The eCommerce industry is widespread with terminology and abbreviations. It’s easy to become overwhelmed when dealing with injected ads, CRO, and AOV.
This eCommerce pricing dictionary combines the most common terms into simple definitions, allowing you to stay laser-focused on driving sales rather than getting lost down an online rabbit hole.
eCommerce Pricing Dictionary
This is a comprehensive eCommerce pricing dictionary that includes all the terms you’ll need to know for those who run an online business.
A/B Testing
One of the most commonly used techniques in A/B testing is the comparison of two versions of the same website, landing page, or ad. Split testing, often known as random testing, determines which version of a website is more effective by randomly showing users one of two options.
For example, A/B testing can be used to see if a blue or an orange “purchase now” button on a website generates more revenue. Unlike multi-variate testing, there are just two variables in A/B testing, which may utilize as many as three.
Average Order Value
AOV, or average order value, is a regularly reported eCommerce metric that assesses the average dollar value of each order placed during a given period.
Behavioral Segmentation
Segmenting clients based on their common habits is known as “behavioral segmentation.” Segmenting an email list into existing and potential clients is one example of this practice.
Email marketing, for example, benefits from behavioral segmentation since it allows for more precise messaging to be sent to certain recipients.
Bounce Rate
Website analytics metric is known as the “bounce rate,” monitors the percentage of site visitors who arrive at a page but do not take any action before departing the site. The bounce rate in your analytics tools only considers visitors that go to one page on your site.
There may be problems with the marketing or design of your site if you have a high bounce rate. The content may not meet the user’s expectations, or the site may not perform well on mobile devices.
Brand Equity
An individual brand’s worth and value; the value customers place on a particular name brand. Consumers are more likely to trust and recognize easily identifiable brands.
Brand Perception
Brand perception is the total of all customer sentiments, thoughts, and impressions about a brand. It includes brand awareness, equity, loyalty, and emotional attachment.
Call to Action
A call-to-action (CTA) is a prompt that urges users to complete a sales or conversion funnel. “Start with a free trial” or “Get yours now” are examples of call-to-action sentences.
Cart Abandonment
Cart abandonment is the rate at which consumers add items to their digital shopping carts but do not complete the purchase.
Conversion Funnel
The conversion funnel describes the path a customer takes from brand awareness to conversion. This process involves stages of awareness, curiosity, desire, and action.
Conversion Rate
The conversion rate measures how many site visitors accomplish a targeted action. It is calculated by dividing conversions by site visitors.
Conversion Rate Optimization
Website improvements that enhance the number of visitors who take desired actions are known as “conversion rate optimization,” or CRO. Some of the most common CRO tactics are A/B testing headlines, shortening the checkout process, and reducing the number of fields in a form.
Customer Journey
This visual representation of the user’s journey from first learning about a product or brand to making a purchase decision. E-commerce stores can identify bottlenecks and improve marketing efficiency and ROI by writing down the entire process.
Customer Segmentation
In customer segmentation, also known as marketing segmentation, customers are divided into smaller groups based on their shared characteristics, such as age, gender, or geographic location.
Brands can better target their customers with more precise marketing strategies because of segmentation. Create a section of college-age consumers, for example, and send them a summer email offering back-to-college items.
Discounting Rate
eCommerce’s discounting rate determines how much of a discount is needed to boost sales. The higher the discounting rate, the lower the profit margins, so it is important to know how much discount is needed to get customers to buy.
Injected Ads
Advertising that is inserted into websites using browser extensions is known as injected ads. These ads are typically sold to third parties without the knowledge of the site owner. As a result, they pose a serious threat to eCommerce sites, as they may showcase products from your competitors and steal customers.
Revenue Per Visitor
Your site’s revenue per visitor, or RPV, is a way to estimate the value of each visitor. The entire income of a website or page is divided by the number of visits to arrive at this value. Estimating the value of additional traffic or identifying problems in the sales process can be done by using RPV.
Sales Promotions
A discount or promotion is used as part of an eCommerce strategy to boost sales and raise brand awareness. Free shipping, flash sales, seasonal campaigns, and new subscriber discounts are just a few examples of these promotions.
User Experience
“UX” is shorthand for “user experience,” which refers to the design decisions that affect how users interact with a web page or platform. As a result, it takes into account elements including simplicity of use, speed, and functionality. It’s easier for customers to find their way around your site and make a purchase when you improve user experience.
