Sales Glossary

Lead Velocity Rate (LVR) is a critical metric that estimates the real-time growth of qualified leads that your business gets month over month. It essentially shows a 1,000 foot view of the company’s pipeline growth and is often considered the best predictor of future revenue.

“Smile and Dial” is the act of cold-calling with a positive and bright tone of voice and a smile that communicates warmth and trustworthiness over the phone.

The 80/20 rule, also known as the Pareto Principle, is a fundamental concept in sales and business management. It posits that roughly 80% of outcomes result from 20% of causes, or that a small fraction of efforts yield the majority of results.

A/B testing is a method of sales and marketing testing where you show two different versions of an element to two different groups of people (group A vs group B) to see which version performs better.

AIDA stands for Attention, Interest, Desire, and Action, and serves as a core framework in marketing and sales. "Attention" is about capturing the audience’s eye. It’s that initial spark where a potential customer notices a product or service. Bold visuals, captivating headlines, and strategic placements play a pivotal role here.

An Account Executive is responsible for achieving monthly sales quotas through direct client interaction, prospecting, presentations, and product demonstrations. Usually, an AE must maintain a high level of activity to generate a sufficient pipeline of opportunities to meet quotas. For example, they might be responsible for making 20 phone calls per day, meeting with 5 prospective clients per week, and so on.

Account mapping is a visual representation of the decision-makers in a company and how they are connected to each other. It is often used in sales and marketing to help identify buying committees and key influencers within an organization.

ABM is a strategy B2B companies use to target and connect with key accounts. And these "accounts" are often specific departments within a company, or an entire company itself. The end goal of ABM is to create personalized campaigns that will resonate with each account and ultimately increase B2B sales.

An account-based selling (ABS) is a B2B sales strategy where segmented business accounts are targeted at multiple touchpoints and providing exceptional service in order to generate revenue. It’s not about casting a wide net; it’s about crafting a personalized experience for prospects that are deemed the golden geese.

Accounts receivable (A/R) are amounts that are owed to a business by customers for goods or services that have been delivered but not yet paid for. Think of it as a tab that your customers have open. They’ve received the product, the service, the something magical that your business does—but you’re yet to see the cash.

​​After-sales service is providing additional services to customers after they have purchased a product. For example, if a customer purchases a car, the after-sales service would be the servicing and maintenance of the car. And if a customer purchases a computer, the after-sales service could be the warranty and technical support.

"Always Be Closing" (ABC) is a sales strategy emphasizing the importance of focusing on the close. The idea behind ABC is to maximize every opportunity presented by a potential customer and ensure that no time or effort is wasted on activities that won’t lead to sales.

An analytical CRM (customer relationship management tool) offers analytical capabilities that help businesses in forecasting, scaling, and improving customer relationships. It also helps companies identify specific customer segments that offer the best business opportunities.

Analytics is the systematic analysis of data or statistics. It involves the collection, processing, and interpretation of data to uncover patterns, trends, and insights, converting raw data into actionable information. Analytics is used in identifying, understanding, and predicting trends and outcomes while helping managers understand where salespeople can improve.

ACV (Annual Contract Value) is a crucial metric that represents the average yearly revenue generated from a customer's contract, excluding one-time fees. If you snag a 2-year deal worth $24,000, your ACV sits pretty at $12,000. It’s the steady, recurring revenue you can bank on, making it a favorite when forecasting and planning financial growth.

ARR (Annual Recurring Revenue) is the value of the recurring revenue that a company expects to earn in one year. This metric is most often used by companies with a subscription-based business model. ARR is a predictable income that keeps your business (and your profits) flowing.

An Applicant Tracking System (ATS) is a human resource software that acts as a database for job applicants and manages the full cycle of hiring including organizing, searching, communicating with a large group of applicants, plus sending that final offer.

Artificial intelligence (AI) is an intelligence demonstrated by computer systems as opposed to natural intelligence displayed by humans or animals. It can perform tasks that normally require human intelligence like analysis, forecast, data interpretation, and decision-making.

Average Order Value (AOV) is a measurement of the average amount your customers spend per order. It is mostly used by e-commerce companies, but it can be used by SaaS companies in some cases. Use this number to track customer spending habits and optimize their marketing and sales strategies accordingly.

Average Revenue per User (ARPU) is the total revenue generated by a company divided by the number of users or subscribers. This metric provides insights into the financial performance and overall health of a subscription-based business.

The Average Sale/Selling Price (ASP) is a metric used in sales and business to identify the average price at which a product or service is sold. It's calculated by dividing the total revenue generated from sales over a specific period by the total number of units sold during that period. This calculation helps businesses understand their pricing trends and set future prices effectively.

B2B stands for “business-to-business.” In a B2B model, one business provides goods or services directly to another business. No consumers are involved in this dance—it’s all professional, a tango between companies.

B2C, or business-to-consumer, describes businesses selling directly to consumers. A good example of a B2C company is Amazon—as they sell products directly to consumers through their website and apps.

BANT is an acronym for Budget, Authority, Need, and Timing. This framework includes all the factors potential buyers consider before making a purchase.

A BASHO email is a highly personalized sales message, aiming directly at decision-makers. Unlike standard emails, it's a product of extensive research and customization, ensuring every word resonates with the recipient's specific needs and challenges. While most people think it's an acronym, it's actually the name of the company the creator, MJ Hoffman, worked at when he created it.

A bad lead refers to a potential customer who is unlikely to make a purchase. In sales, these are individuals who, although they show initial interest, are not a good fit due to factors like inadequate budget, lack of need for the product or service, or absence of decision-making authority.

A "ballpark" in business terms refers to a rough estimate or approximation of a number, figure, or quantity. While originally a term associated with baseball venues, "ballpark" has been adopted in business to communicate a general range, not an exact count.

Below the Line (BTL) marketing is a promotion technique that uses targeted campaigns designed to generate consumer interest and awareness about a product or service. Common BTL activities include in-store promotions, point-of-purchase displays, sampling, and coupons. While it is an older advertising term, it is still useful today.

In sales, big-ticket items are high-priced products or services that have a significant impact on your bottom line. These items are usually large and require a significant investment from the buyer.

Bookings refer to the value of signed contracts and agreements a sales team secures within a specific period. This metric indicates future revenue but is not considered revenue until the product or service is delivered, and all sale conditions are met.

BOFU refers to the final stage in the customer's journey where they are making their purchasing decision. At this stage, they are heavily considering your brand and are either comparing you to your competitors or are ready to make a purchase.

The break-even point in business refers to the juncture where total costs equal total revenue. At this point, a business neither makes a profit nor incurs a loss—it essentially "breaks even."

A Business Development Representative (BDR) is a sales rep who focuses on generating qualified prospects using cold email, cold calling, social selling, and networking.

Business intelligence (BI) is a tech-driven process of gathering and analyzing data to provide insights into business performance. In other words, BI is all about using data to make better business decisions.

Buyer behavior refers to the decisions and acts people undertake when making a purchase decision. Depending on the buyer or industry, this might include clicking on certain parts of a website, downloading reports, or reading case studies. It's synonymous with the term “consumer buying behavior,” which often applies to individual customers in contrast to businesses.

A buyer journey is the steps your ideal customer takes to become a paying customer. For example, a customer might first become aware of your product or service through a blog post or social media mention. They might then visit your website to learn more, and eventually decide to purchase. That's one example of a buyer journey—but there are many possible variations.

A buyer persona is a fictional, generalized representation of the individuals who are involved in purchasing your product.

Buyer's remorse is a feeling of regret or anxiety after making a purchase. It usually occurs after a person makes a significant purchase, such as a home or new car, but it can occur after smaller purchases.

Buying intent is the level of interest and motivation that a consumer has when considering purchasing a product or service. Sales and marketing teams often use it as a metric to gauge how likely a prospect is to convert into a paying customer.

The buying process or buying cycle is a series of steps that a consumer goes through from identifying a need to making a purchase and evaluating the product or service post-purchase.

Buying signals are the actions potential customers take that indicate they're close to making a purchase. It can be verbal or non-verbal. E.g., when the customer continually nods their head up and down the non-verbal signal is positive.

C-level or C-suite refers to a company's most senior executives. The most common C-level titles are the chief executive officer (CEO), chief financial officer (CFO), chief operating officer (COO), chief information officer (CIO), and chief marketing officer (CMO).

CRM (customer relationship management) is a system for managing a company's interactions with current and future customers. It often involves using CRM software to record and track customer interactions.

Challenger sales is a sales approach developed by Matthew Dixon and Brent Adamson in which the salesperson actively challenges the customer's beliefs and assumptions.

A channel partner is a company that partners with a manufacturer or producer to market and sell the manufacturer's products, services, or technologies. This is usually done through a co-branding relationship.

Channel sales is a business strategy where a company sells its products or services through third-party vendors, resellers, or distributors.

Churn (or churn rate) is the metric used to measure how many customers or subscribers discontinue using a company's products or services during a time period. It's usually expressed as a percentage and calculated by taking the number of lost customers or subscribers, divided by the total number of customers or subscribers:

Click-Through Rate (CTR) is a metric that represents the percentage of viewers who click on a link compared to the total number of viewers who see the link or ad.

A "Closed Opportunity" in sales refers to a sales prospect that has reached a conclusion. It is an opportunity that has been either won or lost, marking the end of the sales cycle for that particular lead. In CRM systems, closed opportunities are recorded to analyze the outcome, helping businesses to track and improve their sales processes.

Closed-ended questions are questions to which the customer can answer either “Yes” or “No.” In other words, the term “closed-ended question” means you get a specific answer, rather than an abstract one, which can help you adjust the sales process.

A “Closed-Lost” is a term in sales used to indicate that a potential deal with a prospect is over, and the sale won’t be made. This classification occurs when the prospect decides not to purchase the product or service after considering the offer.

Closed-won means a sales deal is successfully completed. It’s the final stage in the sales process, marking the transition of a prospect into a paying customer. This term is widely celebrated in the sales world as it indicates that the sales team’s efforts have paid off, and a new customer relationship has begun.

Closing ratio is a measure of how successful you are at converting prospects into customers. It is calculated by dividing the total number of sales closed by the total number of sales opportunities. A high closing ratio signals a business is effectively turning leads into customers, while a low closing ratio may indicate the sales process needs to be improved.

Cohorts are a group of customers who signed up for a product or service around the same time frame or took part in the same onboarding group.

Cold calling is the process of making phone calls to potential customers who do not know you and have not previously expressed an interest in your products or services. And the goal is often to get them to buy your product.

Cold emailing is the process of sending emails to people you don’t know to build a relationship or sell them something. It can also be considered as the practice of sending a personalized, professional message to a potential client or customer who has had no prior contact or relationship with the sender.

Commission is the agreed-upon percentage of the value of a sale that a sales associate or sales representative may earn. It is usually the variable component of a total sales compensation package.

Consultative selling is a sales technique where a salesperson seeks to understand the customer's needs and provide solutions that address those needs. The goal is to add value, demonstrate expertise, build trust, and put them in a frame of mind that's receptive to your product or service.

Conversion rate in sales and marketing refers to the percentage of visitors who take a desired action. It's the ratio of individuals who complete an intended task (like purchasing a product or signing up for a newsletter) divided by the total number of visitors who had the opportunity to do so.

Cost per click (CPC) is a term which denotes the cost an advertiser pays to the publisher for every click on an ad. CPC is also called pay per click (PPC).

Cost of Goods Sold (COGS) is the total cost incurred to produce goods that a company has sold. It includes the cost of raw materials, labor, and overheads directly associated with the production process. COGS is used to calculate gross margin, which is obtained by subtracting COGS from total revenue.

A covenant is a legally binding agreement where one party commits to specific actions or restrictions for the benefit of another party. It establishes clear rules and expectations in business relationships, ensuring that both parties adhere to the agreed terms to maintain trust and security.

Cross-selling is the practice of selling additional products or services to an existing customer. For example, a SaaS business might cross-sell professional services such as data migration or workflow setup to customers using their platform.

Customer Acquisition Cost (CAC) is a metric that represents the total cost a business incurs to acquire a new customer.

Customer Experience (CX) refers to the entirety of interactions and experiences that customers have with a business throughout the entire customer journey, from the first contact to becoming a loyal patron.

Customer lifetime value (CLTV or CLV) represents the total value of a customer relationship with a company. It can be calculated by multiplying the average order value by the number of orders the customer makes per month or year. Then, multiply that number by the estimated length of the customer relationship.

Customer Retention Cost (CRC) is the total cost of retaining a customer for as long as possible. This is a critical metric because the cost of acquiring new customers is usually much higher than retaining existing customers.

Customer retention rate measures the number of customers an organization retains over a given period. CRC calculation helps identify key opportunities that hold customers, and can often indicate different paradigms where improvement in customer service is needed.

Customer success is the business methodology of ensuring customers achieve their desired outcomes while using your product or service. Customer success is relationship-focused client management that aligns client and vendor goals for mutually beneficial outcomes.

Data mining is the process of finding anomalies, patterns, and correlations within large data sets to predict outcomes. Using a broad range of techniques, you can use this information to increase revenues, cut costs, improve customer relationships, reduce risks, and more.

Daily sales outstanding (DSO) is a measure of the average number of days that it takes a company to collect payment for a sale.

Deal closing refers to the stage of a transaction when final purchase agreements and credit agreements are executed and funds are wired to the respective parties. It is the point where mutual agreement on the terms is reached and often marked by a signed contract, indicating the successful conversion of a lead into a customer.

Deal flow is the rate at which business proposals and investment pitches are being received. Rather than a rigid quantitative measure, the rate of deal flow is somewhat qualitative and is meant to indicate whether business is good or bad.

The decision maker is the individual who has final authority over the purchasing decision. In a B2B sale, the decision maker is typically a member of the purchasing company's C-suite who can sign the check or approve the purchase.

In sales, delivery refers to the way communication is presented between a salesperson and a prospective customer. It encompasses tone, pacing, and style of speech. Effective delivery is key to engaging the audience, conveying value, and prompting a positive response. The aim is to combine clarity and conviction to make the message resonate and inspire action.

Demand refers to the quantity of a good or service that consumers are willing and able to buy at a given price over a given time frame.

Demand generation is a data-driven marketing approach aimed at leveraging inbound marketing to drive awareness and interest throughout the buying process.

A product demo is an interactive marketing or sales presentation where you show your product or service in action to an engaged audience. A demo can take many forms, but often includes a guided tour of the product's features and benefits, and is usually followed by a Q&A session.

Direct sales is a type of sales that implies direct contact between a seller and a consumer without involving any third parties.

Direct-to-consumer (D2C) is a sales strategy where the brand sells its products and services directly to end consumers, thereby eliminating intermediaries such as third-party retailers or wholesalers.

A discount is a reduction in the original price of a good or service. Companies often offer discounts to encourage customers to purchase more or to switch to a different product or service. They could also offer them as an incentive for early payment, or to reward customers for their loyalty.

Discovery (or a discovery call) is the first stage in the sales process where a sales rep works to understand a customer's needs. This stage is important because it allows the salesperson to determine whether there is a potential fit between the customer's needs and the company's products or services.

Drip campaigns? Think of them like your favorite TV series. Instead of binge-watching all episodes in one go, imagine getting a new episode in your inbox every week. Replace "episodes" with emails, and BOOM! That's a drip campaign.

An early adopter is an individual who is among the first to buy new products or services. They are risk-takers, often eager to try out new offerings, understanding there may still be kinks to work out.

Economic Order Quantity (EOQ) is the optimal quantity of inventory a company needs to order at a time. The EOQ model takes into account the fixed costs of ordering and storing inventory, as well as the variable costs of each item.

An elevator pitch is a brief (30-60 seconds) description of a product or business idea that an individual can use to spark interest, especially when given to a prospective investor.

Employee engagement is the extent to which employees feel passionate about their jobs, are committed to the organization, and put discretionary effort into their work.

End of a quarter in business contexts means the end of a three-month period, typically referring to one of the four quarters in a fiscal year.

Enterprise resource planning (ERP) is a type of software that helps businesses manage a wide range of operations including finance, accounting, HR, procurement, risk management, and supply chain management.

Expansion revenue is the additional income a company generates from its existing customers, beyond the initial sale. This could come from upsells, cross-sells, or any other additional purchase made after the primary sale. It’s all about getting your current customers who are already on board, to invest even more in your product or service.

Firmographic data is information about a company you can use to identify and target them as potential customers. This data can include things like the size of the company, its industry, and its location.

Sales forecasting is the process of analyzing past sales data and estimating future sales revenue. Forecasts are normally based on historical data, industry trends and averages, and current pipeline status.

Fortune 500 refers to a list compiled by Fortune magazine ranking the top 500 U.S. public and privately held companies for their fiscal year end results.

A franchise is the right to sell a company's products or services in a particular territory. It's a license that a party (franchisee) acquires from another party (franchisor) to allow them to conduct business under the company's name.

The term freemium is a pricing strategy where the end-user is provided with access to basic product features at no cost and charges are applicable for more advanced features and packages.

A gatekeeper is a person who controls access to a decision-maker. Gatekeepers are often administrative assistants, receptionists, or other support staff.

A Go-To-Market (GTM) strategy is a plan that outlines how a company will sell its products or services to customers. It encompasses targeting the intended audience, selecting the sales and marketing channels, and detailing the approach to convert potential leads into buyers.

A Hybrid Sales Model is a strategic approach to sales that combines elements of both inside sales and outside sales. In this model, sales teams utilize a mix of remote or digital selling methods (inside sales) and in-person interactions (outside sales) to reach and engage with customers.

Ideal Customer Profile (ICP) is a description of the exact type of customer you are looking for at your business. When you know who your ideal customer is, you can better target your marketing efforts to attract them.

InMail messages are a feature on LinkedIn that allows Premium subscribers to send private, direct messages to any user on the platform, even if they aren't connected. This feature is used for networking, recruiting, and sales outreach, enabling personalized and targeted communication within the professional context of LinkedIn.