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SALES ACRONYMS


–A–

A/B Test — Also known as “split” testing

Compares two versions (version A and version B) of something to see which one performs better. For example, you can see which subject line performs better by sending two variations to prospects over a set period of time. The one that gets more opens, replies, etc. wins. ab-testing-email-mantra-always-be-testing

A/P — Accounts Payable

A department responsible for paying a company’s bills on time.

A/R — Accounts Receivable

A department responsible for sending a company’s invoices to customers as well as collecting payments and handling disputes.

ABC — Always Be Closing

ACV — Annual Contract Value

The financial amount that a customer pays a SaaS company per year based on account subscription agreements.

AE — Account Executive

Sales team members that close deals with sales-qualified opportunities.

AIDA — Attention, Interest, Desire, Action

A method of motivating people to buy by gaining their attention, interest, desire for the product, and then inspiring them to take action. AIDA is often used in direct response ads, and can be surprisingly effective in cold emails.

AM — Account Manager

A sales role responsible for managing a large customer account or group of large accounts.

ARPA — Average MRR (monthly recurring revenue) per Account

Across all accounts, the mean amount of revenue per month.

ARR — Annual recurring revenue

Used most often in businesses where contracts are one year in length. ARR = 12 x MRR (monthly recurring revenue).


–B–

B2B — Business-to-Business

Companies that sell goods and services to other companies. An HR payroll tool, for example, would be a B2B product. The B2B sales process differs from B2C sales in three key ways:

B2B offerings typically have a higher price point

The B2B sales cycle is usually longer than B2C

The B2b sales experience involves multiple touchpoints to close deals

B2C — Business-to-Consumer

Businesses that sell their products straight to the consumer. A toy manufacturer, for example, would be a B2C company.


B2C2B — Business-to-Consumer-to-Business

Companies that sell products or services to other businesses, but sell first to users and/or stakeholders at that business in order to get company-side buy-in.


BAB — Before-After-Bridge

Cold email formula. Open by describing a problem that is relevant to your prospect, and then describe how the world would be different if that problem didn’t exist.


BANT — Budget-Authority-Need-Timeline

A formula used to determine whether it’s the right time to sell to a prospect.

BD — Business development

Either the process of, or the team charged with developing working relationships and growth opportunities within organisations.


BDR — Business Development Representative

A specialized sales role that is responsible for pursuing new partners and business opportunities.

Big data

A broad term for data sets so large that traditional data processing applications are inadequate. With the rise of big data comes tremendous opportunities for managers at B2B firms to improve sales productivity through detailed customer profiling.

BR — Bounce rate

The percentage of email addresses that didn’t receive the message you sent because the message was returned by the mailer server or client.

Buyer Persona

A representation of your ideal customer that describes who they are, what their objectives are, what motivates them, how they think, and where and when they b


–C–

CAC — Customer Acquisition Cost

Cost to acquire a customer. To calculate: (spend + salaries + commissions + bonuses + overhead) / new customers during that time period.

CAN-SPAM — Controlling the Assault of Non-Solicited Pornography And Marketing

A US law that sets the rules for commercial emails, giving recipients the right to have a business stop emailing them. It also outlines the penalties incurred for those who violate the law.

Cash flow

The amount of operational activity money that is currently being transferred into and out of a company.


CCR — Customer Churn Rate

A metric used to measure customer retention and value. CR = (# customers at beginning of measurement period – # customers at end of measurement period) / (# customers at beginning of measurement period).

CLTV — Customer Lifetime Value

A prediction that connects net profit to the entire future relationship of a customer.


CMRR — Committed Monthly Recurring Revenue

A formula for predicting the MRR in the coming fiscal year. (Current MRR + future MRR in commit, minus the MRR of customers unlikely to renew within the fiscal year.)

COB — Close of Business

Historically has referred to 5pm, but often used interchangeably with EOD (end of day).

Cold Call

Phone call to a potential customer that you’ve had no prior contact with.

Commission

The amount that a salesperson makes on top of his or her base salary. Commission structures can be based on the percentage of a closed deal, a standard amount per sale in a set time period, or a team-based percentage of total sales over a set time period.

CR — Conversion Rate

The number of people who take an action, divided by the number of people who could have. For example, if you send emails to 100 prospects and 25 of them reply, your email has a 25% conversion rate.

CRM (technology) — Customer Relationship Management

Software designed to help businesses manage customer data and customer interactions. For example, Salesforce.com is a type of CRM platform.

Cross-selling

The process of identifying current customers, determining the product or services that they aren’t using, and encouraging them to buy based on their need and a pre-existing satisfaction with the company.

CTA — Call-To-Action

A sentence or phrase that tells people what to do. “Schedule a call.” “Click here.” “Buy now.”

CX — Customer experience

All the interactions a customer has with your business. This could involve usage of your product, engaging with your website, communicating with your sales team, etc.

–E–

EOD — End of Day

Ex. “Please have that report finished by EOD.”

EOM — End of message

Typically included in an email subject line to indicate there’s nothing in the body of the message.

ESP — Email service provider

A company that helps senders create and deliver email campaigns.

–F–

FAB — Features, Advantages, Benefits

An acronym used to remind salespeople to focus on the benefits a customer will gain from the product, rather than on what they’re selling.


Fiscal year

A 12-month duration used by a company to mark its accounting period: budgeting, forecasting, and financial reporting. This does not necessarily align with the calendar year.

FUD — Fear, Uncertainty, Doubt

A sales method used to dissuade customers from choosing or remaining with competitors by giving information that triggers fear and uncertainty.

–I–

ICP — Ideal Customer Profile

A description of the customer you’re trying to sell to, including demographics, geographic, and psychographic characteristics.

ILV — Inbound Lead Velocity

The growth rate at which inbound leads are increasing.

–K–

KPI — Key performance indicator

Leading indicators or signs that your sales team is doing the things they need to do in order to be successful. Sales KPIs would include lead response time, opportunity-to-win ratio, call connect rate, etc.

–L–

L2RM — Lead to revenue management

A customer engagement model that integrates metrics, processes, and goals to acquire new customers, up sell current customers, and grow overall revenue.

LAARC — Listen-Acknowledge-Assess-Respond-Confirm

Objection handling technique. Changing Minds does a great job breaking down each of the steps in more detail.

LAIR — Listen-Acknowledge-Identify the objection-Reverse the objection

Another objection handling method. First you listen to their concerns and objections, and then echo back what you heard to show that you understand. Identify the objection that is their primary reason for not buying, and then reframe that objection to show that the truth is opposite of what they think.

LDR — Lead Development Representative

A role responsible for connecting with prospects at the early stages of the buying process.

Lead

A contact that matches one or more of the characteristics of your ideal customer profile.