The Complete Sales Glossary: 150+ Sales and Marketing Terms You Need to Know

Picture this: you’re a new SDR in your first meeting with the sales team. Your manager starts talking about increasing ARR by focusing on lifting win rate and increasing the average revenue per user this quarter.

Unless you’re well-versed in sales-specific jargon, you might be left thinking…Wait, what?

It’s ok, we’ve all been there. To spare your colleagues (and us) second-hand embarrassment, we’ve compiled a comprehensive list of sales and marketing terms you should know as a sales professional.

From annual contract value (ACV) to two-party consent states, we’ve got you covered from A to Z. So what are you waiting for? CMD (or CTRL) + F to find what you’re looking for. 

Plus, we’re continually updating this glossary, so bookmark this page for future reference and share it with the next new hire.

Looking for a sales term related to job titles? Check out our complete guide to sales titles (+ acronyms).

• Sales Terms A-E
• Sales Terms F-J
• Sales Terms K-O
• Sales Terms P-T
• Sales Terms U-Z
• Sales Terms with Numbers

Sales Terms A-E

ABC - Always Be Closing

This phrase, often quoted by sales professionals, originated from the 1992 film “Glengarry Glen Ross,” written by David Mamet. In the movie, the character played by Alec Baldwin delivers a memorable speech that includes the line, “A-B-C: Always Be Closing.”

The concept behind “always be closing” suggests that sales professionals should maintain a persistent and proactive approach throughout the sales process. It means consistently pursuing opportunities to move the customer towards making a purchasing decision. The focus is on advancing the conversation, addressing concerns, highlighting benefits, and guiding the customer towards the final sale.

ABM - Account-Based Marketing

Account-based marketing (ABM) is a strategic approach to marketing that focuses on targeting and engaging specific high-value accounts or companies, rather than casting a wide net to reach a broader audience. It involves tailoring marketing efforts and messages to address the specific needs and challenges of individual target accounts.

Active Trial

During an active trial, the potential customer has usually expressed interest in the product or service and is granted access to a trial version, a limited-time demo, or a pilot program. This allows them to explore the features, functionalities, and benefits of the offering in a real-world or simulated environment. The purpose is to provide the prospect with a hands-on experience to evaluate its performance, usability, and potential impact on their business or personal requirements.

AIDA - Awareness, Interest, Desire, Action

The AIDA model is a widely recognized marketing and sales framework that outlines the stages a customer goes through in the process of being persuaded to take action. AIDA stands for Attention, Interest, Desire, and Action. It provides a sequential structure for crafting marketing messages and campaigns to effectively capture the attention of the target audience, generate interest, stimulate desire, and ultimately lead to a desired action, such as making a purchase or subscribing to a service.

Annual Contract Renewal Rate

Annual contract renewal rate, also known as the customer renewal rate, is a metric used in sales and business to measure the percentage of customers who choose to renew their contracts with a company on an annual basis. It indicates the level of customer satisfaction, loyalty, and retention within a specific timeframe.

The formula for calculating the annual contract renewal rate is as follows:

Annual Contract Renewal Rate = (Number of customers who renewed their contracts / Total number of eligible customers for renewal) x 100

For example, if a company has 100 customers whose contracts are up for renewal, and 80 of them choose to renew, the Annual Contract Renewal Rate would be 80%.

Annual Recurring Revenue (ARR)

ARR stands for Annual Recurring Revenue. It is a key metric used in the subscription-based business model to measure the predictable and recurring revenue generated by a company’s subscription or recurring revenue contracts over a 12-month period.

Annual Recurring Revenue Growth Rate (ARRG)

Annual recurring revenue growth rate (ARRG), also known as annualized recurring revenue growth rate, is a metric used to measure the rate of growth in a company’s annual recurring revenue (ARR) over a specific period, typically expressed as a percentage. It provides insights into the company’s revenue growth and the effectiveness of its subscription-based business model.

The formula for calculating the Annual Recurring Revenue Growth Rate is:

ARRG = ((Ending ARR - Beginning ARR) / Beginning ARR) x 100

Here’s an example to illustrate the calculation:

Let’s say a company had a Beginning ARR of $1,000,000 at the start of the year and an Ending ARR of $1,500,000 at the end of the year. The ARRG would be:

ARRG = (($1,500,000 - $1,000,000) / $1,000,000) x 100 = 50%

Annual Contract Value (ACV)

Annual Contract Value (ACV) refers to the average annual revenue or value generated from a customer’s contract with a company. It represents the total value of a customer’s contract over a one-year period. ACV is commonly used as a key metric in the sales industry to evaluate the revenue potential and predictability of customer contracts.

Auto Dialer

An auto dialer is a software or device that automatically dials a list of phone numbers on behalf of a user or a call center. It is commonly used in telemarketing, sales, customer service, and other phone-based operations. Auto dialers can quickly and efficiently dial a large volume of numbers, saving time and effort for call center agents. They can be programmed to handle various call scenarios, such as connecting the call to an available agent, playing pre-recorded messages, or transferring the call to a different department. Auto dialers help increase productivity, improve call center efficiency, and streamline outbound calling processes.

Average Contract Length (ACL)

Average Contract Length (ACL) refers to the average duration of contracts entered into by individuals, businesses, or organizations. It is calculated by summing the lengths of all contracts and dividing the total by the number of contracts. ACL provides a measure of the typical length of contractual commitments and is often used to assess the stability and predictability of business relationships or to analyze market trends.

Average Order Value (AOV)

Average Order Value (AOV) refers to the average monetary value of orders placed by customers within a specific period. It is calculated by dividing the total revenue generated from all orders by the total number of orders. AOV is a key metric used by businesses to assess the average spending per customer, measure customer behavior, and evaluate the effectiveness of marketing and sales strategies.

Average Revenue per Account (ARPA)

Average Revenue per Account (ARPA) is a metric that measures the average revenue generated from each customer account or subscription. It is calculated by dividing the total revenue generated from all accounts by the total number of accounts. ARPA provides insights into the average value of each account and helps businesses understand the revenue potential and profitability of their customer base.

Average Revenue per Customer (ARPC)

Average Revenue per Customer (ARPC) is a similar metric that measures the average revenue generated from each individual customer. It is calculated by dividing the total revenue generated from all customers by the total number of customers. ARPC provides a more granular view of customer spending behavior and helps businesses evaluate their pricing, product offerings, and customer retention strategies.

Average Revenue per Paying User (ARPPU)

Average Revenue per Paying User (ARPPU) specifically focuses on the average revenue generated from paying customers or users. It is calculated by dividing the total revenue generated from paying users by the total number of paying users. ARPPU helps businesses understand the spending patterns and value derived from their paying customer segment, enabling them to optimize monetization strategies and enhance customer lifetime value.

Average Revenue per Sale (ARPS)

Average Revenue per Sale (ARPS) is a metric that measures the average amount of revenue generated from each individual sale or transaction. It is calculated by dividing the total revenue generated from all sales by the total number of sales. ARPS provides insights into the average value of each transaction and helps businesses assess the effectiveness of their pricing strategies, upselling or cross-selling efforts, and overall sales performance. By monitoring ARPS, businesses can identify opportunities to increase their average transaction value and maximize revenue per sale.

Average Revenue per User (ARPU)

Average Revenue per User (ARPU) is a metric that measures the average revenue generated per user or customer within a specific period. It is calculated by dividing the total revenue generated by the total number of users or customers. The average revenue per user provides insights into the average spending or revenue contribution of each user and is commonly used in industries such as telecommunications, subscription-based services, and online platforms.

ARPU is an important metric for businesses to evaluate their monetization strategies, pricing models, and customer segmentation. It helps in understanding the revenue potential of each user and tracking changes in user behavior over time. By monitoring ARPU, businesses can make informed decisions regarding product offerings, pricing adjustments, customer retention strategies, and overall revenue growth.

Average Selling Price (ASP)

Average Selling Price (ASP) is a metric that represents the average price at which a product or service is sold. It is calculated by dividing the total revenue generated from sales by the total number of units sold. ASP is commonly used in industries such as retail, electronics, and software to analyze pricing trends, monitor changes in consumer behavior, and assess the overall performance of a product or market.

ASP provides insights into the average value customers are willing to pay for a particular product or service. It helps businesses understand pricing dynamics, track pricing fluctuations over time, and make informed decisions about pricing strategies, product positioning, and profitability. ASP can also be used to compare pricing among different products or product categories, identify opportunities for price optimization, and assess the impact of discounts or promotions on revenue.

Average Session Duration (ASD)

Average Session Duration (ASD) is a metric that measures the average length of time users spend on a website, app, or online platform during a single session. It is calculated by dividing the total duration of all sessions by the total number of sessions. ASD provides insights into user engagement and the level of interaction with a digital platform. It is commonly used to evaluate the effectiveness of user experience, content relevance, and overall website or app performance. A longer average session duration generally indicates higher user engagement and a positive user experience.

Business-to-Business (B2B) Sales

B2B sales, also known as business-to-business sales, refers to the process of selling products, services, or solutions from one business to another. It involves transactions between two businesses rather than direct sales to individual consumers. B2B sales typically involve complex buying processes, longer sales cycles, and higher order volumes compared to business-to-consumer (B2C) sales.

B2C - Business-to-Consumer Sales

B2C sales, also known as business-to-consumer sales, refers to the process of selling products, services, or solutions directly to individual consumers. In B2C sales, the focus is on meeting the needs and preferences of individual customers and providing them with a positive buying experience. It involves transactions between a business and individual consumers, rather than between two businesses.

BANT Framework

The BANT framework is a sales qualification framework that is commonly used in business-to-business (B2B) sales to assess the viability and potential of a sales opportunity. BANT stands for Budget, Authority, Need, and Timeline, representing the key criteria used to evaluate a prospect’s readiness to make a purchase.

Bottom of Funnel - BOFU

BOFU stands for “Bottom of the Funnel.” It refers to the stage in the marketing and sales funnel where potential customers are close to making a purchasing decision. At the BOFU stage, prospects have typically moved through the awareness and consideration stages of the funnel and are actively considering specific products or solutions. The focus of marketing and sales efforts at this stage is to convert leads into customers by providing targeted, persuasive content, personalized offers, and addressing any remaining objections or concerns.

Buyer Persona

A buyer persona is a fictional representation of an ideal customer or target audience segment. It is created based on research, data, and insights about the characteristics, behaviors, needs, and preferences of actual customers. A buyer persona helps businesses better understand their customers and tailor their marketing and sales strategies to effectively engage and serve them.

Bounce Rate

Bounce rate refers to the percentage of website visitors who leave a webpage without interacting with it or navigating to any other pages on the same website. It is a metric used to measure the engagement and effectiveness of a webpage. A high bounce rate typically indicates that visitors are not finding the content or experience they expected, while a low bounce rate suggests that visitors are engaging with the webpage and exploring further.

Burn Rate

Burn rate refers to the rate at which a company or organization is consuming its available cash or capital to cover operating expenses and sustain its operations. It represents the amount of money being “burned” or expended over a specific period, typically measured on a monthly or quarterly basis. Burn rate is a crucial metric for startups and early-stage companies to monitor their financial health and assess how long their current funding will last before additional capital is needed.

Business SMS

Business SMS (Short Message Service) refers to the use of text messaging as a communication channel for businesses. It involves sending and receiving text messages between a business and its customers, clients, or employees. Business SMS can be used for various purposes, including customer support, appointment reminders, marketing campaigns, notifications, and internal communication. It provides a convenient and widely accessible method of communication that allows businesses to reach and engage with their audience quickly and efficiently.

Customer Acquisition Cost (CAC)

Customer Acquisition Cost (CAC) is a metric that represents the average cost incurred by a business to acquire a new customer. It is calculated by dividing the total costs associated with acquiring customers (such as marketing expenses, sales efforts, and advertising costs) by the number of new customers acquired within a specific time period.

Cash Conversion Cycle (CCC)

Cash Conversion Cycle (CCC) is a financial metric that measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. It represents the period between the company’s cash outflows for inventory and other expenses and the cash inflows from customer payments for products or services.

Churn

Churn refers to customers or subscribers discontinuing their relationship with a business or service. Churn rate represents the percentage of customers who cease using or subscribing to a product or service within a given time period. Churn can occur for various reasons, such as dissatisfaction, competition, or a change in customer needs.

Click-Through Rate (CTR)

Click-Through Rate (CTR) is a metric used in online advertising and marketing campaigns to measure the percentage of people who click on a specific link or advertisement out of the total number of impressions or views. CTR is calculated by dividing the number of clicks on a link by the number of impressions and expressing it as a percentage.

A higher CTR indicates a higher level of interest and engagement from the audience, suggesting that the ad or link is compelling and relevant to the target audience. Advertisers and marketers use CTR to assess the performance of their campaigns, optimize their ad placements and messaging, and measure the return on investment (ROI) of their advertising efforts.

Close Rate

Close rate in sales refers to the percentage of successfully closed deals or sales out of the total number of sales opportunities or leads. It measures the effectiveness of a sales team or individual in converting leads into customers. A higher close rate indicates a higher level of sales success and efficiency, while a lower close rate suggests potential challenges or areas for improvement in the sales process. Close rate is a key metric used to evaluate sales performance, set sales targets, and identify areas for sales process optimization.

Closed-Won

Closed-won is a common sales term often used in customer relationship management (CRM) systems. A closed-won deal refers to a sales opportunity or deal that has been successfully closed, resulting in a sale. It represents a successful outcome where a customer has committed to purchasing a product or service from a business. A closed-won deal signifies that the sales process has been completed, negotiations have been successful, and the customer has made a final decision to move forward with the purchase. It is an important milestone for sales teams as it represents revenue generation and the acquisition of new customers.

Closed-Lost

The opposite term to closed-won is closed-lost. A closed-lost deal refers to a sales opportunity or deal that has been unsuccessful and did not result in a sale. It represents a situation where a customer decided not to move forward with the purchase or chose a competitor’s offering instead. A Closed-lost deal indicates that the sales process was not successful in meeting the customer’s needs, addressing objections, or differentiating the product or service effectively. It is an outcome where the opportunity has reached its conclusion without a successful sale. Closed-lost deals provide valuable feedback to sales teams, highlighting areas for improvement and potential adjustments to the sales approach or offering.

Customer Lifetime Value (CLV)

Customer Lifetime Value (CLV), also known as Lifetime Customer Value (LCV), is a metric that estimates the total revenue or profit a business can expect to generate from a customer over the entire duration of their relationship. It represents the long-term value of a customer to a business.

Cost of Goods Sold (COGS)

Cost of Goods Sold (COGS) refers to the direct expenses incurred by a business in producing or acquiring the goods or services that are sold to customers. It includes the costs directly associated with the production, manufacturing, or procurement of the products or services that generate revenue.

COGS typically includes expenses such as the cost of raw materials, direct labor involved in production, direct overhead costs, and any other expenses directly attributable to the creation or acquisition of the goods or services being sold. It excludes indirect costs such as marketing, sales, and administrative expenses.

Cold Calling

Cold calling is a sales technique in which a salesperson initiates contact with potential customers who have not expressed prior interest or expectation of the call. It involves reaching out to individuals or businesses by phone, without any prior relationship or connection, to introduce a product, service, or opportunity and attempt to generate sales or set up appointments.

During a cold call, the salesperson typically follows a scripted or structured approach to engage the prospect, present the value proposition, address potential objections, and ultimately try to convert the prospect into a customer or move them further along the sales process. Cold calling requires effective communication skills, persuasive abilities, and the ability to handle rejection.

Cold calling can be challenging as it involves reaching out to prospects who may be unfamiliar with the salesperson or the offering. However, it can also be an effective method for generating leads, identifying potential customers, and initiating new business relationships. Cold calling is commonly used in industries such as telemarketing, B2B sales, and direct sales, although its effectiveness may vary depending on the target audience, industry, and individual sales techniques.

Commission

In sales, a commission refers to a form of compensation that is typically awarded to salespeople based on the value or volume of sales they generate. It is a variable component of a salesperson’s overall compensation package, designed to incentivize and reward their performance.

Commissions are often calculated as a percentage of the total sales value or as a fixed amount per sale. The specific commission structure can vary depending on the industry, company policies, and individual sales agreements.

Conversion

In sales and marketing, a conversion refers to the desired action taken by a potential customer that signifies their transition from being a prospect to a paying customer or a lead. It is the successful outcome of a marketing or sales effort, where a person completes a specific goal or objective defined by the business. Conversions can take various forms, such as making a purchase, filling out a form, signing up for a newsletter, or requesting more information. The measurement and optimization of conversions are crucial in assessing the effectiveness of marketing campaigns and sales strategies.

Customer Relationship Management (CRM) System

A CRM, which stands for Customer Relationship Management, is a system or software used by businesses to manage and analyze customer interactions and relationships throughout the customer lifecycle. It serves as a centralized platform for storing customer data, tracking interactions, and managing sales, marketing, and customer service activities. CRMs can also integrate with other software applications used by your organization for streamlined data management.

CRMaaS - Customer Relationship Management as a Service

CRMaaS, which stands for Customer Relationship Management as a Service, refers to the delivery of CRM software and capabilities through a cloud-based subscription model. Instead of businesses hosting and managing their own CRM infrastructure, CRMaaS allows them to access and utilize a CRM system provided by a third-party vendor. CRM applications such as HubSpot, Pipedrive, and Zoho are CRMaaS.

Customer Satisfaction (CSAT)

CSAT, which stands for Customer Satisfaction, is a metric used to measure the level of satisfaction or contentment that customers have with a product, service, or overall customer experience. It is typically assessed through surveys or feedback mechanisms provided to customers after they have interacted with a business.

Cross-Selling

Cross-selling refers to the practice of offering additional or related products or services to a customer who has already made a purchase or expressed interest in a particular product. It involves suggesting complementary or supplementary items that can enhance the customer’s experience, provide additional value, or fulfill related needs. The goal of cross-selling is to increase customer satisfaction, generate additional sales, and maximize the revenue per customer interaction.

Customer Acquisition by Channel

Customer acquisition by channel refers to the process of acquiring new customers through different marketing and sales channels. It involves identifying and utilizing various channels to reach and attract potential customers, such as online advertising, social media, email marketing, and search engine optimization (SEO). By understanding the effectiveness and costs associated with each channel, businesses can optimize their customer acquisition strategies to maximize their return on investment and expand their customer base.

Customer Acquisition Cost (CAC)

Customer Acquisition Cost (CAC) refers to the average amount of money a business spends to acquire a new customer. It is a metric used to measure the cost-effectiveness of marketing and sales efforts. CAC is calculated by dividing the total costs associated with customer acquisition (including marketing expenses, advertising costs, sales team salaries, and related overhead) by the number of customers acquired within a specific period. The lower the CAC, the more cost-efficient the customer acquisition process is for a business. Monitoring and optimizing CAC is crucial for businesses to ensure they are acquiring customers in a financially sustainable manner and generating a positive return on their investment.

Customer Acquisition Rate (CAR)

Customer Acquisition Rate (CAR) is a metric that measures the speed or rate at which a business acquires new customers within a specific period. It represents the number of new customers gained during that time frame. CAR is typically expressed as a count or a percentage, indicating the growth rate of the customer base. Monitoring CAR helps businesses assess the effectiveness of their customer acquisition strategies and evaluate the success of marketing campaigns or sales initiatives in attracting and converting new customers.

Customer Effort Score (CES)

Customer Effort Score (CES) is a metric used to measure the level of effort a customer has to exert to achieve a desired outcome or resolve an issue when interacting with a company or its products/services. It is typically assessed through surveys or feedback mechanisms that ask customers to rate the level of effort required on a scale, such as “Very easy” to “Very difficult.” CES helps businesses evaluate the ease of their customer experience and identify areas for improvement to reduce customer effort, enhance satisfaction, and improve overall customer loyalty.

Customer Engagement Score

Customer Engagement Score is a metric used to measure the level of customer engagement and interaction with a brand, product, or service. It assesses the extent to which customers actively participate, connect, and show interest in the company’s offerings. Customer Engagement Scores can be calculated using various indicators, such as website or app usage, social media interactions, email opens and clicks, and other customer interactions. The score helps businesses gauge the effectiveness of their engagement strategies and identify areas to enhance customer involvement and build stronger relationships.

Customer Growth Rate

Customer Growth Rate is a metric that measures the rate at which a business’s customer base is expanding or growing within a specific period. It indicates the percentage increase in the number of customers over time. Customer Growth Rate helps businesses track their customer acquisition efforts, assess the effectiveness of marketing and sales strategies, and evaluate the overall health and progress of the business. A higher customer growth rate signifies positive business growth and customer acquisition success.

Customer Health Score

A Customer Health Score is a metric used to evaluate the overall health or satisfaction level of a customer in their relationship with a company. It assesses various factors, such as product usage, customer engagement, customer support interactions, payment history, and other relevant data points, to determine the customer’s likelihood of renewal, upsell potential, and overall satisfaction. A Customer Health Score helps businesses identify at-risk customers, prioritize customer success efforts, and take proactive measures to improve customer satisfaction and retention.

Customer Lifetime Revenue (CLR)

Customer Lifetime Revenue (CLR) refers to the total revenue generated by a customer over their entire relationship with a business. It takes into account all the purchases, repeat purchases, upsells, cross-sells, and renewals made by the customer during their lifetime as a customer. CLR is a valuable metric for businesses to understand the long-term value of their customers and make informed decisions regarding customer acquisition, retention strategies, and customer relationship management.

Customer Retention

Customer retention refers to the ability of a business to retain its existing customers over a certain period of time. It focuses on maintaining and nurturing the relationship with customers to encourage repeat purchases, loyalty, and long-term engagement. Customer retention strategies involve efforts to provide excellent customer service, personalized experiences, loyalty programs, and ongoing communication to build strong relationships and keep customers satisfied and committed to the brand. By retaining customers, businesses can achieve higher customer lifetime value, reduce customer churn, and foster a loyal customer base.

Customer Retention Rate

Customer Retention Rate is a metric that measures the percentage of customers a business retains over a specific period of time. It quantifies the effectiveness of a company’s customer retention efforts and indicates the level of customer loyalty and satisfaction. A higher customer retention rate suggests that more customers are staying with the business, while a lower rate may indicate issues with customer satisfaction or competitive challenges. Calculating and monitoring customer retention rate helps businesses assess their ability to retain customers and develop strategies to improve customer loyalty and reduce churn.

Customer Retention Cost (CRC)

Customer Retention Cost (CRC) refers to the expenses incurred by a business to retain its existing customers over a specific period of time. It includes costs associated with customer retention strategies, such as loyalty programs, customer support, personalized communication, discounts, and other initiatives aimed at fostering customer loyalty and reducing customer churn. CRC helps businesses evaluate the effectiveness of their customer retention efforts and determine the financial investment required to maintain customer relationships and maximize customer lifetime value.

Customer Success Index

A Customer Success Index is a metric used to measure and evaluate the overall success and satisfaction of customers with a product, service, or overall customer experience. It combines various indicators, such as customer feedback, usage metrics, customer support interactions, and other relevant data points, to provide a comprehensive assessment of customer success. The Customer Success Index helps businesses identify areas for improvement, gauge the effectiveness of their customer success initiatives, and make data-driven decisions to enhance customer satisfaction and retention.

Daily Active Users (DAU)

Daily Active Users (DAU) is a metric used to measure the number of unique users or individuals who actively engage with a specific product, service, or platform within a single day. It represents the daily count of active users and provides insights into the level of user engagement and popularity of a digital product or application. DAU helps businesses assess the daily usage patterns, user retention, and overall user activity within their digital ecosystem.

Demand Generation

Demand generation in marketing refers to the strategies and activities aimed at creating awareness, generating interest, and driving demand for a company’s products or services. It encompasses various marketing initiatives designed to attract and engage potential customers, nurture leads, and ultimately convert them into paying customers.

Demand generation focuses on building brand visibility, establishing thought leadership, and creating a demand for the company’s offerings in the market. It involves a mix of inbound and outbound marketing tactics, such as content marketing, search engine optimization (SEO), social media marketing, email marketing, webinars, events, and advertising.

Discovery Call

A discovery call in sales is an initial conversation between a sales representative and a prospective customer. The purpose of a discovery call is to gather information, understand the customer’s needs, challenges, and goals, and determine if the company’s product or service can provide a solution that meets those requirements.

During a discovery call, the sales representative typically asks open-ended questions to uncover the prospect’s pain points, objectives, budget, decision-making process, and other relevant details. The representative actively listens to the prospect’s responses and seeks to understand their unique circumstances.

Do Not Call Registry

The Do Not Call Registry is a list maintained by the Federal Trade Commission (FTC) in the United States, where consumers can register their phone numbers to opt out of receiving telemarketing calls. By registering their numbers on the Do Not Call Registry, individuals indicate their preference to not receive unsolicited sales calls from telemarketers. Telemarketers are obligated to comply with the registry and refrain from contacting the registered phone numbers for telemarketing purposes, except in specific cases such as calls from charities or political organizations. The purpose of the Do Not Call Registry is to provide consumers with more control over the calls they receive and reduce unwanted telemarketing calls.

Expansion MRR

Expansion Monthly Recurring Revenue (Expansion MRR) refers to the additional monthly revenue generated from existing customers through expansion or upselling activities. It represents the increased revenue resulting from customers upgrading their subscription, purchasing additional features or services, or increasing their usage of the product or service. Expansion MRR is a key metric for businesses that offer subscription-based models, as it indicates the growth potential and success of expanding revenue streams within the existing customer base. Monitoring and increasing Expansion MRR is crucial for driving business growth and maximizing customer lifetime value.

Employee Satisfaction Index

An Employee Satisfaction Index is a metric used to measure and assess the overall satisfaction and engagement of employees within an organization. It combines various factors, such as job satisfaction, work-life balance, compensation, benefits, career development opportunities, and the overall work environment. The Employee Satisfaction Index helps businesses gauge the level of employee morale, identify areas for improvement, and take measures to enhance employee satisfaction, productivity, and retention. It is often measured through surveys or feedback mechanisms that gather employee opinions and perceptions about their work experience.

Employee Satisfaction Score (ESAT)

An Employee Satisfaction Score (ESAT) is a metric that quantifies the level of satisfaction and contentment among employees within an organization. It is typically measured through surveys or assessments that gather feedback on various aspects of the work environment, job satisfaction, work-life balance, compensation, career growth, and other relevant factors. ESAT provides a numerical or percentile score that helps organizations evaluate the overall satisfaction of their employees. Monitoring ESAT allows businesses to identify areas of improvement, address concerns, and implement strategies to enhance employee satisfaction, engagement, and retention.

Employee Turnover Rate

Employee Turnover Rate, also known as Staff Turnover Rate or Employee Attrition Rate, is a metric that measures the rate at which employees leave an organization over a specific period of time. It is typically expressed as a percentage and calculated by dividing the number of employees who have left the organization by the average number of employees during that period.

The Employee Turnover Rate provides insights into the level of employee churn within a company and is often used as an indicator of employee engagement, satisfaction, and overall organizational health. A high turnover rate can suggest issues with workplace culture, employee morale, or management practices, while a low turnover rate indicates a more stable and satisfied workforce.

Sales Terms F-J

Funnel Conversion Rate

Funnel Conversion Rate refers to the percentage of individuals who progress through each stage of a marketing or sales funnel and ultimately complete a desired action or conversion, such as making a purchase, subscribing to a service, or filling out a form. It measures the effectiveness of the funnel in converting prospects into customers or leads.

The Funnel Conversion Rate is calculated by dividing the number of conversions at a particular stage by the number of individuals at the previous stage and multiplying it by 100. This helps businesses identify potential bottlenecks or areas for improvement within the funnel and optimize the customer journey to maximize conversions.

Gross Merchandise Value (GMV)

Gross Merchandise Value (GMV) is a metric that represents the total value of goods or services sold on an e-commerce platform or marketplace within a specific period. It includes the full value of all transactions, including taxes, shipping fees, and other charges, without deducting any discounts or returns. GMV provides insights into the scale and growth of a platform’s commercial activity, but it does not account for the platform’s revenue or profit. GMV is often used as a key performance indicator for e-commerce businesses to track their transaction volume and monitor the overall health and success of their marketplace.

Gross Profit Margin

Gross Profit Margin is a financial metric that measures the profitability of a company’s core operations by calculating the percentage of revenue that remains after subtracting the cost of goods sold (COGS). It represents the proportion of revenue available to cover other operating expenses and generate profits.

Ideal Customer Profile (ICP)

An Ideal Customer Profile (ICP) is a detailed description of the characteristics and attributes that define a business’s most desirable and valuable customers. It is a hypothetical representation of the perfect customer for a company, based on factors such as demographics, industry, company size, needs, pain points, purchasing behavior, and other relevant criteria.

The ICP helps businesses identify and target their most ideal and profitable customer segments. It guides marketing and sales efforts by focusing on the types of customers who are most likely to benefit from the company’s offerings and have a high likelihood of becoming loyal and long-term customers.

Inbound Calling

Inbound calling refers to the process of receiving incoming phone calls from customers or individuals who initiate contact with a company or organization. It typically involves customers reaching out to inquire about products or services, seek assistance or support, place orders, or provide feedback. Inbound calling is a key component of customer service and support, where representatives are responsible for answering calls, addressing customer inquiries, resolving issues, and providing a positive customer experience. Companies often establish dedicated inbound call centers or customer support teams to handle the volume of incoming calls efficiently and effectively.

Inbound Marketing

Inbound marketing refers to a customer-centric approach to marketing that focuses on attracting and engaging potential customers through valuable content, personalized experiences, and targeted strategies. It involves creating and sharing relevant and informative content, such as blog posts, videos, social media posts, and eBooks, to attract the attention of the target audience and drive them towards the brand.

Unlike traditional outbound marketing techniques that rely on interruptive advertising, inbound marketing aims to pull in potential customers by providing them with useful information and solutions to their problems. It revolves around the concept of earning the attention and trust of the audience, rather than aggressively promoting products or services.

Sales Terms K-O

Key Performance Indicator (KPI)

Key Performance Indicators (KPIs) are quantifiable metrics used to measure the performance and progress of an organization or a specific aspect of its operations. They are used to assess whether the organization is achieving its goals and objectives effectively. KPIs are selected based on the strategic priorities of the organization and can vary across different industries and departments.

Examples of KPIs can include financial metrics (such as revenue growth or profit margin), customer-related metrics (such as customer satisfaction or customer retention rate), operational metrics (such as production efficiency or on-time delivery), and employee-related metrics (such as employee productivity or employee turnover rate).

Lead Scoring

Lead scoring is a methodology used in sales and marketing to rank and prioritize leads based on their likelihood to become customers. It assigns a numerical value or score to each lead based on certain predetermined criteria, such as demographic information, engagement level, and online behavior.

The purpose of lead scoring is to identify and focus on leads that have the highest potential to convert into customers. By assigning scores to leads, sales and marketing teams can prioritize their efforts and allocate resources effectively. High-scoring leads are deemed more qualified and ready for sales engagement, while low-scoring leads may require further nurturing or qualification before sales outreach.

Lead-to-Customer Conversion Rate

Lead-to-Customer Conversion Rate is a metric that measures the percentage of leads that successfully convert into paying customers. It calculates the effectiveness of a company’s sales and marketing efforts in generating revenue from leads.

The Lead-to-Customer Conversion Rate is typically calculated by dividing the number of customers acquired within a specific period by the number of leads generated during the same period, then multiplying it by 100 to express it as a percentage.

A high Lead-to-Customer Conversion Rate indicates that a company is successfully converting a significant portion of its leads into customers. Conversely, a low conversion rate suggests that improvements may be needed in lead quality, lead nurturing, or the sales process.

Monitoring and optimizing the Lead-to-Customer Conversion Rate helps businesses evaluate the efficiency of their lead generation and sales processes, identify potential bottlenecks, and make informed decisions to increase conversions and drive revenue growth.

Local Presence Dialing

Local presence dialing is a strategy used in outbound sales or telemarketing where the caller’s phone number is dynamically displayed with a local area code that matches the recipient’s location. Instead of showing a toll-free number or a number from a different region, local presence dialing aims to increase the chances of the call being answered by originating from a nearby location.

Marketing Qualified Lead (MQL)

A Marketing Qualified Lead (MQL) is a lead that has been assessed and determined to have a higher likelihood of becoming a customer based on specific criteria set by the marketing team. MQLs are typically identified through various lead qualification processes, such as demographic information, engagement with marketing campaigns, website interactions, or explicit interest shown by the lead.

MQL to SQL Conversion Rate

MQL to SQL Conversion Rate is a metric that measures the percentage of Marketing Qualified Leads (MQLs) that successfully progress and qualify as Sales Qualified Leads (SQLs). It calculates the effectiveness of the lead qualification process in converting marketing-generated leads into qualified leads for the sales team.

The MQL to SQL Conversion Rate is typically calculated by dividing the number of SQLs generated from MQLs by the total number of MQLs, then multiplying it by 100 to express it as a percentage.

A high MQL to SQL Conversion Rate indicates that the lead qualification process is effectively identifying and passing on leads with a higher likelihood of converting into customers. A low conversion rate may suggest the need for improvements in the lead qualification criteria or processes.

Master Service Agreement

A Master Service Agreement (MSA) is a contract that establishes the terms and conditions for a long-term business relationship between two parties. It serves as a foundation or framework agreement that sets forth the general terms, obligations, and rights governing future transactions or services between the parties.

An MSA typically covers various aspects such as scope of work, pricing, payment terms, intellectual property rights, confidentiality, dispute resolution, termination conditions, and other important provisions relevant to the specific business relationship. It is often used in industries where ongoing services, projects, or collaborations are common, such as professional services, consulting, software development, or outsourcing.

Monthly Active Users (MAU)

Monthly Active Users (MAU) is a metric used to measure the number of unique users who engage with a particular product, service, or platform within a given month. It represents the count of active users who interact with the product or perform specific actions during the defined time frame.

MAU is commonly used in the context of digital platforms, mobile applications, social media networks, and online services to gauge user engagement and assess the popularity and growth of the offering. It provides insights into the size and activity level of a user base over a monthly period.

Monthly Recurring Revenue (MRR)

Monthly Recurring Revenue (MRR) is a key metric used by subscription-based businesses to measure the predictable and recurring revenue generated from active subscriptions within a specific month. It represents the total revenue that a company expects to receive on a monthly basis from its subscription customers.

MRR includes the subscription fees or charges paid by customers for the services or products provided by the company. It does not typically include one-time purchases, additional fees, or revenue from other sources.

Monthly Recurring Revenue Growth Rate (MRRG)

Monthly Recurring Revenue Growth Rate (MRRG) is a metric that measures the percentage increase or decrease in Monthly Recurring Revenue (MRR) over a specific period of time, typically on a monthly basis. It represents the rate of growth or decline in the recurring revenue generated by a subscription-based business.

MRRG is calculated by taking the difference between the current month’s MRR and the previous month’s MRR, dividing it by the previous month’s MRR, and multiplying it by 100 to express it as a percentage.

A positive MRRG indicates revenue growth, while a negative MRRG represents a decline in recurring revenue. Monitoring MRRG helps businesses assess the pace of their revenue expansion, identify trends, and evaluate the effectiveness of their customer acquisition and retention strategies.

NDA - Non-Disclosure Agreement

A Non-Disclosure Agreement (NDA), also known as a Confidentiality Agreement, is a legal contract between two or more parties that establishes a confidential relationship. Its purpose is to protect sensitive and confidential information shared between the parties by outlining the terms and obligations regarding the use, disclosure, and protection of such information.

Net Promoter Score (NPS)

Net Promoter Score (NPS) is a customer loyalty metric that measures the willingness of customers to recommend a company, product, or service to others. It is widely used to assess customer satisfaction, gauge brand loyalty, and predict business growth. NPS is based on a single question: “On a scale of 0 to 10, how likely are you to recommend our company/product/service to a friend or colleague?”

Net Revenue Retention (NRR)

Net Revenue Retention (NRR) is a metric that measures the revenue growth or contraction from existing customers over a specific period, typically expressed as a percentage. It calculates the net change in revenue generated from a cohort of customers, accounting for both expansion revenue (upsells, cross-sells) and contraction revenue (downgrades, cancellations).

NRR takes into account the revenue generated from existing customers in the current period compared to the revenue generated from the same set of customers in a previous period. It helps businesses assess the overall revenue retention and growth within their existing customer base.

Objection Handling

Objection handling refers to the process of addressing and overcoming objections or concerns raised by potential customers during sales interactions. It involves actively listening to the customer’s objections, understanding their underlying reasons or hesitations, and providing appropriate responses to alleviate their concerns and move the sales process forward. Effective objection handling requires empathy, knowledge of the product or service, and persuasive communication skills.

One-Party Consent States

One-party consent states, also known as “single-party consent” states, are regions within the United States where only one party participating in a conversation needs to provide consent for the recording of phone calls or other communications. In these states, as long as one party involved in the conversation is aware and consents to the recording, it is generally legal to record the conversation without the knowledge or consent of the other parties. The consenting party could be the person making the recording or the person being recorded.

Operating Profit Margin (OPM)

Operating Profit Margin (OPM) is a financial metric that measures the profitability of a company’s core operations by expressing the operating profit as a percentage of its revenue. It provides insights into how efficiently a company is generating profits from its primary business activities before considering other non-operating expenses and income. 

Outbound Calling

Outbound calling refers to a sales or marketing strategy in which an organization initiates phone calls to reach out to potential customers or clients proactively. It involves making outbound calls to individuals or businesses with the aim of generating leads, qualifying prospects, promoting products or services, conducting surveys, or engaging in customer support activities. Outbound calling allows companies to take a proactive approach in reaching their target audience, rather than waiting for customers to initiate contact. 

It often involves sales representatives or telemarketers making calls using pre-defined scripts, engaging in persuasive conversations, and building relationships with prospects over the phone. Outbound calling can be an effective method to reach a large number of potential customers, gather feedback, and drive sales by directly communicating with the target audience.

Outbound Marketing

Outbound marketing, also known as traditional marketing, refers to a marketing strategy that involves actively reaching out to a wide audience to promote products or services. It relies on outbound communication channels such as television advertisements, radio ads, print media, cold calling, direct mail, and email campaigns to deliver marketing messages to potential customers. Outbound marketing aims to create brand awareness, generate leads, and attract customers by broadcasting messages to a broad audience. While outbound marketing techniques have been widely used in the past, they have evolved alongside digital marketing strategies and are now often combined with inbound marketing approaches to create a holistic marketing strategy that includes both proactive outreach and customer-centric engagement.

Outbound Sales

Outbound sales refers to the proactive approach of reaching out to potential customers or clients through direct communication channels to generate sales opportunities and close deals. It involves sales representatives or teams making outbound calls, sending emails, engaging in cold outreach, or utilizing other outbound strategies to initiate contact with prospects who may have shown some level of interest or fit for the product or service being offered. 

Outbound sales typically involve identifying target markets, creating prospect lists, and using various techniques to capture the attention and interest of potential customers. The goal is to initiate conversations, qualify leads, and guide prospects through the sales process, ultimately converting them into paying customers. Outbound sales can be highly targeted and personalized, allowing sales professionals to actively pursue and engage with potential buyers to drive revenue and business growth.

Outside Sales

Outside sales, also known as field sales, refers to the sales method where sales professionals or representatives meet and engage with customers or prospects face-to-face outside of a physical office or store location. It involves traveling to customer sites, attending meetings, conducting presentations, and building relationships in person. Outside sales is commonly utilized in industries where the sales process requires personalized interactions, complex negotiations, or extensive product demonstrations.

Opportunity Win Rate

Opportunity Win Rate, also known as Deal Win Rate, is a sales metric that measures the percentage of sales opportunities or deals won by a company or sales team compared to the total number of opportunities pursued. It provides insights into the effectiveness of the sales process, the ability to convert leads into customers, and the overall success rate in closing deals. A higher opportunity win rate indicates a higher success rate in converting opportunities into wins, while a lower win rate may suggest areas for improvement in sales strategies, qualification processes, or customer engagement techniques. Monitoring and analyzing opportunity win rate helps businesses identify strengths and weaknesses in their sales efforts and make data-driven decisions to improve sales performance and drive revenue growth.

Sales Terms P-T

Product Qualified Lead (PQL)

Product Qualified Lead (PQL) refers to a lead that has demonstrated a high level of interest and engagement with a product or service, typically through their usage or interaction with the product itself. Unlike traditional Marketing Qualified Leads (MQLs) that are primarily based on demographic or marketing interactions, PQLs are identified based on the product usage data, behavior, and actions of potential customers.

PQLs are often identified by tracking specific product-related activities such as sign-ups, trial usage, feature adoption, or certain usage thresholds. These indicators suggest that the lead has a genuine interest in the product and is more likely to convert into a paying customer.

Pain Point

In sales, a pain point refers to a specific problem, challenge, or dissatisfaction that a potential customer is experiencing in their business or personal life. Pain points represent the areas of frustration or pain that customers seek to address or solve with a product or service. Identifying and understanding these pain points is crucial for sales professionals as it allows them to position their offerings as solutions to these specific challenges.

Payback Period

The payback period is a financial metric that measures the length of time required to recover the initial investment or cost of a project or investment opportunity. It calculates the time it takes for the cash inflows from the investment to equal or exceed the initial cash outflow or investment cost.

The payback period is often expressed in terms of months or years. It is used as a simple and straightforward way to evaluate the risk and return of an investment. A shorter payback period indicates a quicker recovery of the initial investment, which is generally considered favorable. However, the payback period alone does not consider the profitability or the time value of money.

Pipeline

In sales, a pipeline refers to the visual representation or systematic process that tracks and manages the progress of sales opportunities from initial lead generation to closing the deal. It represents the journey that potential customers go through as they move through different stages of the sales process.

The sales pipeline typically consists of various stages such as prospecting, lead qualification, needs analysis, proposal or presentation, negotiation, and ultimately, closing the sale. Each stage represents a milestone or step in the buyer’s journey and reflects the progress of the sales opportunity.

Sales professionals use the pipeline to manage and prioritize their sales activities, track the status of each opportunity, forecast future revenue, and identify potential bottlenecks or areas for improvement. By having a clear view of the pipeline, sales teams can better allocate resources, focus on the most promising opportunities, and take appropriate actions to move prospects closer to making a purchasing decision. The pipeline serves as a tool for sales management to monitor the overall health of the sales process and make informed decisions to drive revenue growth.

Power Dialer

A power dialer is a telephone system or software that automates the process of dialing phone numbers for sales or customer service purposes. It allows sales representatives or agents to make a high volume of outbound calls efficiently. Instead of manually dialing each number, a power dialer automatically dials the next number in a predetermined list as soon as an agent is available, eliminating the need for manual dialing and reducing idle time between calls. Power dialers often include features such as call analytics, call recording, call scripting, and integration with customer relationship management (CRM) systems to enhance productivity and streamline the outbound calling process.

Predictive Dialer 

A predictive dialer is a telephone system or software that uses algorithms and artificial intelligence to automatically dial a list of phone numbers and predict when a sales representative or agent will be available to take the next call. It optimizes the dialing process by anticipating agent availability based on factors such as call duration, average handling time, and call abandonment rates. The predictive dialer algorithm predicts the optimal timing to place the next call, aiming to minimize idle time for agents and maximize their productivity. It automatically screens out busy signals, voicemails, and disconnected numbers, connecting agents to live calls when they become available. 

Product Adoption Rate

Product Adoption Rate refers to the speed or rate at which customers or users adopt and start using a new product or service. It measures the percentage of the target market or customer base that has successfully integrated or incorporated the product into their daily operations or routines. A higher adoption rate indicates a faster acceptance and uptake of the product among the intended audience, which is generally considered positive for the success and growth of the product. 

Progressive Dialer

A progressive dialer is a telephone system or software that automates the outbound calling process for sales or customer service purposes. It dials phone numbers from a predetermined list and connects agents to live calls only when a connection is established. Unlike a predictive dialer that dials multiple numbers simultaneously, a progressive dialer dials one number at a time and waits for an agent to become available before initiating the call.

With a progressive dialer, once an agent is ready to take a call, the system automatically dials the next number in the list and connects the agent to the call. This ensures that agents are only connected to live calls, avoiding situations where customers are waiting on hold or encountering long pauses before an agent is connected to them.

Prospecting

In sales, prospecting refers to the process of identifying and finding potential customers or leads who may have an interest in a product or service. It involves researching and targeting individuals or organizations that fit the ideal customer profile, demonstrating a higher likelihood of becoming paying customers. 

The goal of prospecting is to initiate contact with these potential customers, qualify their interest and needs, and begin the sales process by nurturing relationships and generating sales opportunities. 

Prospecting methods may include cold calling, email outreach, networking, social media engagement, attending events, or leveraging referral networks. Successful prospecting helps sales professionals build a pipeline of qualified leads, increase the chances of conversion, and ultimately drive sales growth.

Referral

In sales, a referral refers to the act of receiving a recommendation or introduction to a potential customer or lead from an existing customer, colleague, or contact. It involves leveraging existing relationships to obtain warm leads and expand the network of prospects. Referrals are powerful because they come with a level of trust and credibility. When an existing customer or trusted connection refers someone to a salesperson, it signals that the referred person has a potential interest or need for the product or service being offered.

Referral Rate

Referral rate, also known as referral ratio or referral percentage, is a metric that measures the proportion of new customers or leads acquired through customer referrals. It calculates the percentage of customers who were referred by existing customers or contacts out of the total number of new customers or leads acquired within a given period.

The referral rate is an important indicator of the effectiveness of a referral program or the extent to which customers are actively referring others. A higher referral rate signifies a higher level of customer satisfaction, loyalty, and advocacy, as well as a strong word-of-mouth marketing impact. It indicates that customers are not only using and benefiting from the product or service but are also willing to recommend it to others.

Regulation F

Regulation F is a new set of regulations issued by the Consumer Financial Protection Bureau (CFPB) in the United States. It provides additional guidelines and clarifications regarding debt collection practices under the FDCPA.

Specifically, regulation F limits how often and how late creditors can call you, and specifies the number of consecutive days that a debt collector has to wait before contacting a debtor again.

Renewal Rate

In SaaS (Software as a Service) sales, the renewal rate refers to the percentage of customers who renew their subscription or contract with the SaaS provider for an additional term or period. It measures the rate at which customers choose to continue using the SaaS product or service after their initial subscription term expires.

A high renewal rate is generally desirable for SaaS businesses as it indicates customer satisfaction, loyalty, and the value that the product or service brings to the customers. It also contributes to the stability and growth of recurring revenue for the SaaS company. Monitoring and improving the renewal rate is crucial for SaaS sales teams as it impacts revenue projections, customer retention, and overall business performance.

Request for Proposal (RFP)

A Request for Proposal (RFP) is a formal document issued by an organization or company to solicit proposals from potential vendors or service providers. It outlines the requirements, specifications, and scope of a project or procurement, and invites interested parties to submit their proposals for consideration.

The RFP typically includes details about the organization’s needs, objectives, desired outcomes, and evaluation criteria. It may also provide instructions on how vendors should structure their proposals, including pricing, timelines, implementation plans, and any specific qualifications or certifications required.

The purpose of an RFP is to gather comprehensive information and competitive proposals from qualified vendors, allowing the organization to make an informed decision when selecting a vendor or service provider. It helps streamline the procurement process, ensure fairness and transparency, and enable effective comparison and evaluation of different proposals.

Return on Investment (ROI)

Return on Investment (ROI) is a financial metric used to evaluate the profitability and efficiency of an investment or business initiative. It measures the return or gain generated relative to the cost or investment made.

The ROI calculation is typically expressed as a percentage and is derived by dividing the net profit or return on the investment by the initial cost of the investment and multiplying the result by 100.

The formula for calculating ROI is:

ROI = (Net Profit / Cost of Investment) * 100

A positive ROI indicates that the investment has generated a profit, while a negative ROI implies a loss. ROI is commonly used to assess the performance and viability of various investments, projects, marketing campaigns, and business strategies. It helps decision-makers evaluate the potential benefits and risks associated with different investment options and make informed choices based on the expected returns.

Revenue Churn Rate

Revenue churn rate, also known as revenue attrition rate, is a metric that measures the rate at which revenue is lost from existing customers or accounts over a specific period. It calculates the percentage of revenue lost relative to the total revenue generated from those customers during the same period.

Revenue churn rate helps businesses understand the impact of customer attrition on their overall revenue. A higher churn rate indicates a higher rate of revenue loss from customer cancellations, downgrades, or non-renewals. Monitoring and analyzing revenue churn rate is crucial for businesses as it directly impacts their revenue growth, customer retention efforts, and profitability.

Revenue Operations

Revenue operations, often abbreviated as RevOps, is a strategic and collaborative approach that aligns and integrates the functions of sales, marketing, and customer success within an organization. It aims to optimize revenue generation, improve efficiency, and enhance the overall customer experience by breaking down silos and fostering cross-functional collaboration.

The primary goal of revenue operations is to streamline and optimize revenue-related processes, systems, and data across departments. It involves aligning sales, marketing, and customer success teams towards shared revenue objectives, standardizing processes and metrics, implementing technology and data-driven solutions, and facilitating effective communication and collaboration.

Ringless Voicemail

Ringless voicemail drop is a method used in telemarketing and sales to deliver pre-recorded voicemail messages directly to a recipient’s voicemail inbox without causing their phone to ring. It allows businesses to leave a voicemail message for a customer or prospect without the need for a live phone call or direct interaction.

Ringless voicemail drops work by using specialized technology and software that leverages the voicemail server infrastructure of the recipient’s mobile or landline carrier. The system bypasses the traditional call process and directly inserts the pre-recorded message into the recipient’s voicemail box.

Service Level Agreement (SLA)

A Service Level Agreement (SLA) is a contract or agreement between a service provider and a customer that outlines the specific level of service expected from the provider. It defines the key performance indicators (KPIs), metrics, responsibilities, and expectations related to the delivery and quality of the service.

SLAs are commonly used in various industries and business relationships, such as between a company and its IT service provider, a software vendor and its customers, or a call center and its clients. The purpose of an SLA is to establish a mutual understanding and set clear guidelines to ensure that the service provider meets the agreed-upon service standards.

SaaS - Software as a Service

Software as a Service (SaaS) is a cloud computing model where software applications are delivered to users over the internet on a subscription basis. In this model, instead of purchasing and installing software on individual computers or servers, users can access and use the software through a web browser. 

SaaS eliminates the need for users to handle software maintenance, updates, and infrastructure management, as these responsibilities are handled by the SaaS provider. It offers flexibility, scalability, and cost-effectiveness, allowing businesses and individuals to easily access and utilize a wide range of software applications without the need for complex installation or management processes.

Scam Likely Calls

“Scam likely” is a term that typically appears on the caller ID or screen of a mobile phone when an incoming call is suspected to be a scam or fraudulent call. It is a feature provided by some phone service providers to help users identify potential scam or nuisance calls. The label “scam likely” is based on algorithms and databases that analyze call patterns, known scam numbers, and other indicators to determine the likelihood that a call is malicious or fraudulent.

However, the algorithms that identify “Scam Likely” calls can sometimes be too strict, meaning that sales calls from legitimate businesses may be mislabeled as spam. It’s important to keep an eye on your business’ caller ID reputation to avoid showing up as scam on outbound calls.

Sales and Marketing Expense to Revenue Ratio

The Sales and Marketing Expense to Revenue Ratio is a financial metric that measures the efficiency of a company’s sales and marketing efforts. It is calculated by dividing the total sales and marketing expenses by the company’s total revenue and expressing it as a percentage. This ratio helps evaluate how much a company is spending on sales and marketing activities relative to the revenue it generates. 

A higher ratio may indicate that the company is spending a significant portion of its revenue on sales and marketing, potentially suggesting aggressive marketing campaigns or inefficient resource allocation. Conversely, a lower ratio may imply more cost-effective sales and marketing efforts.

Sales Cycle Length

Sales cycle length refers to the duration of time it takes for a sales opportunity to progress from the initial contact with a potential customer to closing the sale. It represents the entire process of identifying prospects, nurturing relationships, qualifying leads, delivering presentations or demos, negotiating, and ultimately converting a lead into a paying customer. 

The length of the sales cycle can vary greatly depending on the industry, the complexity of the product or service being sold, the sales strategies employed, and the specific needs and decision-making processes of the customers. Tracking and analyzing the sales cycle length helps businesses understand and optimize their sales processes, identify bottlenecks or areas for improvement, and forecast future sales performance.

Sales Efficiency

Sales efficiency is a metric that measures the effectiveness and productivity of a company’s sales efforts in generating revenue. It evaluates how efficiently a company is converting its resources, such as time, money, and sales activities, into actual sales outcomes. Sales efficiency can be assessed by various factors, including the number of leads generated, conversion rates, average deal size, and the overall cost of sales.

Sales Enablement

Sales enablement refers to the strategic approach and set of activities that empower sales teams with the resources, tools, and information they need to effectively engage with prospects, drive sales, and achieve their targets. It involves providing salespeople with the right training, content, technology, and support to enhance their productivity and effectiveness throughout the sales process. 

Sales Engagement

Sales engagement refers to the ongoing interactions between sales representatives and potential customers throughout the sales process. It involves the various touchpoints and communications that salespeople have with prospects to build relationships, understand their needs, educate them about products or services, and move them closer to making a purchasing decision. Sales engagement encompasses activities such as phone calls, emails, meetings, presentations, demos, and any other form of direct interaction between sales professionals and prospects. 

Sales Funnel

A sales funnel, also known as a purchase funnel or sales pipeline, is a visual representation of the customer journey from initial contact to the final purchase. It illustrates the process of converting prospects into customers by sequentially moving them through different stages of the sales process. The typical sales funnel consists of several stages, including awareness, interest, consideration, decision, and action.

Sales Pipeline Coverage

Sales pipeline coverage refers to the ratio between the value of potential deals in a sales pipeline and the revenue target or quota for a given period, such as a month, quarter, or year. It provides insights into the health and strength of a sales pipeline by assessing whether there are enough potential deals to meet or exceed the revenue goals.

Sales Qualified Leads (SQLs)

Sales Qualified Leads (SQLs) are potential customers or prospects who have been identified by the marketing team as having a high likelihood of becoming a customer based on their engagement and readiness to make a purchase. SQLs are typically determined through a combination of criteria and qualification processes, which may include factors such as their level of interest, demographic information, budget, buying authority, and fit with the product or service being offered.

Sales Velocity

Sales velocity is a metric that measures the speed and effectiveness at which a company’s sales team converts leads into closed deals. It provides insights into the efficiency and productivity of the sales process by examining the rate at which revenue is generated and deals are closed.

Small to Medium-sized Business (SMB)

A Small to Medium-sized Business (SMB), also commonly referred to as a Small and Medium-sized Enterprise (SME), is a business that falls within a certain size range based on various criteria such as employee count, revenue, or market capitalization. The exact definition of an SMB can vary depending on the organization using the term. However, in general, SMBs are characterized by having fewer employees and generating lower revenue compared to larger corporations.

Smarketing

Smarketing is a term that refers to the alignment and collaboration between the sales and marketing teams within an organization. It combines the words “sales” and “marketing” to emphasize the need for these two departments to work together closely, share information, and coordinate their efforts to drive revenue growth.

Session Interval

Session interval refers to the time duration between two consecutive sessions or interactions with a particular system, platform, website, or application. It measures the gap or elapsed time between the start of one session and the start of the next session.

In the context of online user behavior and web analytics, session interval provides insights into user engagement patterns, frequency of visits, and overall activity on a website or digital platform. It helps understand how frequently users return to the site or how long they wait between sessions.

Session Length

Session length refers to the duration of time that a user or visitor spends actively engaged with a particular system, platform, website, or application during a single session. It measures the elapsed time from the start of the session to its end.

In the context of web analytics and user behavior analysis, session length provides insights into user engagement and interaction patterns. It helps understand how long users are actively involved with a website or digital platform before they leave.

Speed to Lead

Speed to lead in sales refers to the time it takes for a sales representative or team to respond to a new lead or inquiry generated by a potential customer. It measures the speed at which a salesperson makes initial contact with a lead after they have shown interest or expressed a need for a product or service.

In today’s fast-paced business environment, speed to lead is considered crucial because responding promptly to leads can significantly impact the likelihood of converting them into customers. Studies have shown that the chances of qualifying and closing a lead decrease rapidly as response time increases.

Spoofed Number

A spoofed number refers to a phone number that has been manipulated or falsified to display a different number on the recipient’s caller ID or phone screen. In other words, the caller intentionally masks their actual phone number and replaces it with a different number to deceive the person receiving the call.

Synchronous vs. Asynchronous Communication

Synchronous communication and asynchronous communication are two different modes of communication that describe how information or messages are exchanged between individuals or groups.

Synchronous communication refers to real-time, simultaneous communication where participants engage in immediate back-and-forth interactions. It requires all parties involved to be present and actively engaged at the same time. Examples of synchronous communication include face-to-face conversations, phone calls, and video conferences. In synchronous communication, responses and exchanges occur in the moment, allowing for immediate feedback and collaboration.

On the other hand, asynchronous communication refers to communication that does not require immediate or simultaneous participation from all parties involved. It involves the exchange of messages or information that can be accessed and responded to at a later time. Examples of asynchronous communication include emails, voicemails, and text messages. In asynchronous communication, there is a time delay between messages, and participants can respond at their convenience.

Target Account List (TAL)

A Target Account List (TAL) is a carefully selected list of specific companies or organizations that a sales or marketing team identifies as their ideal potential customers or target market. The TAL serves as a strategic guide for focusing sales and marketing efforts on high-priority accounts that are most likely to generate significant business value.

TCPA Laws

The TCPA laws, also known as the Telephone Consumer Protection Act, are a set of regulations in the United States that govern the use of automated phone calls, text messages, and fax communications for telemarketing purposes. The TCPA was enacted to protect consumers from unwanted and intrusive communications, establish guidelines for consent, and provide avenues for legal recourse in case of violations. 

It sets rules regarding prior express consent requirements, do-not-call lists, opt-out mechanisms, and restrictions on the use of automated dialing systems and prerecorded messages. The TCPA laws aim to safeguard consumer privacy and control over their communication preferences while regulating telemarketing practices.

Telemarketing

Telemarketing refers to a marketing technique that involves using telephone calls to directly communicate with potential customers or clients. It is a method of promoting products, services, or fundraising efforts by contacting individuals or businesses via phone to present offers, gather information, or generate sales leads.

Telemarketing campaigns often target specific demographics or customer segments based on factors such as geographic location, consumer preferences, or purchasing history. The objective is to engage potential customers, convey product or service benefits, handle objections, and ultimately persuade them to make a purchase or take a desired action.

Time to Close

Time to Close, also known as Sales Cycle Length or Sales Cycle Duration, refers to the amount of time it takes for a salesperson or sales team to convert a lead or prospect into a paying customer. It measures the duration from the initial contact or engagement with a potential customer to the final stage of closing the sale and receiving the customer’s commitment or purchase.

Time to Conversion

Time to Conversion, also known as Time to Convert or Conversion Cycle Length, refers to the duration it takes for a prospect or lead to complete a desired action or conversion, such as signing up for a trial, subscribing to a service, or taking any other desired action that aligns with the goals of a business or marketing campaign.

Time to First Value (TTFV)

Time to First Value (TTFV) refers to the duration it takes for a customer or user to realize or experience the initial value or benefit from a product, service, or solution after their first interaction or purchase. It measures the time elapsed between the customer’s onboarding or initial engagement and the moment they derive tangible value from the offering.

TTFV is an important metric in customer success and user adoption because it signifies how quickly customers can achieve their desired outcomes or see the promised benefits. It plays a crucial role in customer satisfaction, retention, and overall user experience.

Time on Page

Time on Page refers to the amount of time a user spends on a specific webpage before navigating away or moving to another page within the same website. It is a metric used in web analytics to measure user engagement and assess the level of interest or interaction with a particular webpage.

Time on Page is calculated by tracking the timestamp when a user lands on a webpage and the timestamp when they leave or move to a different page. The difference between these timestamps represents the time spent on that specific page.

Top of Funnel (TOFU)

Top of Funnel (TOFU) leads refer to potential customers or prospects who are in the early stages of the buyer’s journey and have just entered the sales or marketing funnel. These leads are at the initial phase of their decision-making process and are typically seeking information, solutions, or answers to their problems or needs.

Trial-to-Paid Conversion Rate

The Trial-to-Paid Conversion Rate in sales refers to the percentage of trial users or prospects who convert into paying customers after completing a trial or evaluation period of a product or service. It measures the effectiveness of converting trial users into revenue-generating customers and indicates the success of the trial experience and sales efforts.

The Trial-to-Paid Conversion Rate is calculated by dividing the number of trial users who convert into paying customers by the total number of trial users and multiplying the result by 100 to obtain a percentage.

Two-Party Consent States

Two-Party Consent States, also known as All-Party Consent States or Two-Party Consent Jurisdictions, are regions within the United States where the law requires the consent of all parties involved in a phone call or conversation for it to be legally recorded. In these states, both the person initiating the recording and the other party (or parties) being recorded must give their explicit consent before any recording can take place.

Quota

In sales, a quota refers to a specific target or goal set for individual sales representatives or teams to achieve within a defined period. It represents the expected level of sales performance or revenue generation that sales professionals are expected to reach or exceed.

Quotas are typically set based on various factors, including historical sales data, market trends, company objectives, and individual capabilities. They provide a benchmark for measuring and evaluating sales performance, motivating salespeople to meet or surpass their targets.

Sales Terms U-Z

User Acceptance Testing (UAT)

User Acceptance Testing (UAT) is the process of evaluating a software system or application to determine whether it meets the requirements and expectations of the end-users or stakeholders. It involves conducting tests and simulations that mimic real-world scenarios to validate the functionality, usability, and overall performance of the software. UAT is typically performed by the intended users or a representative group of users who provide feedback and verify that the system behaves as intended and meets their needs. 

The primary goal of UAT is to ensure that the software is ready for production deployment and that it aligns with the users' requirements and expectations, ultimately improving user satisfaction and minimizing the risk of issues or errors in the live environment.

Unified Communications as a Service (UCaaS)

Unified Communications as a Service (UCaaS) refers to a cloud-based service model that combines various communication and collaboration tools into a single integrated platform. It provides organizations with a centralized solution for real-time communication, including voice calling, video conferencing, instant messaging, presence, and collaboration features. UCaaS eliminates the need for on-premises infrastructure and offers flexibility, scalability, and accessibility, enabling users to communicate and collaborate seamlessly across different devices and locations.

Upselling

Upselling refers to the sales technique of persuading a customer to purchase a more expensive or upgraded version of a product or service, or to add additional features, options, or accessories to their existing purchase. The aim of upselling is to increase the customer’s overall spend by offering them enhanced or premium options that provide greater value or additional benefits. By highlighting the value proposition and demonstrating how the upsell can better meet the customer’s needs or desires, businesses can generate additional revenue and potentially increase customer satisfaction.

Upsell Rate

Upsell Rate is a metric that measures the percentage of customers who, when making a purchase, choose to upgrade or purchase a higher-priced product or service than their original selection due to the influence of an upsell offer. It is calculated by dividing the number of upsell transactions by the total number of transactions and multiplying the result by 100 to get a percentage.

User Engagement Rate

User Engagement Rate is a metric that measures the level of user interaction, participation, and overall involvement with a particular product, service, or platform. It quantifies the extent to which users actively engage with the provided content, features, or functionalities. User Engagement Rate is typically calculated by considering various factors such as the number of active users, their frequency and duration of interaction, the number of actions taken, and other relevant metrics.

User Retention Rate

User Retention Rate is a metric that measures the percentage of users or customers who continue to use a product, service, or platform over a specific period of time. It indicates the ability of a business to retain its existing user base and reflects the level of satisfaction and ongoing value that users derive from the offering. User Retention Rate is typically calculated by dividing the number of retained users by the total number of users at the beginning of a defined period and multiplying the result by 100 to obtain a percentage.

Value Proposition

A value proposition is a concise statement that articulates the unique value, benefits, and advantages that a product, service, or offering provides to its target customers. It answers the fundamental question of why customers should choose a particular solution over alternatives available in the market. A strong value proposition effectively communicates how the offering solves customer problems, fulfills their needs, or delivers specific outcomes, ultimately differentiating it from competitors. 

Voice of the Customer (VOC)

The Voice of the Customer (VOC) refers to the insights, feedback, opinions, and preferences expressed by customers regarding their experiences, needs, and expectations with a product, service, or brand. It is a critical component of customer-centric strategies and focuses on gathering and understanding customer feedback to inform decision-making and improve business operations. The VOC can be collected through various channels, including surveys, interviews, customer support interactions, online reviews, social media, and market research. 

Voicemail Drop

Voicemail drop is a feature commonly used in sales and customer service environments that allows a pre-recorded voicemail message to be delivered directly to a recipient’s voicemail inbox. Unlike ringless voicemail drop, a sales agent must dial the phone number and initiate the voicemail drop after they hear the voicemail message. Nevertheless, it automates the process of leaving voicemail messages, saving time for sales representatives and enabling them to quickly move on to the next prospect or customer. 

Voice over Internet Protocol (VoIP)

VoIP, or Voice over Internet Protocol, is a technology that enables the transmission of voice and multimedia communications over the internet rather than traditional telephone lines. VoIP allows users to make phone calls, conduct video conferences, send messages, and engage in other forms of real-time communication using internet-connected devices like computers, smartphones, or VoIP-enabled phones. 

Viral Coefficient

The viral coefficient is a metric that quantifies the viral growth potential of a product, service, or campaign. It measures the average number of new users generated by each existing user through referrals or sharing within a given time period. The viral coefficient helps assess the effectiveness of a viral marketing strategy or the inherent virality of a product.

Weekly Active Users (WAU)

The metric Weekly Active Users (WAU) measures the number of unique users who engage with a product, service, or platform within a given week. It provides insights into the level of user engagement and the size of the active user base during a specific period. WAU is typically calculated by counting the number of distinct users who perform specific actions or interactions within the defined week, such as logging in, making a purchase, posting content, or using key features. This metric helps businesses evaluate the popularity, usage, and stickiness of their product or service. 

What You See Is What You Get (WYSIWYG)

A What You See Is What You Get (WYSIWYG) editor is a software tool or interface that allows users to create and edit content in a visual manner, with the on-screen display closely resembling the final output. It enables users to design and format text, images, and other media elements within a document or webpage, providing an intuitive and real-time representation of how the content will appear to viewers or end-users.

Win Rate

Win rate in sales refers to the percentage of successful sales opportunities or deals that a salesperson or sales team closes out of the total number of opportunities pursued. It is a key performance metric that measures the effectiveness and efficiency of the sales process and reflects the ability to convert leads or prospects into paying customers. The win rate is calculated by dividing the number of won deals by the total number of opportunities and multiplying the result by 100 to obtain a percentage.

Sales Terms with Numbers

10DLC 

The A2P 10DLC standard, which stands for Application to Person 10 Digit Long Code, is a recent communications regulation in the United States that specifically applies to SMS messaging from businesses to individuals. The aim of 10DLC is to improve the deliverability of SMS messages by introducing a new set of guidelines for carriers. These 10DLC regulations are important for businesses to understand and follow so that they avoid auditing from the FCC.

777 Rule

According to the 7-7-7 rule, a subset of Regulation F which regulates how many times a day a debt collector can call, debt collectors are only allowed to place up to 7 calls to a consumer within 7 consecutive days. Collectors can also only call again after 7 days, once they have already spoken with a particular consumer about a specific debt on the phone.