08 Jul Three Digital Marketing Terms That Every Business Owner Should Understand
If you’re like most people, the terms and phrases used in the digital marketing realm can seem a little foreign. And while few small business owners have the time (or desire) to become an expert in this field (after all, you do have a business to run), there are some terms you may want to brush up on.
For this post, we wanted to talk about three of commonly used digital marketing terms that are worth brushing up on.
Churn rate: Your churn rate refers to the number of customers you’ve lost in a set period of time. For example, let’s say you own a dog grooming business that offers a monthly bath, brush and blow-dry membership. If you start the month of June with 100 membership clients, and by July, you’ve lost 20, your churn rate would be 20%. Suffice to say, business owners who run membership-based businesses need to stay on top of their churn rate.
Customer Acquisition Cost: Simply stated, your customer acquisition cost (CAC) is the amount of money it takes to convert a prospective client into a paying client. You can calculate your CAC by dividing all of the money you spent on marketing expenses during a set period of time (ie: January 1 through December 31), and dividing that by the number of customers you’ve gained. For example, if you spent $5,000 dollars on marketing in 2019 and by the end of the year, you gained 2,500 customers, your CAC would be $2 per customer. Knowing what your CAC is can help you understand if your marketing efforts are netting a ROI.
Algorithm: In the digital marketing realm, the term algorithm refers to the process that search engines use to rank websites. You should know that the search engine algorithms are constantly changing, which means that something that boosted your SEO in the past (ie: stuffing as many keywords onto a page as humanly possible), can hurt you in the present. If you have questions about the types of algorithmic changes that have taken place in the past year (or you’d like to know what’s likely to be on deck for the future), call WBN Marketing today to speak with an expert.
If you’re interested in learning more about how a strategic, targeted digital marketing plan can help grow your company’s bottom line, we’re here to help. Call WBN Marketing today to get a free SEO report. Call now to speak with a local digital marketing expert you can trust.