In the business world, acronyms and abbreviations are a non-negotiable constant- and as a business owner or marketer, if you don’t get acquainted with the latest acronyms, you’ll find yourself struggling to catch on with marketing discussions.

You shouldn’t be in this position especially as a CEO or senior marketer. In this post, we’ll try to demystify a few of the most common acronyms and their importance in helping you understand and measure ROI (Return On Investment) in marketing.

CAC – Customer Acquisition Cost

This is defined as all marketing costs your company spends to acquire customers.

How you measure ROI

When the cost for customer acquisition is low and the number of acquired customers high, you have a good ROI

CLV – Customer Lifetime Value

This is the full projected revenue and profit your company will generate from any given customer.

How you measure ROI

For subscription-based services: Calculate the average length of subscription x monthly cost of subscription.

For products and services sold over a period of time, come up with averages: Calculate average monthly revenue per customer multiplied by the average number of months a customer has remained with your company.

CTR – Click Through Rate

This is the number of clicks on your campaign divided by the number of impressions.

How you measure ROI

This measurement and numbers recorded on their own may not fully capture your ROI except the clicks amount to revenue for your company.

CPC – Cost Per Click

This is the actual cost you pay for each click on your ad. It is calculated by dividing your ad spend by your clicks.

How you measure ROI

Your CPC campaign is successful when you spend less to acquire a high number of clicks. However, the real measure of this campaign’s success, just like the CTR, is in the exact number of clicks that amounted to the realization of your company’s goal for setting up the campaign in the first place.

CVR – Conversion Rate

This is defined as the percentage of users that take your company’s desired action.

How you measure ROI

A low cost per conversion versus a high conversion rate means a higher return on your marketing investment.

LVR – Lead Velocity Rate

This shows how fast leads progress through the pipeline.

How you measure ROI

The quicker your leads become paying customers, the more revenue your company makes. When you understand your LVR, it helps you re-jig your processes and tactics to better generate revenue.

RPL – Revenue Per Lead

This is defined as how much revenue you’ll generate from each lead and eventually, each customer.

How you measure ROI

This measurement formula is calculated by dividing revenue generated by the actual number of leads.


Having studied these acronyms, you must now understand their place in determining the success of your online marketing efforts. With what you now know, you can become a better marketer or CEO who not just understands the meaning of acronyms, but uses the knowledge to scale their business.