Essential CRO and marketing terms You must know

You enter the world of startups and internet marketing. You are at a meeting with a marketing agency or sales team. Phrases start flying around: 

We need to optimize CAC against LTV because our ROAS is okay, but Churn is eating up our margin.

If you find yourself nodding along, pretending to understand while secretly thinking, "What are they talking about?", this article is for you.

Digital marketing and Conversion Rate Optimization (CRO) are fields full of jargon. However, behind these three-letter acronyms lie your company's real money. Not knowing these terms isn't just a matter of image—it’s a risk of making poor business decisions.

Here is a glossary of essential terms that will allow you to navigate the world of digital growth with confidence.

I. Money & Profitability (Business Math)

The most important section. These metrics tell you whether your business is making money or burning through the budget.

ROI (Return on Investment) The king of metrics. It tells you how much you earned "net" after deducting costs.

• Formula: (Revenue - Total Costs) / Total Costs * 100%

ROAS (Return on Ad Spend) Often confused with ROI. ROAS measures the effectiveness of the ad campaign itself, without accounting for product costs, employees, or tools.

• Example: You spent $100 on Google Ads and sold $500 worth of goods. Your ROAS is 500%.

CAC (Customer Acquisition Cost) How much you have to spend (marketing + sales) to acquire one paying customer.

• Important: If your CAC is higher than the profit from a customer, you have a problem.

LTV / CLV (Lifetime Value) The total value of a customer over time. How much money a customer will leave with you throughout the entire relationship.

• Golden Rule: LTV should be at least 3x higher than CAC.

AOV (Average Order Value) One of the fastest ways to increase revenue without finding new customers (e.g., through upselling).

MRR / ARR (Monthly / Annual Recurring Revenue) Key for SaaS and subscription businesses. Recurring monthly or annual revenue. This is an indicator of business stability.

Churn (Attrition Rate) The percentage of customers who stopped using your services in a given period.

• Why it matters: The "Leaky Bucket." High Churn kills even the best marketing.

II. Traffic & Sales Funnel

Where people come from and who they are to your business.

Traffic Total visits to your website. Remember: traffic is not the same as customers.

CPC (Cost Per Click) A billing model (e.g., Google Ads) where you pay only when someone clicks on your ad.

CTR (Click-Through Rate) The percentage of people who saw your ad and clicked on it.

• Interpretation: A high CTR means your ad is attractive and relevant to the audience.

Bounce Rate The percentage of users who entered the site and left without taking any action (didn't click on anything else). A high rate might mean the page doesn't meet expectations (or loads too slowly).

Lead A person or company that has shown interest in your product (e.g., left an email).

• MQL (Marketing Qualified Lead): A lead who downloaded an ebook but might not be ready to buy yet.
• SQL (Sales Qualified Lead): A lead ready for a sales conversation (e.g., requested a demo).

Cold / Warm / Hot Traffic Traffic classification based on awareness.

• Cold: They don't know you (Facebook ad to a broad audience).
• Warm: They know you but haven't bought yet (blog readers).
• Hot: They are ready to buy (Searching "Your Product + Pricing", contacting you directly).

III. Optimization & Psychology (CRO & UX)

How to turn a visitor into a customer (The Heart of FormDig).

CRO (Conversion Rate Optimization) The process of systematically improving a website to increase the percentage of users performing a desired action (purchase, sign-up).

CR (Conversion Rate)

• Formula: (Number of conversions / Number of visits) * 100%.
• Example: Out of 100 people, 2 bought. CR = 2%.

Friction Anything that makes it difficult for the user to make a decision or take action.

• Examples: A form that is too long, a slow website, forced account creation, hidden pricing.

Cognitive Load The amount of mental effort required to use your site. The higher the load (too much text, complex language), the lower the conversion.

CTA (Call to Action) A button or link telling the user what to do next (e.g., "Buy Now", "Download Report", "Book Free Consultation").

A/B Testing (Split Testing) A research method involving showing users two versions of a page (e.g., one with a green button and one with a red button) to see which generates better results.

Heatmap Data visualization showing where users click, how far they scroll, and what they focus on (warm colors = high interest).

Above the Fold The area of the page visible on the screen immediately after loading, without scrolling. The most important real estate on your site.

Social Proof Elements building trust by showing that others have already benefited. Reviews, client logos, case studies, numbers ("Join 5,000 happy users").

IV. Forms & Data (The Tech)

Tools and elements of the "Last Mile".

Form Field Validation A mechanism checking the correctness of data entered in a form (e.g., does the email contain an "@"?).

• Inline Validation: Checking in real-time before the user clicks "Submit" (crucial for good UX).

Lead Magnet Free value (ebook, checklist, webinar) offered in exchange for contact details (a lead).

Thank You Page The page a user lands on after filling out a form. Often underrated, yet perfect for further engaging the client.

GDPR General Data Protection Regulation. Requires user consent to process their data. Essential for any form in the EU.

Abandonment Rate The percentage of users who started filling out a form (or building a cart) but gave up before finalizing.

Summary

Of course, this is just the tip of the iceberg. The marketing dictionary is bursting with specialized terms, and new acronyms seem to pop up every day.

However, treat this list as your essential primer. These are the absolute foundations without which it is difficult to build stable growth and make informed business decisions. You don't need to know everything right away, but these concepts are your base. Once you master them, the rest will come naturally with practice.

Have a great day!

Marcin