Innovation dictionary for beginners
Key concepts for understanding the entrepreneurial ecosystem
Nowadays it is common to hear about innovation, digital transformation, technology...
On numerous occasions, terms are used that not everyone knows, which can make someone who is entering the world of innovation not yet understand or that, if we are in a large group, there is someone who has never heard a certain word. Whether you are starting out or if you already have a history in innovation, this post will help you either to expand your knowledge, or to better know when to make sure that all your listeners understand what you are saying.
We present to you the concepts of innovation!
Conversion
In digital marketing, we call “conversion” each of the actions that the customer performs and that are aligned with our objectives.
The concept of conversion does not have to be directly a sale, nor does it have to be a reservation, the contracting of a service or the loyalty of a customer. However, it is directly or indirectly related to any of these actions being performed later or earlier. They are goals met or small objectives previously defined to achieve these goals.
It is so called because when a user of our target audience performs one of these actions (conversion), a process begins whose final objective is to end up transforming (converting) them into an end customer of our company.
Cost per Acquisition or CAC
Cost per Acquisition (CPA) is the advertising cost paid for a sale made. In such a way that you only pay for each converted action of a user, who in this case is already considered a customer for the company
Cost per Click or CPC
Cost-per-click is a method of paying for online ads in which you only pay when the user clicks on the ad or banner.
This is an important advantage for the advertiser because they will not have to pay anything for ads that appear on a certain website until the user browses the link.
Coworking
Instead of renting their own office, there are entrepreneurs, SMEs and freelancers who choose to share a coworking space. This is a common space, whether physical or virtual, where entrepreneurs carry out their activities.
Nowadays, it is one of the preferred options compared to conventional offices for those who only need a computer and Internet connection to work.
In these spaces, users have flexibility, lower costs, technical support, positive synergies, etc.
Creativity
La resourcefulness is the ability to generate new associations between existing ideas or concepts in order to produce new and original solutions.
Crowdfunding
El crowdfunding Crowdfunding is one of the most popular methods of funding at the present time.
We are talking about a method for raising funds online that is nourished by user donations. These, in return, receive rewards from the company. The operations of crowdfunding are generally carried out through platforms specialized in this type of crowdfunding that facilitate transactions and connect owners with donors.
Early-stage projects, startups or small businesses can benefit greatly from participatory funding platforms.
Crowdlending
El Crowdlending is a sum of two ideas: Crowd (crowd) and Lending (lending money). Therefore, it is the model that allows all types of companies be directly funded by a large and diverse group of people.
People lend small amounts of money to a company in exchange for a financial return stipulated in a contract.
Culture of innovation
The culture of innovation is the change in mentality and behavior necessary in resources, processes, skills, values and climate within an organization so that its members have a mindset open to change and permanent transformation.
Customer Journey
El Customer Journey It is a model that refers to the process that a potential consumer goes through from the moment they realize that they have a need until they purchase a product. This procedure allows us to know the problems, needs and experiences of consumers before making a purchase, therefore, a correct analysis of the data is vital.
Customer Life Cycle or CLTV (Customer Life Time Value)
Customer lifecycle value (CLTV) is a prediction of how much value a company will gain over the course of its relationship with a given customer. The CLTV is a way of estimating an approximate monetary value that a customer leaves during their stay with our service.
It is divided into six stages: knowledge, acquisition, conversion, growth, retention and reactivation.
Do you want to contribute? a new concept?
This living dictionary is regularly updated and any collaborator with an entrepreneurial spirit can provide a concept.