Why is a common language important?
Internet marketing combines many specializations, which is why many abbreviations and concepts appear during the project. Understanding them makes it easier to talk to the agency, compare offers and evaluate reports. It also avoids situations where different people use the same words with different meanings.
Business purpose
A business goal describes an outcome that is important to the company, such as increasing sales, increasing the number of valuable inquiries, entering a new market, or improving customer retention. Marketing activities should support this goal and not function as a separate set of activities.
Audience group
The recipient group is the people or organizations to whom the offer and communication are addressed. Its description may include needs, behavior, purchasing situation, location, industry and role in decision-making. The better we understand the audience, the better we can prepare the content and choose the channels to reach it.
Value proposition
The value proposition explains why the customer should choose the offer. It should indicate an important benefit, answer the recipient's problem and distinguish the company from alternatives. It is not just an advertising slogan. It is the basis for communication on the website, in campaigns and sales conversations.
Customer funnel and path
The funnel describes the stages leading from the first contact with the brand to purchase. The customer journey presents the experience from the customer's perspective, taking into account their questions, emotions, touchpoints and barriers. Both concepts help align communication with the decision-making stage.
Conversion
A conversion is when a user performs an action that is considered valuable. It may be a purchase, sending a form, calling, subscribing to a newsletter, downloading material or creating an account. The choice of conversion should result from the purpose of a given process.
The conversion rate shows what percentage of users completed the expected action. The result itself requires context. It varies by industry, traffic source, product price, and stage of the customer journey.
Sales contact
A sales contact is a person or company who has shown interest in the offer and provided data enabling further communication. Not every contact has the same value. The quality assessment should take into account the suitability of the offer, readiness to talk and the likelihood of purchase.
Indicators and KPIs
The metric describes a specific quantity, such as the number of visits, cost per click, or sales value. A KPI is a key performance indicator linked to an important goal. Not every available result should be treated as a KPI.
A good set of meters allows you to observe both the final result and previous signals. For example, a company can measure sales, the number of valuable contacts, the cost of acquiring them and the rate of moving to the next stage of the process.
ROI and ROAS
ROI helps assess the return on investment, taking into account the effect achieved and the cost incurred. ROAS compares the revenue attributable to advertising to the advertising spend. Indicators answer different questions and should not be used interchangeably.
High advertising revenue does not always mean high profit. The analysis must take into account the margin, service costs, returns and the contribution of other channels to the customer's decision.
Attribution
Attribution describes how we give credit for conversions to individual touchpoints. The customer may see the ad, read the article, return from the search engine and only then make a purchase. The attribution model influences the assessment of channel effectiveness.
Summary
Knowing basic concepts makes marketing planning and evaluation easier. It is always worth connecting the most important terms with the business goal and the actual customer process. Detailed definitions can be found in the PAR HOUSE Agency Glossary of Terms.
