ABC - Always Be Closing. This is a sales strategy implying that a salesperson should always be looking for new prospects with the ultimate goal of closing a sale or deal. To be an effective salesperson means you'll need to ABC.
AE - Account Executive is a sales team member that closes deals with sales qualified opportunities. They general are the account team member designated as the lead salesperson for that account.
AIDA - Attention, Interest, Desire, Action. This is a motivation method designed to motivate people to buy by gaining their attention, interest, desire for the product and then inspiring them to take action. AIDI is an effective approach to cold calling and direct response advertising.
AM - Account Manager is a salesperson responsible for managing a large customer account or a large group of accounts.
ARPA - Average MRR (monthly recurring revenue) Per Account is a figure that incorporates the mean amount of monthly revenue across all accounts
ARR - Annual Recurring Revenue is used in most businesses that produce annual yearly contracts. ARR= 12 X MRR
BANT - Budget Authority Need Timeline is a formula used to determine whether it's the right time to sell to a prospect.
BDR - Business Development Representative is a senior-level specialized sales role that is responsible for developing new business relationships, partners, and opportunities.
CAC - Customer Acquisition Costs. One of the sales acronyms for measuring ROI. All costs related to acquiring a customer. The formula for calculating CAC is (spend + salaries+ commissions + bonuses + overhead)/ # of new customers during that time period.
CCR - Customer Churn Rate is a metric used to measure customer retention and value. The formula for determining CCR is: CR= (# of customers at the beginning of period - # customers at the end of measurement period) / (# of customers at the beginning of the measurement period)
CLTV - Customer Lifetime Value is a projection that connects the net profit to the entire lifecycle relationship of a customer.
CMRR - Committed Monthly Recurring Revenue is a sales acronym from the accounting side. This is a formula for calculating the MMR in the coming fiscal year. The formula for calculating CMRR is (Current MMR + future committed MMR, minus the MMR of customers unlikely to renew in the fiscal year.
COB - Close of Business as in... “We need to meet our May quota by COB.” Often used interchangeably with EOD (End of Day). Historically, COB/EOD means 5 p.m.
CX - Customer Experience is a sales acronym that measures all of the contact points and interactions a customer has with your business and brand. This could include the usage of your product or service, engaging with your website, and communicating and interacting with your sales team.
FAB - Features, Advantages Benefits reminds sales team members to focus on the benefits a customer will gain from their product or service, rather than what they're selling.
FUD - Fear, Uncertainty, Doubt is a sales method that is used to get customers to leave, or not choose to work with a competitor by giving information that triggers doubt.
ICP - Ideal Customer Profile is when a buyer persona is created using actual data and inferred knowledge. It is the description of the ideal prospect for your sales team to pursue. Includes demographic information, geographic information and psychographic characteristics.
ILV - Inbound Lead Velocity is a measurement of the rate at which leads are increasing.
L2RM - Lead to Revenue Management is a model for engaging with customers. It incorporates processes and metrics and includes goals for new customer acquisition, up-selling existing customers, and growing revenue.
LAARC - Listen, Acknowledge, Assess, Respond, Confirm is a sales technique used when encountering negative feedback or objection during a sales pitch.
LAIR - Listen, Acknowledge, Identify, Reverse is another sales acronyms dealing techniques. This one is used to counter objections in a sales pitch. First, listen to their concerns, then echo them back to acknowledge your understanding. Identify the primary reason for not buying and reverse their concern by reframing their objection in a positive manner.
MoM - Month-Over-Month. Changes expressed in relation to the previous month. MoM is typically more volatile than quarterly or year-over-year measurements and reflects events like holidays, natural disasters and economic issues.
MQL - Marketing Qualified Leads. Any individual that has engaged with your firms marketing efforts and indicated they have a greater interest in your offerings and may become a customer is an MQL. Generally found at the top or middle of the funnel, MQLs can be nurtured by both marketing and sales to convert into customers.
NPS - Net Promoter Score is a metric for customer satisfaction with an organization. It measures the likelihood that your customer will recommend your product or service to others. Measured on a scale of 0 – 10 with zero being least likely to recommend.
ROI - Return on Investment is another of the sales acronyms dealing with accounting, this is a performance metric that measures profitability and is calculated using the formula ROI= (revenue – cost) / cost. ROI can help you to determine if a potential investment is worth the upfront and ongoing costs or if an investment or effort should be continued or terminated.
SAL - Sales Accepted Lead is an MQL that has officially been passed to sales. It's been reviewed for quality and is worthy of pursuit. Defining criteria for what qualifies and MQL to become a SAL can help sales reps decide whether they should invest time and effort into follow-up.
SFA - Salesforce Automation. Sales acronym for software that automates sales activities like inventory control, sales, tracking customer interactions and analyzing forecasts and projections.
SLA - Service Level Agreement is an official internal document that defines the role of both marketing and sales in the lead generation and sales process. It outlines the quantity and quality of leads marketing must generate and how the sales team will pursue each lead.
SPIN - Situation, Problem, Implication, Need is a sales technique that is a “hurt and rescue” approach. You discover the prospect's pain points and “hurt” them by expanding on potential consequences. Then you come to the “rescue” with your product or service
SQL - Sales Qualified Lead is a lead that is ready to become a customer and fits the pre-determined criteria for a high-quality lead. SQLs are generally vetted by both marketing and sales before being designated as an SQL.