Glossary

The 80/20 Rule, also known as the Pareto Principle, asserts that 80% of outcomes result from 20% of all causes for any given event.

A/B testing is a method for comparing two versions of a webpage or app to determine which one performs better based on statistical analysis.

In a sales, an account refers to a customer or organization that purchases goods or services from a company.

An Account Executive is an employee responsible for maintaining ongoing business relationships with clients, primarily found in industries like advertising, public relations, and financial services.

Account management is the daily management of client accounts to ensure they continue to do business with a company, focusing on showing clients the value they can enjoy if they continue to use the company's products or services.

Accounts payable (AP) refers to a company's short-term obligations owed to its creditors or suppliers for goods or services received but not yet paid for.

Always Be Closing (ABC) is a motivational phrase and sales strategy that emphasizes the continuous pursuit of prospects, product pitching, and transaction completion.

Amortization is the process of spreading the cost of an intangible asset over its useful life or reducing the balance of a loan over time through regular payments.

Annual Recurring Revenue (ARR) is a financial metric that represents the money a business expects to receive annually from subscriptions or contracts, normalized for a single calendar year.

An Applicant Tracking System (ATS) is a software solution that helps companies organize and manage candidates for hiring and recruitment purposes.

B2B sales, or business-to-business sales, is the process of selling products or services from one business to another.

The business-to-business-to-consumer (B2B2C) model is a partnership where businesses sell products to retailers while also gaining valuable data directly from the consumers who purchase those goods.

A ballpark is a term used to describe an approximate figure or range that is close to the correct amount or number but not exact. It is often used in the context of rough calculations or estimates, providing a general idea without the need for detailed data.

A bounce rate is the percentage of visitors who leave a webpage without taking any action, such as clicking on a link, filling out a form, or making a purchase.

A Business Development Representative (BDR) is a professional responsible for generating new opportunities for a business by creating long-term value from customers, markets, and relationships.

A buyer, also known as a purchasing agent, is a professional responsible for acquiring products and services for companies, either for resale or operational use.

Churn, also known as the churn rate or rate of attrition, is the rate at which customers stop doing business with a company, typically expressed as a percentage of service subscribers who discontinue their subscriptions within a given time period.

A cold call is the solicitation of a potential customer who has had no prior interaction with a salesperson.

A cold email is an unsolicited message sent to someone with whom the sender has no prior relationship, aiming to gain a benefit such as sales, opportunities, or other mutual advantages.

Commission is a form of compensation paid to an employee for completing a specific task, typically selling a certain number of products or services.

A competitive advantage refers to factors that allow a company to produce goods or services better or more cheaply than its rivals, enabling it to generate more sales or superior margins compared to its market competitors.

A competitive analysis is a strategy that involves researching major competitors to gain insight into their products, sales, and marketing tactics.

Competitive Intelligence (CI)It helps companies understand their competitive environment, identify opportunities and challenges, and develop effective strategies to outperform rivals.

Consultative selling is a sales approach that prioritizes relationship building and open dialogue to address a customer's needs.

A consumer is an individual or group who purchases or intends to purchase goods and services for personal, non-commercial use.

Contract management involves overseeing legally-binding agreements from initiation through execution.

Cost Per Click (CPC) is an online advertising revenue model where advertisers pay a fee each time their ad is clicked by a user.

Customer Acquisition Cost (CAC) is a business metric that measures the total cost an organization spends to acquire new customers, including sales and marketing expenses, property, and equipment.

Customer buying signals are behaviors or actions that indicate a prospect's active consideration of making a purchase.

Customer centricity is the ability of individuals within an organization to understand their customers' situations, perceptions, and expectations, placing the customer at the center of all decisions related to delivering products, services, and experiences.

A Customer Data Platform (CDP) is a software that collects and consolidates data from multiple sources, creating a centralized customer database containing information on all touchpoints and interactions with a product or service.

Customer Experience (CX) refers to the broad range of interactions that a customer has with a company, encompassing every touchpoint from initial contact through to the end of the relationship.

Customer journey mapping is the process of creating a visual representation of every interaction a customer has with a service, brand, or product, including touchpoints like social media, advertising, website interactions, and customer support.

Customer Lifetime Value (CLV) is a metric that represents the total worth of a customer to a business over the entire duration of their relationship.

Customer loyalty is an ongoing positive relationship between a customer and a business, motivating repeat purchases and leading existing customers to choose a company over competitors offering similar benefits.

Customer retention is the rate at which a business keeps its customers over a specific period, and it's a critical metric for assessing customer loyalty and overall business success.

Customer Success is a proactive approach to anticipate and solve customer challenges, aiming to boost customer happiness and retention, which in turn increases revenue and customer loyalty.

A decision maker is an individual who is primarily responsible for making significant choices or judgments in various contexts, such as business, healthcare, and more.

Demand is an economic concept that refers to a consumer's desire to purchase goods and services, and their willingness to pay a specific price for them.

Demand generation is a marketing strategy that focuses on creating awareness and interest in a brand's products or services, aiming to reach new markets, promote new product features, generate consumer buzz, and re-engage existing customers.

A dialer is an automated system used in outbound or blended call centers to efficiently place calls to customers, eliminating repetitive tasks and maximizing agent-customer interactions.

Digital advertising is a form of marketing that promotes brands, products, or services through online channels, utilizing various media formats such as text, image, audio, and video.

Direct mail is a marketing strategy that involves sending physical advertising materials, such as brochures, letters, flyers, and catalogs, directly to potential consumers based on demographic information.

Direct sales are transactions that occur between a brand and the end-user without the involvement of any intermediaries, such as middlemen or distributors.

Economic Order Quantity (EOQ) is the ideal quantity of units a company should purchase to meet demand while minimizing inventory costs, such as holding costs, shortage costs, and order costs.

An elevator pitch is a brief, persuasive speech that succinctly introduces a concept, product, service, or oneself, typically within 30 to 60 seconds.

Email verification is the process of checking and authenticating email addresses to ensure they are authentic and connected to a real person or organization.

Employee engagement is the involvement, enthusiasm, and emotional investment employees have in their work and workplace.

Enrichment is the process of improving the quality, value, or power of something by adding relevant information or elements.

An enterprise is a for-profit business designed to generate profit through diverse strategies like solving problems, exploiting new ideas, competitive pricing, or leveraging specialist knowledge.

Enterprise Resource Planning (ERP) is a comprehensive platform used by companies to manage and integrate the core aspects of their business operations.

Event marketing is a strategy used by marketers to promote their brand, product, or service through in-person or real-time engagement, either online or offline.

A follow-up is an action or communication that comes after an initial interaction, aiming to reinforce, continue, or complete a process.

Forecasting is a method of making informed predictions using historical data to determine the course of future trends.

Freemium is a business model that offers basic features of a product or service for free, while charging a premium for supplemental or advanced features.

An Ideal Customer Profile (ICP) is a hypothetical company that perfectly matches the products or services a business offers, focusing on the most valuable customers and prospects that are also most likely to buy.

Inbound sales is a customer-centric approach where potential customers reach out to a business, often through marketing campaigns, content, or social media.

Inside sales refers to the selling of products or services through remote communication channels such as phone, email, or chat. This approach targets warm leads—potential customers who have already expressed interest in the company's offerings.

Key Performance Indicators (KPIs) are quantifiable measurements used to gauge a company's overall long-term performance, specifically focusing on strategic, financial, and operational achievements.

Lead generation is the process of attracting prospects to your business and increasing their interest through nurturing, with the end goal of converting them into customers.

A lead magnet is a marketing tool that offers a free asset or special deal, such as an ebook, template, or discount code, in exchange for a prospect's contact information.

Lead management is the process of attracting, qualifying, and converting potential customers (leads) into actual customers using targeted strategies.

Lead nurturing is the process of cultivating leads that are not yet ready to buy by engaging with them and providing relevant content based on their profile characteristics and buying stage.

LinkedIn Sales Navigator is a sales tool that provides sales professionals with advanced features for prospecting and insights, enabling them to generate more conversations with important prospects, prioritize accounts, make warm introductions, and leverage key signals for effective outreach.

Loss aversion is a cognitive bias where the pain of losing is psychologically twice as powerful as the pleasure of gaining, leading individuals to prefer avoiding losses over acquiring equivalent gains.

Market intelligence is the collection and analysis of information about a company's external environment, including competitors, customers, products, and overall market trends.

Marketing analytics is the process of tracking and analyzing data from marketing efforts to reach a quantitative goal, enabling organizations to improve customer experiences, increase the return on investment (ROI) of marketing efforts, and craft future marketing strategies.

Marketing automation is the use of software to automate repetitive marketing tasks, such as email marketing, social media posting, and ad campaigns, with the goal of improving efficiency and personalizing customer experiences.

A marketing funnel is a model that represents the customer journey from initial awareness of a product or service to making a purchase decision and beyond.

Marketing intelligence is the collection and analysis of everyday data relevant to an organization's marketing efforts, such as competitor behaviors, products, consumer trends, and market opportunities.

A marketing mix is a combination of multiple areas of focus within a comprehensive marketing plan, traditionally classified into four Ps: product, price, placement, and promotion.

Monthly Recurring Revenue (MRR) is the predictable total revenue generated by a business from all active subscriptions within a particular month, including recurring charges from discounts, coupons, and recurring add-ons but excluding one-time fees.

A needs assessment is a strategic planning process that identifies gaps between an organization's current state and its desired state, pinpointing areas that require improvement.

Net Revenue Retention (NRR) is a metric that measures a company's ability to retain and grow revenue from existing customers over a specific period of time.

Nurture refers to the act of caring for, feeding, protecting, and helping someone or something develop, particularly in the context of young children, plants, or ideas.

In sales, objections are concerns or hesitations expressed by potential customers about a product or service.

Omnichannel marketing is the practice of interacting with customers over their preferred channels, such as in-store, online, via text, or through social media, to provide a seamless and consistent brand experience across both physical and digital platforms.

A pain point is a persistent or recurring problem that frequently inconveniences or annoys customers, often causing frustration, inefficiency, financial strain, or dissatisfaction with current solutions or processes.

Personalization is the process of using data to tailor messages and experiences to specific users' preferences, aiming to provide positive experiences that make consumers feel special and valued.

Pipeline coverage is a sales metric that compares the total value of opportunities in a sales pipeline against the sales quota for a specific period.

A point of contact (POC) is an individual or department within an organization responsible for handling communication with customers, coordinating information, and acting as the organization's representative.

A positioning statement is a concise, internal tool that outlines a product and its target audience, explaining how it addresses a market need.

Predictive analytics is a method that utilizes statistics, modeling techniques, and data analysis to forecast future outcomes based on current and historical data patterns.

Prospecting is the process of identifying and contacting potential customers to generate new revenue. It involves finding and engaging with targets (qualified leads) on a one-to-one basis through outbound activities, such as cold calls, emails, or LinkedIn InMails, with the goal of converting them into customers.

Referral marketing is a strategy where businesses motivate existing customers to recommend their products or services to others through incentives.

A Request for Quotation (RFQ) is a process in which a company solicits selected suppliers and contractors to submit price quotes and bids for specific tasks or projects, particularly when a consistent supply of standard products is required.

Return on Investment (ROI) is a performance measure used to evaluate the efficiency or profitability of an investment, or to compare the efficiency of multiple investments.

SPIN Selling is a sales methodology developed by Neil Rackham that focuses on asking strategic questions in a specific sequence (Situation, Problem, Implication, Need-Payoff) to uncover and develop buyer needs effectively.

Sales acceleration is a set of strategies aimed at moving prospects through the sales pipeline more efficiently, ultimately enabling sales reps to close more deals in less time.

Sales automation is the process of using software tools to automate repetitive and time-consuming sales tasks, enabling sales teams to focus on more strategic activities such as closing deals and building relationships with clients.

A sales cycle is a repeatable and tactical process that salespeople follow to convert a lead into a customer, providing a structured sequence of steps from initial contact to closing a deal and nurturing the customer relationship thereafter.

A sales dashboard is a graphical representation of sales data, designed to help businesses review sales performance and strategize future sales efforts.

A Sales Development Representative (SDR) is a sales professional responsible for outreach, prospecting, and qualifying leads, acting as the first point of contact with potential customers at the beginning of their buyer's journey.

Sales enablement is a strategic approach that empowers sales representatives to sell more effectively by providing them with the necessary content, coaching, training, and technology.

A sales engineer is a professional who specializes in selling complex scientific and technological products or services to businesses.

A sales forecast is an estimate of expected sales revenue within a specific time frame, such as quarterly, monthly, or yearly.

A sales funnel is a marketing model that outlines the journey potential customers take from awareness to purchase decision.

A sales manager is a professional who oversees a company's entire sales process, including employee onboarding, developing and implementing sales strategies, and participating in product development, market research, and data analysis.

Sales operations is a function aimed at supporting and enabling frontline sales teams to sell more efficiently and effectively by providing strategic direction and reducing friction in the sales process.

A sales pitch is a concise, persuasive presentation where a salesperson communicates the value proposition of their product or service to a potential customer, aiming to capture their interest and ultimately lead to a purchase or further discussion.