In the world of digital marketing , familiarising yourself with key terms and acronyms is essential to effectively navigate the industry. In this article, we’ll explore the key words every marketer should know: KPI, ROI, ROAS, B2B, B2C, and LTV. Let’s dive into what each of these terms means and see how to apply them in your digital marketing strategies.
B2C: Business to Consumer
B2C , acronym for Business to Consumer, represents a business model in which companies sell products or services directly to end consumers . This model is especially prevalent in e-commerce phone number database.
- Characteristics of B2C in Digital Marketing
In digital marketing, B2C requires a special focus on the needs and preferences of end consumers . Strategies must be targeted and personalized to attract and retain customers. Examples of B2C include e-commerce platforms, streaming services, and traditional retailers that sell their products online.
B2B: Business to Business
B2B , short for Business to Business, refers to a business model in which companies sell products or services to other companies . This type of transaction is common between manufacturers, wholesalers, and distributors.
- Characteristics of B2B in Digital Marketing
Marketing strategies must focus on building long – term relationships , educating the customer, and providing value through informative content. Examples of B2B include software companies, manufacturers of components for other companies, and marketing agencies that offer services to other companies.
KPIs , short for Key Performance Indicators, are metrics used to evaluate the effectiveness of a company’s activities in achieving its strategic and operational objectives.
Importance of KPIs in Digital Marketing
4 ways to succeed with ecommerce email marketing in 2022 KPIs are essential to measure the success of digital marketing campaigns and strategies. In fact, they allow you to monitor progress towards specific objectives, such as increasing sales or increasing web traffic. Examples of KPIs used in digital marketing can be:
- Conversion rate: The percentage of visitors who perform a specific desired action;
- Cost per acquisition (CPA): average cost to acquire a new customer through marketing campaigns;
- Return on Advertising Investment (ROAS): Revenue generated from a sponsorship compared to the costs incurred for advertising;
- Email open rate: The percentage of recipients who open an email marketing campaign;
- Average Time on Site: Average length of a user’s visit to the website.
Measuring KPIs
Tools like Google Analytics, Google Search Console and marketing automation platforms (e.g. Mailchimp) are essential for monitoring KPIs.
LTV: Lifetime Value
LTV , acronym for Lifetime Value, estimates the total value that a customer will generate for a company during their entire relationship with gambling data .
Importance of LTV in Digital Marketing
Lifetime Value is essential to understand how profitable a customer can be in the long term. Therefore, knowing the LTV allows companies to plan more effective acquisition and loyalty strategies . This index is obtained by multiplying the average value of orders by the number of annual purchases by the average duration of the relationship between customer and company.
ROI: Return on Investment
ROI , acronym for Return on Investment, is a financial ratio used to evaluate the effectiveness of an investment by measuring the total economic return, including both advertising costs and all other associated costs.