Digital Marketing Dictionary
Technical Jargon and Terminology
- Call to Action – These are buttons on your websites or landing pages for users to interact with and help you achieve a marketing goal or objective. Examples – Save Now, Buy Today, 50% Discount, Subscribe, Send Mail, Visit Site.
- Bounce Rate – A percentage of visitors who arrived at your site but left after visiting only one page. It can be calculated for entire website or a single page.
- Click-Through Rate (CTR) – Marketers measure performance by how many clicks an ad receives. Every time an ad is shown or displayed, it counts as an impression. CTR is how many clicks were received in relation to the amount of impressions.
- Abandonment – When a user or a website visitor doesn’t complete the goal you’ve intended for them, it is said to be abandoned. For example, not completing the check-out process on e-commerce platform, or leaving the page without filling the submission forms.
- Ad Impression – In simple terms, it means each time an ad is displayed to a website visitor or user. An impression is an estimate of the number of people a particular advertisement is reaching, and may be counted in different ways depending upon the way the ad is situated on the page, as well as the number of times the web page where the ad appears is shown. Impressions are often tied to a frequency.
- Frequency – Number of times a single unique user will see your ad. For example – 10 Impressions of an Ad, seen 5 times, means it’s been seen 2 times by 5 people, and the frequency is 2.
- Conversion Rate – When an end user completes a goal we defined as part of our organization’s digital marketing strategy, i.e., buys a product, downloads an App or fills a form, they are said to have converted. It’s the percentage of visitors who entered into an experience and completed a goal we defined for our organization.
- Tracking Pixel – To understand how a user converted or when, we use what is called a Tracking Pixel. A Tracking Pixel refers to a file or code that allows advertisers or agencies to track the number of impressions recorded on a certain ad unit.
- Cost per Acquisition (CPA) – CPA is how much it costs you per goal completion. Advertising only makes sense if it brings positive Return On Investment (ROI). For example, if you run an ad with the goal of getting an App download, and the Ad costs you Rs. 100.00, then if only 1 person download the App despite 1000 persons clicking on it, the CPA for that single user who downloaded the App would be Rs. 100.00.
- Lifetime Value (LTV) – It is the prediction of net profit attributed to a customer relationship. Every Customer has a value. Some will buy once and never return, other would become return buyers. Typically, with paid ads, you want CPA to be lower then LTV.
- Banner Advertisements (Display Ads) – These are static or animated visual images used to generate brand awareness or entice a user to click. Most banners or Display ads have a Call to Action.
- Landing Page – When you click aBannerAd or run an offer, you are re-directed to a webpage that specifically runs your promotion or campaign. The first page that opens after clicking an ad or offer is called the Landing Page. If there’s no promotion on that page, it’s unlikely the lead will convert.
- Attribution – Assigning credit to each marketing channel or touch point that leads to sales or conversions on your website or app. It’s a way of quantifying a channel or touch point’s contribution leading to a sale or conversion in the customer journey, and giving it due credit for it.
- Attribution model – It is a set of rules to measure how to credit Attribution. An attribution model is a set of rules that measures how credit for conversions on a website is assigned to each marketing channel and touch point in paths to conversion. Its is primarily used for marketing analysis and budget allocation. Before attributing credit for conversion, each channel or touch point must be identified within the path to conversion for a given period of time before the conversion or purchase. Attribution modeling is about understanding which ads, referrals and searches played a role in getting a customer to convert.
- First Click Attribution – All the credit for the sale or conversion is given to the first click the ad unit received. Letssuppose auser saw the advertisement forthe first time on Facebook, then Twitter and then on LinkedIn. He liked the product and decided to search for it online. He searched for the product on Google and saw a paid advertisement of the product created using Google AdWords. All these ads he saw pointed to the same landing page on the product website. Once he clicks on the Ad in Google search, arrives on the landing page and purchases the product. The credit in case of first click attribution model would be given to Facebook in this case, as that is where the product advertisement received first impression. Facebook was the first touch point with the customer. 100% credit is given to the first click that triggers or starts the conversion path.
- Last Click Attribution – All the credit for the sale or conversion is given to the first click the ad unit received. Taking into consideration the same example as above, in case of Last Click Attribution, advertisement created using Google AdWords would receive the credit for the sale or conversion. 100% credit is given to the last click that triggers or starts the conversion path.
Conversion – It is a desired action taken by a website visitor, such as making a purchase, registering for an event, subscribing to an e-newsletter, completing a lead-gen form, downloading a file, etc. Conversions indicate your business goals are being achieved.
Event – It is the series of steps that led to an action when a user interacts with content on your website or App. Example: downloading an eBook, watch a webinar, clicking on Like button.
- Goals – It is a method of knowing how well your targeted objectives are being fulfilled by measuring conversions on your website or app. Goals can easily be set up in Google Analytics. Example:spending 20 minutes on landing page, 1000 landing pages visits per month, products sold for Rs. 10 Lakh per month.
- Hit – It is the interaction on the website or app that sends data to Google. Saying a website got X many hits is saying how many people visited that website. Example: page tracking, event tracking.
- Metric – Published measurements of audience behavior online, including the number of unique visitors to a website per month, the length of their stay on the website, etc. It is quantitative in nature, and can be measured as a sum or ratio. Example – Pages per session, screen views, dwell time.
- Pageview – An instance of a page being loaded (or reloaded) in a browser. Page views is a metric defined as the total number of pages viewed. One unique user can contribute to multiple pages views per session.
Segment – A segment is a subset of your Analytics data.It is a set of users sharing common characteristics, interests or attributes.
Sessions – A session is a group of interactions that take place on your website or app within a given time frame. It is a period of time a user is active on your website or App. By default, the time period is 30 minutes in Google analytics.
- Source/ Medium – Source is where your traffic originates or comes from. Medium is the category of the source.
Examples of Source/Medium:google/organic,example.com/referral
Visitor – Visitors are not just humans. They are basically the devices you use, like smartphones, tablets, laptops and desktops. So if a single user visits a website using multiple devices, analytics would treat it as multiple visitors only.
Visitor session – It is some total of activity by a single user on your website at a specific time. Different analytics platforms or solutions interpret this differently. Some may end you session automatically at 30 minutes.
Referrals – Where does all the traffic and attention on your website comes from. referrals are the source of visits to your website. They contain backlinks that re-direct and point users to your website.
Exit Rate – It refers to those people who have visited more than 1 landing page of your website. Some common exit pages are – home page, registration page, lead form, eCommerce transaction or thank you page.
Bounce Rate – It is the percentage of people who leave your website after visiting 1 page only. It is what people think of your website in a split second.
Conversion Rate – It is percentage of people who completed the intended action. Conversions get us money.
- Fan – People who like your page on Facebook are called your Fans.
- Friends – People you are connected to or follow on Facebook are called Friends. These are individuals you consider to befriendly enough with you to seeyour Facebook profile and engage with you.
- Like – A Like is an action that can be made by a Facebook or Instagram user. Instead of writing a comment or sharing a post, a user can click the Like button as a quick way to show approval.
- Connection – The people you invite or the people who invite you. When you “accept” to form a connection with someone, you form a First level relationship with them in your LinkedIn network. It is LinkedIn’s equivalent of a Facebook ‘friend’.
- Second-degree connections – Second-degree connections are the connections of your connections. For example, I’m connected to my friend Jane. Jane’s boss is George, therefore George is my second-degree connection.
- Third-degree connections – Third-degree connections are the connections of your second-degree connections. So from the example above, George’s connections are my third-degree connections.
- Degree – A second degree connection means it is a friend of a friend, you are separated by two degrees. Three degrees away is someone you can reach through a friend of a friend and one of their connections.
- Inbox – This is where you can check personal messages sent to you by other LinkedIn members.
- Introduction – Introductions are requests made to other LinkedIn members that you do not have a direct connection with. It is as it sounds, a way to introduce yourself to someone you do not necessarily know. LinkedIn limits the number of introductions you can have pending at one time.
- Invitation – This is what you send when you ask someone to connect with you. You invite them to join your network.
- Groups – Groups are exactly as they sound. They are groups of other LinkedIn users, and can also be created by you. Groups can be used as discussions or forums for people to connect, get advice and search for job postings.
- Network – Your network is the group of your connections, you are the center of your network. It can also include the connections of your connections.
- Profile – This is the page you control. It holds your picture and credentials. You have the ability to post job history and upload a resume. This is what others see when they select your link.
- Recommendation – This is a request you can send out to another LinkedIn member. If they agree, they will then write a short paragraph recommending you. This is visible to anyone who views your profile.
- Endorsement – An endorsement on LinkedIn refers to an instance in which another LinkedIn user recognizes you for one of the skills you have listed on your profile.
- Cost Per Click (CPC) – Each time a user clicks your ad, it will cost you some money. This cost is called CPC.
Pay per mile (PPM) – This is similar to cost per impression. Anytime an Ad shows up on a members LinkedIn page. It doesn’t guarantee the user saw your Ad, just that it was displayed.
Spend– Money invested in Ad campaigns.
Return on investment (ROI) – Amount of revenue you make on your investment on LinkedIn Ad campaigns.
Return on time invested (ROTI) – It is the hourly return on any time expenditure spent on LinkedIn on a per hour basis.
- Cost of inaction (COI) – What it costs to be inactive on LinkedIn Ads.
- Twitter Handle – A handle is also known as a user name. This is how you will be found on Twitter, and it is a public representation of your company. You will notice that user names are preceded with an @ symbol, and this @ symbol identifies the user name as a Twitter profile. And it is also how you will reference other users when publishing Tweets.
- Tweet – The word Tweet is used interchangeably as a noun or a verb. A Tweet is a short message published by a person or a company. It is associated with a user name. It might contain a photo, video, links, and up to 140 characters of text. The act of sending this message is called Tweeting, or sending a Tweet.
- Timeline –A real-time feed of tweets. Your home stream, for example, is where you will see all the tweets shared by your friends and other people you follow. It is your timeline.
- Following –Subscribing to see a users updates in your timeline. You begin following by clicking the follow button found in various places on Twitter next to a user name.
- Follower – A user who has chosen to receive your updates in his/her timeline. This is a main focus of businesses.100% of your tweets, will be delivered to the timeline of your followers, in chronological order. You can see how many followers you have from your Twitter profile.
- @Reply – You join in on an existing conversation by clicking the reply button on a tweet. This @Reply post an update, and references the username you are replying to at the front of the tweet. People only see others @Replies in their home timeline if they follow both the sender and recipient of the message.
- Mention – Sometimes you want to bring a tweet to someone’s attention, but you still want all of your followers to see the message, for that you will use a mention which is a twitter update that contains an @username anywhere in the message, except at the very beginning. These mentions are collected by twitter and appears in the mentions tab in the notifications page. You can mention multiple handles in a single tweet.
- Direct Message – If you need to have a private conversation you can use a direct message. A DM is sent via Twitter to one of your followers. Typically you can only send a direct message to a user who is following you, and you will only receive direct messages from users you follow.
- Hashtag – A Hashtag is any word or phrase beginning with the pound “#” symbol (i.e. #DigitalMarketing). People use hashtags to reference a specific topic. And clicking on a hashtag takes you to search results for that term.It is a tag used on a variety of social networks as a way to annotate a message. Social networks use hashtags to categorize information and make it easily searchable for users.
- Retweet – A Retweet is the act of passing along someone’s Tweet onto your feed.It is a way of re-sharing something or letting someone know you agree with what they say. They will continue to receive credit for the message, but it will appear in your timeline as well with a small symbol indicating it is a retweet.
- Favorite – Represented by a small heart shape icon on Twitter, favoriting a tweet signal to the creator that you liked their content or post.
- Avatar – An avatar is an image or username that represents a person online, most often within forums and social networks.
- Circles – Circles are clusters of a user’s friends, family, relatives, colleagues, or connections on Google+. Users can choose and decide who goes in which Circle. When auserwants to share content with only individuals from a Circle like relatives, theycaninclude that specific Circle in their post’s sharing options.
- Impressions – Number of times an ad unit is served, fetched or displayed is called impression.
- Clickbait – Anycontent asset, marketing or advertising material, such as a social media post,tweetor a video that employs a catchy and sensationalized headline to gain users attention and attract clicks is called Clickbait.Clickbaits rely heavily on the “curiosity gap” by creating just enough interest to provoke engagement. Clickbaitheadlines never reveal the complete story to the user, but are interesting enough to catch users attention, spark interest and tempt them to click the content asset to finish reading the complete story or article. Most often, clickbaits are used by brands to drive traffic and attention to their website or blog.
- Click Through Rate – Clickthrough rate is a social media metric used to represent the number of times an advertisement or content asset was clicked divided by the total number of impressions the advertisement or content received.
- Comment – A comment is a response that is often provided as an answer or reaction to a post or message on a social network or blog.
- Conversion Rate – Conversion rate is a measurement metric tracked in social media that is the percentage of people who completed an intended action (i.e. filling out a form, following a social account, etc.).
- DIGG – Digg is a social news website that allows members to submit and vote for articles. Articles with the most votes appear on the homepage of the site and subsequently are seen by the largest portion of the site’s membership, as well as other visitors.
- Employee Advocacy – Employee advocacy refers to a practice where employees use their own social presence in order to increase the reach and visibility of the company and its content online.
- Engagement Rate – It is a popular social media metric used to describe the amount of interaction and engagement –follows, likes, shares, comments – a piece of content receives on social media website.
- Forums – A forum is an online discussion site. It is also known as a message board. It originated as the modern equivalent of a traditional bulletin board, and a technological evolution of the dial-up bulletin board system.
- Geotag – On social media websites like Instagram, you can attach directional coordinates to a piece of content online. For example, Instagram users often use geotagging to highlight the location in which their photo was taken.
- Header Image – It is a large photo displayed at the top of your Twitter profile. The header image is also commonly referred to as the banner image on LinkedIn or the cover image on Facebook.
- Hangout – It is a video service on Google+ that allows users to video chat with upto 10 Google+ users at a time. You can name these chats, watch YouTube videos during them, open a Google Doc with colleagues, and much more.
- Lurker – A lurker online is a person who reads discussions on a message board, newsgroup, social network, or other interactive system, but rarely or never participates in the discussion.
- Native Advertising – It’s a type of online advertising made to look more like conversation or a regular post on the social media network its being published on, and less like a paid ad. It resembles a regular post.
- News Feed – In simple words, news feed is a feed full of news and updates. It consists of constantly updating list of updates and stories from your friends and pages you like or follow, and is displayed in the middle of home page of your social media account. The news feed on Twitter is called your timeline. News Feed includes status updates, photos, videos, links, app activity and likes from people, Pages and groups that you follow on Facebook.
- News Jacking – It is a practice of aligning marketing strategy with trending topics and news stories to amplify sales and maximize profits.
- Permalink – A permalink is an address or URL of a particular post within a blog or website that doesn’t change over a period of time.
- Podcast – A podcast is a series of digital media files, usually audio, that are released episodically and often downloaded through an RSS feed.
- Retargeting – Retargeting is an online marketing and advertising technique that allows marketers to display ads to people who have visited their websites or are part of their contacts database.
- RSS Feed(Rich Site Summary or Really Simple Syndication) – RSS is a family of web feed formats used to publish frequently updated information or content such as blogs posts, news headlines, audio and videos in a standardised format. Content publishers can syndicate a feed, which allows users to subscribe to the content and read it as and when they want from a location other than the website (such as Feedly or other RSS readers). It is a format for delivering regularly changing web content.
- Social Selling – It’s a marketing concept in which sales representatives leverage the power of social communication to find and engage with right prospects by answering their questions, providing helpful content, clarifying information, etc. The marketing strategy is built around creating, developing and nurturing long term relationships with prospects, which is integral part of social selling.
- Tag – Tagging is a social media functionality commonly used on Facebook and Instagram that allows users to create a link back to the profile of the person shown in the picture or targeted by the update. When you tag someone, you create a link to their profile.
- User Generated Content(UGC) – User-generated content is content – blogs, videos, photos, quotes, etc., that is created by consumers. Marketers typically tap into their audience in an online setting to collect this type of content to support a campaign or initiative. Any form of contentsuch as blogs, wikis, discussion forums, posts, chats, tweets, podcasts, digital images, video, audio files, advertisements and other forms of media that was created by users of an online system or service, often made available via social media websites,is called UGC. It is excelled from SEO perspective as it improves domain authority.
- Viral – It’s an instance in which a piece of content –YouTube video, blog article, photo, etc. – achieves noteworthy awareness. Viral distribution relies heavily on word of mouth and the frequent sharing of one particular piece of content all over the internet.
- Nomophobia – It is a fear of being without your mobile phone.
- Mobile Marketing – It is the process of marketing with the mobile device.In other words, itis the exercise of connecting, engaging and influencing individuals through and with mobile devices.
- Mobile marketing channels – These are established methods to communicate with mobile and hand-held device audience for marketing purpose. Example: messages, alerts, apps, etc.
- App Stores – These are market places where mobile Apps are sold. Different operating systems have different App stores. Example: Apple App Store, Google Play, Windows MarketPlace.
- Showrooming – It is the process of purchasing an item online after you have looked at and inspected the item in a store, and compared offline and online prices of the item.
- Mobile Messaging Application Provider (MAP) – A company with platform and infrastructure to administer and realize text messaging campaigns and initiatives.
- Text Messaging Application Provider – It is a software solution or tools provided by Text Messaging Application Provider.
- Mobile Originated (MO) – These are text messages originating from a personal mobile phone and sent and routed through text messaging application provider.
- Mobile Terminated (MT) – These are messages that originate from mobile messaging application provider (MAP) service and terminated on mobile subscribers phone.
- Mobile marketing campaign – These are efforts made by you to invite people to opt in to a text messaging program.
- Standard Rate Messages – Only standard carrier charges are charged to consumers for sending and receiving messages.
- Customer Relationship Management (CRM) – Customer Relationship Management (CRM) system is a business tool that allows you to manage all your customers, partners and prospects information all in one place. It is a pre to post-sale strategy companies use to trackcustomer relationships. CRM is a business strategy aimed at understanding, anticipating and responding to a prospect or customer’s needs.A CRM system canalso be defined as asoftware (web based or local machines) that storesvaluable information on customer andprospect interactions with differentresources in the companyin an easy to access, understand and organized format. Itis capable of tracking all the marketing and sales touch points including email, mobile, website, live chat, and social media,providing customer-facing teams with detailed context on a client’s activity, behavior andfeedback. It helps smart way to attract, retain, and delight customers through a combination of people, process, and technology.
- On-premise CRM – An on-premise CRM is a CRM system housed or kept locally at the workplace where its required and used from. On-Premise CRM can be kept in a dedicated server room, or even in a closet. Generally, an on-premise solution requires the business to buy either a server or a computer that can act as a server. Installing CRM software on that server usually requires intervention from an in-house IT department. It is justlike any otherconventional software that we’re all used to. It involves installing software on your own servers in your computer room withassistance from your own IT staff to deploy and manage it. There is no limitation in data storage.On-Premise CRM systems can be easily integrated with your other systems. Most CRM vendors offer cost effective flexible packages that are suitable for small and medium businesses (SMBs). They can often take a long time (months or even years) to implement fully.
There are many CRM systems that are available for purchase off-the-shelf. These can then be tailored to your needs. Companies such as Siebel, Oracle, SAP, and Cordiant are well known in this area.
- Analytical CRM – It uses business intelligence functions to analyze and systematically evaluate customer data. This is done by filtering out key customer specific facts from all the pool of gathered data and information that may not necessarily be of much relevance. It helps in gaining in-depth knowledge of the customer or prospect, and lets you measure customer satisfaction.
On Demand CRM or Cloud CRM or SaaS CRM – It is cloud-based CRM system can be managed digitally by an offsite team of experts via the Internet. As on-demand CRM’s generally do not require a software installation or an IT department for management purposes, they are also referred to as software as a service (SaaS). You just need to log in online and begin using it.
Cloud-based CRM have real-time on the fly accessibility, and they can be accessed by anyone with login credentials and approved within the business to use it – even through handheld devices like smart phones and tabs. It is hosted by a CRM vendor and stores the company’s data online. It provides the software as a service because the client doesn’t need to install or maintain anything, they are simply provided with a link to begin using the service.
Social CRM– Itis a strategy that focuses on the interaction, engagement and transaction with customers via touch points across social media channels like Facebook, LinkedIn and Twitter. A relatively new approach to CRM being used with increasing frequency is Social CRM. Social CRM leverages social listening and social publishing tools to engage and attract the right prospects and consumers. With Social CRM, brands can easily monitor conversations happening around their brand, products and services across different touch points in the social media realm. Companies such as Vitrue, HootSuite, and HubSpot offer web-based applications to help you effectively publish content, monitor responses, eavesdrop on focused keywords and track brand mentions on social media sites.
Mobile CRM – It enables those working in the field or remote employees to use hand-held devices such as smartphones and tabs to access customer data and customer accounts on the fly. It helps improve overall productivity by enabling on-field teams to create instant reports and share it with backend office support teams, so they can start working immediately without delay.
Mobile CRM attempts to enable employees to do everything they would from a laptop but with streamlined menus and fewer swipes and clicks, given the small real estate of a mobile device. The best CRM software is designed with user efficiency and intuitive navigation in mind, without compromising feature sets.
- Open source CRM – Open sourceCRM system offers an unlimited and fully functional CRM to users. The CRM still needsto be installed and configured by an internal resource or resources basis your business goals and requirement. Popular open source CRM companies also provide a preconfigured version and/or installation and support for a token price.
•SMBs and SMEs– SMB is used more often in the US, while SME is used more often in Europe. Small businesses are defined as organizations with less than 100 employees. Midsize enterprises have 100 to 999 employees.
SMB market can also be definedon the basis of theirannual revenue. Organizations with less than $50 million in annual revenue fall under smallbusiness category, whereasorganizations that make more than $50 million, but less than $1 billion in annual revenue fall under midsize enterprise.
As SMBs and SMEs face different challenges and have very distinct requirements, that’s why they use different types of CRM systems.
Professional Services Automation (PSA) – According to Microsoft–“PSA (Professional Services Automation) is a role-tailored solution which provides project managers and directors the tools to manage their projects, track time and expenses and manage invoicing. These tools make the job easier for project managers and administrative teams to be more accurate and productive, resulting in higher profitability and cash flow.”
Executives need accurate, real-time online information in order efficiently run business. The PSA solution does exactly that by providing managers and directors complete visibility across the organization, and all professional services aspects of projects: planning, contracts billing and invoicing, accounting, resource utilization and profitability information. The PSA CRM system are highly configurable and can be customized to as per project requirements of an organization.
Targets – Also known as prospects, it is often a database of names you have purchased, or receive regularly from an industry partner. Targets convert to Leads.Once the Target’s contact information has been confirmed and some interest in what you have to offer has been established, they are usually converted to Leads.
- Leads – They are the raw details gathered about individuals or representatives of organizations collected from trade shows, seminars, advertisements and other marketing campaigns. A lead goes through the follow-up process by sales reps and when qualified, they’re converted into a contact and an account within an organization.
Contacts – They are the people working in other organizations with whom your company engages in pursuit of business opportunities. Contacts may belong to different departments in a company or there may be multiple contacts of the same company. CRM contacts are typically converted from qualified leads, imported from an existing database or added individually.
Accounts – These are the companies or departments within a company who have converted and become your customers, and with which you have business dealings.There can be single or multiple contacts associated to a same account in most CRM systems. Accounts help in keeping track of the important company information, specially in a typical B2B scenario (one business selling products or services to another business).
Convert – Converting a qualified lead into an account, contact, and, optionally, an opportunity by clicking a button or link in CRM system. Information and data from the lead fields is transferred into the appropriate account, contact, and opportunity fields.
Opportunity – An account which has been qualified is referred to as opportunity. These are people who have entered into your buying cycle and are committed to do business with you.You have already contacted, called or met him and know their exact needs or requirements.
An opportunity must be created by you when a contact/ account shows interest in your business and represents a potential sale. Generated charts let you track various opportunities according to their sales stage.
- CRM Campaign –Popular CRM systems provides a platform to create, organize and record the overall cost and performance for marketing campaigns.It is a targeted email marketing campaign designed to increase sales & interest. They could be newsletters, a follow-up emails, or special promotions.
- Targeted lists – It is a handy CRM feature that enables you to send out targeted marketing campaigns by selecting contacts, leads, or targets to be a part of separate lists.
- Forecasts – Popular CRM systems are capable of dynamically generating forecasts in the form of charts and textual information to provide you with a personalized graphical view of your real time business for tracking and fine-tuning the sales process in your organization. These forecasts are the factual data driven insights needed for making smart business decisions and anticipating future sales.
Quote – It is an agreement between customers and vendors to deliver the requested product or service within the specified time at the agreed price. A quote can be converted into a sales order or invoice with a single click in a CRM system. Popular CRM systems also let you create templates based on the quote details and send it across customers.
Invoice –They are bills containing a list of goods sent or services provided, issued by the vendor to the buyer or customer.It contains detailed statement of the sum due for these products and services, with the purpose of receiving payments on time. If a quote is created from an opportunity, a CRM system uses the products associated with them as the basis for the draft.
Sales order – It is a confirmation document sent by the seller to buyers or customers before delivering goods and services specifying their cost.In other words, itis the confirmation of sales generated after the customer or buyer sends a purchase order based on your quotes. Using aCRM system, a quote can be converted into a sales order with a single click. Sales Order (SO) can be created once the quote is accepted by your prospective customer (potential) and the Purchase Order (PO) is sent by the customer for further processing.
Purchase order – A purchase order (PO) is a commercial document and first official offer issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services. It is used to control the purchasing of products and services from external suppliers. The creation of a purchase order creates a legally binding contract which cannot be changed without the consent of both parties.
Price books – It is the agreed price for selling a product to a customer. Price Books are used for selling products at different prices, based on the agreement terms with a particular type of customer. For each customer you can sell the same product at different prices.
The Unit price is the price fixed by the manufacturer for the product and it cannot be changed. The List price is the sellers’ price which can be quoted in the price books,wherein the discount ranges can be specified. The manufacturer/ resellers may sell the product with different prices to their resellers/ customers. These variable prices for the same product are called as List prices.
Withmost CRMs, you can define multiple price books, and assign a default price to each client. You can cater to a mix of retail and distribution clients, or smaller vs. larger clients, with a convenient price book for each pricing channel or level.
Cases – These are inputs and feedback received from customers.They can be feature requests, pain points or bug reports. Once created, these cases can be assigned to the right support agent in your organization for better case resolution and customer satisfaction.
- Software bugs – It is an error, flaw, failure, or fault in a computer program or system that causes it to produce an incorrect or unexpected result.Popular CRM systems have software bugs module that helps you submit, track and fix the bugs and issues that software projects are bound to generate.
- Service contract – It is a contract offered by a retailer for maintaining and repairing a product or service for a designated period of time. The Service Contracts module within 1CRM manages all service contracts. Each service contract can also have any number of associated sub-contracts, and each of those may have any number of supported products associated with them for support coverage.
- Knowledge Base – It is used to store articles which can be easily searched and accessed by the CRM users and attached to emails. You can create articles automatically from service cases, and index them with Tags. Search for them by Tags, and optionally expose them to your customers as valuable information that they can search through as well.
- Front Office – The operations and staff of a company that are customer facing. These may include: customer service, customer support, call centers, and internal sales.
- Channels – How products and services are sold to end customers. Retailers and wholesalers are examples of different channels.
- Channel Conflict – This happens when a company tries to sell products or services to the same customer group using different channels Selling via Internet and via retail is a good example of channel conflict.
- Customer Churn – Customer defection or disloyalty. Can be calculated as the number of lost customers from the average number of customers within the same period, and shown as a percentage.
- Collaborative Filtering – A feature of CRM software that allows a business to provide products or services to a customer based on what other customers with similar preferences have purchased in the past. Internet retailers use collaborative filtering to recommend popular products to you.
- Cross Selling – Identifying and selling additional different goods as a result of the customer’s original purchase, either at the time of purchase or after.
- Customer Loyalty – Measured as the extent to which customers will purchase additional products or services based on a previous buying experience.
- Data Mining – Analyzing information to identify trends, patterns and business opportunities.
- Data Warehouse – An information repository such as a database that allows companies to access and analyze data and trends.
- Data Management – It refers to storage and management of raw data. In the context of CRM this might include revenue per customer, products purchased, credit card payment details, or address details. It can refer to storage and categorization of data through data mining and data warehousing.
- Segmentation – Dividing customers into groups, each with common demographic attributes and assessing their value to the business.
- Upselling – increasing the value of a sale to the customer, for example by offering a more expensive version or add-ons, either at the time of sale or after.
- Contact Centre – Call centres are now often called contact centres, because staff may be managing web operations or responding to customer communications sent via mobile phone, fax or post, as well as handling phone calls.
Home Base – Letting small business give staff the option of home working
Customer-Centric – Those who seek to spread the gospel of CRM frequently talk about the importance of the business becoming more customer-centric, basing more business decisions on the needs and wants of customers, rather than being product-centric – basing decisions on raw data about which products or services seem to be the most popular, regardless of who buys them or why.
- Customer Intelligence – This does not refer to how clever or stupid customers might be, but is the process of building customer profiles, including purchasing habits or how they prefer to be contacted.
- Customer Lifetime Value – This describes the process of assessing the value of a customer to the business on a long term basis, rather than in terms of single transactions.
- Document Management – Document management systems store and manage paper or electronic documents, including electronic versions of paper documents such as Word documents or bank statements, and digital versions of paper documents scanned in electronically, such as chequeor letters. They help the process of CRM by giving staff swift access to customer information.
Intelligent Routing – It allows contact centre systems to identify customers before calls are answered and what their message is most likely to be about. The call (or other type of message, such as email or text) can then be transferred to the member of staff or department best equipped to deal with it.
Knowledge Management – There is a great deal of confusion surrounding the terms content/data/document/knowledge management. Knowledge management tends to refer to systems that help organizations to use all of these processes together to gain the best possible picture of customer and business activities.
Multi-channel integration – This term refers to the unified management of each of the channels customers may choose to use to contact an organization.
Self-service channels – Self-service contact channels allow customers to gain information or carry out transactions without direct staff involvement. They include electronic information and payment telephone services, websites or electronic kiosks in stores and other public places.
- Virtual contact centre – The use of advanced telecommunication technology such as voice over IP can allow the creation of a virtual contact centre, with contact centre (call centre) staff based in many different office buildings or working from home.