Are you getting lost in Digital Marketing terminology? No worries! In this handy overview, you'll find explanations for some key terms, as well as clear distinctions between terms where there may be some confusion.
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CLV (or CLTV)
What is CLV or CLTV?
Customer Lifetime Value (CLV) is an estimate of the value of a relationship your company can have with a customer. The longer a customer stays with you and the more they spend over the duration of the relationship, the higher their CLV.
Why is CLV important?
CLV is perhaps the most important metric for calculating what your investment in your digital customer experience will return. The better your customer experience, the longer a customer stays loyal to your brand and the more they will typically spend over their lifetime. In short, measuring your CLV is pretty important.
The value you get out of your investment in your digital customer experience is called Return On eXperience or ROX. Curious about the other metrics to calculate your Return On Experience? Read it here.
What can I do with CLV?
It provides an estimate of the impact of your marketing actions.
CLV gives you a clear overview of how much you can spend to acquire new customers and keep existing customers with you longer. Unfortunately, it is not a simple and straightforward metric for your marketing actions. CLV is also strongly influenced by your customer service, sales and retention management. If you really want to focus on CLV, then this metric should be on your organization's radar across the board.
Read here how your online customer experience makes your CLV rock!
Curious how to enhance your CVL? Determine the potential increase in your Customer Lifetime Value (CLV) through optimizing your digital experience. Answer the following questions to get an estimate of your enhanced CLV.
Calculate your enhanced CVL
What is CPC?
CPC means Cost Per Click and is a way to monetize your online ads, For example, SEA (Search Engine Advertising), to pay. This involves paying, only when a user clicks on your ad.
Why is CPC important?
With CPC, you only pay when your ad has actually been clicked, so you only spend money when necessary. If your ads are well-targeted and you know, for example, thanks to Google Analytics, how much a visitor to your website is worth, you can calculate exactly how much you can spend on a click.
What to do with CPC?
The CPC payment method can be used to pay for your online ads for example, Google, Facebook, Linkedin, and so on.
What is CPV?
CPV stands for Cost Per View and is a payment method for paying video ads. You only have to pay if the video has been viewed for at least 30 seconds or the viewer has interacted with the video by clicking on a link, for example.
Why is CPV important?
This payment method makes video ads more affordable, as they are not charged per "impression" but per "view," which is at least 30 seconds. For example, viewers who click away are not counted here and a cost is avoided.
What can I do with CPV?
On YouTube, there are two types of video ads with CPV:
- In-Stream ads appear before or after a video for 5 seconds, after which you can skip;
- In-Display ads appear directly in YouTube or Google search results as a clickable choice between other videos;
What is CTR?
The Click Through Rate is the ratio of how many times someone clicked on an ad, email or other marketing message versus how many times that message was displayed or sent.
Why is CTR important?
CTR is an important metric for Google Advertising. The CPC price depends in part on the CTR of your ad. For example, Google Ads become more profitable per click when users click on it more quickly. Even when you are paying a fixed price per click, a high CTR is a good sign: it indicates that those who see the ad are effectively clicking on it.
What can I do with CTR?
With CTR, you calculate how many people who saw your ad, actually clicked through to your website. It is an important metric to further optimize.
What is CRO?
Conversion Rate Optimization is to improve the process by which a website visitor performs a desired action (conversion). This action can be different. Here are some examples: creating an account, downloading a document, filling out a form ... The most important thing in conversion rate optimization is knowing how your visitors navigate your website, what actions they take, and what may or may not be holding them back from completing your predetermined action goals.
Why is CRO important?
With CRO, you can find out how to improve a website in an efficient way. As a result, more conversions will be completed and the conversion rate will also increase. So you convert anonymous visitors into known leads or customers with whom you can build a customer relationship.
What can CRO do?
Using CRO you can easily take advantage of website traffic without spending extra money on ads. This is also a great benefit for customer relations, it becomes clearer what website visitors are effectively looking for on your website and so you can provide the right content for each customer.
What is MQL?
A Marketing Qualified Lead (MQL) is a website visitor where the engagement level shows that there is a high probability that the visitor will become a customer. This can be various conversions that have been completed or the search behavior can also play a big role in this. It can be used to identify potential customers and thus obtain a higher conversion rate.
Why is MQL important and what can you do with it?
By identifying your MQL on your website, you can start personalizing the online experience in a more targeted way. You can start investing more in these visitors because they have a greater potential to become customers. You're typically going to do that with Lead Nurturing journeys that you can set up with Marketing Automation software like Mautic, or in some cases even by involving your sales team.