Sales – Terms & Definitions

A subscription-based business metric representing the predictable revenue a company expects to receive over a 12-month period.

The rate at which customers discontinue their service or stop doing business with a company over a given period. Used to measure customer retention.

The percentage of existing customers that a company retains over a specific period. It is the opposite of Churn Rate.

A sales approach where the salesperson focuses on understanding the prospect's needs and problems, then custom-tailoring a solution, positioning the seller as an expert advisor.

An organizational function focused on optimizing the customer experience and ensuring they achieve their desired outcomes, which drives renewal and expansion revenue.

An estimation of future sales, typically based on historical data, current pipeline status, and market trends. Essential for business planning and resource allocation.

A methodology used to rank prospects on a scale (usually 1-100) that represents their perceived value to the business, helping sales teams prioritize outreach.

A subscription-based metric representing the predictable revenue a company expects to receive every month.

The process by which a salesperson addresses and resolves the prospect's concerns or hesitations regarding the product, price, or timing.

A visual representation of all prospects and the stages of the sales process they are currently in (e.g., Prospecting, Qualification, Negotiation).

An individual or company that has been qualified as a potential buyer, meaning they meet the ideal customer profile (ICP) and have a need for the product.

A prospect who has been verified to meet specific criteria (like budget, authority, need, and timeline – BANT) and is ready for the sales team to engage.

The defined period from the initial contact with a prospect to the final closing of the deal. Understanding it helps with forecasting and resource planning.

The process of providing the sales team with the resources, tools, training, and content they need to engage with buyers effectively throughout the sales process.

Strategies to increase revenue from an existing customer. Up-selling is encouraging the purchase of a more expensive item; Cross-selling is encouraging the purchase of related items.