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.
ICP
Ideal Customer Profile is a profile of an ideal client for your business.
Inbound
Interest that comes in (received cold emails, submitted forms..)
Inbound Sales
Sales that happen as a result of customers directly approaching and engaging with the brand/company.
Lead
Someone who is a potential fit to purchase your product or service.
Lead Generation
All of the activities that have a goal to generate interest around a product or a service through different methods – content marketing, PPC, referrals, outbound marketing, and partnerships.
Lead Nurturing
Engaging and building a long-term relationship with existing
prospects
Lead Qualification
A process of qualifying if a lead is a good fit to purchase your product or service.
Lead Scoring
Assigning a value to every lead based on predefined criteria, in order to rank leads in terms of engaging priority
Influencer
Someone who has a strong influence over the purchase of a product or service, but isn’t the final decision-maker.
Marketing Qualified Lead (MQL)
A lead that will most likely become a paying client, based on what pages the lead visited, what action they took on the company website,
and other online engagement.
Monthly Recurring Revenue (MRR)
The amount of regular and predictable income a company expects to receive every month.
Onboarding
A set of actions or a process of introducing a new client with a service or product. Setting up an account and introducing the client with their point of contact at the company
Opportunities
A qualified lead that is a good fit for your solution. An SDR has qualified this person as someone who has the need and ability to purchase.
Outbound Sales
Cold calling, cold emailing and social selling, with the goal of initiating contact with a prospective client and ultimately closing the deal.
Point of Contact
A person or a department within a company that the client can reach out to with questions or specific requests.
Profit Margin
Profit margin is a ratio of profitability that reveals how much money a company actually makes. It is the amount by which revenue from sales exceeds costs. To calculate profit margin, divide your gross profit (revenue-cost of goods sold) by revenue.
Prospects
Alist of names and contact information in some type of list, database or CRM.
Refferal
Method of generating new sales leads, where someone refers a potential client to you.
Return On Investment (ROI)
Shows the effectiveness of the initial investment. It is a ratio between net profit and the cost of investment.
Revenue
The amount of money one business generates in the specific time period (a year, a quarter…).
SaaS
An acronym for Software as a Service
Sales Acceleration
Speeding up the sales process using different tools and technologies to boost productivity and efficiency
Sales Automation
A process of automating sales workflow by using a software or an online tool. It can help simplify, speed up and streamline the sales process.
Sales Cadence
A determined sequence of sales activities and the frequency at which the sales team interacts with leads to move them through the pipeline.
Sales Cycle
Predictable sequences and stages that a company goes through as they sell their product or service.
The usual steps would be,
Research, Outreach, Discovery, Present, Follow up, Close
Sales Demo
An event that serves as a showcase of the product or service that the company is selling.
Sales Development Representative(SDR)
Or an SDR; sales representative focused
on prospecting and finding new sales opportunities.
Sales Enablement
Providing sales professionals with necessary tools, technology, training, and other resources in order for them to have better performance at customer engagement.
Sales Funnel
A visual representation of sales processes with defined stages, that every potential client goes through as they are let towards a final decision – buying a product or service.
Sales Pipeline
A visual representation of a sales process and stages of each individual prospect.
Sales Prospecting
A process of finding and identifying new prospective clients using different outbound methods – cold email, social selling, advertising etc.
Sales Qualified Lead (SQL)
A potential client that already met all the necessary criteria, and is forwarded to Account Executive to close the deal.
Scraping Data
Extraction of large amounts of data from websites.
Segmentation
A process of dividing a large market or a contact list into smaller segments based on different criteria – location, company size, revenue etc.
Social Selling
A sales tactic that involves using social media as a sales channel. SDRs engage and create relationships with prospects by probing their needs and providing relevant and valuable insight.
Top of the Funnel
A term that refers to the top of the sales or marketing funnel, where all prospects go through a qualification process, both from inbound and outbound efforts.
Unique Selling Point/Proposition
Unique features of a business that sets it apart
from the competitors.
Vertical
A specific segment of the market where a business targets only a specific industry, sector or niche.
Direct Outreach Email Structure
Subject Line: Header to catch their attention
Intro: Example: Hey John,
Reason: The reason for why you are sending this email to them.
Value Prop: Brief overview of what you do and how you can help them with their business or personal needs.
Ask: Asking them for an action, for example, asking if they would be able to meet for the call.
Closing: Example: Best Regards
Cold Call Prospecting Excellence
Get their attention
Identify yourself
Tell them what you want
Bridge to a because
Ask for what you want
Discovery Call
The purpose of a discovery call is to find out if the prospect can afford services or products, find out if the service or product can benefit their need or business, find out their needs, and find out if the prospect is an overall good fit for your service or product.
BANT qualification
Is a sales qualification methodology that lets salespeople determine whether a prospect is a good fit based on their budget, internal influence/ability to buy, need for the product, and purchase timeline
B: Budget: does the prospect have the funds to purchase your product or service
A: Authorization: Determine who will be involved in decision-making to purchase your product or service
N: Need: Figure out the prospect’s needs and build them around your product or service
T: Timing: Determine if they are interested in pursuing the project now and where it ranks in their priority.
SPIN
S: Situation Questions: Asking situation questions about facts about their company
P: Problem Questions: Asking about current problems they are facing in their company/business.
I: Implication Questions: Asking questions designed to make your prospect aware of the negative consequences of their problems by showing how it can affect their goals, costs, or risks.
N: Need Payoff Questions: Asking buyers how important or urgent it is for them to solve their problem and what benefits your service or product would help solve.
