ecom buzz words explained

Average Order Value (AOV)

What it means: The average amount a customer spends per order.
Unlock it: Bundle products, use upsells, or offer discounts at checkout thresholds to raise the bar.

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Bounce Rate

What it means: The % of people who leave after viewing just one page.
Unlock it: Improve page load speed, match landing page content to ads, and clarify navigation paths.

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Buy Now, Pay Later (BNPL)

What it means: Letting customers split payments (e.g. Klarna, Clearpay).
Unlock it: Offer it as an option to reduce checkout friction and appeal to value-conscious shoppers.

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CAC (Customer Acquisition Cost)

What it means: How much it costs to get one new customer.
Unlock it: Lower it by improving ad targeting, optimising conversion rates, or boosting organic traffic.

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Churn Rate

What it means: How many customers stop buying or cancel subscriptions.
Unlock it: Use post-purchase flows, loyalty programmes, or personalised win-back campaigns.

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Conversion Rate

What it means: The % of visitors who take a desired action (usually a purchase).
Unlock it: Tighten your funnel, improve UX, test CTAs, reduce form fields, and clarify offers.

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Cross-sell

What it means: Recommending related products after a purchase or in-cart.
Unlock it: Use customer data to suggest relevant add-ons, not random extras.

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Customer Lifetime Value (CLV)

What it means: How much a customer is worth over time.
Unlock it: Build strong retention strategies: email flows, loyalty perks, and consistent engagement.

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DTC (Direct-to-Consumer)

What it means: Selling straight to customers, no middleman.
Unlock it: Own your brand, your data, and your customer experience. Focus on storytelling and retention.

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Email Flows

What it means: Automated email sequences (e.g. abandoned cart, welcome series).
Unlock it: Map flows to key moments in the customer journey. Keep copy human, relevant, and well-timed.

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Exit Intent Popups

What it means: Popups triggered when someone’s about to leave your site.
Unlock it: Offer real value, a discount, free delivery, or useful content, not just a hard sell.

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First Party Data

What it means: Info you collect directly from your customers, emails, site behavior, purchase history.
Unlock it: Use it to personalize marketing, segment audiences, and drive smarter, high-converting campaigns.

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Frictionless Checkout

What it means: A smooth, fast, hassle-free buying experience.
Unlock it: Reduce steps, autofill info, offer guest checkout, and simplify payment options.

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LTV:CAC Ratio

What it means: Compares customer value to how much it cost to acquire them.
Unlock it: Aim for 3:1 or better. Optimise both acquisition and retention levers.

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Omnichannel

What it means: Seamless customer experience across online, offline, and social platforms.
Unlock it: Align messaging and stock levels everywhere customers might discover or buy from you.

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One Time Purchase (OTP)

What it means: Customers who buy once and don’t return.
Unlock it: Turn them into repeat buyers with post-purchase emails, tailored offers, and product education.

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Personalisation

What it means: Tailoring experiences, content, or offers based on customer data.
Unlock it: Use past purchases, location, and behaviour to show relevant products and messages.

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Post-Purchase Experience

What it means: Everything after the “buy” button, delivery, updates, packaging, follow-up.
Unlock it: Surprise and delight. Communicate well. Make them want to come back.

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Product-Market Fit

What it means: When your product really solves a problem for a real audience.
Unlock it: Validate early. Talk to customers. Look for signals like repeat purchases and referrals.

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Retention Rate

What it means: The % of customers who come back.
Unlock it: Create loyalty loops, fast delivery, quality products, personal follow-ups, and great service.

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Return On Ad Spend (ROAS)

What it means: The revenue earned for every £1 spent on ads.
Unlock it: Boost with laser-targeted ads, high-converting landing pages, irresistible offers, and smart budget allocation.

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Social Proof

What it means: Testimonials, reviews, or trust badges that build credibility.
Unlock it: Display real reviews prominently. Use user-generated content (UGC) and influencer validation on key pages.

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Subscription Model

What it means: Recurring delivery of products or services.
Unlock it: Make it flexible. Reduce churn with value-packed experiences and customer control.

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​UGC (User-Generated Content)

What it means: Photos, reviews, or videos created by your customers.
Unlock it: Ask for it. Incentivise sharing. Showcase it everywhere, especially on product pages.

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Upsell

What it means: Encouraging a higher-value version or add-on at checkout.
Unlock it: Keep it relevant and subtle. Frame it as a better value or enhanced experience.

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Zero-Party Data

What it means: Data customers willingly give you (like preferences).
Unlock it: Use quizzes, preference centres, and opt-ins. Reward openness with better experiences.