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Busting Marketing Jargon – Part 1

The world of business is full of jargon, and marketing itself is no different. Whether you are talking about a churn rate or finding your CPI, it is all too easy for marketers to slip into the lingo. But if you are the client and are new to the marketing world, this can leave you feeling bamboozled. If this is you, we are here to help you with our Jargon Buster.

This is the first of two blogs covering marketing jargon and, in this edition, we are focusing on acronyms. There are nearly as many acronyms in the marketing world as there are in an episode of Line of Duty, so we are covering some of the most common ones that you will likely hear in a conversation with a marketer.

*There may be some terms I have used in this blog to help explain others that will appear in my next blog.


B2B – Business To Business

Simply put this a business model which sells products or services to other companies. This can be anything from office supplies and furniture to software and training.


B2C – Business To Consumer

Following B2B, B2C is a business that sells to consumers directly. This can be either online or offline sales.


CAC – Customer Acquisition Cost

CAC is the amount of money it takes to turn a lead into a customer. It is traditionally worked out by this sum: CAC= Amount spent on sales & marketing in x period / Number of customers during x period.


CLV – Customer Lifetime Value

Building a future relationship with a customer is important for business. For marketing, we try and predict the net profit that will be gained from that relationship. You can calculate a CLV by: (Customer Revenue – Gross Margin) / Churn Rate


CMS – Content Management System

This is a web-based application that is designed to help those of us who are less technical to create, edit and manage a website. One of the most commonly used is WordPress.


CPI – Cost Per Impression

This is the expense incurred each time a potential buyer views an ad you’ve taken out on a webpage. This is not the same as clicks as in PPC. An impression hits when someone who fits certain criteria can view your advert, for example, it is displayed in the website’s sidebar when they are on the page.


CPL – Cost Per Lead

It is important to work out how much your marketing is costing to attract a lead when you are spending on digital advertising on Google Ads. By monitoring this, you will be able to see if your ads keep performing on track.


CRM – Customer Relationship Management

CRM software allows you to track existing and potential customer information and interactions. They can be used to just store contact information all the way up to sending out personalised emails, monitoring login and web activity and purchase information.


CTA – Call To Action

You can find these on most marketing communications to encourage someone to do something. In the digital world, this might be to click through on a link or subscribe or on a physical communication, it might be an instruction to go online for more information or to show the leaflet at the store for a discount.


CTR – Click Through Rate

The percentage of your audience that advances (or clicks through) from one part of your website to the next step of your marketing campaign.


KPI – Key Performance Indicator

A top performer on the jargon front, KPIs are a performance measurement that is used to evaluate the success of an activity or person. By monitoring the performance of your KPIs, you can see how successful a campaign is, and if it needs any improvement to help you reach your goals.


NPS – Net Promoter Score

NPS is a great tool to measure customer satisfaction and find ways to improve your business. Damien’s recent blog delves into more details about this great marketing tool.


PPC – Pay Per Click

Digital advertising on the likes of Google costs money. PPC is the calculation of the amount of money it has taken to get your advert clicked on


ROI – Return On Investment

One of the most important marketing indicators – finding out if the campaign you are running is making your money back and more. If a campaign is losing money, then so is the business. ROI is usually expressed as a percentage or ratio.


SEO – Search Engine Optimisation

Finding your business on a search engine is crucial to draw in new business. By influencing elements of your website, you can boost your position on the search ranking. Olly has set out some of the top tips you can do to improve your own site in his previous blog.


SLA – Service Level Agreement

SLAs differ from KPIs but are very similar in many respects. An SLA provides a level of expectation that can be measured between a client and agency or individual with regards to performance. This can be a minimum time spent on a project or meeting deadlines through to a commitment on the level of expected performance each month.


UI – User Interface

This is a way to control a software application or a hardware device. Think about all the devices we use on a daily basis and how we prefer some interfaces over others, for example, Apple over Android or Windows over Macs.


UX – User Experience

An overall experience a particular individual has with a business, from first awareness of the brand, through their interaction, use, purchase and through to (hopefully) being an ambassador for the brand. To ensure a great customer experience, you have to put your views aside and put your efforts into designing an experience for the customers you are targeting.


Part 2 of the Busting Marketing Jargon will be coming soon. In the meantime, if you would like to talk about the marketing for your business (minus the jargon) give us a call on 01522 708 855 or email hello@purplerobot.co.uk