Sales Terminology Flashcards
Account
An account contains all the records of customer interactions, including
contact information, preferred services, and transactions with your business. An account
is created after the first time a customer buys from your business.
Account Executive/AE/Closer
A sales team member in charge of
closing deals by converting qualified leads into paying customers.
Account Manager/AM/Farmer
A sales team member in charge of managing and up-selling existing clients and accounts.
Annual Recurring Revenue(ARR)
The amount of money a customer pays you every year on a subscription model.
Annual Contract Value(ACV)
The annual contract value is the average annualized revenue per customer contract. ACV is usually compared against customer lifetime
value to see how long it takes to pay back the cost of acquiring a customer.
Account-Based Selling
Account-based selling is a strategy where the entire company coordinates to pursue high-value accounts. The departments that are most
typically involved in account-based selling are sales, marketing, and customer success.
Business Development Representative
Also known as a Sales Development Representative (SDR). This representative is a sales specialist focused on finding new prospects, establishing foundational
relationships, and updating the sales pipeline with new leads.
Business to Business(B2B)
Selling business to business.
Business to Consumer(B2C)
Selling business to consumer.
Business Unit
A group of people representing a specific department or product within a company such as accounting or manufacturing.
Buyer Persona
A buyer persona is a representation of the ideal customer for your business. Companies create buyer personas based on market research and data about existing customers. Having a buyer persona in mind is important for marketers creating a target audience and for sales representatives qualifying leads.
Buying Signal
A buying signal is a verbal or nonverbal cues that show a customer is ready to make a purchase, such as signing up for a free trial or asking about contract specifics. Picking up on these signals can help sales reps better focus their attention on customers that are giving off more buying signals.
C-Level / C-Suite
Highest level executives; C stands for Cheif – like Chief Executive Officer (CEO).
Champion
A prospect within a company that wants to purchase your product or service and is willing to do everything they can to help convince the others in the company to make the purchase.
Channel Partner
A person or company that offers services or products on behalf of another company.
Channel Sales
Focusing on different sales channels, such as an in-house sales team, retailers, referrals, dealers etc.
Churn
The percentage of clients that leave or stop using your services or products within a certain time period.
Closing Ratio
A closing ratio is the number of deals closed compared to the number of engaged prospects. This ratio can be used to evaluate the performance of an individual sales rep and forecast sales.
Clients
Closed opportunities, paying clients and people that your account managers should take care of.
Closers
Or Account Executives, they are focused on closing deals and they only prospect a small number of strategic accounts.
Cold Call
Attempt to engage with a prospect (that you don’t yet have a relationship established) on a call.
Cold Email
Attempt to engage with prospects via email; sending a sales proposal to someone that you don’t yet have a relationship with.
Customer Acquisition Cost (CAC)
The cost of acquiring new paying clients.
Customer Lifetime Value (CLV)
Also known as lifetime value (LTV). The total
lifetime value of one client in terms of the revenue they’ll bring before they churn.
Customer Relationship Management/CRM
A software or Internet-based service
that helps business owners and sales professionals manage their sales pipeline; track
prospects and related activities throughout the sales cycle.
Customer success
A strategy and a proactive mindset that helps reduce churn rates, increase customer satisfaction with a service/product, and the predictability of recurring revenue.
Decision Maker
The person in charge of making the purchasing decision at a
company.
Fortune 500
A list of 500 of the largest companies in the US based on revenue. (S&P 500)
Gatekeeper
The person who answers the corporate phone and decides to let you talk to the decision-maker or not.