A
A/B testing (or split testing)
A/B split testing is a simple process that lets you compare two versions of a webpage so you can determine the most effective strategy. You show Version A and Version B to groups of would-be customers during the same time frame to learn which approach nets the higher conversion rate.
A split test lets you compare the success of these variables so you can adjust your campaigns accordingly. It’s like an A/B test for your campaigns.
Address verification service (AVS)
A company that checks your address to make sure it’s correct.
Affiliate marketing
A company that pays you for sending them customers.
Assisted conversions
Assisted conversions are Google’s measure of any interaction, other than the final click, that lead to a consumer converting on a website. Measuring a channel’s impact using assisted conversions allows site owners to understand the true value of a multi-channel approach to delivering conversions.
Attribution model
Attribution modeling is a framework for analyzing which touchpoints, or marketing channels, receive credit for a conversion. Each attribution model distributes the value of a conversion across each touchpoint differently.
A model comparison tool allows you to analyze how each model distributes the value of a conversion. There are six common attribution models:
- First Interaction
- Last Interaction
- Last Non-Direct Click
- Linear
- Time-Decay
- Position-Based
Authorization
The process when your customer’s credit card issuer gives permission and allows a payment transaction to proceed.
Average order value
How much money people spend when they visit your website.
[Sales Revenue] / [Number of Orders Taken] = Average Order Value
Average time on site
How long people spend on your website.
B
Billing address
The address used on a customer’s credit card statement.
Bounce rate
The percentage of people who visit your website and then leave.
Bundling (or product bundling)
When you put multiple items in a package and sell it at a discount.
Business to Business (B2B)
When a business sells to another business.
Business to consumer (B2C)
When a business sells to a person
Buy-to-detail rate
How often people buy an item after they click on an ad for that item.
[Unique Purchases of a Product] / [Product Detail Page Views] = Buy-to-Detail Rate
C
Call to action (CTA)
A call to action (CTA) is a marketing term that refers to the next step a marketer wants its audience or reader to take.
Cart abandonment rate
The Shopping Cart Abandonment Rate is the percentage of online shoppers who add items to a virtual shopping cart but then abandon it before completing the purchase. It shows the rate of interested potential customers who leave without buying anything compared to the total number of shopping carts created.
Step 1: [Completed Purchases] /[ Shop Carts Created x 100] = Percentage of Successful Transactions
Step 2: [100] – [Percentage of Successful Transactions] = Cart Abandonment Rate
Cart-to-detail rate
A metric in Google Analytics (when using the enhanced eCommerce module) which shows the percentage of people who put an item in their shopping cart on a website, after viewing that product’s page. This can be useful in determining how effective a product page is.
[Times a Product Is Added to Cart] /[ Product Detail Page Views] = Cart-to-Detail Rate
Chargeback
A chargeback is a charge that is returned to a payment card after a customer successfully disputes an item on their account statement or transactions report. A chargeback may occur on debit cards (and the underlying bank account) or on credit cards. Chargebacks can be granted to a cardholder for a variety of reasons.
Click-to-open rate (CTOR)
The click-to-open rate (CTOR) compares the number of unique clicks to unique opens. This number indicates how effective the email message, design, and content performed, and whether it created enough interest in the recipient to take action.
[Unique Clicks] / [Unique Opens] x 100 = Click-to-Open Rate
Cohort analysis
Cohort analysis allows us to identify relationships between the characteristics of a population and that population’s behavior.
Conversion funnel
A Conversion Funnel is an ecommerce term that describes the different stages in a buyer’s journey leading up to a purchase. The funnel metaphor illustrates the gradual decline of the number of potential customers as they are guided through the conversion path.
Conversion rate
A conversion rate is how many people bought a product.
[Paying Customers] / [Unique Visitors to Your Site] = Conversion Rate
Conversion rate optimization (CRO)
Conversion rate optimization is a way to improve the conversion rate.
Cookies
Cookies are a way to find out which websites a person visits.
Cross-selling
Unlike upselling, cross-selling or cross-selling has the role of identifying and displaying products that fit the product initially chosen by the customer, but that meet the needs of the customer that the initial product does not meet. You have probably seen on some online stores “other customers have also bought” on the product page or during the order, on the checkout page.
Customer lifetime value (CLV)
Customer lifetime value (CLV) is one of the key stats to track as part of a customer experience program. CLV is a measurement of how valuable a customer is to your company, not just on a purchase-by-purchase basis but across the whole relationship.
D
Discount code (or coupon, or promo code)
A discount code is a code that gives a discount to people who buy a product.
Discount rate
A discount rate is how much money a person gets if they sell a product.
Drop shipping
Dropshipping is a retail fulfillment method where a store doesn’t keep the products it sells in stock. Instead, when a store sells a product using the dropshipping model, it purchases the item from a third party and has it shipped directly to the customer. As a result, the seller doesn’t have to handle the product directly.
E
Email marketing
Is a way to send emails to people who want to hear about a product. Also, this method gets one of the highest ROIs when compared to other marketing channels.
Event-triggered email
Event-triggered email is an email that is sent to people who bought a product.
F
Fulfillment
Fulfillment is the receipt, processing, packaging, and shipping of orders made through your online store.
G
Gateway (or payment gateway)
A payment gateway is a way to take money from customers.
Growth hacking
Growth hacking is a way to grow a business quickly.
I
Inventory
Inventory refers to all the items, goods, merchandise, and materials held by a business for selling in the market to earn a profit.
K
Keyword stuffing
Keyword stuffing is a way to have a website have many keywords.
L
Landing page
In digital marketing, a landing page is a standalone web page, created specifically for a marketing or advertising campaign. It’s where a visitor “lands” after they click on a link in an email, or ads from Google, Bing, YouTube, Facebook, Instagram, Twitter, or similar places on the web.
Listing fee
A listing fee is a fee that a person pays to have their product listed on an online store.
M
Margin (or profit margin)
A profit margin is how much money a person makes after they pay for the cost of a product.
Merchant account provider
Merchant account provider is an online account service provider that lets ecommerce businesses accept debit and credit payments, and temporarily holds the money until it’s transferred to the business’s bank account.
Mobile commerce (m-commerce)
M-commerce (mobile commerce) is the buying and selling of goods and services through wireless handheld devices such as smartphones and tablets. As a form of e-commerce, m-commerce enables users to access online shopping platforms without needing to use a desktop computer.
O
Open rate
An open rate is the amount of people who open an email.
Outsource
The use of third-party vendors to support business needs to reduce overhead costs.
P
Partial shipment
Partial shipment is the delivery of an order in more than one shipment. It means, when a buyer orders goods, all the goods are not shipped at once, rather they are sent to the buyer in parts. To make a partial shipment, it must be agreed upon by the buyer in a letter of credit.
Path Length
Through conversion path length report you can determine the number of touchpoints it takes for users to convert on your website.
U
Upsell
By upselling customers are encouraged to buy a product more expensive than the one they initially chose. The product recommended by upselling, on the online store, is most likely a better and more expensive product, but which still folds on the characteristics of the product initially chosen by the customer.
