AI-Powered Lead Scoring

AI-Powered Lead Scoring is a technique that employs artificial intelligence (AI) to automatically rank leads in terms of their likelihood to convert into a sale.

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Account Health Index

The Account Health Index (AHI) is a composite score that reflects the overall health of a customer account.

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Account Penetration

Account Penetration is a measurement of the extent to which your products or services are used within a particular customer account.

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Account Scoring

Account Scoring is a quantitative approach used to rank and prioritize potential business accounts based on their likelihood to convert, their potential value, and their alignment with a company's ideal customer profile.

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Account-Based Marketing

Account-based marketing is a strategic approach in which key accounts are targeted directly in their customer journey.

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Account-Based Selling

Account-based selling is a sales strategy in which every target account in a company is treated as a market of one.

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Acquisition Cost Ratio

Acquisition Cost Ratio is a metric that compares the cost of customer acquisition (CAC) to the revenue generated from a new customer during a specific period.

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Agile Selling

Agile Selling involves continually adapting and refining sales strategies based on feedback and learning.

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Annual Contract Value

Annual Contract Value (abbreviated as ACV) is the total sum of revenue that a customer contract generates in a year.

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Annual Recurring Revenue (ARR)

Annual Recurring Revenue (ARR) is the value of your firm's subscriptions' contracted recurring revenue components normalized to one year.

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Average Deal Size

Average Deal Size indicates the average amount of money made per closed deal.

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Average Revenue Per Account (ARPA)

Average Revenue Per Account (abbreviated as ARPA) is the average revenue earned by a company per account per year/month.

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Average Sales Cycle

Average sales cycle is the time it takes your salespeople to close a lead after it enters the sales pipeline.

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Behavioral Analytics

Behavioral analytics is an approach to study user behaviors and leverage behavioral data to drive business benefits.

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Bottom-Up Selling

Bottom-up Selling is a sales technique where a sales team invites multiple potential customers to try out their product or service and convince them to implement the product into their operational activities.

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Contraction MRR

Contraction Monthly Recurring Revenue (MRR) is the reduction in MRR caused by downgrades, discounts, or lost customers (churn).

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CAC Payback Period

The CAC payback period is the time it takes for a company to recoup its customer acquisition costs

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Churn Analysis

Churn Analysis is a business technique used to identify the rate at which customers stop doing business with a company over a given period, and the reasons behind their departure.

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Churn Rate

Churn Rate is a business metric that calculates the number of customers who leave a product over a given period of time divided by the remaining number of customers.

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Cohort Analysis

Cohort Analysis is an analytical method that segments customers into related groups, or 'cohorts', that share common characteristics or experiences within a defined time span.

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Competition-Based Pricing

Competition-based pricing is a strategy where the price is set based on what the competitors in the market are charging.

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Cost-Plus Pricing

Cost-plus pricing is a method to determine the selling price of a product in which a fixed percentage is added to the unit cost of a product.

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Cross-selling

Cross-selling involves recommending products that complement the customer's initial purchase and fulfill additional needs.

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Customer Acquisition Cost (CAC)

The customer acquisition cost (CAC) is the cost of acquiring new customers through different channels.

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Customer Journey Analysis

Customer Journey Analysis is the process of mapping and evaluating the complete journey a customer takes from the first point of interaction with a brand to purchase and beyond.

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Customer Lifetime Value (CLV or CLTV)

The customer lifetime value (CLV or CLTV) represents the total revenue a business can expect from a customer during the duration of their account.

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Customer Onboarding

Customer onboarding is the systematic process through which new clients or users are introduced to a product or service.

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Customer Segmentation

Customer segmentation is grouping your target market into segments based on the similar traits they share.

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‍Customer Retention Rate (CRR)

Customer Retention Rate (CRR) is a vital metric that measures the percentage of customers a business retains over a specific period.

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Differentiated Growth

A differentiated growth strategy is a business approach that promotes unique, distinct, and different product offerings as compared to competitors.

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Enterprise SaaS sales model

The enterprise sales model is typically used for higher-priced, low-volume software. SaaS products sold using this model are generally full-scale, and cutting-edge, and require extensive configuration to deploy.

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Expansion MRR Rate

The expansion MRR rate is the rate at which a company's expanding monthly recurring revenue grows from month to month.

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First-Run Onboarding Experience

A first-run onboarding experience is the first time a user goes through your onboarding experience.

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Frictionless Onboarding

Frictionless customer onboarding refers to acquiring new clients for a company without any ‘friction’ or hurdles.

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Gross MRR Churn Rate

Gross Monthly Recurring Value (MRR) Churn rate is the percentage of revenue lost due to customers downgrading or canceling their existing subscriptions.

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Gross Margin

Gross Margin is a financial metric that measures the percentage of revenue that a company retains after accounting for the costs associated with producing or delivering its products or services, also known as the cost of goods sold (COGS).

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Health Score

Health Score is a metric that provides a comprehensive evaluation of a customer's overall experience and satisfaction with a product or service.

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Hurdle Rate

The Hurdle Rate is a metric that represents the minimum acceptable rate of return on investment (ROI) for a SaaS business.

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Hybrid SaaS sales model

A hybrid sales model uses a sales-led and product-led strategy in parallel.

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Lead velocity rate

Lead velocity rate measures the real-time growth in the number of qualified leads from one month to the next.

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Marketing funnel

A marketing funnel is a visualization of the path to purchase. It is shaped like a funnel to show your target audience narrowing as they progress along the purchase path.

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Monthly Recurring Revenue (MRR)

Monthly Recurring Revenue (MRR) is the predictable total revenue a company expects to earn from all active customers every month.

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Multi-threading

In sales, multithreading is the practice of building relationships with multiple decision-makers in the buying organization.

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Net MRR Growth Rate

Net MRR Growth Rate measures the increase or decrease in MRR over successive months as a percentage.

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Net Monthly Recurring Value (MRR) Churn rate

Net Monthly Recurring Value (MRR) Churn rate is the percentage of total revenue lost due to cancellation and downgraded subscriptions.

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Net Promotor Score (NPS)

Net Promoter Score is a measure of your customer’s satisfaction with your company. It is a long-term indication of customer loyalty and brand sentiment.

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Net Revenue Retention (NRR)

NRR measures the recurring revenue retained from existing customers over a time period after accounting for upgrades, downgrades, and cancels.

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Pipeline Coverage

Pipeline coverage represents the total value of all your leads in the sales pipeline with your revenue and sales targets.

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Product Qualified Account

A PQA represents a self-serve sign-up that has a strong likelihood of becoming a paying customer.

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Product-Led Sales

Product-led sales is a customer-centric sales motion used by companies that already have a product-led growth (PLG) strategy in place. The sales model relies on existing users of a product to drive sales.

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Product-Qualified Lead

A PQL is a potential customer with a strong likelihood of buying the product because they have experienced and understood the product’s value.

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Quota Attainment

Quota attainment measures the revenue a sales representative achieves in a specific period of time.

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Renewal Rate

Renewal rate is the percentage of customers who opt to continue their subscriptions at the end of a subscription period.

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Revenue Per Employee

Revenue per employee (abbreviated as RPE) is referred to as the approximate amount of revenue generated by each employee of a company.

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Revenue Run Rate

Revenue Run Rate is an estimation of a company's annual revenue based on its current monthly revenue.

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Rule of 40

The rule of 40 states that the sum of a company's annual revenue growth rate (as a percentage) and its profit margin (as a percentage) should be equal to or greater than 40%.

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Sales Funnel

A sales funnel is the sequence of steps prospective customers go through to become paying customers.

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Sales Pipeline Conversion Rate

Sales pipeline conversion rate measures the success you've had in converting closed-won opportunities in the sales cycle.

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Sales Qualified Lead: All You Need To Know Guide

A sales-qualified lead (SQL) is a potential customer who has displayed a deep interest in buying a product or service.

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Sales Velocity

Sales velocity is a measure of how quickly a sales team is able to convert a sales opportunity to a closed-won deal. It is sometimes referred to as sales funnel velocity or pipeline velocity.

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Sales Win Rate

Sales win rate is the percentage of deal-stage prospects that convert to customers.

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Sales pipeline management

Sales pipeline management is the process of organizing and tracking the buyer’s journey to meet goals and quota. It provides a full picture of when a deal will close.

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Sales-Led GTM

A sales-led go-to-market strategy depends on the sales department of an organization to drive the growth of sales and revenue.

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Top-Down Selling

Top-Down Selling strategy is a sales approach in which a sales team targets company leaders and key decision-makers of a company to sell their products.

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Total Addressable Market

Total Addressable Market or Total Available Market is the maximum revenue opportunity available to a product or service.

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Upselling

Upselling is a sales technique that persuades customers to buy a premium version of a product beyond what they had initially planned to purchase.

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Value-Based Pricing

Value-based pricing strategy is a method to determine the selling price of a product using the customer’s perceived value of the product.

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Virality Coefficient

The Virality Coefficient is a metric that quantifies the effectiveness of word-of-mouth marketing by measuring how many new users are acquired through existing user referrals.

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Glossary

AI-Powered Lead Scoring

Account Health Index

Account Penetration

Account Scoring

Account-Based Marketing

Account-Based Selling

Acquisition Cost Ratio

Agile Selling

Annual Contract Value

Annual Recurring Revenue (ARR)

Average Deal Size

Average Revenue Per Account (ARPA)

Average Sales Cycle

Behavioral Analytics

Bottom-Up Selling

Contraction MRR

CAC Payback Period

Churn Analysis

Churn Rate

Cohort Analysis

Competition-Based Pricing

Cost-Plus Pricing

Cross-selling

Customer Acquisition Cost (CAC)

Customer Journey Analysis

Customer Lifetime Value (CLV or CLTV)

Customer Onboarding

Customer Segmentation

‍Customer Retention Rate (CRR)

Differentiated Growth

Enterprise SaaS sales model

Expansion MRR Rate

First-Run Onboarding Experience

Frictionless Onboarding

Gross MRR Churn Rate

Gross Margin

Health Score

Hurdle Rate

Hybrid SaaS sales model

Lead velocity rate

Marketing funnel

Monthly Recurring Revenue (MRR)

Multi-threading

Net MRR Growth Rate

Net Monthly Recurring Value (MRR) Churn rate

Net Promotor Score (NPS)

Net Revenue Retention (NRR)

Pipeline Coverage

Product Qualified Account

Product-Led Sales

Product-Qualified Lead

Quota Attainment

Renewal Rate

Revenue Per Employee

Revenue Run Rate

Rule of 40

Sales Funnel

Sales Pipeline Conversion Rate

Sales Qualified Lead: All You Need To Know Guide

Sales Velocity

Sales Win Rate

Sales pipeline management

Sales-Led GTM

Top-Down Selling

Total Addressable Market

Upselling

Value-Based Pricing

Virality Coefficient