (PR)

Use it in a sentence:

To colleagues:

“We should invest now in SEO to start seeing organic traffic improve in the next few months.”

To investors:

“We use a combination of SEO and content marketing to generate lots of free users.”


At a party:

“Did I ever tell you the time I did SEO on my friend’s personal website to rank for the search term ‘pickle fetish’?”

Want to learn WTF more marketing acronyms mean?

Get the book!

Categories
Marketing Acronyms

Search Engine Results Page (SERP)

AKA:
Search Page, Search Listings

What does it mean:

It is the results that are returned from any Google search. Typically broken down into groups of 10 results at a time.

Use it in a sentence:

To colleagues:

“There’s another company with a similar name to us. We should make sure we rank higher on the SERP for our brand name. ”

To investors:

“We have dominated the SERPs for many of our relevant  niche keywords.”


At a party:

“Let’s Google our names and see who has the best looking SERP”

Want to learn WTF more marketing acronyms mean?

Get the book!

Categories
Marketing Acronyms

Social Media (SoMe)

AKA:
Social, Social Network, Social Media Platform (SMP), User Generated Content (UGC), Social Graph

What does it mean:

Used to describe social media platforms such as Twitter, Facebook, and Snapchat. 

The Formula:

Ego + Fame Whoring + Attention Deficit Disorders = Social Media 

Use it in a sentence:

To colleagues:

“Our SoMe channels are not growing lately. We should consider hiring a millennial to run them.”

To investors:

“We generate brand awareness on SoMe through original content and influencer marketing.”


At a party:

“I was going through the host’s SoMe channels before we got here so I knew where the bathrooms were.”

Want to learn WTF more marketing acronyms mean?

Get the book!