Discover the concepts related to ecommerce, organized by subject or alphabetical order. These concepts are a great starting point to broaden or deepen your knowledge in the commerce area.
CRM stands for "Customer Relationship Management" and represents the set of tools and relationship strategy implemented by a company. This term is commonly used to describe or define the platform that a company uses to manage this relationship. There are plenty of platforms available and their most common features are organizing customers (B2C or B2B) databases with customisable information about them and delivering bespoke messaging (through email, SMS and social media, for instance).
A Call to Action (CTA) is an element that aims to make the audience take an expected action. The main objective is to influence the audience on what to do and what next steps to take, help visitors and users make decisions and make sense of your content or publication. It can take many forms, such as a button, landing page, image, or link. It's important to enhance emotion, connect with your audience, and clarify the reason for action. One of the best ways to implement a CTA is to make it implicit rather than direct.
The conversion rate is the percentage of the total number of people who took an expected action. For example, on websites, the conversion rate indicates the percentage of users that have taken actions (conversions) across your website. Some examples of conversions are: number of purchases, clicks on a call-to-action button, downloads, engagement with advertisements, and many others.
The Data Driven methodology refers to the processes and operations that are oriented by the use of reliable data and analysis of important information, in which the decision making is based on strategic planning and data interpretation. It allows companies to improve their productivity and results and to keep updated on the market trends, offering a clearer picture of the customers, products, competitors and everything that is related to them.
EBITDA stands for earning before interests, taxes, depreciation and amortization, which means it represents the value that is left after adding interests, taxes, depreciation and amortization from a given company NET Income. EBITDA is commonly used by companies, investors and individuals to evaluate businesses as it represents the performance of an operation isolated from their costs of capital used to support the business. As any kind of business KPI, this should not be evaluated alone, but together with other factors - such as Net Income, LTV, CAC, WACC and other factors depending on the business strategy and maturity.
Minimum Viable Product or MVP is a development technique that seeks to test whether a product works in the market environment. The MVP is a version of the product with just the basic features, as the goal is to test quickly to collect feedback as soon as possible and validate if the idea has adherence or not.
NET Income, which is also commonly referred to as a business bottom line, is the figure that represents how much is left in a given company's pocket after all sales have been made and expenses, taxes and interests are paid. It could be referred to also as total earnings - considering that the number is positive, of course. If the figure is negative, it can be referred to as total losses, which represents that this business is not completely healthy, as the final results from total sales is not profitable.
NET Profit Margin is the ratio that represents how much is left in a given company's pocket after all sales have been made and expenses, taxes and interests are paid. Thus, it is a percentage calculation of the Net Income over the total revenue generated from a business. This number represents the profitability ratio of a given company - for each dolar made in revenue, what would be the percentage that stays in the companies after deducting COGS, Expenses, Taxes and Interests. Last but not least, this statement result could be positive or negative, representing how healthy is the operation of a business. However, as any kind of business KPI, this should not be evaluated alone, but together with other factors - such as EBITDA, LTV, CAC, WACC and other factors depending on the business strategy and maturity.
A Prototype is a simulation of the final product, focused on how the product will look like and how users will interact with it. Although you don’t release a prototype to the market, you can receive feedback when testing it with users. A prototype is a cheap and fast way to collect feedback and evaluate the user's experience, before developing the final product.
A Sales Funnel is the journey that a customer goes through from discovering the company or product to the moment of purchase. Understanding this marketing concept has many benefits, such as knowing which channels, strategies, and other activities are best for achieving better results and optimizing each stage of the funnel. This helps the company send the right message at the right time.
The concept of User Interface (UI) is related to the elements that are presented to the user to improve their interaction with software and applications, websites and even physical products. It consists of all that enables and facilitates navigation on the company's platform and the presentation of its product or service, such as adequate page layouts, images, sounds, buttons, icons and texts. Its main objective is to create a good interface to improve the user experience, making it more accessible, satisfactory and usable.
The concept of User Experience (UX) is related to the experience of those who interact with a company and its products, systems or services, whether in the online environment or in the physical one. Understanding in depth User Experience will make contact of people with your product or service as pleasant, relevant, intuitive and effective as possible.
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