E-Commerce Entrepreneurs: Train Your Brain on These 16 Definitions Now - BlueSaltDesigns.com

The definition of E-Commerce according to Oxford Dictionary: 

“Commercial transactions conducted electronically on the Internet.”

Simple enough. But is your brain familiar with these important related E-Commerce terms and their meaning?


These are words or phrases incorporated in a message or sales script that induces a viewer, reader or listener to take immediate action. Typical CTAs used in marketing and advertising are ‘Buy Now‘, ‘Call Now‘, ‘Click Here‘ etc. Such words prompt an immediate response or encourage visitors to make a purchase. CTAs have greatly proved its impact on conversion rates.

Cohort Analysis

Analyses the behavior of people grouped by similar attributes.  Cohort Analysis involves examining specific characteristics of a cohort (group) and how that behavior changes over time.

Cohort Analysis is one of the most powerful tools marketers use to help them assess long-term trends in customer relations. Basically, it’s a process of identifying the relationship  between a cohort’s attributes and its behavior.

Conversion Funnel

This term is used in E-Commerce to describe the series of events that occur during the customer’s online buying journey.—rom initiating the purchase to navigatigating the  process, and ultimately to converting these actions into a sale.

Why is this called a Funnel? Because, at every stage, the number of visitors drops.  So by the final stage—where the purchase happens—a decreased number of visitors remain  compared to the start of the buying process. Conversion Rate Optimization (CRO)

How do you enhance the user experience  in a way that improves your chances of driving  more completed online sales? CRO involves tweaking the web layout, content, and design with the  goal of hiking it’s conversion rates. The process involves a clear understanding of web design basics, human psychology, and statistics.

Customer Lifetime Value (CLV)

This metric is a prediction of the total net profit (total value) an E-Commerce company would take in during the lifetime of a relationship with any given customer. Other marketing terms for CLV are Lifetime Customer Value (LCV), or Lifetime value (LTV).

Online businesses can predict CLV by measuring This predicted monetary value is determined by an online score generated throughout the entire existing relationship with that customer.

Engagement Rate

Engagement Rate is a metric that is used to measure how much a visitor gets engaged to the given piece of content or ad. It shows the percentage of the people who came to the site, noticed the ad or content and could engage with it.

ser comments, likes and their shares are all factors that influence his or her engagement to a specific piece of content. This helps to gauge user’s interest and willingness to know more on the specific bit that is displayed.

Event-Triggered Email

Event-triggered-email is an automated email message which is sent to the list of subscribers when a particular event occurs. The events are determined from the information the subscriber has entered while registering on the site. For instance, a special message or discount coupon is sent to a subscriber on their birthday or anniversary date which was provided by them at the time of registering.

Key Performance Indicator (KPI)

Organizations evaluate their success achieving key business objectives using this value. There are 2 types of KPIs: high-level KPIs, which  focus on the overall performance of the enterprise, and low-level KPIs that look at processes within departments such as sales, marketing or a call center.

KPI is a measurable value that demonstrates success based on specific business goals and targets. The type of KPI each organization select depends upon the industry and departments within the business you are looking to track.

Lead Nurturing

This is the process of steadily communicating and developing relationships with qualified sales leads who have not yet made the decision to buy. In this process, leads are sent newsletters, content and promotional materials that keeps them engaged, in an attempt to head them towards sales.

Email marketing is one common form of lead nurture where the aim is to provide prospects with information and answers they need during their buying journey.

Long-Tail Keyword

A long-Tail Keyword is a type of keyword phrase that is more specific and usually longer than more commonly searched keywords. These keywords consist of either three or, some times, five words within the phrase, and are mostly used to target niche demographics rather than mass audiences.

Long tail keywords get less search traffic but will usually have a higher conversion value. These are more specific but often less competitive than generic keywords.

Native Advertising

Native Advertising is a type of online advertising that uses online content created for use as a  paid promotion of a brand on a media site, and that resembles the publication’s editorial content. There is no use of traditional ad formats like banner ads etc., but includes editorial content like blogs or infographics.

On-Page Optimization

On-Page Optimization refers to all the measures taken within the website in order to improve the web page listing or position in search rankings. It is one of the very first steps of SEO that can help you increase your overall CTR (Click-Through-Rate) ratio.

On-Page Optimization includes optimizing the web content, improving the meta description and title tags, as well as HTML code and keyword placement. This not only helps a site to attain a high page ranking on search engines, it also increases overall readability of the site.

Responsive Design

Responsive Design is a design philosophy/practice that provides a customized viewing experience for different browser platforms.

Web pages that  are responsive in nature will detect the visitor’s screen size and orientation and change the layout accordingly. The primary reason to keep your design responsive is to increase readability, and thus the reach of your application to a larger audience using an array of devices.

Social Proof

A psychological phenomenon in which positive influence is created that assumes  the actions and attitudes of other people are correct or appropriate, and causes others to follow the behavior on social media.. .

Social proof can be built in the form of testimonials, reviews, or trust seals (STET)(in a great way) generate interest, increase credibility, and drive more conversions.

Top of the Funnel

This marks the very first stage of the buying process. Top of the Funnel is referred to as any touch-point that begins an interaction of a customer with the company.

The marketing tactics at this stage include activities like content marketing and campaign creation that target a wide pool of potential customers. These activities engage prospects with thought leadership whereby the buyer’s interests and needs are fulfilled. Content is published on blogs, websites, social media, online ads, videos etc which are more customer centric, visual and appealing.

User Experience (UX)

This refers to a visitor’s overall experience using a particular product, system, or service—especially in terms of how easy or pleasing it is to use it.

UX highlights experiential and other valuable aspects of human–computer interaction (HCI) and product ownership. True user experience is about providing customers with what they want but also goes far beyond that, giving them even more..

High-quality user experience can be achieved by providing a seamless merging of services and multiple disciplines, including engineering, marketing, graphical and interface design.