Have you ever sat confused in a marketing meeting where the acronyms are flying around like there’s a Scrabble tile fight going on? The only acronym in your head is WTF (Wait ‘Til Friday), and you’re pretending to look intelligent. Acronyms speed up communication, sure, but only if you know what they mean.
Knowing common marketing acronyms’ definitions will help you understand industry discussions and optimize communication. Using the acronyms correctly will save you time, energy, and ink so you can get to more important work – like marketing like a boss.
After reading this article, you’ll better understand the marketing acronym lingo that had you stumped. You won’t need to fear the CMO when he asks you for your opinion on the CRM or why the ROI for the FB campaign was lower than expected. It might have been the CPC or the BR, but it’d be best to reassess the AIDA. Don’t worry; the acronyms are defined below.
Common Marketing Acronyms And Their Definitions
Below is a glossary of common marketing acronyms with their definitions. Successful marketing relies heavily on the internet and digital platforms, so many acronyms are related to digital marketing. As time progresses and technology changes, we can expect new acronyms to emerge while others become obsolete.
AIDA: Attention, Interest, Desire, Action
AIDA is another version of the “purchase consideration funnel.” Awareness is at the top, the broad opening of the funnel. If a customer is Interested, they move through the funnel. During this stage and the Desire stage, the marketer and sales rep work together and communicate with the customer to get them to take Action.
API: Application Programming Interface
An API is a digital middleman for software applications. Examples of APIs include the “share” function on Facebook (FB), allowing you to share content with other applications.
B2B: Business to Business
B2B is the trading of services and products between businesses such as manufacturers, retailers, and wholesalers. B2B usually happens in the supply chain before a final product reaches consumers.
B2C: Business to Consumer
B2C is a business that sells a service or product to end-user consumers.
BANT: Budget, Authority, Need, Timeline
Sales reps use BANT as a measure and perspective of whether potential customers can or will buy a product. They assess if the customer has the budget, authority, and need to buy it. Timeline refers to how long it will take to finalize the sale. Interestingly, IBM created the BANT formula many years ago, but marketers still use this acronym today.
BH: Black Hat (SEO)
BH Search Engine Optimization uses unethical tactics to boost a site’s ranking in search results. The techniques they use are to “trick” search engine algorithms despite the poor content on the sites. Black Hat techniques use cloaking, keyword stuffing, private link networks, and other means to achieve false rankings.
BOFU: Bottom Of The Funnel
BOFU is the final stage of the marketing process, where the customer is ready to make a purchase. During this critical step, they might request a demo or negotiate a lower price with the sales rep.
(See also: TOFU and MOFU)
BR: Bounce Rate
BR has two definitions: one for web analytics and the other for email marketing.
- BR in web analytics definition: The number (percentage) of visitors that view only one site page before leaving. A high BR on a website suggests poor content marketing.
- BR in email marketing: the percentage of undeliverable campaign emails.
CAC: Customer Acquisition Cost
CAC is the amount it costs a brand to acquire a paying customer. A CAC value is improved when customers continue to support the brand through repeat purchases or lengthened subscriptions, for example.
CAN-SPAM: Controlled Assault of Non-Solicited Pornography and Marketing
Since 2003 in the US, it has been illegal for businesses to send targeted emails without recipients’ permission. Each email should have the option to unsubscribe or opt out. Additionally, emails should not include the names and email addresses of other recipients without their “express permission.”
CASL: Canadian Anti-Spam Law
Canada passed a law (CASL) in 2013 regulating the distribution of “commercial electronic messages.” Under the CASL law, commercial electronic messages via text, instant messaging, email, and automated phone messages are regulated.
CMO: Chief Marketing Officer
The CMO in a company has fundamental marketing knowledge, but other skills they need are:
- Knowing how to develop personnel,
- Thinking strategically, and
- Performing quantitative analysis.
CMS: Content Management System
A CMS is a platform where you can develop and manage your website without knowing how to code. CMS offers marketers the following functionalities:
- Create,
- Design,
- Host,
- Manage,
- Distribute content,
- Edit, and
- Monitor the performance of a website.
A CMS has two applications: A CMA (Content Management Application) and CDA (Content Delivery Application). Popular CMS platforms include HubSpot, Squarespace, Wix, and WordPress.
COS: Content Optimization System
COS takes your Content Management System (CMS) and optimizes it. Through this optimization, a customer gets a more personalized website experience.
CPA: Cost Per Action
CPA has two meanings.
- It forms part of a business’s budget. It’s a measure of how much it will cost the company to get the customer to get to specific points in the marketing and sales process. E.g., the costs of getting a customer to visit your website, purchase a product or subscribe to a newsletter.
- CPA could also refer to an online payment model where you only pay for qualifying actions, like making a sale or subscribing to a service. It is often used with PPC (Pay Per Click) actions.
CPC: Cost Per Click
CPC is the amount an advertiser must pay every time someone clicks on their ad. Website owners (publishers) allow advertising space on their websites and charge advertisers according to the number of clicks the ad receives. CPCs are often used in Google ads and social media.
CPL: Cost Per Lead
CPL is a digital marketing term that can also be called online lead generation. It is a part of performance-based advertising, which quantifies the effectiveness of an online marketing campaign.
To calculate CPL, you divide total marking expenditure by the total number of qualifying leads generated. I.e., CPL = Total marketing expenditure of a campaign / Total number of new leads.
CR: Conversion Rate
CR is the percentage of visitors to a single web page who completed a desired action. Examples of desired actions include clicking on a link, filling in a form, or pressing the subscribe button. Generally, a page with a high CR is doing well, while the opposite is true for pages with a low CR.
CRM: Customer Relationship Management
CRM is a customer data tracking tool. Effectively it’s a database of all your interactions with your customers, plus additional information needed for sales purposes. Your CRM helps you track when you last made contact with them and where they are in the sales process. Additionally, you can add notes to help you remember them and make their customer experience (CX) more personalized.
With CRM software, you can generate analytics reports to help you develop various aspects of your business. Examples of reports can include demographics, customer average spending, and geographical insights, which can help with planning marketing and determining delivery routes, for example.
Improved customer relations will boost the customers’ experience and earn their loyalty. In doing so, you can build your brand and get more customers in the process.
CRO: Conversion Rate Optimization
CRO is a process that uses crucial optimization principles, design techniques, and testing to improve conversion rates (CR) on your site. CRO is designed to get customers to complete the desired action on a website, social media, or call to action (CTA).
CTA: Call To Action
A CTA is a content marketing strategy that prompts potential customers to act immediately. CTAs are proven to motivate visitors to take a step towards making a purchase after viewing compelling brand content.
Examples of CTAs are: “Like and Subscribe,” “Download,” “Book a call,” “Sign up now,” “Give us a review,” or “Buy now.” CTAs can come in the form of a message, hyperlink, button, or image.
CTR: Click-Through Rate
CTR measures and analyzes the success of an email or advertising campaign through the number of clicks across different digital platforms. Click-through rate is a percentage of the average number of clicks per hundred ad impressions. It measures three things:
- The number of clicks on a link in a marketing email you sent.
- The number of visitors who clicked on a link on your website.
- How many people clicked on a link in your advert.
CX: Customer Experience
CX refers to how a customer experiences every interaction (whether digitally, telephonically, or in person) through the entire process of a transaction. As a result, CX affects a customer’s perception of a brand and can determine if the potential buyer becomes a paying customer.
DCX is Digital Customer experience and refers to a potential customer’s experience with digital marketing. It is also called UX (see UX definition).
DM: Direct Mail or Direct Message
DM has two meanings:
- Direct Mail: Marketing emails are sent straight to an inbox, often called junk mail by the recipient. Direct Mail can be seen as SPAM and is not an ideal marketing investment.
- Direct Message: A facility on Twitter that allows users to message followers privately. Individuals and groups can use the DM function, and followers can DM an account holder. In addition, some businesses will allow anyone (including those who aren’t following them) to send them DMs.
EDM: Email Direct Marketing
EMD mimics direct marketing campaigns like letterbox drops. Instead, marketing material is sent directly to an email inbox. EDM risks being seen as junk mail by the recipients.
GA: Google Analytics
GA generates detailed visual statistics about a website’s activity. Marketers can use these analytics to improve their marketing strategies and customer relations. Examples of statistics include the website’s traffic sources (demographics), sales, and measured conversions.
ICP: Ideal Customer Profile
An ICP is a hypothetical profile of the perfect customer, which helps businesses figure out whom they should target. Using an ICP helps a company make profit projections in a successful sales cycle.
KPI: Key Performance Indicator
A KPI is a quantitative measurement of the success of a marketing strategy and campaign goal. KPIs help you to monitor success and are commonly used to track the following areas:
- Bounce Rate,
- Brand Awareness,
- Client Retention Rate,
- Customer Satisfaction,
- Lead Generation,
- Profit Margin,
- Revenue Growth,
- Revenue Per Client, and
- Sales Conversions.
LMS: Learner Management System
An LMS is an online platform that houses and delivers programs and courses. The content of the LMS will depend on the course material offered and can include downloadable material, online tests, videos, and lessons.
MAP: Marketing Automation Platform
MAP is a technology or software platform that automates repetitive marketing tasks. Using MAP tools converts prospective buyers into customers because it offers instant gratification and reduces the risk of human error. Marketo and HubSpot are examples of MAP tools.
MOFU: Middle Of The Funnel
MOFU is the middle part of the marketing and sales process. It is where a generated lead (customer) becomes the responsibility of a sales member in the business. Thus, a conversational marketing strategy is well-suited to this stage. During the MOFU stage, the seller has to convince the buyer to make a decision.
(See also: TOFU and BOFU)
MRR: Monthly Recurring Revenue
MRR measures recurring or predicted monthly income, usually based on subscriptions.
PPC: Pay Per Click
PPC is when marketers pay a fee for each generated click on a site. It is a form of paid advertising, but the payment will depend on the number of clicks and the cost per click (CPC). The PPC model is often used in paid or “sponsored” searches. Online marketers pay a search engine or social media site to place and run their ads.
There are two types of rate structures for PPCs:
- Flat rate. The publisher charges the advertiser a fixed amount per click.
- Bid-based. This rate structure allows advertisers to compete for ad space in an advertising network. The advertiser can set their maximum spend limit for an ad spot. The ad will appear for a specific time and stop once the money is spent. The number of clicks their ad gets during this time will determine the PPC rate.
PR: Public Relations
PR aims to manage people’s perception of a company and paint it in a good light. It is usually achieved through hosting an event, sponsoring a good cause, and creating and distributing content. E.g., a promotional article on a digital platform.
Good PR prompts the public, potential customers, partners, investors, and employees to adopt a specific view of:
- The company’s products and services
- The leadership of the company
- The company’s employees
- The company itself
PV: Page View
A PV is a single web page uploaded onto the internet. Marketers often use this strategy to analyze the size of their audience and how they should expand their website.
QR Code: Quick Response Barcode
QR Codes contain information such as a URL or text and are a bridge between online and offline marketing. These scannable barcodes can be used to share information or redirect a browser to a site. Additionally, users pay for products online by scanning the QR Code generated at the point of sale.
ROI: Return on Investment
ROI refers to a business’s net profit or loss when investing in a marketing asset, e.g., a social media subscription that allows you to reach more customers. The calculated ROI percentage helps you determine the business investment’s efficiency.
RSS: Rich Site Summary / Real Simple Syndication
An RSS Feed is a web-based feed that regularly updates information from a website. If you subscribe to a website’s RSS feed, your browser will automatically update any new content from that website. RSS feeds allow publishers to automatically syndicate data so that the updates can be provided seamlessly.
RT: Retweet
RT allows you to share a Tweet from another user. Savvy businesses use Twitter as a social media marketing (SMM) tool, as RTs spread awareness of their company.
SaaS: Software-as-a-Service
SaaS is software hosted by a company that stores your information in the cloud. Examples of SaaS include Dropbox and HubSpot.
SEO: Search Engine Optimization
Marketers employ SEO techniques to make their websites more visible and rank higher in search results. You get ethical White Hat (WH) SEO techniques and unethical Black Hat (BH) SEO techniques. Using WH wisely will play better into search engine algorithms and rank your page higher in the search engine results pages (SERP).
Search engines look for the following elements in a website when calculating page rank (PR):
- Fresh and relevant content,
- Image tags,
- Internal link structure,
- Keywords,
- Site structure and design,
- Title tags, and
- Visitor behavior.
SLA: Service Level Agreement
An SLA is an agreement between a company’s marketing and sales teams. The agreement defines the expectations of each department. Examples of marketing expectations include lead quantity and quality. In contrast, sales SLA expectations should stipulate the frequency and intensity of following qualified leads.
The SLA between the marketing and sales departments promotes alignment and integration and helps with business flow.
SM: Social Media
SM platforms include Instagram, Twitter, Facebook, Snapchat, and TikTok. The platforms allow users to post content such as links, pictures, and videos to their profiles. Then, depending on the forum, the content can be visible to the public or a select group. These people can then view the content, click on it, share it with their networks, and interact with it.
SMART: Specific, Measurable, Attainable, Realistic, Time-Bound
SMART defines the elements of setting marketing goals. The SMART process helps marketers to keep their goals well-defined and helps to outline the actions necessary to achieve them.
SMM: Social Media Marketing
SMM is when businesses or people use social media to market products or promote themselves. The potential audience is vast and can create a more extensive customer base.
TOFU: Top Of The Funnel
TOFU is the broadest section of the marketing process funnel. It refers to the initial stages of a potential customer’s buying process, where they acquire more knowledge about the product or service. Examples of TOFU actions include browsing an eCommerce website or subscribing to a blog.
(See also: BOFU and MOFU)
UV: Unique Visitor
A UV is a person who, in a set timeframe, visits a website more than once. UVs are seen in the context of a site’s traffic. For example, the site might have had a hundred visits in a week, but 20 were from a single person (UV). If the rest of the visits were once-off, it means the site had eighty other visitors that week, plus one UV.
UX: User Experience
UX is a measure of a customer’s experience on a digital platform. It is a user-centric approach that focuses on the following:
- Consistent monitoring of the digital customer experience, and
- Improving service quality on all digital media (e.g., website or mobile app).
To ensure the quality of the UX across digital platforms, companies must ensure they are available, functional, and fast. “Intuitive” websites can also help to create a positive UX.
WH: White Hat (SEO)
WH Search Engine Optimization is an ethical way of boosting your website’s rankings on search engines. By understanding what the search engine algorithms are looking for, you can improve the content of your website accordingly. Improved content means higher site rankings and more traffic on your site.
Here are some WH techniques to consider including in your content:
- Research the keywords that would appear in a query,
- Keep content fresh,
- Keep content relevant,
- Use highly-rated sources,
- Include your business’s geo-location,
- Make your page user-friendly,
- Make sure your site is mobile-friendly,
- List your business with Google (it’s free), and
- Create a good user experience (UX).
WOM: Word of Mouth
WOM marketing is when people casually talk about your business, which can be positive or negative. People might talk about your business in real-life conversations or on online platforms. This raises awareness and interest in your products and services.
Conclusion
Marketing acronyms can be confusing if you don’t know what they mean. Understanding their meaning allows you to optimize communication and focus on your marketing team’s goals. Additionally, increasing your understanding of these terms can help you navigate and build your marketing career so you can aim for that CMO position.
