CAC (Customer
Acquisition Cost)
The price tag on a new customer. If
you pay $56 to get a customer who spends $39 on a product with a margin of $8.47... we need
to fix that.
Entropy
A lack of order or predictability;
a gradual decline into disorder. Ignore it and tracking, offers, and ops drift toward loss.
LTV (Lifetime
Value)
How much cash a customer gives you
before they leave. If this isn't at least 3x your CAC, you're probably stressed.
Margins
The money you keep after costs.
Thin margins make every marketing channel harder to scale.
ROAS (Return on Ad
Spend)
The slot machine ratio. Put $1 in,
get $X out. Agencies love this metric because it ignores your operating costs.
CRO (Conversion
Rate Optimisation)
Making your website suck less so
more people buy. Usually involves moving buttons and changing colors, but should involve
psychology.
CRM (Customer
Relationship Management)
The living database for prospects
and customers. When it's messy, so is every follow-up, report, and forecast.
SEO (Search Engine
Optimisation)
Begging Google to like you. It
takes forever, but once it works, it's free money. Until they change the algorithm again.
Churn
The percentage of customers who
fire you every month. High churn means you have a leaky bucket. Stop pouring more water in.
OpEx (Operating
Expenses)
The money it takes just to keep the
lights on. If OpEx balloons, your profits evaporate no matter how strong the top line looks.
Funnel
A fancy word for the path people
take from "Who are you?" to "Shut up and take my money."
Attribution
Guessing which ad actually worked.
It's never 100% accurate, but PPC platforms (and shitty marketers) will always overclaim.
Moat
A competitive advantage that keeps
rivals from stealing your lunch. Brand is a moat. Tech is a moat. "Being nice" is not a
moat.
Synergy
The corporate hope that 1 + 1
magically equals 3. Whoever brought this term in can rot.
Arbitrage
Buying attention cheap and selling
it dear. The core mechanic of all profitable marketing.
Social Proof
Evidence that real humans trust
you. Testimonials, logos, case studies. It calms buyer nerves faster than any pitch deck.
CTA (Call To
Action)
The button you want people to
click. "Buy Now", "Sign Up". If you have too many, you have none. If you're like me, you
also have none. (Don't be like me.)
VA (Virtual
Assistant)
A remote worker, usually offshore.
Great for admin, terrible for strategy. I don't use them for client work.
LLM (Large
Language Model)
Claude, Gemini, ChatGPT etc. Useful
for speed, dangerous for direction. If your strategy is "ask ChatGPT", you're in trouble.
But if you never use AI, you're also in trouble.
CPM (Cost Per
Mille)
The cost to reach 1,000 people.
It's the rent you pay to Zuckerberg or Google for attention.