If you’re like most small-business owners, you spend your day providing a great customer experience that sets you apart from your competition. The quality of your service is key now that digital word of mouth is the most effective form of advertising. This doesn’t leave much time to stay current with the latest online-marketing developments.
To help navigate today’s brave new world of digital marketing for small business, as well as outline principles that are critical for your success, I’ve tried to outline eight terms that should be in every small-business owner’s vocabulary. Understanding the “why” and “what” will improve your marketing efforts and ability to attract and retain valuable customers.
1. Online presence
Your online presence is everywhere your business info can be found online and on mobile apps.
Whether looking for a new business or researching a known one, potential customers will use search engines and social platforms to find the information they need.
A call to action prompts a customer to do something (for example: “Call now.” “Click here for 10% off.”). Testing different CTAs as part of your marketing will help you find out which is the most effective for your business.
Conversion is the step from your marketing effort to a customer taking action. A conversion could be an email or call, but most often a direct purchase. The goal of your marketing should be to drive conversions.
Remarketing is following up with consumers that have interacted with you or your marketing before. For example, sending email or a text messages to existing customers with the goal of building loyalty or getting referrals, feedback and reviews.
Referrals are new customers that have been directed to your business by other customers or companies.
Customer acquisition cost refers to the dollar amount spent to acquire a new customer. For example, if you work with a marketing service that you pay $1,000 and because of their work they deliver five new customers, the CAC of this marketing effort is $200.
Customer lifetime value is the dollar value of a customer relationship -- based on the total profit you expect to earn from that client over their time with your business. So if your service costs $50 and customers generally buy this service five times throughout their lifetime, the combined dollar value of all these transactions, or CLTV, is $250.
8. Cloud computing
Cloud computing, sometimes called software as a service or web-based software services, simply means business services such as email, storage or accounting supplied over the Internet. Using the cloud is increasingly popular with small-business owners because it’s more affordable and makes it easy to update the services.
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Zachary T. Brown