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Whether you have been in business for years or you are just starting out our glossary of frequently used sales and business terms can be a big help.– and it’s yours whenever you need it.
Acquisition: Acquiring or gaining new customers for your product or service.
Active Customer: A customer who has made a purchase from your company within the last 12 months. The time may vary depending on the business.
Address Correction: Updating an address that is either incorrect or out of date.
Address Verification: The act of ensuring an address on file is accurate.
Append: Information that is added to your customer file such as an address or a phone number.
BtoB: Also known as Business to Business, B2B is the exchange of products, services, or information between businesses.
BtoC: Also knowns as Business to Consumer, B2C is a business transaction conducted between a company and a consumer.
Close Ratio: A term sales teams use to describe a salesperson’s success or the success of a sales department.
Cold Call: An unsoliticted call often made by a salesperson looking to sell goods or services.
Conversion Path: The steps taken by someone using a website toward a desired end from the standpoint of the website operator.
CPA: Cost per acquisition where publishers only receive payment for completed sales also used to understand the cost to acquire a customer.
CPL: Cost per lead where advertisers compensate you when someone views an ad on your site, clicks the ad, and takes further action to become a qualified lead for a sale. Also a metric used to measure the cost for each lead acquired.
CPM: Cost per thousand, this is a flat rate charged per thousand displays or impressions of an ad to your audience.
CRM: Customer Relationship Management which is a term that refers to the practices and strategies used by a company to manage and analyze their customer base.
CRO: Conversion Rate Optimization which is a sytem for increasing website visitors who become customers.
CVR: Conversion Ratio shows users how effective their marketing campaign was in converting people who clicked into a sale.
Deduping: The removal of duplicate entries from a list or a database.
Direct Response: A type of marketing that gets a specific, measurable response, such as a phone call, from a consumer to a marketer.
Inactive Customer: A customer who has not made a purchase from your company within the last 12 months.
Inbound Sales: The process of focusing on buyers as individuals including their personal needs, pain points, frustrations, and goals.
KPI: A Key Performance Indicator or KPI is a measurable value that demonstrates a company’s effectiveness at achieving key business objectives.
Lead: A prospective consumer of a product or service.
MBO: Managament By Objectives where managers and employees work together to set, record, and monitor goals over a set period of time.
Merge Purge: The act of identifying duplicates and removing unwanted data to create a cohesive customer list.
NAICS: North American Industry Classification System which is the standard set by Federal statistical agencies to classify businesses.
Outbound Sales: The act of calling out to a customer as opposed to the customer calling in.
Prospect: A person who is a potential customer.
Prospecting: The act of finding individuals who may become customers.
Qualified Lead: A lead who has already expressed interest in your product or service.
Retention: The act of keeping your current customers.
ROI: A Return on Investment is used to compare a company’s profitability or make financial decisions. They typical ROI formula is ROI=(Net Profit/Cost of Investment)x100.
ROAS: The Return on Advertisement Spending helps to determine media effectiveness of a marketing campaign.
Sales Funnel: The “ideal” marketing process you intend for your customers to experience as they go from prospect to lead to customer to continued customer.
Sales Lead: A prospective consumer of a product or service.
SEM: Search Engine Marketing involves promoting a website by increasing their visibility in search engine results.
SEO: Search Engine Optimization is the process of maximizing the number of visitors to a specific website by ensuring the website appears high on the list of search results.
SIC Code: Standard Industrial Classification is a system used for classifying various industries by a 4-digit code.
Suppression: Witholding or removing information such as removing customers on your list who have stated they are not interested in your products or services.
Talk Time: The number of minutes a sales call takes.
Universe: A specific population that you want to study or measure.
Winback: Turning a dormant customer into an active customer.