GLOSSARY OF LAUNCH MARKETING TERMS

A/B Testing

Testing two versions of a marketing asset to see which performs better (testing more than two variations is known as multi-variate testing)

Add-to-Cart Rate (ATC)

The percentage of website visitors who add an item to their shopping cart out of the total number of visitors

AOV (Average Order Value)

The average amount spent by a customer during a single transaction

Attributed ROAS (Return on Ad Spend)

A metric that measures the available and attributable revenue generated for each dollar spent on advertising

Average Order Value (AOV)

Average amount spent by customers per transaction

Average Revenue Per User (ARPU)

Average amount each customer spends with you

Bottom of the funnel (BoFu)

This is when the buyer has identified a problem, researched possible solutions, and is getting ready to buy

Bounce Rate

Emails that were not delivered to the intended recipients’ inboxes

Burn rate

Money you spend every month, i.e. speed of spending.

Business-to-business (B2B)

Selling to other companies

Business-to-consumer (B2C)

Selling to consumers

Buyer Journey

Time or process from initial contact to closing the sale

Call-to-Action (CTA)

A prompt encouraging users to take a specific action (e.g., “Buy Now”)

Cart Completion Rate (CCR)

The percentage of users who complete a purchase after adding items to their shopping cart

Churn Rate

Percentage of users who stop using your product over a given time

Click-through rate (CTR)

The ratio of clicks to impressions for an ad or link. FORMULA: (Number of clicks ÷ number of views) x 100

Conversion Rate (CR)

The percentage of users who complete a desired action after visiting your website or landing page (e.g making a purchase)

Cost of Goods Sold (COGS)

Price to produce your product

Cost Per Acquisition (CPA)

The cost of acquiring a conversion action through marketing efforts

Cost Per Click (CPC)

The amount an advertiser pays each time someone clicks on their ad

Cost Per Impression (CPM)

The cost of 1,000 ad impressions

Cost Per Lead (CPL)

The cost of acquiring a lead

Cost Per Reservation (CPR)

Refers to the amount spent on acquiring a reservation or deposit

Customer Acquisition Cost (CAC)

The cost of getting a new customer

Customer Lifetime Value (CLV or LTV)

The total revenue a customer generates over their relationship with a brand

Customer Relationship Management (CRM)

A tool businesses use to centralize internal and customer data. It helps businesses manage sales deals, track leads and build relationships.

Direct-to-consumer (D2C)

Selling to consumers with no middleman

Go-to-Market (GTM) Strategy

The plan for how a company will launch and sell its product to customers.

Ideal Customer Profile (ICP)

A detailed description of the type of customer that would benefit most from your product or service

Impressions

The number of times an advertisement is displayed, regardless of whether it is clicked or interacted with

Key performance indicator (KPI)

Metrics to evaluate success in different objectives

Landing Page (LP)

A standalone web page created specifically for marketing or advertising

Launch In 5 (LI5)

A book written by Russell Marketing CEO, Will Russell, that is a concise, prescriptive business launch guide for entrepreneurs, particularly appealing to those who are risk-averse

Lookalike Audience (LAL or LLA)

An advertising audience built using the characteristics of an existing audience, like customers or leads, to find new users with similar traits who are more likely to convert

Manufacturer’s Suggested Retail Price (MSRP)

The price a manufacturer recommends retailers sell a product for.

Marketing Efficiency Ratio (MER)

A metric that measures how well a company’s marketing efforts are performing in relation to the resources invested. It’s calculated by dividing the total revenue generated from marketing by the total marketing costs.

Marketing Qualified Lead (MQL)

A lead judged more likely to become a customer based on marketing engagement

Middle of the funnel (MoFu)

Buyers have identified that they have a problem and are continuing to do more research

Minimum Viable Product (MVP)

A product with the minimum features needed to attract early adopters and gather feedback

Monthly Recurring Revenue (MRR)

Predictable monthly income, usually from subscriptions

Open Rate (OR)

The percentage of people who open an email or SMS campaign

Pay Per Click (PPC)

A way of advertising where you pay each time someone clicks on your ad

Pixel (also know an Dataset)

A small piece of code placed on a website that collects data about user behavior. It helps track conversions, build targeted audiences, and measure the effectiveness of ads..

Pre-Launch

The phase before a product or campaign officially launches, focused on acquiring and engaging prospective customers

Proof of Concept (POC)

A demonstration that a business idea or product is feasible

Referral Marketing

Encouraging existing customers to refer new customers

Reservation Page (RP)

A webpage where potential customers can express interest in a product or service, typically by providing contact information or making a small commitment (like a deposit or reservation), often used in pre-launch marketing campaigns

Reservation Rate

The percentage of visitors to a reservation page who complete the action of expressing interest in a product or service, typically by submitting contact information or making a small commitment

Retargeting

The practice of serving ads to people who have previously interacted with your website or landing page, to encourage them to return and convert

Retention Rate

The percentage of customers who continue using a product over a specified time

Return on Ad Spend (ROAS)

The revenue generated for every dollar spent on advertising

Return on investment (ROI)

This metric determines how much money companies make compared to how much money they spend

Search Engine Marketing (SEM)

Using paid search ads to drive traffic to a website

Search Engine Optimization (SEO)

The process of optimizing content to rank higher in search engine results

Social Media Marketing (SMM)

Using social media platforms to promote products and engage with audiences

Social Proof

The idea that people are influenced by the actions and opinions of others

Thank You Page (TYP)

After submitting information, customers are immediately redirected to a thank you page that thanks them for their submission and provides them with potential next steps

Top of Funnel (TOFU)

The initial stage of the customer journey where prospects first become aware of a product

Total Addressable Market (TAM)

The total revenue opportunity available for a product or service

Unique Value Proposition (UVP or USP)

A clear statement that explains how a product or service solves a problem better than competitors

Unsubscribe Rate (UR)

It measures the percentage of recipients who opted out of receiving future emails from your list

Upsell

Encouraging customers to buy a more expensive version of a product or additional features

User Experience (UX)

How users interact with and experience a product or service

User-Generated Content (UGC)

Content created by consumers that promotes a brand, often shared on social media

User Interface (UI)

The design and layout of a product’s interface, particularly digital products

Validation

The process of testing and confirming an idea, product, or market through customer feedback and data

Value Per Session 

The average value generated from a single session or visit to the website

Value Per Subscriber

The average value generated from a single subscriber

Venture Capital (VC)

Investment funds from firms or individuals for early-stage, high-risk startups

Viral Coefficient (k-factor)

A metric that measures the number of new users an existing user generates. This metric calculates the exponential referral cycle – sometimes called virality – that accelerates company growth.