Essential Terms That Every Online Business Owner Needs to Know
Most business owners spend their days finding ways to provide excellent customer service that not only impresses their customers but also sets them apart from the competition. Giving high-quality service is essential, especially considering the fact that word of mouth has developed into the most essential form of advertising.
However, the more time you devote to your service performance, the less time you will have to update your knowledge regarding the latest developments in online marketing. With that in mind, here are some essential terms that every online business owner should know.
- Online Presence
Your presence online is basically the image you’re presenting to the world of your brand, or company. It’s everywhere where your business can be found, both online, and in mobile applications. In today’s world of connectivity, establishing the best possible presence online is critical, as you want to give your customers the impression that your website is useful, reliable and knowledgeable.
- Call to Action
A call to action, or CTA, is something on your website that helps to prompt your visitors into action. For example, a call to action may be “Call now”, or “Order now for 20% off”. Trying out different CTAs to see how they work will help you to pinpoint the most effective options for your specific business. Remember, no matter how amazing your online presence is, you’re still going to need a call to action. Even extremely interested customers can require a small nudge to direct them towards the right next step.
- Conversion
The Conversion part of online marketing is when your intended customer takes the action you wanted them to take. For example, a conversion could be a purchase, an email or a phone call. The aim of all marketing should ideally be to improve conversions, and you will need to track how successful your efforts to do this are so that you can improve your methods in the future.
- Referral
Referrals are the customers that were prompted to visit your website or business as a result of another company or customer’s recommendation. A trust-worthy recommendation is often the most powerful form of advertising a company can have. By using targeted messages and remarketing efforts, you should be able to promote this valuable process.
- CLTV
CLTV, or customer lifetime value, is the value in cash of your relationship with a customer. This amount is generally based on the complete profit that you estimate you will earn from any specific client over a period of time. For example, if your service costs $100, and customers purchase these services five times during their time with your company, the combined value will be $500. Your CLTV should be higher than the cost of acquiring customers in the first place through marketing efforts.
