Pay Per Click(PPC)/Cost Per Click : Internet advertising model used to direct traffic to websites, in which advertisers pay the publisher (typically a website owner) when the ad is clicked. It is defined simply as “the amount spent to get an advertisement clicked.
Cost per Click (CPC) : The amount of money you need to spend to get people to the top of your marketing funnel, or in other words to make people aware of your business. Often businesses use services like AdWords to drive CPC traffic.
Cost per Action (CPA) : sometimes known as Pay Per Action or PPA; also Cost Per Conversion is an online advertising pricing model, where the advertiser pays for each specified action - this could include (but not limited too): an impression, click, form submit (e.g, contact request, newsletter sign up, registration etc), double opt-in or sale.
Cost per lead (CPL) : A payment model for online advertising. When a prospective client accesses a vendor's site through an advertisement posted on an affiliate site and the prospect leaves enough contact data to be considered a viable sales lead, the affiliate will be paid a preset amount, which becomes the cost for that lead.
Pay per Lead (PPL): A type of affiliate marketing program where the advertiser pays the affiliate based on conversion of leads, such as a file or software download, completion of a sign-up form for a newsletter, trial offer sign-up, or other desired action. If a customer follows an affiliate link to the advertiser's site and completes the required action in accordance with the affiliate agreement, the affiliate is paid.
Cost per Mille/Cost Per thousand (CPM) : used by Internet marketers to price ad banners. Sites that sell advertising will guarantee an advertiser a certain number of impressions (number of times an ad banner is downloaded and presumably seen by visitors.), then set a rate based on that guarantee times the CPM rate. A Web site that has a CPM rate of $25 and guarantees advertisers 600,000 impressions will charge $15,000 ($25 x 600) for those advertisers' ad banner.
Cost per Impression (CPI) : Is a term used in online advertising and marketing related to web traffic. It refers to the cost of internet marketing or email advertising campaigns where advertisers pay for every time an ad is displayed. Specifically, it is the cost to offer potential customers one opportunity to see the advertisement. CPI is the closest online advertising strategy to those offered in other media such as television or print, which sell advertising based on estimated viewership or readership.
Call to Action (CTA): Is a banner, button, or some type of graphic or text on a website meant to prompt a user to click it and continue down a conversion funnel. It is an essential part of inbound marketing as well as permission marketing in that it actively strives to convert a user into a lead and later into a customer. The main goal of a CTA is a click or a scan in the case of a qr code, and its success can be measured via a conversion rate formula that calculates the number of clicks over the times the CTA was seen.
Some Common Terminology associated with eCommerce/Internet World -Advertising/Marketing/Buying/Conversion/Web Analytics.
Cost per order (CPO) : also called cost per purchase, is the cost of internet advertising divided by the number of orders. Cost per order, along with cost per impression and cost per click, is the starting point for assessing the effectiveness of a company's internet advertising. Mathematical calculation of the costs incurred in selling an item divided by the number of orders received. It is used to examine the relative profitability of various promotions.
View Through Rate (VTR): measures the number of post-impression response or view through from display media impressions viewed during and following an online advertising campaign. Such post-exposure behavior can be expressed in site visits, on-site events, conversions occurring at one or more Web sites or potentially offline.
Click Through Rate (CTR) : way of measuring the success of an online advertising campaign for a particular website as well as the effectiveness of an email campaign by the number of users that clicked on a specific link.
Customer Acquisition Cost (CAC) : how much money you spend to actually acquire a new paying customer for your business. This is typically expressed as a ratio, that is the sum of total costs of sales, marketing and associated overheads, divided by the number of acquired customers during a given period of time.
Exit Rate (ER): is the percentage of people who left your site from that page. Exits may have viewed more than one page in a session. That means they may not have landed on that page, but simply found their way to it through site navigation.
Bounce Rate (BR): is the percentage of people who landed on a page and immediately left. Bounces are always one page sessions. For example, John lands on your homepage, www.xyz.com, and leaves your site without visiting any other pages on your website – that’s a “Bounce”. The “Bounce Rate” is calculated by taking the total number of Bounces (to your website or a set of pages, depending on what you’re looking at), and dividing it by the total number of Visits (to your website or a set of pages, depending on what you’re looking at).
In Email Marketing ,Open Rate: The email open rate is a measure primarily used by marketers as an indication of how many people "view" or "open" the commercial electronic mail they send out. It is most commonly expressed as a percentage and calculated by dividing the number of email messages opened by the total number of email messages sent (excluding those that bounced)
Banner Blindness : phenomenon in web usability where visitors to a website consciously or subconsciously ignore banner-like information, which can also be called ad blindness.
Clicktag : is a parameter used in Flash banner ads. The parameter is a variable that defines the destination URL from the markup code. By using a click tag, the advertiser can easily see and modify the URL without a Flash developer.
Click Fraud : is an illegal practice that occurs when individuals click on Web site click through advertisements (either banner ads or paid text links) to increase the payable number of click throughs to the advertiser. The illegal clicks could either be performed by having a person manually click the advertising hyperlinks or by using automated software or Online bots that are programmed to click these banner ads and pay per click text ad links. Research has indicated that click fraud is perpetrated by individuals who use click fraud to increase their own personal banner ad revenues and also by companies who use click fraud as a way to deplete a competitor's advertising budget.
Hit : A hit is generated when a file is requested and served on your website. The file can be anything from the ordinary HTML document, an image file, a video and so on. An HTML document with 10 image files on it will register 11 hits (1 HTML file + 10 image file) when the page is viewed by a visitor.Using hits to gauge a site’s popularity is misleading and there’s nothing to brag about when you get thousands of hits per day.
Page Impression : It shows how many times the page is viewed. For example, when you click a link and the page is loaded, that request is counted as one page view. When you click the back button on your web browser to return to the previous page, another page view is registered.Page impression can be used to gauge the ability of your pages to retain the visitors’ interest, sometimes called the stickiness of your website. High number of page view per visitor means your visitors may be browsing several pages during their visits. This can be a good thing to mention if you are selling advertising on your site.
Unique visitors : A unique visitor means a visit from a person to a web site, at least once, typically within a 24 hour period.Several visits from the same person to that website within a 24 hour period are only counted once. The person is identified by his or her IP address and sometimes through cookies, which acts like an online fingerprint.So, if a blog gets 1000 unique visitors per day, it means that 1000 different individuals have visited the blog within the 24 hours period. This deifnes the traffic for a site
Pages/Visit : Pages per visit is a Web analytics measure of how many pieces of content (Web pages)a particular user or group of users views on a single website. Pages per visit is usually displayed as an average, which is calculated by dividing the total number of page views by the total number of visitors.
Pageviews : Pageviews is a calculation of how many times a page is viewed. Say a visitor lands on your main page, that’s 1 pageview. Same visitor clicks to About Us page, that’s another pageview. By dividing total pageviews with total unique visitors, you can get an idea how many pageviews each visitor generates.
Avg. time spent on page : Let's say there's a visitor who hits 3 unique pages in a session. Page 1 is loaded at 12:00pm. Page 2 is loaded at 12:05pm. Page 3 is loaded at 12:08pm, and that's the entire visit. The entire session lasted 8 minutes, and the average time per page would be calculated 8 minutes/3 pages = 2.67 minutes per page. The last page is thrown out from the calculation because we do not know how long they were on that page.
InPage Analytics : It lets you make a visual assessment of how users interact with your web pages, and helps you answer questions like:Is the layout optimal for what I want users to accomplish on the page? Are my users seeing the content I want them to see? Are my users finding what they're looking for on the page? Are my calls to action motivating or visible enough? What links are users clicking?
Marketing Funnel :This is the journey of potential new customers for your business. It starts with awareness, then opinion formation, consideration, and eventual purchase.
Conversion rate : The percentage of people that enter your marking funnel that actually become paying customers.
Conversion funnel : Technical term used in e-commerce operations to describe the track a consumer takesthrough an Internet advertising or search system, navigating an e-commerce website and finally converting to a sale.
A/B Split Testing : A/B Testing, which you may also have heard referred to as split testing, is a method ofwebsite optimization in which the conversion rates of two versions of a page — version A and version B — are compared to one another using live traffic.For example, if you are A/B testing on your landing page you may want to create one version with 15% discount, the other with free shipping and one with the same offer but different page design.Best Use for - Testing radically different ideas for conversion rate optimization
Multivariate Testing : In multivariate test, you identify a few key areas/sections of a page and then create variations for those sections specifically (as opposed to creating variations of whole page in an A/B split test). So for example, in multivariate test you can choose to create different variations for 2 different sections: headline and image. A multivariate testing software will combine all these section specific variations to generate unique versions of page to be tested and then simply split traffic amongst those versions. Best Use for - Optimizing and refining an existing landing page or homepage without doing significant investment in redesign
SEM : Search Engine Marketing - is a form of Internet marketing that involves the promotion of websites by increasing their visibility in search engine results pages (SERPs) through optimization and advertising. SEM may use search engine optimization (SEO), that adjusts or rewrites website content to achieve a higher ranking in search engine results pages or use pay per click listings.
SEO : Search Engine Optimization - is the process of affecting the visibility of a website or a web page in a search engine's "natural" or un-paid ("organic") search results. In general, the earlier (or higher ranked on the search results page), and more frequently a site appears in the search results list, the more visitors it will receive from the search engine's users.
ABB: Activity Based Budgeting
ABC: Activity Based Costing
ABC Costing: Activity Based Costing
ABM: Activity BasedManagement
ABI: Automated Broker Interface
ABP: Activity Based Planning
ACAT: See: Acquisition Categories
Accessorial Fee: See: Accessorial charges
ACD: Automated Call Distribution
ACE: Automated Commercial Environment
ACH: Automated Clearinghouse
APS: Advanced Planning and Scheduling
AQ: Any quantity rate
AQL: Acceptable Quality Level
A/R: Accounts Receivable
Actual Costs: The actual labor, material, and allocated overhead costs incurred in the acquisition or production ofa product.
Advanced Shipping Notice (ASN): Detailed shipment information transmitted to a customer or consignee in advance of delivery, designating the
contents (individual products and quantities of each) and nature of the shipment. In EDI data standards it is referred to as an “856 transaction.” It may
also include carrier and shipment specifics, including time of shipment and expected time of arrival. Also known as an assumed receipt.
AGVS: Automated Guided Vehicle System.
Air Cargo: Freight that is moved by air transportation.
Air Cargo Containers: Containers designed to conformto the insideofan aircraft. There are many shapes and sizes of containers. Air cargo
containers fall into three categories: 1) air cargo pallets 2) lower deck containers 3) box type containers.
Air Waybill (AWB): A bill of lading for air transport that serves as a receipt for the shipper, indicates that the carrier has accepted the goods listed,
obligates the carrier to carry the consignment to the airport ofdestination according to specified conditions.
AMS: Automated Manifest System
ANSI: American National Standards Institute.
A/P: Accounts Payable
Approved Vendor List (AVL): List of the suppliers approved for doing business. The AVL is usually created by procurement or sourcing and
engineering personnel using a variety of criteria such as technology, functional fit of the product, financial stability, and past performance of the
supplier.
AQL: Acceptable Quality Level
Available to Sell (ATS): Total quantity of goods committed to the pipeline for a ship to or selling location. This includes the current inventory at a
location and any open purchase orders.
Back Order: Product ordered but out of stock and promised to ship when the product becomes available.
Balance to Ship (BTS): Balance or remaining quantity of a promotion or order that has yet to ship.
BAM: Business Activity Monitoring
BCP: Business ContinuityPlan
Bill of Material (BOM): A structured list of all the materials or parts and quantities needed to produce a particular finished product, assembly,
subassembly, or manufactured part, whether purchased or not.
Bin: An inventory location which is typically a box or tray used to hold quantities of smaller parts.
BOL: Bill of Lading
BOK: Body of Knowledge
Business Activity Monitoring (BAM): A term which refers to capturing operational data in real-time or close to it, making it possible for an
enterprise to react more quickly to events. This is typically done through software and includes features to provide alerts / notifications when specific
events occur. See also:Supply Chain Event Management
Business Process Outsourcing (BPO): The practice ofoutsourcing non-core internal functions to third parties. Functions typically outsourced
include logistics, accounts payable, accounts receivable, payroll and human resources. Other areas can include IT development or complete
management of the IT functions of the enterprise.
Business-to-Business (B2B): As opposed to business-to-consumer (B2C). Many companies are now focusing on this strategy, and their sites are
aimed at businesses (think wholesale) and only other businesses can access or buy products on the site. Internet analysts predict this will be the
biggest sectoron theWeb.
Business-to-Consumer (B2C): The hundreds of e-commerceWeb sites that sell goods directly to consumers are considered B2C. This distinction is
important when comparing Websites that are B2B as the entire business model, strategy, execution, and fulfillment is different.
Business Unit: A part of an organization which is managed like a separate business with its own profit and loss financial reporting. For example, in
the General Motors group Chevrolet is a business unit.
C &F: Cost and Freight
CAE: See: Computer Aided Engineering
CAPEX: A term used to describe the monetary requirements (CAPital EXPenditure) ofan initial investment in new machines or equipment.
CAR: Corrective Action
Cargo: The subject of a shipment. The materials being carried.
CBP: Customs and Border Protection.
CBT: Computer-Based Training.
Certificate of Analysis (COA): A document, often required by an importer or governmental authorities, attesting to the quality or purity of
commodities.
CFD: Continuous FlowDistribution
CGMP: Current Good Manufacturing Practice.
Channel: 1) A method whereby a business dispenses its product via channels such as a retail or distribution channel, call center, or web-based
electronic storefront, and 2) A push technology that allows users to subscribe to a website to browse offline, automatically display updated pages on
their desktops, and download or receive notifications when website pages are modified. Channels are available only in browsers that support channel
definitions—such as Microsoft Internet Explorer version 4.0 and above.
CI: Continuous Improvement, Catalog Item
CIF: Cost, Insurance,Freight.
CLCA: Closed-loop corrective action.
CLM: Council of Supply ChainManagement Professionals.
GLN: Global Location Number
GPS: Global Positioning System.
GRN: Goods Received Note
GTM: Global Trade Management.
Hub Airport: An airport that serves as the focal point for the origin and termination of long-distance flights; flights from outlying areas are fed into
the hub airport for connecting flights.
International Air Transport Association (IATA): An international air carrier rate bureau for passenger and freight movements.
Invoice: A detailed statement showing goods sold and amounts for each. The invoice is prepared by the seller and acts as thedocument that the buyer
will use to make payment.
IS: Information Systems
ISDN: Integrated services digital network
ISO: International StandardsOrganization
Labor Management System (LMS) A software solution which provides a means of defining / documenting the most appropriate means of
performing a process or task, provides an engineered methodology for calculating standard which show how long a task should take to complete and
includes toolswhich can be used for planning activities and reporting performance against standards.
Logistics Service Provider (LSP): Any business which provides logistics services. Includes those businesses typically referred to as 3PL, 4PL, LLP,
etc. Services may include provisioning, transport, warehousing, packaging, etc.
Lot Number: Batch Number
Maturity Level: An identifiable stage, defined in terms of process features, towards achieving a mature process. Maturity levels are commonly
represented in 5 stages, for example the SEI Capability Maturity Model defines the following levels – Ad Hoc, Repeatable, Definable, Managed, and
Optimized
Net Assets: Total Net assets are calculated as Total Assets - Total Liabilities; where: The total assets are made up of fixed assets (plant, machinery
and equipment) and current assets which is the total of stock, debtors and cash (also includes A/R, inventory, prepaid assets, deferred assets,
intangibles and goodwill). The total liabilities are made up in much the same way of long-termliabilities and current liabilities (includes A/P, accrued
expenses, deferred liabilities).
Out Of Stock: The state ofnot having inventory at a location and available for distribution or for sell to the consumer (zero inventory).
P&D: Pickup and delivery.
P&P: Pick and Pass.
P2P: Path to Profitability
P2P: Peer to Peer
Pallet: The platformwhich cartons are stacked on and then used for shipment or movement as a group.Pallets may be made ofwood or composite
materials. Some pallets have electronic tracking tags (RFID) and most are recycled in some manner.
Pallet Jack: Material handling equipment consisting of two broad parallel pallet forks on small wheels used in thewarehouse to move pallets of
product, but not having the lifting capability ofa forklift. It may be a motorized unit guided by an operatorwho stands on a platform; or it may be a
motorized or manual unit guided by an operator who is walking behind or beside it. Comes as a "single" (one pallet)or "double" (two pallets).
Pallet Rack: A singleor multi-level structural storage systemthat is utilized to support high stacking of single items or palletized loads
PO: Purchase Order
POD: Proof ofDelivery
Point-of -Purchase (POP): A retail sales termre ferring to the area where a saleoccurs, such as the checkout counter. POP is also used to refer to the
displays and other sales promotion tools located at a checkout counter.
Point of Sale (POS): 1) The time and place at which a sale occurs, such as a cash register in a retail operation, or the order confirmation screen in an
on-line session. Supply chain partners are interested in capturing data at thePOS, because it is a true record of the sale rather than being derived from
other information such as inventory movement. 2) Also a national network of merchant terminals, at which customers can use client cards and
personal security codes to make purchases. Transactions are directed against client deposit accounts. POS terminals are sophisticated cryptographic
devices, with complex key management processes. POS standards draw on activity-based management (ABM) network experiences and possess
extremely stringent security requirements.
Proof of Delivery (POD): Information supplied by the carrier containing the name of the person who signed for the shipment, the time and date of
delivery, and other shipment delivery related information. POD is also sometimes used to refer to the process of printing materials just prior to
shipment (Print on Demand).
Rack: A piece ofequipment which is used to store materials off of the floor. Racks will typically have shelves, but may be designed to holdmaterials
vertically such as lengths ofpipe ofmetal bar stock.
Racking: The activity ofplacing materials onto a rack. May also refer to hardware which is used to build racks.
Return Material Authorization or Return Merchandise Authorization (RMA): A reference number produced to recognize and give authority
for a faulty product to be returned to a distribution center or manufacturer. This form typically needs to be accompanied by aWarranty/Return, which
helps the company identify theoriginal product and the reason for the return. The RMA number often acts as an order for the work required in repair
situations, or as a reference for credit approval.
Reverse Logistics: A specialized segment of logistics focusing on the movement and management of products and resources after the sale and after
delivery to the customer. Includes product returns for repair and/or credit.
SCE: Supply Chain Execution
SCEM: Supply Chain Event Management
Stock Keeping Unit (SKU): A category of unit with unique combination of form, fit, and function (i.e. unique components held in stock). For
example, if two items are indistinguishable to the customer, or if any distinguishing characteristics visible to the customer are not important to the
customer, so that the customer believes the two items to be the same, these two items are part of the same SKU. As a further illustration consider a
computer company that allows customers to configure a product from a standard catalogue components, choosing from three keyboards, three
monitors, and three CPUs. Customers may also individually buy keyboards, monitors, and CPUs. If the stock were held at the configuration
component level, the company would have nine SKUs. If the company stocks at the component level, as well as at the configured product level, the
company would have 36 SKUs. (9 component SKUs + 3*3*3 configured product SKUs. If as part of a promotional campaign the company also
specially packaged the products, the company would have a total of72 SKUs.
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