The second part of the eCommerce glossary that every e-retailer should know is here! And you’re very welcome!
Inventory – refers to your business’s stock, or simply put, your products’ availability in a specific retailer.
KPI (Key Performance Indicator) – this is a quantifiable measure of the success or failure when compared to specific goals the company has set for itself. Each business should uniquely set the KPIs according to its goals. Example of categories in which a KPI could fall are Sales, marketing, customer service, manufacturing, project management, etc.
Landing Page – in the eCommerce sphere could be compared to a brick & mortar store’s showcase window. The landing page should be attractive, and it should aim at grabbing and keeping the consumer’s attention. In essence, the Landing page is where the consumer lands when they click on an advertisement link.
Lead – potential customer or a prospect
Lifestyle image – a lifestyle image that presents the product in an active (being used/worn) or passive (included in an adequate setting) use. Examples would be a kitchen table with your brand napkins or a diaper worn by a baby.
Margin – the profit percentage of a sale, after factoring in the cost of expenses.
Marketing Funnel – describes the process from catching a potential customer to converting him into a real and/or repeat customer. There are four main stages:
1) the awareness stage – the customer visits the website/shop for the first time by chance and discovers the brand/website. At this stage, the goal is to offer engaging content that will spike and keep customer interest.
2) the interest stage – the potential customer has shown interest and has started to consider buying from you. The seller goal is to make the journey user-friendly and provide further information about the products.
3) Purchase stage – The customer has decided to buy, but they could be questioning if you are their best option. Seller’s goal – convince them you are better than the competitors.
4) Repeat stage – You have already won the customer, now the seller should start offering advantages to loyal customers, who could be seen as “brand ambassadors.”
Note: the term ”funnel” is a bit confusing since in a funnel, once the process is started, there should not be any losses. However, in the marketing funnel process, the customer could be lost at any stage, making it vital for the seller to close any potential gaps constantly.
Metadata – the metadata could be described as the data backstage. It is hidden to the customer; however, it is vital for the search engines because it could be added keywords that will help better visibility and findability of the content on your website/shop. Common elements are – title tags, image tags, hidden keywords.
Metrics – the indicators you set to keep an eye on your content performance. Example of a few key metrics that could be said to be most important for eCommerce are traffic to your site, conversion rate, showing how many visitors of the website are becoming customers, as well as a metric of old vs new customers, Total sales metric, average order value, giving insights for the success or failure of discounts, promotion offers, etc.
Mobile Optimization – refers to optimizing the content – images and copy, for being user-friendly on a mobile device. This included images that show all vital information even when they are in small size, text and PDP responsive to screen size, etc.
MRHI – Mobile Ready Hero Image. The hero image is the first and foremost image shown in a PLP (product listing page) and a PDP (product detailed page). The MRHI is a hero image that can give the customer the most vital information about the products, such as brand, type, and pack size, even when looking at a mobile screen.
Multichannel – everywhere you sell products – marketplaces, hosted online stores, brick-and-mortar locations, even social media platforms that allow purchase integrations—is a channel. A multichannel is a practice of selling to multiple places simultaneously.
Omnichannel – in contrast to the multichannel is a strategy to foresee that the customer could search on one channel but move to another one for the purchase, thus creating a seamless experience with a brand, rather than a fragmented one on different channels (which is often the case with multichannel strategy)
Open rate – the number of people who open your email
Outbound Marketing – in contrast to inbound marketing, where the customer finds you once they require something, outbound marketing is the strategy for actively advertising via cold calling, media buys, email spams, etc.
Packshot – the Packshot in different to the hero image, should offer a real-life view of the product and its packaging. It can still be digitalized, rather than a real-life image, but it should include all information, text and icons that the customer will see once they have the product in their hands.
Payment Gateway – a service acting as a mediator between the website where the transactions are made and the payment processor. In essence, it is the service that authorizes the payment, and its main aim is at minimizing the risk of fraud, security breach or inaccuracy.
Product Bundling – is a marketing strategy to make consumers buy more than they had initially been planned. Various related products or services are being offered to them, and they are being sold out together at a reduced price.
PPC Marketing (Pay-per-Click) – advertising model in which the business pays an ad publisher for every click they get on their advertisement.
ROI (Return on investment) – the amount of money the investor in a business earns based on the net profit. The ROI has used a mark of the efficiency and success of the venture.
SaaS (Software as a Service) – is a platform that is an e-commerce software delivered as a cloud-based system that can be accessed through all types of web browsers. This is typically sold on a subscription basis.
Sales Funnel – represents the sales stages the customer goes through while buying a product. The number of stages can vary depending on the company and business, and mainly it includes awareness, interest, evaluation, decision, purchase, and post-purchase evaluation. Generally, the percentage of customers decrease while going through the stages. The sales funnel’s efficiency can be evaluated based on the conversion rates of the stages and the number of customers at each one.
Segmentation – this is the process of dividing customers into groups based on their common characteristics so that the marketing strategy can be adequately adjusted to each one. In B2B, the segmentation could be based on one industry, some employees, previously purchased products, location, etc., and in B2C marketing, the factors could be – age, gender, location, etc.
SEM – Search Engine Marketing. Cumulative efforts for promoting a website in paid and organic searches. It is the primary driver of business growth and customer conversion in the eCommerce spheres. SEM can be closely connected to PPC marketing.
SEO (Search Engine optimization) – the process of generating more traffic that is organic from websites like Google. In its essence, the SEO process aims at bringing more traffic to the website. The critical tool for SEO is keyword research and optimization.
SERP (Search Engine Results Page) – a web page is shown once a customer has searched for a product or a service in a particular engine search.
Single customer view – refers to gathering all the data concerning the prospective and current client and merging it into one unified recorded. This is also known as “360” or “unified” customer view. The aim is to get an overview of every action they performed, regardless of whether on mobiles, or website or even offline stores. This helps for better personalization of the user experience and better adjustment of the marketing decisions.
SLA (Service-level agreement) – is the agreement defined in the contract that outlines the service – its scope, quality, responsibilities, delivery time, etc.
SKU (Stock Keeping Unit) – is the unique barcode printed on products labels that are scannable and allows the seller to track the inventory’s movement.
Time lag – used by Google Analytics to measure the times, most often in days, takes your website’s visitors to be converted into customers.
User Interface (UI) – is everything one user might interact with while using a digital service or product.
Unique Users – are looking or requesting pages on a specific website during a particular time. This metric is used to measure how popular a particular website is.
Upselling – is the act of persuading a shopper to buy an additional or more expensive service or product.
User-generated content (UGC) – is content created by shoppers. They could take photos, videos, write comments, etc.
User Experience (UX) – is what the user is experiencing while using a specific digital service or product.