5 Marketing Terms Every Business Owner Should Know

Every business owner needs a basic understanding of marketing. These 5 marketing terms are essential to growing your business.

Marketing is an important aspect of any business, but it’s often overlooked because it can be costly. If you’re trying to save money by taking on the marketing  for your business by yourself, then these 5 marketing terms will help you get started.

Lead magnet

Lead magnets are most commonly used to increase subscribers to your email lists. A lead magnet is a resource given to subscribers in exchange for signing up for your email.

Lead magnets should be irresistible. They should solve a problem. The most successful lead magnets are short and sweet so that the subscriber can quickly solve their problem. For example, a 10 page guide on how to generate more business from your Facebook page is more effective than a 10-part video series, emailed out once a week. People want to be able to get the information they need instantly rather than wait around for weeks to get all the information.

Examples of lead magnets include:

  • Cheat Sheets
  • Reports
  • Quizes
  • Resource Library
  • Training Videos
  • Free Trials of Programs
  • Free Shipping
  • Coupon Codes

Your lead magnet should be targeted towards your audience. How can you solve a problem in their lives? Answering this one question can help you create a solid and successful lead magnet.

Call to Action

A call to action (CTA) is how you convert readers or viewers into customers. A CTA encourages people to take action, whether that is signing up for your newsletter, calling your offices or even repinning your posts on Pinterest. It’s a way to encourage people to interact with your business.

Effective CTAs are simple but powerful. The CTA should tell your reader what they’re getting out of interacting with your company; (this is where you can push your lead magnet) and how to take action. A CTA can be as simple as: “Get Started” or “Sign Up Now.”

A call to action is more than just text. Use design elements to catch the eye of your readers and lead them towards your CTA. Color is a great way to do this. Try making your CTA color the same as your logo so that readers can associate your business and the solution to their problem.

Search Engine Optimization

Search Engine Optimization (SEO), is a critical part of marketing. It’s more than just a marketing term to understand, it’s almost a language within itself. Search Engine Optimization is used to improve your website’s rankings on search engines, which helps people find your site.

SEO has changed a lot in the last few years. There are still key aspects that search engines look for such as:

  • Title Tags
  • Keywords
  • Image Tags
  • Internal Link Structure
  • Inbound Links

However, SEO is much more than keywords. Search engines are looking for quality content that is helpful to readers. If you stuff your website full of keywords without any substance it can actually hurt your website.

Site structure and design are also important aspects of SEO. A quality website is going to rank higher, so it’s good to invest in making your website well designed and well optimized.

Churn Rate

Churn rate is the percentage of customers lost over a period of time. It can also be used to calculate the value of each customer lost. Knowing your churn rate is important so that you understand how much each new customer is costing you. You need to be able to know if customers are sticking around long enough to cover the acquisition costs.

Calculating churn rate is very easy. Start by taking the number of customers lost during a certain time period and divide it by the overall number you had when the time period started. The result is your churn rate. For example if you started your quarter with 600 email subscribers and you lost 60 of them over the quarter, your churn rate equation would look like this: 60 / 600 = .10 or 10%.

You can do this for any time period: a month, quarter, year etc. You just don’t want to include any new customers you acquired during the time frame when you’re calculating the churn rate.

Editorial Calendar

An editorial calendar is important to help you stay on track with your marketing goals. Editorial calendars can be used to create content, plan campaigns, reach out to your target market and more.

It’s important to be posting new blog content on a regular basis (this helps with your SEO!)  You’ll also want to be posting consistently to social media to increase your reach. An editorial calendar can help you plan out all of these so that your social media presence goes along with your website. An editorial calendar can also help you keep track of things that are out of the ordinary, but need to be dealt with, like posting about holidays.

Overall an editorial calendar is an essential organizational tool for businesses.

 

Hopefully, these marketing terms will do more than just increase your vocabulary. If you learn how to implement them in your business it can help your marketing efforts increase.

Every business owner needs a basic understanding of marketing. These 5 marketing terms are essential to growing your business.