Glossary
Lifetime Value (LTV)
Lifetime Value (LTV) is a calculation of how much a new customer will be worth to your company over their entire lifetime.
This calculation can alter other calculations, such as the acceptable cost of acquiring a new customer. The initial value of that customer may be too low to justify a particular cost, but their LTV could justify the advertising cost to acquire them.
Related Terms
Glossary
Return on Investment (ROI)
A calculation of the cost for an ad or marketing campaign, compared to the amount of trackable revenue it provided for the company. ROI is an important metric for many campaigns, because it relates directly to the profitability of an ad or project.
Sometimes revenue can’t be tracked precisely and attributed to an ad or campaign, though many digital ads are now able to provide this granular tracking to aid in business decisions.
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Glossary
Organic SEO
Organic Search Engine Optimization (SEO) refers to efforts to increase site ranks for search engine queries. Organic traffic to a website is entirely from search engine queries, rather than referral sites or paid ads.
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Glossary
Heat Map
An analytical tool that monitors traffic to your website and produces a color-coded “heat” map of user behavior on a site. Areas that are scrolled and clicked more will show up as hotter than others.
This allows you to see how people interact with your site design, and make iterative improvements that generate more engagement with important site elements.
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