Sales glossary from A to Z

Strategic management of client relationships to foster loyalty and maximize sales opportunities.

A sales strategy that aligns the sales process with the Account-Based Marketing (ABM) approach, emphasizing a personalized and targeted sales effort directed at high-value accounts.

A communication skill where the listener fully concentrates, understands, responds, and remembers what the speaker is conveying. It involves giving full attention, asking clarifying questions, and providing feedback to ensure accurate comprehension.

A metric that measures the percentage of users or customers who have embraced and are actively using a particular product, service, or feature within a given time frame.

The support and assistance provided by a company to customers after a product or service has been purchased. It includes maintenance, repairs, customer support, and additional services to ensure customer satisfaction.

The use of technology and software to streamline and execute various aspects of the sales process without direct human intervention. This can include automated lead nurturing, email campaigns, and online transactions.

A financial metric that calculates the average monetary value of a single transaction or sale. It provides insights into the typical size or value of customer transactions within a specific period.

AKA. Business-to-Consumer Sales, involves the direct sale of products or services from a business to individual consumers. In B2C transactions, the purchasing decision is usually made by the end consumer.

A marketing strategy that categorizes and targets consumers based on their actions, behaviors, and usage patterns. It divides a market into segments by understanding how customers interact with and respond to products or services.

The process of evaluating a company's performance by comparing it against industry standards, competitors, or best practices. It helps businesses identify areas for improvement and implement strategies to enhance their overall efficiency and effectiveness.

The stage in the sales or marketing funnel where leads are near the point of making a purchase decision. It is the stage where prospects have moved through awareness and consideration and are actively considering specific products or services.

The perceived value and strength of a brand in the minds of consumers. It encompasses the overall impact a brand has on customer perception, loyalty, and the ability to command premium pricing.

A financial assessment that determines the point at which total revenue equals total costs, resulting in neither profit nor loss. It identifies the level of sales or business activity required to cover all fixed and variable expenses.

The process of identifying, creating, and managing opportunities for growth within a business. It involves building relationships, forming partnerships, and implementing strategies to expand the reach and profitability of the company.

The process of listening to, analyzing, and assessing telephone conversations between a customer service representative and a customer. It is commonly used for quality assurance, training purposes, and ensuring that interactions align with company standards.

A sales methodology that focuses on challenging the status quo and actively guiding customers through their purchasing decision by providing insights, demonstrating expertise, and pushing them out of their comfort zones. It emphasizes the role of a salesperson as a valuable source of information and a catalyst for change.

A metric that measures the percentage of customers who stop using a product or service over a specified period. It is often used in subscription-based businesses to assess customer retention and satisfaction.

The strategies and efforts employed by a business to maintain and nurture existing client relationships, reducing the likelihood of clients switching to competitors. It involves providing ongoing value, addressing concerns, and fostering customer loyalty.

AKA. Conversion Ratio, is a sales metric that measures the percentage of successfully closed deals compared to the total number of sales opportunities or leads. It provides insights into the effectiveness of the sales team in converting leads into customers.

A sales technique where a salesperson contacts potential customers who have not expressed prior interest in the product or service being offered. This initial contact is made without any prior relationship or warm introduction, and the aim is to generate interest, qualify leads, and ultimately make a sale.

The practice of sending unsolicited emails to potential prospects or clients who have not expressed prior interest in the product or service. The purpose is to initiate contact, provide information, and generate interest or engagement.

A software application or platform that allows users to create, manage, and modify digital content on websites or online platforms. It enables users to easily publish, edit, and organize text, images, videos, and other multimedia elements without requiring extensive technical knowledge.

A metric that measures the percentage of website visitors or leads who take a desired action, such as making a purchase, filling out a form, or subscribing. It is a key performance indicator used to assess the effectiveness of marketing or sales efforts in converting prospects into customers.

A metric that measures the amount an advertiser pays each time a user clicks on their online ad. It is a common pricing model for paid search and display advertising campaigns, where advertisers are charged based on the number of clicks their ads receive.

A metric that represents the cost of 1,000 impressions or views of an advertisement. It is commonly used in display advertising and calculates the cost advertisers pay for every thousand times their ad is displayed, regardless of clicks.

A technology that helps businesses manage interactions and relationships with current and potential customers. It typically includes features for contact management, lead tracking, sales management, and customer service, providing a centralized platform for organizing and analyzing customer data.

A metric that calculates the average cost a company incurs to acquire a new customer. It includes expenses related to marketing, advertising, sales, and other activities aimed at gaining new customers during a specific time period.

A metric used in the context of online platforms, apps, or digital services. It represents the number of unique users who engage with a product or service within a 24-hour period. DAU is a key performance indicator to measure the daily user engagement level.

A marketing strategy focused on creating awareness, interest, and demand for a product or service. It involves various marketing activities and campaigns designed to attract and engage potential customers, moving them through the sales funnel toward a purchase decision.

Asales strategy where products or services are sold directly to consumers without intermediaries like retail stores. It often involves sales representatives engaging with potential customers through face-to-face interactions, phone calls, or online platforms to promote and sell products.

A retail fulfillment method where a store doesn't keep the products it sells in stock. Instead, when the store sells a product, it purchases the item from a third party and has it shipped directly to the customer. The seller doesn't handle the product directly.

An individual or organization that is among the first to embrace and adopt a new product, technology, or innovation. Early adopters are typically adventurous and willing to take risks to be ahead of the curve in trying novel offerings.

A type of software that integrates core business processes and functions, such as finance, human resources, procurement, manufacturing, and supply chain management, into a single unified system. It enables organizations to streamline operations, improve efficiency, and enhance data visibility across various departments.

Promoting a brand, product, or service by organizing or participating in events such as trade shows, conferences, seminars, or promotional activities. It aims to create direct interactions with the target audience, build brand awareness, and generate leads through in-person or virtual experiences.

An individual, often an administrative assistant or receptionist, who controls access to key decision-makers or information within an organization. In sales, overcoming the gatekeeper is crucial to reaching the decision-makers who can influence or make purchasing decisions.

Addressing and overcoming the concerns or hesitations raised by a potential customer during the sales process. Sales professionals use effective communication and persuasive tactics to resolve objections and move the customer toward a positive buying decision.

Building strong relationships, understanding individual customer needs, and providing tailored solutions through direct and often in-person communication.

Attracting and engaging potential customers through content marketing, social media, and other inbound marketing tactics. The goal is to create a customer-centric approach where leads are nurtured through informative content until they are ready to make a purchase.

Measurable metrics that organizations use to evaluate their success in reaching specific business objectives. KPIs provide quantifiable benchmarks for performance, enabling businesses to track progress, identify areas for improvement, and make informed decisions.

The process of attracting and identifying potential customers or leads for a product or service. It involves various marketing strategies and tactics to create awareness, capture interest, and encourage individuals to provide their contact information, becoming prospects that the sales team can nurture and convert.

The process of building and maintaining relationships with potential customers (leads) at various stages of the sales funnel. It involves providing valuable content, personalized communication, and targeted interactions to guide leads through the buying journey, ultimately converting them into customers.

A metric that represents the total revenue a business expects to earn from a customer throughout their entire relationship. It helps businesses assess the long-term profitability of acquiring and retaining customers by considering their average spending over time.

Analyze and investigate the reasons behind the loss or churn of customers. It involves examining customer feedback, behavior, and interactions to identify patterns and insights that can be used to improve products, services, or customer engagement strategies.

The percentage of total sales within a specific market that a company or product controls. It is a key performance indicator used to assess a business's position relative to its competitors, indicating the portion of the market that belongs to a particular entity.

A key metric used by subscription-based businesses to measure the predictable and recurring revenue generated from subscription or recurring billing services within a given month. It provides insights into the stability and growth of a company's subscription business model.

A metric used to measure customer satisfaction and loyalty by asking a single question: "How likely are you to recommend our product/service to others?" Respondents provide a score on a scale, and the NPS categorizes them as promoters, passives, or detractors, helping businesses assess overall customer sentiment.

A concise and persuasive presentation or speech delivered to convey information, make a proposal, or persuade an audience. In the context of sales, a pitch is often a structured and compelling communication aimed at convincing a potential customer to buy a product or service.

A contact who has demonstrated a genuine interest in a product or service and has been assessed by the sales or marketing team as meeting specific criteria indicating a higher likelihood of becoming a customer. The qualification process ensures that leads align with the business's ideal customer profile.

A sales approach that prioritizes building and nurturing long-term relationships with customers rather than focusing solely on individual transactions. It emphasizes understanding the customer's needs, providing personalized solutions, and fostering trust to encourage repeat business and customer loyalty.

Revenue is typically recognized when it is earned and realized or realizable, indicating that the goods or services have been delivered, and payment is reasonably assured.

The series of stages that a customer goes through from initial awareness of a product or service to the completion of a purchase. It represents the entire process of acquiring a customer, including prospecting, qualifying, presenting, and closing the sale.

The resources, tools, training, and information needed to effectively engage with customers and close deals. It aims to enhance the efficiency and productivity of the sales process, ensuring that sales professionals have the right assets and knowledge to meet customer needs.

The set of activities, processes, and strategies that support the sales team in achieving their goals efficiently and effectively. This may include tasks such as sales planning, forecasting, territory management, performance analysis, and providing the necessary tools and resources for the sales team.

A persuasive presentation or speech delivered by a salesperson to potential customers, with the goal of convincing them to make a purchase. It typically highlights the key features, benefits, and value proposition of a product or service, addressing the customer's needs and pain points.

A prospect who has been assessed by the sales team and deemed more likely to convert into a paying customer based on their engagement, needs, and fit with the product or service. SQLs are considered to have progressed further down the sales funnel compared to marketing qualified leads (MQLs).

A pre-prepared set of dialogue, questions, and responses that sales professionals use when engaging with potential customers. It provides a structured framework for sales conversations, helping salespeople communicate key messages, handle objections, and guide the discussion toward the desired outcome.

The key features, benefits, or unique attributes of a product or service that are emphasized during a sales pitch to persuade potential customers. These are the aspects that differentiate the offering and are likely to appeal to the needs and preferences of the target audience.

A psychological phenomenon where people look to the actions and choices of others to guide their own behavior, assuming that if many others are doing something, it must be the right thing to do. In marketing, social proof is used to build credibility and trust by showcasing positive experiences, testimonials, reviews, and endorsements.

An approach to sales that involves understanding and aligning with the strategic goals and needs of a prospective customer. It emphasizes building long-term relationships, focusing on value delivery, and tailoring solutions to meet the specific challenges and objectives of the customer.

A sales metric that measures the average duration it takes to close a deal from the initial contact with a prospect to the final signed contract. It provides insights into the efficiency of the sales process and helps identify potential bottlenecks or areas for improvement.

The total potential market demand for a product or service that is calculated based on the maximum revenue a business could generate if it captured 100% of the available market share. TAM is often used for market sizing and strategic planning.

A sales technique where a salesperson gauges a potential customer's receptiveness to the product or service by proposing a partial or hypothetical closing question during the sales presentation. It aims to assess the customer's readiness to move forward and helps guide the sales process.

A concise statement that communicates the distinctive and compelling value a product or service offers to its target audience. It highlights what sets the offering apart from competitors and why customers should choose it, emphasizing the unique benefits and solutions it provides.

A sales technique where a seller encourages a customer to purchase a higher-end or more expensive product, add-ons, or upgrades. The goal is to increase the overall transaction value and maximize revenue by convincing customers to choose additional or premium options.

A detailed and semi-fictional representation of a business's ideal customer based on market research, customer demographics, and behavior patterns. It helps in understanding the target audience's needs, preferences, and challenges, guiding marketing and product development strategies.

A sales approach that focuses on understanding and communicating the unique value and benefits a product or service brings to the customer. It involves aligning the features of the offering with the specific needs and goals of the customer, emphasizing the value proposition in the sales pitch.

AKA. remote selling or online selling, refers to the process of selling products or services through virtual or digital channels, such as video calls, webinars, online presentations, and digital communication tools. It involves conducting sales activities without the need for in-person interactions.

A sales approach where a salesperson contacts potential customers with whom there has been some prior interaction or connection. Unlike cold calling, warm calling involves reaching out to leads who have shown interest, engaged with the brand, or had some form of previous contact.

A detailed and authoritative report or guide that provides in-depth information, analysis, and insights into a specific topic, issue, or technology. White papers are often used in business, government, and technology sectors to present complex information and propose solutions or recommendations.

A sales metric that measures the percentage of sales opportunities or deals that a sales team successfully converts into closed or won deals. It provides insights into the effectiveness of the sales team in turning leads into customers.

A sales process that requires minimal or no direct interaction between the salesperson and the customer. It often involves automated systems, self-service options, and online platforms, allowing customers to make purchases or transactions without the need for personal sales assistance.