Marketing and customer data glossary
Average order value, CAC, ROAS, cohorts, churn, RFM: the terms marketing, CRM and ecommerce teams use every day, explained in two minutes, with the formula, an example and what to do about them.
A
C
CACCustomer acquisition cost
What it costs, on average, to win a new customer: acquisition spend divided by new customers.
Definition →CDPCustomer Data Platform
A platform that unifies each customer's data from every source into a single profile and activates it in marketing.
Full guide →Cohort analysisCohorts
Groups customers by the month of their first purchase and follows how they buy afterwards, to see whether retention is improving.
Definition →Control groupHoldout
Part of a campaign's audience that does not receive it, so you can measure what the campaign really sells.
Definition →CRMCustomer relationship management
The system where sales and service teams manage contacts, deals and conversations with customers.
Definition →Cross-sellingCross-sell
Offering a customer products that complement what they already buy or are buying.
Definition →Customer churnChurn rate
The share of customers who stop buying or cancel in a given period.
Guide · Nov 19Customer lifetime valueCLV, LTV
The value a customer brings over the whole relationship with the brand, past and predicted.
Full guide →Customer segmentationSegments
Splitting your customer base into groups with similar behaviour so you can treat them differently.
Guide · Nov 17I
Identity resolutionIdentity matching
Recognises that several records from different sources are the same person and merges them into one profile.
Full guide →IncrementalityIncremental sales
Sales that only exist because of a campaign: the ones that would not have happened without it.
Full guide →L
M
Market segmentationTarget markets
Dividing a market into groups of buyers with similar needs to decide whom to target.
Full guide →Marketing attributionAttribution models
Shares the credit for a sale among the channels and campaigns that touched the customer before buying.
Full guide →Marketing mix modelingMMM
A statistical model that estimates how much each channel contributes to total sales and how to split the budget.
Full guide →O
P
R
RFM analysisRecency, frequency, monetary
Segments customers by when they last bought, how often they buy and how much they spend.
Full guide →ROASReturn on ad spend
Revenue generated for every euro spent on advertising.
Definition →U
V
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