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.
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