How to Decode Marketing Jargon for Small Business Owners: A Simple Guide
Do you feel lost when you hear marketing terms like SEO, PPC, CTR, and USP? You’re not alone. Many small business owners struggle to understand the meaning and importance of these marketing jargon. But don’t worry, I’m here to help you. In this post, I’m going to explain 10 common marketing terms in plain English, so you can use them to grow your business.
What is SEO and why is it important?
SEO stands for Search Engine Optimisation. It means making your website more visible and relevant on search engines like Google or Bing. You want your website to show up when people search for things related to your business, right? That’s what SEO does. It involves using words, content, links, and technical stuff to make your website more attractive and useful for your target audience and search engines.
SEO is important because it helps you get more organic traffic, which means more potential customers, leads, and sales. SEO also helps you build your brand awareness, credibility, and authority online. According to a study by Search Engine Journal, the first result on Google gets 25% of the clicks, while the tenth result gets only 2.5%. So, if you want to get more exposure and opportunities, you need to rank higher on Google.
What is PPC and how does it work?
PPC stands for Pay-Per-Click. It means paying a fee every time someone clicks on your ad. PPC ads can show up on search engines, social media platforms, websites, and apps. PPC lets you target specific words, locations, demographics, and interests to reach your potential customers.
PPC works by bidding on keywords that are relevant to your business. You set a budget and a maximum amount you’re willing to pay for each click. When someone searches for your keyword, your ad may appear on the search results page. If they click on your ad, you pay the fee. The fee depends on how competitive the keyword is and how relevant your ad is.
PPC is a great way to get instant and targeted traffic to your website. You can also measure and optimise your PPC campaigns to improve your return on investment (ROI). However, PPC can also be expensive and time-consuming if you don’t do it right. You need to do proper keyword research, create compelling ads, and track your performance.
What is CTR and how to improve it?
CTR stands for Click-Through Rate. It means the percentage of people who click on your ad (or email) or link out of the total number of people who see it. CTR tells you how effective your ad or link is at getting attention and interest. A higher CTR means that your ad or link is more relevant and appealing to your audience.
CTR is an important metric to measure and improve your PPC and SEO performance. A higher CTR can lead to more traffic, conversions, and revenue. It can also improve your quality score and lower your cost per click on PPC platforms. To improve your CTR, you need to:
Use keywords that match the search intent of your audience
Write catchy and clear headlines and meta descriptions
Include a strong and clear call to action (CTA)
Use images and videos to attract attention
Test and optimise different variations of your ads and links
What is CRO and why should you care?
CRO stands for Conversion Rate Optimisation. It means increasing the percentage of visitors who do what you want them to do on your website or landing page. What do you want them to do? It can be anything, such as signing up for a newsletter, downloading a free ebook, or making a purchase. CRO involves testing and improving various elements of your website or landing page, such as headlines, images, copy, layout, and buttons, to make them more persuasive and user-friendly.
CRO is important because it helps you get more value from your existing traffic. You don’t need to spend more money or time to get more visitors. You just need to make your website or landing page more effective at converting them. CRO can help you increase your leads, sales, and revenue, as well as your customer satisfaction and loyalty. To do CRO, you need to:
Define your goals and key performance indicators (KPIs)
Analyse your current data and identify areas of improvement
Create hypotheses and test different versions of your website or landing page
Measure and analyse the results and implement the winning version
What is CRM and how can it help you?
CRM stands for Customer Relationship Management. It means a system or software that helps you manage and improve your interactions with your existing and potential customers. CRM lets you store and organise customer data, such as contact information, preferences, purchase history, and feedback. CRM also helps you communicate with your customers through various channels, such as email, phone, chat, and social media. CRM helps you build and maintain long-term relationships with your customers and increase their loyalty and satisfaction.
CRM is helpful because it helps you understand your customers better and provide them with personalised and timely service. CRM can also help you increase your customer retention, cross-selling, and upselling opportunities. CRM can also help you automate and streamline your marketing, sales, and customer service processes. To use CRM, you need to:
Choose a CRM software that suits your business needs and budget
Integrate your CRM software with your website, email, and other tools
Segment your customers based on their characteristics and behaviours
Create and execute campaigns and workflows to engage and nurture your customers
Monitor and measure your CRM performance and customer feedback
What is CTA and how to write a good one?
CTA stands for Call-To-Action. It means a word, phrase, or button that urges your visitors to do something on your website or landing page. A CTA should be clear, concise, and compelling, and tell your visitors what they will get or achieve by clicking on it. Some examples of CTAs are “Buy Now”, “Sign Up”, “Download”, and “Learn More”.
CTA is crucial because it guides your visitors to the next step of your conversion funnel. A good CTA can increase your click-through rate, conversion rate, and revenue. A bad CTA can confuse, bore, or annoy your visitors and make them leave your website or landing page. To write a good CTA, you need to:
Use action verbs that convey urgency and value
Use words that appeal to your visitors’ emotions and needs
Use colours and shapes that contrast with your background and stand out
Use the first or second person to create a personal connection
Test and optimise different CTAs to see what works best
What is KPI and how to choose the right one?
KPI stands for Key Performance Indicator. It means a metric or measure that helps you evaluate how well you are achieving your goals and objectives. KPIs can be quantitative or qualitative, and they should be relevant, specific, measurable, achievable, and time-bound. Some examples of KPIs are sales revenue, customer retention, website traffic, and customer satisfaction.
KPI is essential because it helps you track and improve your performance and results. A good KPI can help you identify your strengths and weaknesses, set realistic and attainable goals, and make data-driven decisions. A bad KPI can mislead you, waste your time and resources, and distract you from your priorities. To choose the right KPI, you need to:
Align your KPI with your business vision and mission
Define your KPI based on your specific and SMART goals
Choose your KPI based on your industry and market benchmarks
Monitor and report your KPI regularly and consistently
Review and adjust your KPI as needed
What is ROI and how to calculate it?
ROI stands for Return On Investment. It means the ratio of the profit or benefit that you get from an investment to the cost of the investment. ROI tells you how efficient and effective your investment is and how it compares with other options. A higher ROI means that your investment is more profitable and worthwhile.
ROI is important because it helps you measure and compare the performance and value of your different investments. A good ROI can help you justify your spending, optimise your budget, and allocate your resources. A bad ROI can indicate that you are losing money, wasting time, or missing opportunities. To calculate ROI, you need to:
Subtract the cost of the investment from the gain of the investment
Divide the result by the cost of the investment
Multiply the result by 100 to get the percentage
For example, if you spend $100 on a PPC campaign and earn $150 from it, your ROI is:
($150 - $100) / $100 = 0.5
0.5 x 100 = 50%
This means that for every dollar you spend on PPC, you get $1.50 back. Your ROI is 50%.
What is USP and how to create one?
USP stands for Unique Selling Proposition. It means the factor or feature that makes your product or service different from and better than your competitors. USP helps you communicate your value proposition and attract your target market. A USP should be clear, concise, and compelling, and answer the question “Why should I buy from you?” Some examples of USPs are “The World’s Fastest VPN”, “The Only 100% Organic Skincare Brand”, and “The Ultimate Online Learning Platform”.
USP is important because it helps you stand out from the crowd and win over your customers. A good USP can help you increase your brand awareness, customer loyalty, and market share. A bad USP can make you look generic, boring, or irrelevant.
What is UGC and how to leverage it?
UGC stands for User-Generated Content. It means any type of content that is created and shared by your customers or users, such as reviews, testimonials, photos, videos, and social media posts. UGC helps you increase your brand awareness, credibility, and engagement, as well as generate social proof and trust. UGC also gives you valuable feedback and insights into your customers’ needs, preferences, and opinions.
UGC is powerful because it helps you create authentic and relatable content that resonates with your audience. UGC can also help you reduce your content creation costs and time, as well as increase your organic reach and traffic. UGC can also help you improve your SEO and PPC performance, as well as your conversion and retention rates. To leverage UGC, you need to:
Encourage and incentivise your customers to create and share UGC
Monitor and moderate UGC to ensure quality and relevance
Showcase and amplify UGC on your website, social media, and other channels
Engage and thank your customers for their UGC and feedback
Repurpose and reuse UGC for your own content and campaigns
Conclusion
I’m on a mission to simplify marketing for sole traders and small businesses. I hope this blog post has made some common marketing jargon easier to understand and how they can benefit your business. Marketing jargon can be confusing and intimidating, but it can also be useful and powerful if you know how to use it.
If you need help with your marketing, then get in touch. I’m Debbie Gainsford, a marketing consultant for small businesses. I can help you create a marketing strategy that works for you, and write engaging content that showcases your value and results.
Contact me today and let’s get started!
