SMS Marketing Glossary

In the eCommerce space and just tapping into SMS marketing? Figuring out basic terms in can be tricky. Fear not, with a few quick and easy definitions, you can get familiar with the most popular SMS terms.

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API

Application Programming Interface

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Acquisition Rate

Number of users who chose to participate in a mobile campaign following an incentive program

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Bounce Rate

Percentage of visits that don’t go beyond one initial session

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Bulk SMS

Mass text messages sent at the same time to a large number of delivery addresses without the possibility of reply.

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Call to action (CTA)

An encouraging message that tells readers to take a specific action.

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Cart Abandonment

The process of adding one or more items the virtual shopping cart, followed by the action of exiting the online store without purchasing the items in the cart.

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Checkout Abandonment

The process of adding items to the shopping cart, navigating to the checkout page, then exiting the online store without finalizing the purchase.

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Click-through rate (CTR)

The percentage of mobile users who have clicked on the link in your SMS versus the ones who didn’t

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Conversational SMS Marketing

A two-way communication gateway between online brands and their end customers

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Conversion Rate

The percentage of users that complete a predetermined set of actions on your website, app, email campaign or text message divided by the total number of visitors

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Customer Churn

The number of customers who do not renew at the end of their subscription

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Customer Experience

The way customers experience your brand

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Customer Journey

Every single interaction a customer has with your brand over time

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Customer Lifecycle Management

The way you market to your end-users, based on what lifecycle stage they are in.

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Customer Lifetime Value (CLTV, CLV or LTV)

The profit margins expected to earn over the entire time someone remains your customer

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Customer Retention

The number of customers that renew their contract or keep using your product or service

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Direct to Consumer (D2C or DTC)

Any brand selling goods or services directly to an end consumer, rather than going through distribution channels or retail stores.

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Engagement

A way to measure a user’s response to your product, advertising campaigns or communications.

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GDPR

General Data Protection Regulation, is a European Union law on data protection and privacy

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Geofencing

Creating a set of boundaries using a specific geographical area in order to prompt a specific marketing campaign

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In-app messaging

A technical product feature that allows you to communicate with your users directly through your app

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Junk SMS

Unsolicited text message communications

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KPI

Key Performance Indicator

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Location-based SMS

Text message marketing that uses subscribers’ mobile numbers for point-to-point, one-to-one, communication.

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Marketing Automation

Replacing manual marketing processes and tasks with solutions that offer automated processes

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Marketing Campaign

A set of marketing tactics with a focused effort toward a specific user group to a desired action.

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Mobile Coupon

A discount code that can be redeemed online

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Mobile Marketing

Marketing strategies directed to users on mobile devices

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Near Field Communication (NFC)

A service that allows mobile devices to make payments near chip or PIN machines

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Non-Personally Identifiable Information (NPII)

Aggregated data that provides metrics and statistics, but does not allow for identifiable information about a specific end-user

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Opt-In, opt-out

Differentiating between users’ mobile phone numbers that have or have not given permission to text them

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Push notifications

Instant mobile notifications that deliver important information

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Retargeting

Targeting users who have previously engaged with your brand online

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Shopping Cart Abandonment Rate

The percentage of customers that start the checkout process but don't finalize a purchase

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User Acquisition (UA)

A process that generates consumer interest for your product, with the final goal of completing a sale

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