Digital Marketing Glossary

A cheat sheet never hurt. That's why we put together this glossary of marketing terms you should know. See a term missing? Tweet us @sailthru and we'll add to the list!

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1:1 Personalization

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  1. One-to-one marketing is a customer relationship strategy emphasizing personalized interactions with customers. This kind of personalization is proven to drive interactions that will foster greater customer loyalty and stronger ROI on marketing initiatives. An effective personalization marketing technology should catalog details, characteristics and preferences of individual customers to provide better service. It is also sometimes referred to as “a segment of one” or micro-segment targeting.
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A/B testing

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  1. A/B testing is comparing two or more versions of a web page, email campaign or push notification etc. and weighing outcomes to determine which performed better. When it comes to comparing email campaigns, it is common to measure effectiveness based on opens or clicks; however, many marketers are shifting towards testing based on downstream analysis to identify campaigns and specific treatments that lead to increased revenue, purchase frequency, and customer lifetime value.
  2. To conduct an effective A/B test, it’s important to only test one thing at a time to get accurate results. Testing multiple variables at a single time can lead to incorrect assumptions. A few things you may consider testing include, but are not limited to:
    1. Subject line
    2. CTA
    3. Email layout
    4. Field insertion (i.e. first name)
    5. Content personalization
    6. Body text
    7. Images
    8. Specific offer
    9. Message type (i.e. informational or promotional)
    10. Time of send
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  1. Average order value or AOV is calculated by dividing sales revenue by number of orders. This is an essential KPI for ecommerce websites that’s used to measure merchandising results, cross-sell and upsell performance and acquisition channel values.
  2. To calculate AOV, you divide the sum of revenue generated by the number of orders taken.
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Click to open rate

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  1. Click to open rate or CTOR reveals the effectiveness of email content through a percentage by dividing unique clicks by unique opens. This metric expresses the ratio of users who opened and then clicked through email. CTOR measures opens and clicks to give you a better idea of your campaign’s true performance and a measure on the relevancy of a given email.
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Click-through rate

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  1. Click-through rate or CTR is a metric that measures the ratio of individuals who click on a specific link to the number of total individuals who view a page, email or advertisement. This metric is commonly used to measure the success of online advertising campaigns as well as email campaigns as a way to determine unique clicks.
  2. To calculate click-through rate = Click-throughs (#) / Impressions (#)
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  1. Customer Lifetime Value or CLV is defined as the total dollars flowing from a customer over the entire relationship with that customer. This metric represents the total net profit a company makes from any given customer. CLV is a projection to estimate a customer's monetary worth to a business after factoring in the value of the relationship with a customer over time. CLV is an important metric for determining how much money a company wants to spend on acquiring new customers through specific channels and how much repeat business a company can expect from certain consumers.
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CRM system

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  1. CRM (Customer Relationship Management) systems are all the tools, technologies and procedures associated with the management of interactions with current/potential customers. It uses data analytics to improve or facilitate sales, support any related interactions with customers, prospects and business partners throughout an organization. Often, this approach focuses on customer retention to ultimately drive sales growth.
  2. CRM systems compile data sets from different communication channel sources; this includes a company’s website, email, marketing materials and social media. Through this approach, organizations aim to learn more about their target audiences and how to better cater their approach to the need of the customer/audience.
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Cross-channel marketing

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  1. Cross-channel marketing is the practice of using multiple channels or media to reach customers and engage them. Cross-channel marketing campaigns are coordinated across the channels and are integrated, as opposed to just simply running simultaneously across different channels. Complex, cross-channel marketing campaigns are meant to enable you to analyze the effectiveness of your email, social, mobile, or advertising marketing campaigns and it’s impact on your organization's ROI.
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Deliverability

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  1. Deliverability measures the ability to deliver email messages effectively to a recipient's inbox while avoiding being lost, blocked or driven to a spam folder.
  2. You can read more about deliverability and 6 ways to improve yours here.
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Email marketing

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  1. Email marketing is a form of direct digital marketing using electronic mail as the marketing communication delivery method. Email marketing is used in a number of different ways by organizations and marketers as a channel to build and retain customer loyalty, acquire or convert customers, display advertisements, promote offers and more. There are multiple forms of email, including recurring, transactional, triggered and more.
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Email template

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  1. An email template is a file of HTML code that defines the structure of your email, its design, images and the content included. Within the HTML of an email template, marketers have the ability to add images, links, GIFs, videos etc. to an email, as well.
  2. A template’s defining feature, however, is its reusability and purpose to be used to build multiple, different email campaigns. This is what makes them different from one-off email campaigns. Templates are saved within your email service provider (ESP) for continued use, and with sophisticated ESPs can be further enhanced with automation, personalization and AI.
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Key Performance Indicator or KPI

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  1. A Key Performance Indicator or KPI is a measurable value that demonstrates how effectively a company is achieving key business goals.
  2. Some sample KPI’s commonly used in B2C marketing are:
    1. Customer acquisition
    2. Customer lifetime value
    3. Unsubscribe Rate
    4. Open Rate
    5. Click Through Rate
    6. Conversion Rate
    7. Average Order Value
    8. Buy Rate
    9. Average Time Before Purchase
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Machine learning

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  1. Machine learning is a type of artificial intelligence (AI) that enables a computer to learn without being explicitly programmed. It also explores the idea that computer programs can change and make predictions when exposed to data or patterns discovered in data.
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Metadata

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  1. Metadata is data information that provides information about other data. Three distinct types of metadata exist: descriptive metadata, structural metadata, and administrative metadata.
    1. Descriptive metadata: this metadata describes a resource that enables discovery or identification; elements can include (for example) title, abstract, author and keywords.
    2. Structural metadata: this metadata is about containers of metadata and how compound objects are put together for example, how pages are ordered to form chapters.
    3. Administrative metadata: this metadata provides information to help manage a resource, such as when/how a resource was created, the file type, technical information and who has the ability to access it.
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Mobile marketing

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Mobile marketing is the promotion of products or services designed to deliver directly to cellphones, smartphones, tablets and other handheld devices. This is usually a component of a larger multi-channel marketing campaign and can provide customers with time and location sensitive, personalized information promoting goods/services.

  1. Marketing through SMS (Short Message Service) became increasingly popular for retail promotions. It allows a brand to quickly and easily communicate a promotion to customers through a simple text message.
  2. Push notifications were introduced by Apple in 2009. They look and behave like SMS notifications, but are delivered to users only if they’ve installed the app associated with the marketing message. Push notifications give marketers the ability to feature more functionality like emojis and videos.
    1. Messaging centers can be used in addition to push notifications to share content and new information that are a vital part of your app’s mobile engagement strategy. Content can be referred back to or expire when no longer relevant.
  3. In-app messages are messages delivered to your users while they are directly active in your mobile app.
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Open rate

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  1. Open rate is a measure of how many people on an email list open or view a particular email campaign. Open rates are normally expressed as a percentage and calculated as such: If your campaign receives a 20% open rate, that would mean of every 10 emails delivered to the inbox, 2 were actually opened.
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  1. Return on investment or ROI is a performance measure used to evaluate the efficiency of an investment. ROI measures the amount of profits returned on an investment relative to the investment’s cost.
  2. To calculate ROI, the return of an investment is divided by the cost of the investment and the result is expressed as a percentage or ratio.
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  1. RPM or Revenue per thousand impressions is a metric most commonly seen in advertising. Advertisers use RPM to evaluate how much revenue was generated for every 1,000 ad impressions served. While it’s traditionally been seen as an ad metric, more and more companies are beginning to use RPM as a way to evaluate the performance of many marketing channels, especially email. The metric allows for performance measurement agnostic of list growth, so you can view the true effectiveness of email or other campaigns.
  2. For email, the metric determines how much revenue was generated per 1,000 emails delivered. It can be extended for pageviews, and other key user interaction points depending on the brand.
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Segmentation

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  1. Segmentation is a marketing technique where you segment your target audience based on various conditions like gender, age, geographic location, purchase history, email engagement. This strategy is used by marketers and businesses in an effort to send relevant communications to specific people on a marketing list.
  2. Traditional approaches to segmentation have relied heavily on demographic data; however, modern best practices now include behavioral data so that users are segmented based on engagement, interests, and other variables. The most cutting edge form of segmentation leverages predictive data, so that users are segmented based on their predicted behaviors.
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Transactional email

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  1. A transactional email is a one-to-one email that contains information that completes a transaction or process a recipient has started with you. A common example is in ecommerce, after purchasing an item you receive an email receipt that has information about the item, price, and shipment. Transactional emails, like purchase confirmation messages or “forgot password” emails, are sent to individuals rather than a large list of recipients and can be triggered from a wide range of channels, such as in-store, web and mobile app.
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