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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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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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 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 Segmentation

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

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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-theading

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 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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Glossary

Account-Based Marketing

Account-Based 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

Competition-Based Pricing

Cost-Plus Pricing

Cross-selling

Customer Acquisition Cost (CAC)

Customer Lifetime Value (CLV or CLTV)

Customer Segmentation

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-theading

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 Win Rate

Sales pipeline management

Sales-Led GTM

Top-Down Selling

Total Addressable Market

Upselling