sales terms (bonus, (not so) pleasant) Flashcards
Account
customer profiles
contain important information about the customer:
purchases,
interactions,
contact information,
preferences.
Annual contract value (ACV)
average revenue generated for a particular customer per year
Annual recurring revenue (ARR)
the amount of money a business expects to earn over one year—from all its customers
Churn rate
% who stopped buying
Closing ratio
number of closed deals to the number of prospects the agent interacted with
Conversion
any prospect that moves to the next step in the sales pipeline
Markup
a price increase for a product
Positioning statement
a semi-prepared statement used by sales reps to start conversations with potential customers
Sales performance management
set of sales processes created for maximum efficiency
Sales pipeline coverage
ratio that measures how full the sales pipeline is compared to the quota you want to achieve at the end of a given time period
Smarketing
sales + marketing – alignment of departments for smoother workflows and consistent branding
Monthly recurring revenue (MRR)
same concept as annual recurring revenue (ARR) but is measured on a monthly scale
Value chain
the value your company brings to the market
Net Promoter Score (NPS)
used to assess customer loyalty. It’s measured via a survey that asks customers how likely they are to recommend the business or product to someone they know
Profit margin
measures a company’s gross profit relative to its revenue.
gross profit (sales minus all expenses)/your revenue for a given time period x100
You want your profit margin to be high.
Quota
sales target / a goal to achieve
ABC
“always be closing.”
every step they take in the sales process is one step closer to closing the deal
BANT framework
The BANT framework is a checklist used during lead qualification.
B = Budget: Can the lead afford the product?
A = Authority: Is the lead a decision-maker with the authority to buy the product?
N = Need: Does the lead or their business need the product?
T = Time: Is this lead likely to purchase the product in the next sales cycle?
Leads that check all four boxes are extremely qualified and should be nurtured.
Benefits
how a product solves a prospect’s problems
Feature
an aspect of a product that directly benefits a customer
it CAUSES benefit
Discovery call
initial conversation a lead (soon-to-be prospect) has with a sales rep
Pain point
a specific problem for a lead—a problem that can hopefully be fixed by a product or service from your company
Positioning statement
semi-prepared statement used by sales reps to start conversations with potential customers
Prospecting
never-ending process of identifying and contacting potential buyers
Soft sell
reps take time to build trust with the prospect and work with them to find the ideal solution
Account executive
are responsible for managing customer accounts
Account development representative
are responsible for creating new sales strategies, identifying potential clients, and understanding market trends
Sales development representative (SDR)
nside sales reps who work to convert inbound leads
Bottom of the funnel (BOFU)
prospects are very close to making a purchase decision
Buying signal
indicators that a customer is ready to buy
Buying criteria
pieces of information a customer requests to see before they make a purchase
Buying intent
the odds of a prospective customer making a purchase
Middle of the funnel (MOFU)
At this stage, the prospect has a relationship with the sales rep and is learning more about the products and solutions.
Top of the funnel (TOFU)
prospects are at the beginning of the sales funnel
Opportunity
largely interchangeable with a qualified lead.
It refers to a prospect that’s completed the qualification process and shows promise as a customer.
Ad-hoc reporting
a sales reporting tool that reflects user parameters
Ad-hoc reports are generated by request and usually answer specific metric questions (for instance, What is the combined conversion rate for sales rep 1 and sales rep 2?)
Business intelligence
an umbrella term for any tool or process that a company uses to make data-driven decisions.
This includes data analysis, KPI comparison, or data visualization.
CPQ software
configure price quote
It helps sales agents automate customer quotes and proposals, resulting in faster communication, better accuracy, and an improved customer experience.
CRM analytics
analysis of data in a CRM
Enterprise resource planning (ERP)
business software that manages a company’s financials, supply chain, operations, commerce, reporting, HR, and manufacturing
Escalations
process of customer cases or tickets being moved to a higher-authority agent or manager
This usually happens when a lower-level member is unable or unqualified to fix the customer issue.
Knowledge base
online collection of information about a business
can include everything from product information to sales scripts to marketing plans. Internal knowledge bases are meant to be used by employees, while external knowledge bases are customer-facing, often in the form of FAQs and product usage information.
Lead management
Lead management refers to the entire process of generating, qualifying, and tracking leads. It also includes prioritizing leads in order of buyer intent for the sales team using lead management software.
Opportunity management
the process of organizing, delegating, and tracking all the deals in a sales pipeline.
This ensures equal distribution and more likelihood of closing. Opportunity management is handled within a CRM by a sales manager.
Sales dashboard
A sales dashboard is a visual picture of real-time sales data that keeps everyone in your company up-to-date on metrics. Sales reps can use the sales dashboard to easily monitor daily, weekly, and monthly goals.
Closed opportunities
Closed opportunities are buyer journeys that come to an end, whether positively or negatively. It doesn’t matter if a sale is made or if the prospect decides not to buy—the opportunity is considered closed.
Closed-won
Closed-won refers to closed opportunities that end in a sale.
Closed-lost
Closed-lost refers to closed opportunities that did not end in a sale. But it also includes opportunities that simply require follow-up in a few months (for instance, the prospect can’t invest in your solution while they’re under a contract with another company, but they’re still interested).
Conversion path
The conversion path is the process a potential customer goes through to become a lead.
Demand generation
Demand generation is the marketing process of creating brand awareness and interest in a company. This includes activities like nurturing programs, content creation, and SEO (search engine optimization).
Gatekeeper
A gatekeeper is anyone who allows or prevents a sales rep from contacting a decision-maker.
Net promoter score
measures how likely a customer is to recommend your solution
