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Glossary

A repository of acronyms, jargon, and useful words for sales and revenue teams
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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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