In today's e-commerce (EC) world, understanding marketing terms not only helps you grasp trends but also helps you optimize your business strategy. Below are some common terms you need to know.
SEO (Search Engine Optimization)
SEO is the process of optimizing a website to improve its ranking on search engines like Google, Bing, etc. In EC, SEO helps your product appear at a high position when customers search for related keywords.
SEM (Search Engine Marketing)
SEM involves using search engines like Google, Bing, etc., to promote your product or service. A prime example is Google Adwords advertising, helping your product appear in the first position when customers search.
SMM (Social Media Marketing)
SMM is the use of social media platforms like Facebook, Instagram, Twitter, etc., to promote a product or service. SMM allows you to directly reach and interact with customers.
CPC (Cost Per Click)
CPC is the cost you pay each time a user clicks on your advertisement. Typically, you set a price for each click, and the advertising platform charges based on how often users interact with your ad.
CPA (Cost Per Acquisition)
CPA is the cost you pay for each action a user takes after clicking on your ad, such as making a purchase, registering information, downloading an app, etc. This is an effective advertising method to assess the ROI (Return on Investment) of a marketing campaign.
CTR (Click-Through Rate)
CTR is the percentage rate of clicks on an ad over the total ad views. CTR helps you assess the effectiveness of an ad based on user interaction level.
Conversion Rate
Conversion Rate is the percentage of website visitors who take a desired action, such as making a purchase, subscribing to a newsletter, or filling out a contact form. It's an important metric to assess the success of an EC website.
Remarketing/Retargeting
Remarketing or Retargeting are advertising techniques aimed at reaching back to customers who have visited your website but did not make a purchase. The goal is to remind and encourage them to complete the purchasing process.
Affiliate Marketing
Affiliate Marketing is a business model where partners (affiliates) promote a product or service for a business and receive a commission based on the sales they generate.
Content Marketing
Content Marketing is a marketing method based on creating and distributing useful, relevant, and engaging content to attract and retain customers. Content can include articles, videos, podcasts, and many other forms.
KPI (Key Performance Indicator)
KPIs are important metrics used to assess the effectiveness of a campaign or business activity. In EC marketing, KPIs can be website visits, conversion rates, order numbers, total revenue, and many other metrics.
E-commerce Analytics
E-commerce Analytics is the analysis of data to better understand customer behavior on EC sites. By using web analytics tools like Google Analytics, you can track conversion rates, traffic sources, and shopping behavior of customers.
Conclusion
Understanding basic marketing terms is key for you to build and optimize your online business strategy. Master these terms and apply them in practice to achieve the best results in the competitive EC environment.
You can start by identifying goals and KPIs for your strategy, then implement and adjust campaigns based on data analysis to optimize effectiveness.
If you need advice on developing a business strategy on EC platforms, Lameco is the choice you cannot overlook. We are strategic partners of leading EC platforms in Vietnam such as Shopee, Lazada, Tiki, and TikTok Shop. With many years of experience in the industry and solutions always optimized and updated over time, Lameco has helped many businesses/sellers/brands succeed in the EC market.
As one of the leading businesses in Vietnam, we are confident in providing the best, most optimized solutions offering the most value to our customers. Contact Lameco today to see how we can help your business achieve success in the EC market.