Pricing

E-Commerce Glossary

ThoughtMetric's glossary of the most important e-commerce terms

Marketing Metrics

Add To Cart (ATC)

The Add To Cart (ATC) metric represents the number of add to cart events.

Average Order Value

The average amount of money spent per transaction in a store or website.

Average Time on Site

The average duration visitors spend browsing a website during a session.

Bounce Rate

The percentage of visitors who leave a website after viewing only one page.

Cart abandonment rate

The percentage of online shoppers who add items to their cart but exit without completing the purchase.

Churn Rate

The percentage of customers who stop using a company's product or service during a given time frame.

Click through rate (CTR)

The percentage of people who click on a specific link out of the total users who view a page, email, or advertisement.

Click-to-open rate (CTOR)

The percentage of recipients who open an email and click on a link within that email.

Conversion Rate

The percentage of visitors to a store who place an order.

Cost Of Goods (COGS)

The total cost of manufacturing or acquiring the products sold by a company during a specific period.

Cost Per 1000 Impressions (CPM)

The cost an advertiser pays for one thousand views or impressions of an advertisement.

Cost Per Acquisition (CPA)

The cost an advertiser pays to acquire a new customer, typically calculated by dividing the total campaign cost by the number of conversions.

Cost Per Click (CPC)

The amount an advertiser pays each time a user clicks on their online advertisement.

Cost Per Engagement (CPE)

The advertising cost allocated for each interaction or engagement with a targeted ad campaign, such as likes, shares, or comments.

Cost per lead (CPL)

The cost an advertiser pays for each lead generated from a specific marketing campaign.

Cost per purchase (CPP)

The amount an advertiser spends to acquire a single customer purchase through a specific marketing campaign.

Customer Acquisition Cost (CAC)

The total cost associated with acquiring a new customer, including all marketing and sales expenses.

Customer Lifetime Value (CLV)

The total revenue a business can expect from a single customer throughout their relationship with the company.

Customer satisfaction score (CSAT)

A measure used to quantify the degree of satisfaction a customer has with a product, service, or experience.

Email Open Rate

The percentage of recipients who open an email out of the total number of emails sent.

Frequency

The average number of times a target audience sees an advertisement over a specific period.

Hit

Any request made to the server for a file, including each individual image, script, and HTML file.

Impression

An Impression is counted each time an advertisement is displayed on a user's screen, regardless of whether it is clicked or not.

Marketing Efficiency Ratio (MER)

A metric that evaluates the effectiveness of a marketing campaign by comparing the revenue generated to the marketing spend.

Monthly Recurring Revenue (MRR)

The predictable total revenue generated by a business from all the active subscriptions in a given month.

Net promoter score (NPS)

Customer loyalty and satisfaction by asking customers how likely they are to recommend a company’s products or services

Pageview

A pageview is recorded each time a user visits a webpage on a site.

Profit Margin

The percentage of revenue that remains as profit after all expenses are deducted from total sales.

Reach

The total number of unique individuals who see an advertisement or content

Refund rate

The percentage of sales that are returned by customers and refunded by the business.

Repeat customer rate

The percentage of customers who have made more than one purchase from a business within a given timeframe.

Return On Ad Spend (ROAS)

The revenue generated for every dollar spent on advertising.

Return on Investment (ROI)

Measures the profitability of an investment by comparing the net profit to the cost of the investment.

Revenue

The total amount of money a business receives from its sales of goods or services, before any expenses are deducted.

Session

A Session is a period of time a user is actively engaged with a website

Shopping cart abandonment rate

The percentage of online shoppers who add items to their cart but exit without completing the purchase.

Traffic

The number of visits, sessions, or pageviews received over a specific period.

A/B testing

A method of comparing two versions of a webpage or app to determine which one performs better.

Abandoned Cart

When a shopper adds items to their online shopping cart but leaves the site without completing the purchase.

Above The Fold

The portion of a webpage that is visible without scrolling when the page first loads.

ACH Payment

A type of electronic bank-to-bank payment made through the Automated Clearing House (ACH) network in the United States.

Ad Copy

The text or written content used in advertising and promotional materials to convey a message or information about a product or service.

Ad Placement

The strategic positioning of advertisements on a website.

Affiliate Marketing

A performance-based marketing strategy where businesses pay commissions to external websites for traffic or sales generated through their referrals.

Alt Text

Descriptive text describing images for accessibility.

Anchor Text

The clickable text in a hyperlink.

Aspect Ratio

The proportional relationship between an image or video's width and height.

Attribution

The process of identifying and assigning credit to the marketing channels or touchpoints that contributed to a desired outcome or conversion, such as a sale or lead generation.

Attribution model

A set of rules or methodology used to determine how credit for conversions or outcomes is assigned to different marketing channels or touchpoints within a customer's journey.

Attribution Window

The timeframe during which conversions or actions are credited to specific marketing interactions.

Audiences

The specific group of individuals or demographics targeted by an advertising campaign.

Backlinks

Links from external websites pointing to a specific webpage, crucial for improving search engine ranking and driving organic traffic.

Bid Strategy

The approach or method used to determine the maximum amount an advertiser is willing to pay for a click.

Bottom of Funnel (BOFU)

The stage in the marketing or sales funnel where leads are closest to making a purchase decision.

Breadcrumbs

Navigation aid showing the user's path within a website.

Brick & Mortar

Traditional physical stores or businesses operating in physical locations, as opposed to online or virtual entities.

Bundling

Offering multiple products or services together as a package deal, often at a discounted price, to increase value and encourage purchase.

Business To Business (B2B)

Commerce conducted between businesses, involving the sale of products or services from one business to another rather than to consumers.

Business to consumer (B2C)

Commerce conducted directly between a business and individual consumers, involving the sale of products or services to end users.

Buy Now, Pay Later (BNPL)

A payment method allowing consumers to purchase goods or services and defer payment to a later date, often interest-free or with installment options.

Buy One, Get One (BOGO)

A promotional offer where customers purchase one item and receive another item of equal or lesser value for free or at a discounted price.

Buyer Persona

A fictional representation of a business's ideal customer, based on market research and data analysis, used to guide marketing strategies and tactics.

Call to Action (CTA)

A prompt or directive urging the audience to take a specific action, such as making a purchase.

Campaign Budget Optimization (CBO)

A feature in digital advertising platforms that automatically allocates campaign budgets across ad sets to maximize overall performance.

Canonical URL

The preferred version of a webpage designated to avoid duplicate content issues and consolidate ranking signals for search engines.

Chargeback

A transaction reversal requested by a cardholder, typically initiated when disputing a charge with their bank.

Cohort Analysis

The examination of a group of individuals who share a common characteristic or experience over a specific period to uncover insights into their behavior or performance.

Content management system (CMS)

A software platform that enables users to create, manage, and modify digital content on websites.

Content Marketing

The strategic approach of creating and distributing valuable, relevant content to attract and engage a target audience, ultimately driving profitable customer action.

Conversion

The desired action taken by a user in response to a marketing effort, such as making a purchase.

Conversion Funnel

The step-by-step process that leads potential customers from initial awareness to eventual conversion, typically consisting of stages like awareness, consideration, and action.

Conversion Rate Optimisation (CRO)

The process of improving the percentage of website visitors who take a desired action.

Cookie

A small piece of data stored on a user's device by a website, used to remember information about the user's browsing behavior.

Creative

The visual and textual components of an advertisement designed to capture the audience's attention.

Cross-Selling

The practice of encouraging customers to purchase additional or complementary products or services in conjunction with their initial purchase.

Customer Journey

The complete sum of experiences that customers go through when interacting with a brand.

Cyber Monday

An online shopping event occurring on the Monday following Thanksgiving.

DAM system

Digital Asset Management system, a software platform for storing, organizing, and managing digital assets such as images, videos, documents.

Data-Driven Attribution

A method of assigning credit for conversions to different marketing touchpoints based on data analysis and algorithmic modeling.

Direct Mail Marketing

A marketing strategy that involves sending promotional materials, such as postcards, flyers, or catalogs, directly to targeted recipients via postal mail.

Direct To Consumer (DTC)

A business model where products are sold directly to consumers, bypassing traditional retail channels.

Discount code

A promotional code or alphanumeric sequence that customers can enter during checkout to receive a discount or special offer on their purchase.

Domain Name System (DNS)

Internet protocol translating domain names into IP addresses for network communication.

Drip Campaign

Automated email sequence delivering pre-scheduled messages to nurture leads or customers over time.

Dropshipping

E-commerce fulfillment method where sellers don't hold inventory, shipping products directly from suppliers to customers.

Email Automation

Automated process sending pre-scheduled emails based on triggers or user actions, enhancing efficiency and engagement.

Favicon

Small icon displayed in browser tabs or bookmarks representing a website, enhancing brand recognition and user experience.

First Touch Attribution

A marketing attribution model that assigns credit for conversions to the first interaction a customer has with a brand.

Frequent Buyer Programs

Loyalty initiatives rewarding customers with perks or discounts based on repeated purchases from a business.

Fulfillment

The process of receiving, processing, and delivering orders to customers, ensuring timely and accurate shipment of products.

Fulfillment by Amazon (FBA)

A service where Amazon stores, picks, packs, and ships products on behalf of sellers.

Fulfillment by Merchant (FBM)

A method where sellers handle the storage, packaging, and shipping of products themselves without Amazon's involvement.

GCLID

Google Click Identifier, a parameter added to URLs for tracking clicks in Google Ads campaigns.

Gross Margin

The difference between revenue and the cost of goods sold, representing profitability before deducting operating expenses.

Hashtag

A word or phrase preceded by the "#" symbol used on social media platforms to categorize and facilitate content discovery.

Heat Map

Visual representation of data where values are depicted as colors, often used to show areas of high and low activity or concentration.

Influencer Marketing

Collaborative strategy where brands partner with individuals with large followings to promote products or services.

Key Performance Indicators (KPI)

Quantifiable metrics used to evaluate the success of an organization, project, or activity in achieving objectives.

Keyword

A specific word or phrase that represents the main topic or subject of a piece of content or a search query.

Landing Page

A standalone web page designed for a specific marketing campaign or objective, typically optimized for conversions or lead generation.

Last Touch Attribution

A marketing attribution model that assigns credit for conversions to the last interaction a customer has with a brand before making a purchase.

Lightning Deals

Time-limited promotions offered by online retailers, featuring deep discounts on select products for a short period.

Linear Attribution

A marketing attribution model that evenly distributes credit for conversions across all interactions a customer has with a brand.

Lookback Window

A specified period during which conversions are attributed to interactions with marketing channels or campaigns, allowing analysis of past performance.

Marketing Automation

The use of software and technology to automate repetitive marketing tasks and workflows.

Marketing Mix

A combination of marketing tactics or elements, including product, price, promotion, and place (distribution), tailored to achieve specific business objectives and target audience needs.

Marketplaces

Online platforms where multiple sellers can list and sell their products or services to consumers.

Merchant

An individual or business that sells goods or services, often referring to the seller in a commercial transaction.

Merchant Category Code (MCC)

A four-digit number assigned to businesses by credit card networks to classify the types of goods or services they offer.

Meta Tags

HTML elements providing metadata about a webpage, including title, description, and keywords, used by search engines for indexing and ranking purposes.

Net revenue retention

A metric measuring the total revenue retained from existing customers over a specific period, accounting for churn, upgrades, and downgrades.

One-click upsell

A sales technique allowing customers to add complementary or additional items to their purchase with a single click, typically presented after the initial sale is completed.

One-time offer

A special promotion or discount available for a limited time, typically presented to customers as a unique opportunity to take advantage of exclusive pricing or benefits.

Organic traffic

Website visitors who arrive at a site through unpaid, natural search engine results, excluding paid advertisements.

Page Rank

An algorithm used by search engines to rank web pages in search results based on their relevance and authority, developed by Google co-founders Larry Page and Sergey Brin.

Paid Search

Advertising model where advertisers bid on keywords to display ads in search engine results, paying when users click on their ads.

Payback period

The amount of time it takes for an investment to generate enough cash flow to cover its initial cost, often used to assess investment feasibility and risk.

Pay Per Click (PPC)

An online advertising model where advertisers pay a fee each time their ad is clicked, typically used in search engine advertising platforms like Google Ads.

PCI compliance

Adherence to the Payment Card Industry Data Security Standard (PCI DSS), a set of security standards designed to protect sensitive payment card data during transactions and ensure the security of payment card transactions.

PII (Personally Identifiable Information)

Any data that could potentially identify a specific individual, such as name, address, social security number, or email address.

Point Of Sale (POS)

The location or system where a transaction is completed, typically referring to the physical or digital device used to process payments in retail or hospitality settings.

Position Based Attribution

A marketing attribution model that assigns credit for conversions to both the first and last interactions a customer has with a brand, as well as distributing some credit to intermediate touchpoints.

QR Code

A type of matrix barcode that can be scanned with a smartphone camera.

Referral

The act of recommending or directing someone to a product, service, or business, often resulting in benefits or rewards for both parties involved.

Remarketing

Reaching out to potential customers who have previously shown interest, aiming to re-engage and encourage conversion.

Search Engine Optimisation (SEO)

The process of optimizing a website to improve its visibility and ranking in search engine results pages, ultimately driving organic traffic and increasing website authority.

SERP (Search engine results page)

The page displayed by search engines in response to a user's query, showing a list of relevant websites and other content related to the search terms.

Sitemap

A file or page on a website that lists and links to all the other pages on that site, helping search engines navigate and index site content efficiently.

Social Media Marketing

The use of social media platforms to promote products, services, or brands, engaging with audiences to build relationships and drive traffic or sales.

Social Proof

The phenomenon where people conform to the actions or behaviors of others, influenced by the belief that those actions or behaviors reflect correct behavior in a given situation.

Stock Keeping Unit (SKU)

A unique code or identifier assigned to each distinct product or item in inventory, facilitating tracking and management of stock levels, sales, and replenishment.

Target Market

A specific group of consumers or businesses identified as the intended audience for a product or service, based on demographic, psychographic, geographic, or behavioral characteristics.

Time Decay Attribution

A marketing attribution model that assigns more credit to interactions that occur closer in time to a conversion, reflecting the diminishing influence of earlier touchpoints.

Time on page

The amount of time a user spends on a single webpage during a browsing session, typically measured in seconds or minutes, providing insights into user engagement and content effectiveness.

Tracking Pixel

A small, transparent image embedded in a web page or email to collect data on user behavior and interactions.

Transactional Email

Automated messages sent to individual recipients in response to specific actions or events, such as order confirmations, password resets, or account notifications.

Universal Product Code (UPC)

A standardized barcode used for identifying products and facilitating efficient tracking and inventory management in retail settings.

Upselling

A sales technique where a seller encourages a customer to purchase a more expensive or premium version of a product.

URL

Web address specifying the location of a resource on the internet.

User Generated Content

Content created by users rather than brands, such as reviews, posts, or videos.

UTM

Urchin Tracking Module, parameters added to URLs for tracking campaign performance in Google Analytics.

VAT

Value Added Tax, a consumption tax levied on the value added to goods and services.

Wholesale

The sale of goods or services in large quantities at lower prices to retailers or businesses.

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