Whether you’re new to SaaS or pitching your first deal, Propeller’s Ultimate Sales Glossary has you covered. We’ve compiled a list of 24 typical sales phrases that everyone should know. So, whether you’re a marketing specialist or an aspiring entrepreneur, learning the lingo from the start is easier than ever before.
This glossary was created to help you learn more about A/B testing, account-level attribution, content distribution networks (CDNs), CMSs (Content Management Systems) and more in a way that is straightforward and succinct. This glossary also serves as a collection of our most popular sales and SaaS articles with links to additional information.
MRR is a metric that measures how much money your company makes from recurring transactions.
The amount of money generated each month by your product or service through subscriptions. MRR is a key metric in understanding your company’s health and development path.
Customer Lifetime Value (CLV)
(Annual revenue per customer * Customer relationship in years) – Cost of acquiring a new customer (CRAC)
Retention rate * (1+ Rate of discount – Retention rate) / (Gross margin * (Retention rate / [1+ Rate of discount – Retention rate]
Average Customer Lifetime Value
The total of all earnings from a client’s prior purchases based on current customer data for a given period (based on historical data)
Predictive Customer Lifetime Value
The total lifetime value of a customer, as projected by a firm. This is regarded as an effective technique of measuring CLV.
Cost of Customer Acquisition (CAC)
CAC can be calculated as follows: (Money + Time Spent) / Number of New Customers Acquired The cost of acquiring a new client. This metric allows you to assess the expense and value of expanding your business. Controlling and lowering your CAC makes it possible to minimize the cost of attracting new clients while still increasing revenues.
Another CAC calculation, for a more thorough approach, breaks down acquisition costs into separate sales and marketing expenses. PPC campaigns, retargeting, and banner advertising are all examples of CAC spending that may be included in the equation.
Conversion rate after signup
The number of visitors who complete the registration procedure on your site. Simply divide the total number of people who view a landing page by the total number of individuals who enrolled for your service to get this figure.
Conversion Rate for Signup-to-Paying Users
The proportion of clients who convert to paying customers. This statistic only counts consumers who have converted into premium or paying account holders, not the number of people who signed up for the free trial or are using a freemium model. Dividing the total number of registered users by the number of users that paid over a given time period produces this figure.
Sales Pipeline with Weighted Activity and Sales Impact Analysis
A more comprehensive form of the pipeline, in which each stage’s possibilities are valued according to how likely they are to close. This method allows you to predict sales revenue more accurately since not every opportunity leads to a sale. The closer a deal gets in your pipeline, the more likely it is to close and the greater weight it receives in your predictions.
The Net Promoter Score (NPS) is a customer experience measurement tool that asks customers to rate the company on a scale of 0-10.
The Customer Experience Score (CES) is a ten-point rating system that allows you to assess the level of pleasure your customers have with your company. You may utilize NPS to find brand advocates and dissatisfied consumers who could leave if their issues aren’t addressed.
Customer relationship management software that automates routine activities and records client data. The three primary types of CRM systems are operational, analytical, and collaborative, although many CRM solutions incorporate elements of all three.
CRM for operational organizations
An operational CRM, also known as an on-premises CRM, is meant to help manage a company’s daily marketing, sales, and customer service operations. Marketing automation (such as launching an email campaign when a new prospect enters the system) is one of them.
CRM that is based on analysis
A customer relationship management solution that focuses on making it simpler to gather and analyze client data, allowing you to better manage and track client acquisition, retention, and other buyer activities.
CRM in a collaborative format
This type of CRM is designed to enhance customer experience by reducing communication between customers and businesses as well as sales, marketing, and other stakeholders. Collaborative CRMs allow you to monitor and share client data across all departments, which helps you deliver a consistent multi-channel customer experience.
BANT stands for Business Analysis and New Technology, a set of methods that allow you to use your existing skills in a new way.
The IBM approach is a process for determining how likely a lead is to become a client. This framework considers four factors that impact purchasing decisions: money, power, need, and time.
SaaS Certification with bitBANT
A more tailored take on the conventional BANT framework for SaaS firms. Budget becomes a priority in this updated model; the customer’s decision-making process takes authority; impact on the customer’s business becomes need; and timeline adapts to become critical event.
Roles in the Sales department
Inside Sales Rep
The job of an inside sales rep is to contact potential clients and make appointments with them. Because most of the business is conducted online and over the phone, this role includes mostly online activity. Inside salespeople are one of the first positions SaaS firms recruit for when growing their team because they engage in smaller accounts and handle more calls than field reps
Senior Sales Developer
A top-of-the-funnel sales job focused on finding qualified possibilities for your team. They’re in charge of determining who your ideal customer is, how to create lists, and how to connect with decision-makers. A sales development rep’s objective is not to finalize deals; rather, it is to set as many suitable meetings and demonstrations.
Sales Rep for Large Businesses
A traveling salesperson who goes to potential consumers and tries to sell items and services in person. Their main goal is to gain new clients and make sales. They generally deal with larger accounts than inside sales reps, and you may consider them a luxury unless you’re selling pricey goods with a long sales cycle and pitching to business-class companies.
A quota-carrying rep in charge of keeping track of current customer accounts. They consult with prospects about their goals, negotiate contracts, upsell existing customers, and address client issues. It’s critical for account executives to be able to clearly communicate the value proposition of your company when it comes to a certain client’s requirements.
Sales project manager
A sales engineer is a hybrid role that combines the responsibilities of an engineering and a salesperson. A sales engineer understands your company’s solution so well that they can explain technical specifics and advantages in layman’s terms to potential clients. Sales engineers help other salespeople by answering technical questions and giving product demonstrations for qualified leads by virtue of their title.
Marketing Qualified Lead (MQL)
A potential customer who expresses interest in your company or products. They’re not quite ready to make a purchase, but they’re ready to meet with a sales development rep. An MQL may be transformed into an SQL by properly nurturing it.
Affiliate Program (Ad) -> Commissionable Lead (SQL)
A potential customer who has shown a desire to buy. Your marketing and sales staff has reviewed an SQL and determined that it meets your lead qualification criteria, ready to be passed on to a quota-carrying salesperson.
Pipeline for Sales
A visual approach to managing your sales process. A sales pipeline shows where each of your leads are in the buyer’s journey and allows you to see how many continuing possibilities you have. A typical sales pipeline has four to six stages, with each stage often including:
The first stage of the process, which most often involves initial contact and qualification, is called “pre-engagement.” During this time, you will meet with us to discuss your project. Meeting / demoing a proposal/negotiation
SPC is a metric that measures how much of your product/service’s key characteristics are represented in the sales pipeline.
As a percentage of your sales goal. This metric tells you whether you have enough business coming down the pipe to keep hitting your objectives for the immediate future. Here’s how to calculate your sales pipeline coverage, which is defined as a proportion:
(90/Close Rate) * Sales Forecast = Pipeline Forecast / Sales Forecast
Our Glossary Is Expanding – Check Back Soon for More SaaS Terms! For the next few weeks, we’ll be adding new terms to our sales glossary. Please let us know if there are any particular words you’d want to see included!
Find out more here: https://quizlet.com/594513557/sales-glossary-flash-cards/