Business Acronyms Explained, Part 2: A Note on Terminology With Examples

Continuing from the last article, we probe deeper into some important business acronyms, and get behind the jargon to see how they apply to our business success on the web.

EFT: Electronic Funds Transfer is an essential piece of terminology describing the various methods of conducting financial transactions over the internet. It is a monetary process of EDI, Electronic Data Interchange. For an online business, a payment service provider (PSP) is a way of instantaneously conducting eCommerce, and due to the efficiency of such systems, most online B2C companies utilize one of the major trusted PSP companies through which to conduct all EFT actions.

PSP: As mentioned above, a PSP or payment service provider, is a trusted service allowing safe transactions between your business and your customers. PSP services are also used in the online banking industry. Though many perform the same function, it is important to have a recognized PSP, as security is naturally one of the most crucial parts of your business image when the majority of your trade is conducted online.

PPS: One way companies divide up the cost of advertising is through a PPS, or 'pay per sale' scheme. Though highly specialized, this method differs from PPC and CPA (cost per action) advertising in that a cost is generated only with an actual transaction. The advertiser then pays the publisher. Identification through cookies attributes the tracking of the sale to the advertisement generating it.

RPO: Recruitment process outsourcing is a faction of BPO or Business process outsourcing in which a business leverages the third-party service of a vendor in managing an element or the bulk of its recruiting processes. This is one example of where business process outsourcing has changed the way many companies think about the function of their organization. With a small business, we are unlikely to require large-scale process outsourcing such as this, but as the BPO phenomenon increases, it is becoming safer and more sensible for companies to offshore processes which are not relevant to core business strategy.

CTA: One of the most important elements of a website, especially an online store, is the Call To Action function. CTAs, physically, are the physical, clickable parts of the website which allow the customer to go about purchasing your goods. “Click Here” and “Buy Now” are examples of CTAs. Well-designed websites will have plentiful and recognizable CTAs, so it’s important to know what they are if someone advises you that yours need work.

SMO: Social Media Optimization is the social media branch of online site promotion. It is dedicated to the increasing of traffic through attention to RSS feeds, blogging, and other ‘white hat’ (search engine endorsed) methods. Though it is related to Search Engine Optimization, it is said of SMO that better search engine ranking is more of a by-product of efforts in this sphere of web presence maintenance.

Hopefully this short course in online business terminology has been helpful, and you can start to get to grips with the more difficult problems standing between you and eCommerce success.