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Definitions on Analytics

C

Churn

Intro
Churn is a metric used to measure the rate at which customers are leaving a business. It is a critical measurement for any company, as it directly impacts the bottom line and long-term success of the business. In this blog post, we will delve into the definition of churn, its impact on businesses, and provide examples of companies that have successfully prevented it.

ClickThrough Rate (CTR)

Intro
Clickthrough rate (CTR) is a measure of the effectiveness of an online advertisement or email campaign. It is calculated by dividing the number of clicks on the ad or email by the number of times it is shown (impressions), expressed as a percentage.

Conversion Rate

Intro
Conversion rate is the percentage of users who complete a desired action—such as making a purchase, filling out a form, or subscribing—out of the total number of visitors or interactions. It’s one of the most important metrics for measuring the effectiveness of marketing campaigns, landing pages, and overall user experience.

Conversion Rate Optimization (CRO)

Intro
Conversion rate optimization (CRO) is the process of improving the percentage of website visitors who take a desired action, such as filling out a form or making a purchase.

Cost Per Acquisition (CPA)

Intro
Cost Per Acquisition (CPA) is a financial metric that measures the cost of acquiring a customer or converting a sale. In digital marketing, CPA is often used to evaluate the effectiveness of various marketing campaigns, such as pay-per-click (PPC) advertising or affiliate marketing.

Cost Per Click (CPC)

Intro
Cost per click (CPC) is a pricing model used in online advertising, where the advertiser pays a set amount each time their ad is clicked.

Cost Per Mille (CPM)

Intro
Cost Per Mille (CPM) is a financial metric that measures the cost of reaching 1,000 people with an online ad. It is commonly used in digital advertising, particularly in display and social media advertising.

E

Engagement Rate

Intro
Engagement rate is a metric that is used to measure the level of interaction and involvement that a marketing campaign or piece of content is able to generate from its target audience. It is typically calculated by dividing the number of likes, comments, shares, or other types of interactions by the number of followers or impressions, and then multiplying that number by 100 to express it as a percentage.

G

Google Analytics 4 (GA4)

Intro
Google Analytics 4 (GA4) is the latest innovation in web analytics and is rapidly becoming the go-to solution for businesses looking to gain insights into their online presence. GA4 offers a range of powerful features and benefits that make it an attractive choice for businesses of all sizes.

K

Key Performance Indicator (KPI)

Intro
Key Performance Indicators (KPIs) are metrics used to measure the success of a business or a specific aspect of its operations. They are essential tools for decision making, as they provide insights into the health of a business and help identify areas for improvement.

Key Results Areas (KRAs)

Intro
Key Results Areas (KRAs) are specific, measurable goals that organizations set to track progress and drive results. They are a critical component of effective business planning and decision making, as they provide a clear understanding of what success looks like for an organization.

R

Return on Ad Spend (ROAS)

Intro
Return on Ad Spend (ROAS) is a financial metric that measures the profitability of a digital advertising campaign.

Return On Investment (ROI)

Intro
Return on investment (ROI) is a measure of the profit earned from an investment compared to the initial cost of the investment. It is typically expressed as a percentage, and is often used to compare the efficiency of different investments. The higher the ROI, the better the return on the investment. To calculate ROI, the net profit from the investment is divided by the initial cost of the investment, and the result is multiplied by 100 to express it as a percentage. For example, if an investment of $100 earns a net profit of $20, the ROI would be 20/100 * 100 = 20%.