Pleasing difficult clients, stressing the end over hitting goals, and also mastering her company’s sales process can overwhelm just about anybody. On peak of every one of that, yes sir a bunch that sales terminology you need to keep monitor of.

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There are many terms supplied in the sales realm, and even the professionals use certain words incorrectly. Mastering every sales hatchet is no easy feat, however, it’s necessary for communicating effectively in your sales department.

Common sales terms

Whether she an aspiring rep, a marketer working with your that company sales department, or an competent seller looking come brush increase on your vocabulary, we’ve put together 81 an essential sales state to act together a refresher or a starting guide.


ABC is one acronym that represents “always be closing”. This is a sales strategy that is rooted in the idea the every activity a sales rep take away throughout their sales process is in search of closing a deal.


An account includes all the documents of customer interactions, including call information, preferred services, and transactions with your business. An account is developed after the an initial time a customer buys from her business.

Account-based selling

Account-based marketing is a strategy where the entire firm coordinates to pursue high-value accounts. The departments the are many typically involved in account-based marketing are sales, marketing, and also customer success.

Account executive

An account executive is the human responsible for managing customer accounts. They communicate with both prospects and also current customers to understand their pain points, deal with concerns, and also close deals. An account executive requirements to have comprehensive knowledge that the business’s value proposition for this reason they deserve to relate it back to the requirements of a specific customer.

Account advancement representative

An account advance representative establishes sales strategies, identify potential customers, maintains a solid knowledge of the current market, and participates in any kind of other activities that help a company meet their sales goals.

Annual contract worth (ACV)

The yearly contract worth is the typical annualized revenue every customer contract. ACV is usually compared versus customer life time value come see exactly how long it takes to pay earlier the cost of acquiring a customer.

Example: If you have actually a customer that signed a 4 year contract because that $100,000, your ACV would be $25,000.

Business breakthrough representative (BDR)

A business development representative is a member the the sales team that concentrates on outbound leads. This way they reach out to human being in really hopes they will come to be a sales opportunity.

Business to business (B2B)

B2B refers to businesses that market solutions to whole businesses.

Business to consumer (B2C)

B2C describes businesses that market solutions to separation, personal, instance consumers.


Bad leads

A poor lead is a lead the is unlikely to come to be a paying customer, wasting the moment of a sales representative.

BANT framework

BANT is one acronym used when sales representatives room qualifying leads.

B = Budget: identify if the business has the spending plan to acquisition the solutionA = Authority: identifies an essential decision-makers in the businessN = Need: verifies the the organization has a real need for the solutionT = Time: check if the business is most likely to do a fashionable purchase

Sales representatives use BANT to assist them decision whether or not a prospect is qualified, definition they are worth pursuing.

Bottom that the funnel

The bottom the the funnel is the stage in the buying process where the customer renders a buying decision. They have moved down the sales funnel from the height (becoming mindful of your problem and also potential solutions), to the middle (showing interest and comparing options), to the bottom (taking activity and showing commitment to a brand).

Buyer behavior

Buyer habits is the manner in which a customer chooses solutions. It deserve to be influenced by your wants, needs, aspirations, occupations, and environment.

Buyer persona

A buyer persona is a depiction of the best customer for her business. Companies develop buyer personas based on market research and data around existing customers. Having actually a the person who lives persona in mind is essential for marketers producing a target audience and also for sales to represent qualifying leads.

Example: David is a 28-year-old architect living in Michigan that is searching for a software application that will aid him keep customers, accounts, and projects organized and also up come date.

Buying criteria

Buying criteria is any information a customer could request for this reason they have the right to make a well-informed to buy decision. A customer can ask about certain benefits, just how your service is different/better than the competition, and also how lot the solution costs.

Buying process

The buying procedure is the stages the a the person who lives encounters on your journey to uncover a solution and also buy a product. The buying process can be damaged down into more specific stages, yet they room all grouped right into three key steps:

Awareness: the client identifies your problem and seeks to understand it.Consideration: the customer does further research to discover a means to resolve their problem and also considers their options.Decision: the client decides on a solution.

Buying signal

A purchase signal is a verbal or nonverbal cues that display a client is all set to make a purchase, such as signing up because that a cost-free trial or asking about contract specifics. Picking up on this signals can aid sales reps far better focus their fist on customers that are providing off much more buying signals.

Buying intent

Buying will is the likelihood the a person making a purchase, i beg your pardon is realized through surveillance online buying journeys. Businesses can use tools choose Buyer will to find out the providers researching your product and also find the right world to contact.

Churn rate

Churn rate is the portion of client that stop doing company with a firm over a certain duration of time. The churn rate is calculate by splitting the variety of customers you shed by the number you had actually at the start of the favored time frame.

Example: If you started your an initial quarter v 100 customers, and lost 8 end the food of the quarter, your churn price would it is in 8%.

Closed opportunities

Closed methods include both closed-won and closed-lost opportunities. However, part businesses use this term to median only closed-won opportunities.


Closed-won is once a sales rep closes a deal and also the customer purchases a solution.


Closed lost is an opportunity that does not end with a sale being made.

Closing ratio

A closing ratio is the number of deals closed contrasted to the number of engaged prospects. This ratio can be used to evaluate the power of an individual sales rep and forecast sales.

EXAMPLE: If you gave 50 worth demonstrations and also won 5 deals, her closing proportion would it is in 50:5, or 10%.

Cold calling

Cold call is making an unsolicited speak to in an effort to identify prospects and also talk come them about their needs and also how the company’s solution have the right to resolve them.


Commission is added compensation the is earned based on performance. The money typically originates from a portion of the sales revenue. Any kind of sales related place is a usual commission based job, yet the portion will be various from company to business.

Example: If a salesperson made a $100,000 sale and they gain 15% commission, they would certainly earn secondary $15,000 to their salary native the sale.


A switch is a human that completes a desired action, such as making a purchase or subscribing to your email newsletter.


A customer is someone that supplies a product or service. This doesn’t constantly mean the customer is to buy the product. If friend buy a gift and give that to her friend Bob come use, Bob is the consumer.

Conversion path

A conversion path is the steps a human being takes to come to be a lead. The stages connected typically include people interacting with a business’ content and calls-to-action.

Conversion rate

The conversion price is the variety of conversions divided by the total variety of site visitors.

Example: If you had 100 site visitors and also 15 of them resulted in a conversion, your conversion price would be 15%.


Cross-selling is as soon as a sales rep finds more than one systems that will aid a specific customer. This have the right to either take place at the time of the very first purchase or afterwards once the sales rep has developed a partnership with the customer.

Customer acquisition expense (CAC)

Customer acquisition price is the cost linked with getting someone to acquisition your solution. CAC is a great indicator of profit - the quantity of money extracted from customers is contrasted to the price of obtaining that customer.

Example: If you make a profit of $1,000 indigenous a customer, yet acquiring them price $1,500, you might want to reprioritize.

Customer lifetime value (CLV)

Customer life time value is a prediction of the profit the will result from a partnership with a customer. CLV have the right to be affected by the length of the client life cycle, retention rate, churn rate, and average earnings by customer. There space two types of CLV:


Customer relationship administration (CRM) systems

Customer relationship administration software acts together a database full of client information. There space three varieties of CRM tools:

Operational CRM: manages day-to-day informationAnalytical CRM: analyzes client data and behaviorCollaborative CRM: streamlines communication with customers and makes it easy to re-superstructure information across any customer-facing department

Contact information, previous interactions, and previous purchases can all be discovered in a CRM tool. CRM is design to assist sales reps develop relationships v customers and also give customers a personalized experience, resulting in an ext sales.

Customer success

Customer success is a organization practice, or department, that ensures customers attain their desired outcome when using a service solution. This create a mutually beneficial situation because that the business and also the client - the customer resolves your pain allude and the company increases the likelihood of earning the customer’s loyalty.

Decision maker

A decision device is the human being who renders the final decision the a sale. This human being needs to have the authority to buy.

Demand generation

Demand generation is a marketing procedure that builds awareness and also interest in a company’s solution. Need generation activities include lead nurturing programs, content marketing, and also search engine optimization.

Discovery call

A discovery call is the very first call a sales rep provides to a prospect. This phase can additionally include command qualification and also determination of pains points.

Field sales rep

A ar sales rep is a traveling salesperson that presents worth demonstrations to potential customers. Your goal is to close and also make a sale.


Forecasting is the act of estimating future sales so companies deserve to make better business decisions and also predict performance. Forecasts can be based on past sales data, industry comparisons, or financial trends.


A gatekeeper is a person that either permits or stays clear of information from reaching the intended person at a company. An example of this would certainly be a an individual assistant offering a blog post to a decision maker, the intended recipient.

Inside sales rep

An within sales rep is a salesperson that conducts most of their service over the phone or online.

Key performance indications (KPIs)

A vital performance indicator is a measurable worth that suggests how effectively a business is getting to its goals and also objectives. KPIs exist at multiple level - a high-level KPI would focus on as whole performance, together as annual growth, and also a low-level KPI would focus much more on day to day activities, such as sales emails sent.


A lead is a human being or firm that has expressed interest in one more company’s systems that might eventually become a customer. Businesses can gather leads with marketing, profession shows, or networking.

Lead generation

Lead generation is the procedure of attracting people and also converting them into prospects through activities such as website optimization, social media, and also email marketing.

Lead qualification

Lead qualification is the process of determining whether or not a lead is worth pursuing. Sales reps usage the BANT structure to qualified leads and draw conclusions about whether or not they have a high chance of ending up being a lengthy term customer. If a sales rep finds the end that the command doesn"t have actually the budget or require for the solution, they will make them a low priority.

Lead scoring

Lead scoring is a method that ranking prospects follow to the value they can add to the business. The objective of command scoring is to assist sales reps understand how they must prioritize their time and also energy to make the most profit.


A mark-up is the amount added to the price the a equipment to covering overhead.

Marketing qualified lead (MQL)

A marketing qualified command is a lead that is qualified as interested in a business based on engagement with their marketing materials.

Middle the the funnel (MOFU)

The center of the funnel is the part of the buying procedure where a lead conducts research to uncover a equipment to the problem at hand. In ~ this point, a command will likely be looking in ~ the features certain to your solution and customer reviews.

Monthly recurring revenue (MRR)

Monthly recurring revenue is the quantity a company receives per month. This metric is usually used if the company is subscription-based.

Net promoter score

A network promoter score is a client satisfaction metric the measures exactly how likely a client is to recommend her solution. This data is usually collected using a survey. Based upon the rating lock give, a client is either thought about a detractor (wouldn’t to buy the systems again or recommend it), passive (satisfied but wouldn’t necessarily promote the solution), or a promoter (a repeat buyer that acts as a brand ambassador). Some sectors use a scale of 0-10, if others usage 0-100.


Objections refer to any questions or concerns from a prospect after a sales rep has actually performed a value demonstration. Typical objections have to do with budget, authority, need, and also timing (BANT). Dealing with these objections is a step in the sales process and a essential skill of any kind of sales rep.


Onboarding is the plot of presenting your solution to a customer and getting them set up to usage it after they buy. It can also refer to hiring and training a brand-new sales rep.


An chance is a call or prospect that has actually been qualified and is thought about worthy of pursuing. The is necessary to keep in mind that the definition of an opportunity deserve to vary across businesses. The general idea is the they display potential for coming to be a customer.

Pain point

A pain suggest is a customer’s need. Identify the pain points of a certain customer and showing how their solution deserve to relieve them is crucial for sales reps trying come close a deal. Typical customer pain points include spending too much on a solution, wasting time once buying, suffering a poor selling process, and not getting enough article sale support.

Positioning statement

Positioning statements are comments or questions a sales rep provides to connect the prospect. The function of a placing statement is to start a conversation through the consumer and about their pain points.

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Profit margin

Profit margin is a ratio of profitability the reveals exactly how much money a agency actually makes. The is the amount by which revenue from sales above costs. Come calculate profit margin, divide your gross profit (revenue-cost of goods sold) by revenue.