Do you work in sales? Are you new to the industry? If so, you’re probably wondering what all of the jargon means. This comprehensive glossary contains over 200 terms and definitions related to sales.
By understanding these concepts, you’ll be able to communicate more effectively with your colleagues and close more deals.
A comprehensive sales glossary and definitions of important sales terms
The percentage of prospects who are converted into customers.
Cost of goods sold
The direct costs are associated with producing and selling a product or service.
Cost per lead
The amount of money spent to generate a single sales lead.
Customer churn
The rate at which customers stop doing business with a company.
Customer lifetime value
The total amount of revenue generated by a customer over the course of their relationship with a company.
Call Reluctance
The fear of making sales calls.
Capacity
The number of products or services that a company is able to produce or deliver.
Closing
The process of converting a prospect into a paying customer is called sales closing.
Competitive advantage
Something that sets a company or product apart from its competitors.
Contributing margin
The portion of each sale that contributes to covering fixed costs and profits.
Customer Acquisition Cost (CAC)
The cost of acquiring a new customer, including marketing and sales expenses.
Customer Relationship Management (CRM)
A system or strategy for managing customer relationships.
CMS
A software platform used to create, edit and publish digital content.
Co-marketing
A marketing arrangement between two companies in which they promote each other’s products or services.
Crowdfunding
The practice of raising money from a large number of people, typically via the Internet.
C-Suite
The group of senior executives in an organization, typically includes the CEO, CFO, and COO.
Conversational intelligence
The ability to build rapport, trust, and credibility with others.
Challenger sales model
A model in which the salesperson takes a more proactive and consultative approach to prospects is called the challenger sales model.
Cold calling
The process of making phone calls to people who have not expressed interest in your product or service is called cold calling.
Cross-selling
It is the practice of selling additional products or services to an existing customer.
Complex sale
A sale that includes multiple decision-makers and takes longer to close.
D
Data-driven decision making
The process of making decisions is based on data and analytics.
Demand Creation
The process of creating demand for a product or service.
Discount
A reduction in the price of a product or service.
Database
A collection of data that can be accessed by computers.
Database marketing
The process of using customer data to create and deliver personalized marketing messages.
Demand
The quantity of a product or service that customers are willing and able to buy at a given price, within a given time period.
Deal
An agreement between two or more parties, usually involving the exchange of goods or services.
Deal management
The process of tracking, managing, and analyzing deals is termed deal management.
Demand forecasting
The process of estimating future demand for a product or service.
Direct mail
A marketing method in which physical mail is sent to potential customers.
Discount
A reduction in the price of a product or service.
Deal flow
The number of sales opportunities in the pipeline.
Demand generation
The creation of demand or interest in a product or service.
Drip campaign
Drip campaign is an email marketing campaign in which a series of emails are sent over a period of time.
E
Economies of scale
The cost advantages that a company enjoys as it grows larger.
Enterprise resource planning (ERP)
A software system that helps businesses manage their operations, including inventory, manufacturing, and financials.
Exclusive distribution
A type of product distribution in which a company gives one retailer the exclusive right to sell its products in a given geographic area.
Experimental design
The process of creating and testing marketing campaigns to determine their effectiveness.
Extended warranty
A warranty that covers a product for a period of time after the standard warranty expires.
Economic Buyer
The decision-maker who has the authority to approve a purchase.
Eligible prospect
A prospect that meets the criteria for being a good potential customer.
Engagement
The process of interacting with prospects and customers to build relationships.
Escalation
The process of moving a sale to a higher-level decision maker.
Estimate
A prediction or calculation of the likely amount, size, or cost of something.
Exception report
A report that shows items that fall outside of specified limits or criteria.
Engagement
The level of interaction that a prospect has had with your brand.
Enterprise sales
Enterprise sales is the process of selling to large organizations.
F
FAB
Features, advantages, and benefits represented by the salespeople in order to explain the value of a product or service to their clients.
Forecasting
The process of making predictions about future events, based on past data and current trends.
Field sales
Sales activities that take place outside of a company’s office, such as meeting with the customers or with the prospects in their homes or places of business.
Force-field analysis
Force field analysis is a tool for analyzing the forces that are driving or restraining a change.
Franchise
A business model in which a company licenses its brand and business model to independent businesses.
Fulfillment
The process of delivering products or services to customers.
G
Gross margin
The difference between a company’s revenue and the cost of goods sold.
Gatekeeper
The person who controls access to a decision-maker.
Geographic targeting
The process of targeting marketing messages to specific geographic areas.
Gift certificate
A document that can be redeemed for goods or services at a later time.
Goal
A desired result or outcome that a company or individual strives to achieve.
Growth hacking
A marketing technique focused on rapid growth by using creative and unconventional methods.
Guarantee
A promise by a company to refund a customer’s purchase price if they are not satisfied with the product or service.
Goal card
A physical or digital card that salespeople use to track their progress toward their quarterly or annual sales goals.
Gap Analysis
The process of identifying the difference between the current state and the desired future state.
H
Hard close
A sales tactic in which the sales rep tries to pressure the prospect into making a decision.
I
Implementation
The process of putting a plan or system into effect.
Incentive
A reward or bonus that is given for achieving a certain goal.
Influencer
Someone who has the power to influence the decisions of others, without having formal authority.
Inside sales
Inside sales is the process of selling products or services over the phone or the internet.
Ideal Customer Profile (ICP)
A description of the type of customer that is most likely to buy your product or service.
Intellectual sales
Selling products or services that require a high degree of understanding on the part of the customer.
K
Key Performance Indicator (KPI)
A metric used to measure progress towards a specific goal.
Kickers
It refers to the additional products or services that a salesperson can offer to close a deal.
Key account management
The process of developing and maintaining relationships with key accounts.
L
Lead
A potential customer who has expressed interest in your product or service.
Lead nurturing
Lead nurturing is the process of building relationships with leads, even if they are not yet ready to buy.
Long-term customer value
The total amount of revenue that a customer is expected to generate over the lifetime of their relationship with a company.
Lead scoring
The process of assigning a score to leads based on their likelihood of converting into customers.
Lost sale
A sale that is not completed because the prospect chooses to buy from a competitor.
M
Make-or-Buy decision
A decision about whether to produce a product or service in-house or to purchase it from an external supplier.
Margin
The difference between the selling price and the cost of goods sold.
Market segmentation
The process of dividing a market into smaller groups of potential customers, based on shared characteristics.
Mark up
It is the business’s extra value, which is to increase the selling price of a product in order to make more profit.
Middle of the funnel
The stage of the sales process in which a prospect is interested in your product or service but has not yet made a purchase.
Mirroring
The sales technique of matching the prospect’s body language.
Mass customization
The process of providing each customer with a personalized product or service.
Matrix organization
A type of organization in which employees report to more than one manager.
Milestone
A significant event or achievement in the progress of a project.
Minimum Viable Product (MVP)
A version of a product with just enough features to be usable by early customers, and to provide feedback for further development.
N
Negotiation
The process of bargaining and trying to reach an agreement between two or more parties.
Non-Competitive Bidding
A type of bidding in which only one company submits a proposal or bid.
Natural language processing
The ability of a computer to understand human language.
Net Promoter Score
A metric used to measure customer satisfaction.
Net Asset Value
The value of a company’s assets minus its liabilities.
Need based selling
A selling technique in which the salesperson tries to identify the prospect’s needs.
New customer
A customer who has never purchased from a company before.
News release
A written or recorded communication sent to media outlets that are intended to generate publicity.
Non-Disclosure Agreement (NDA)
A contract in which one or more parties agree not to disclose certain information.
O
Objection
A reason why a prospect may not want to buy a product or service.
Offer
A proposal to sell a product or service at a certain price.
Outsourcing
The process of hiring an external supplier to provide goods or services that could be provided internally.
Overhead
Indirect costs that cannot be directly attributed to the production of a good or service.
Onboarding
The process of orienting and training new employees.
Open-ended question
A question that cannot be answered with a simple yes or no.
Operations
The process of creating and delivering a product or service.
Order Form
A document that is used to place an order for goods or services.
Organizational buyers
People who buy goods or services for their organization, rather than for themselves.
Over-the-counter (OTC)
A security that is not traded on a formal exchange.
Outbound sales
The process of actively seeking out potential customers, rather than waiting for them to come to you.
P
Pilot
A small-scale test or trial of a new system, product, or service.
Power dialer
Power dialer is a type of feature that automates the process of making phone calls.
Pain point
It is a problem that a prospect is experiencing and that your product or service can solve.
Predictive analytics
The use of data and statistical techniques to make predictions about future events.
Price elasticity
The degree to which demand for a product or service changes in response to changes.
Pipeline
The path that a sales deal takes from initial contact to close and then nurturing.
Price
The amount of money that a customer pays for a product or service.
Price elasticity of demand
A measure of how much demand for a good or service changes in response to a change in price.
Prospect
A potential customer who has been identified as a good fit for your product or service.
Pressure selling
A selling technique in which the salesperson uses high-pressure tactics to try to close the deal.
Product
A good or service that is offered for sale.
Pro-rata
The portion of a subscription that is billed for the number of days used.
Promotion
A marketing activity that is designed to increase demand for a product or service.
Proposal
A written offer from a seller to a prospective buyer.
Prospecting
The process of seeking out new potential customers.
Product Life Cycle
The stages that a product goes through, from development to retirement.
Proof of Concept (POC)
A prototype that is used to test whether a concept is feasible.
Product lifecycle management
The process of managing a product from development to retirement.
Profit margin
The amount of money that a company has left over after paying all of its expenses.
Promotional mix
The combination of marketing activities that a company uses to promote its products or services.
Public Relations (PR)
The deliberate attempt to influence the public’s perception of a company or its products.
Q
Qualified lead
A lead that has been vetted and is ready to be passed on to the sales team.
Quote
A document that details the price of goods or services.
R
Rack rate
The standard price for a good or service, without any discounts.
Reciprocity
The exchange of goods or services of equivalent value.
Referral
A lead that comes to a company through word-of-mouth.
A market where buyers and sellers trade goods or services that have already been used.
Sales automation
The process of automating your sales process using sales automation software.
Sales acceleration
The process of using technology to speed up the sales process.
Sales enablement
The process of providing salespeople with the tools and resources they need to be successful.
Sales operations
The department in a company that is responsible for the sales process.
SQL (Sales qualified lead)
A sales qualified lead is a lead that has been vetted by the sales team and determined to be a good fit for the product or service.
Social selling
The process of using social media to build relationships and generate leads.
Spiff
It is an incentive that is offered to salespeople to encourage them to sell a particular product or service.
Stakeholder
A person or group of people who have an interest in the outcome of a sale.
Segmentation
The process of dividing a market into smaller groups, based on shared characteristics.
Skimming price
A pricing strategy in which a company charges a high price for its product, in order to make a large profit.
Sandler training
A sales training method that is based on the premise that people do not like to be sold, but they like to buy.
Supplier
A company that provides goods or services to another company.
Sales Funnel
A visual representation of the journey that a potential customer takes, from awareness to purchase.
Satisfaction guarantee
A promise to refund the customer’s money if they are not satisfied with the product or service.
Sales kickoff
A meeting at the beginning of the year, in which sales goals are set and strategies are discussed.
Sales tax
A tax that is levied on the sale of goods or services.
Seasonality
The fluctuations in demand for a good or service, that occur at different times of the year.
Secret shopping
The practice of sending undercover customers to evaluate a company’s products or services.
Scalability
The ability of a system to handle an increased workload without breaking it down.
Service Level Agreement (SLA)
A contract that sets out the terms of a relationship between a service provider and a customer.
Smarketing
The alignment of sales and marketing teams to work together toward common goals.
SPIN Selling
A sales technique that is based on asking questions, rather than making statements.
Subject matter expert
A person who is an expert in a particular field.
Solution selling
A type of selling in which the salesperson tries to find a solution to the customer’s problem, rather than just selling them a product.
Supply and Demand
The availability of goods or services, and the willingness of people to buy them.
SWOT Analysis
A tool for evaluating a company’s strengths, weaknesses, opportunities, and threats.
T
Target
A specific group of people that a company or salesperson wants to sell to.
Testimonial
A statement from a satisfied customer, that is used to promote a product or service.
Tenor
The length of time that a sales contract is in effect.
Top of the Funnel (TOFU)
The stage of the sales funnel in which potential customers are first exposed to a company’s products or services.
Trial close
A question that is asked during a sales pitch, in order to gauge the customer’s level of interest.
Total available market
The total number of potential customers for a product or service.
Tranches
A type of financing in which a large sum of money is divided into smaller payments.
Tender
An offer to supply goods or services at a certain price.
Territory
A defined area in which a salesperson is responsible for making sales.
Test market
A small-scale trial of a product or service in a particular market, to see if it is viable.
Trade show
An event where companies showcase their products and services to potential customers.
U
User story
A description of how a user would use a product or service, from their point of view.
Unique Selling Proposition
The reason why a customer should buy a product or service from a particular company, rather than from its competitors.
Upselling
Upselling is the practice of selling a more expensive product or service than the one that was originally requested.
User Experience
The experience the user has after using the product or service.
User Interface
The part of a product or service that the user interacts with.
Unicorn
A startup company that is valued at over $1 billion.
V
Value proposition
A statement that explains how a product or service solves a customer’s problem or meets their needs.
Vendor
A company that sells goods or services to another company.
W
Warranty
A guarantee that a product will be free from defects for a certain period of time.
Warm call
A call that is made to a potential customer who has already been contacted by the salesperson, and is, therefore “warmed up” to the idea of doing business with them.
Whale
A customer who spends a lot of money with a company.
Website
A collection of web pages that are hosted on a server and accessible via the Internet.
White paper
A document that provides information about a product or service, or a problem and its solution.
Wholesaler
A company that buys goods in bulk from manufacturers and sells them to retailers at a higher price.
Workflow
The sequence of steps that are followed in order to complete a task.
Y
Yield
The rate at which a product or service is sold, or the amount of it that is produced.
Conclusion
Thanks for reading our glossary of sales terms! We hope you found it helpful.
Dhara Thakkar is a seasoned marketer at Salesmate. She thrives on trying new organic strategies to improve traffic & conversions, and has in-depth knowledge on how search works. When she's not working, you will find her travelling or binge watching F.R.I.E.N.D.S
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Do you work in sales? Are you new to the industry? If so, you’re probably wondering what all of the jargon means. This comprehensive glossary contains over 200 terms and definitions related to sales.
By understanding these concepts, you’ll be able to communicate more effectively with your colleagues and close more deals.
A comprehensive sales glossary and definitions of important sales terms
A | B | C | D | E | F | G | H | I | K | L | M | N | O | P | Q | R | S | T | U | V | W | Y |
A
Abandonment
Giving up on a sale or prospect or a deal.
ABC (Activity-based costing)
A process of assigning overhead and indirect costs to products and services.
Absorption costing
A method of cost accounting that includes all costs incurred in manufacturing a product.
Account manager
The salesperson who manages an existing customer account.
Accounts receivable
The money owed to a company by its customers.
Adoption process
The process of introducing and integrating a new product or service into the market.
Amortization
The gradual paying off of debt in equal installments over a period of time.
Automation
The use of technology to replace or supplement human labor in the production or delivery of goods and services.
Artificial Intelligence
A process of programming a computer to make decisions for itself.
Analytical CRM
The use of data mining techniques to analyze customer data in order to improve customer relationships.
Annual recurring revenue
Revenue that a company can predictably count on receiving each year.
Average deal size
The average value of deals closed by a sales team.
Acquisition
A strategic move in which one company buys another company.
Activity ratio
A financial ratio that measures how efficiently a company uses its assets to generate revenue.
Advance against commission
An advance given to a salesperson against future commissions earned.
Account-based selling
A sales strategy in which a salesperson focuses on selling to a specific type of customer is called account-based selling.
Appointment
A meeting arranged in advance between a salesperson and a prospective customer.
Assignment of territory
The process of allocating sales territories to salespeople.
Average order value
The average amount spent by a customer in a single transaction.
Account management
The process of maintaining and growing an existing customer relationship.
Account-Based Marketing
A strategy in which marketing and sales resources are focused on targeting and selling to a specific type of customer.
Account planning
A process used to develop a strategic plan for managing an account.
Average sale
The average amount of revenue generated per sale.
B
Bad debt
Revenue that will never be collected because the customer is unable or unwilling to pay.
Bait and switch
A marketing technique in which a company offers a low-priced item to lure the customers and then tries to sell them a more expensive item.
Barter
An exchange of goods or services without the use of money.
Benchmarking
The process of comparing a company’s performance against that of its competitors.
Billback
Billback is accounting software, generally used for cost recovery.
Bonus
A financial reward given to a salesperson for achieving certain sales targets.
Break-even analysis
A method of analyzing profitability that takes into account fixed and variable costs.
Bundling
The practice of selling products or services together at a discounted price.
Business intelligence
Data that is gathered and analyzed to help the salespeople make informed decisions.
Buyer’s remorse
The regret a customer feels after making a purchase.
Best practices
Proven methods or processes that have been successful in the past and can be replicated to achieve similar results.
B2B
Business-to-business refers to the transactions between businesses, rather than between a business and a consumer.
B2C
Business-to-consumer; refers to transactions between businesses and consumers.
Bad leads
Leads that are not likely to convert into customers.
Base salary
The fixed amount of money that a salesperson is paid per year.
BANT
An acronym that stands for budget, authority, need, and timeline.
Bluebird
It refers to a sale that is not anticipated or extremely lucrative.
Brag book
It is a physical or digital book containing a salesperson’s positive customer references, reviews, and case studies.
Bottom of the funnel
The final stage of the sales process, in which a prospect is ready to make a purchase.
BASHO email
This is a B2B email that targets a key decision-maker in a potential high-value account.
Buyer behavior
The actions and decisions that a consumer makes when searching for, selecting, purchasing, using, and disposing of products and services.
Buying intent
The likelihood that a customer will make a purchase.
C
Call center
A customer service center that handles customer inquiries by phone.
Channel partner
A company that partners with a manufacturer to sell or distribute the products.
Closed-loop marketing
A process in which customer feedback is used to improve marketing strategies.
Cloud computing
The delivery of computing services over the Internet.
Commission
A fee is paid to a salesperson for each sale they make is called sales commission.
Competitive analysis
The process of gathering and analyzing information about a company’s competitors.
Competitive bidding
The process of submitting bids in response to a request for proposal.
Consensus forecast
A forecast is created by taking the average of multiple individual forecasts.
Consignment
An arrangement in which a seller agrees to sell goods on the behalf of a consignor and only pays the consignor if and when the goods are sold.
Contract management
The process of creating, executing, and managing contracts.
Conversion rate
The percentage of prospects who are converted into customers.
Cost of goods sold
The direct costs are associated with producing and selling a product or service.
Cost per lead
The amount of money spent to generate a single sales lead.
Customer churn
The rate at which customers stop doing business with a company.
Customer lifetime value
The total amount of revenue generated by a customer over the course of their relationship with a company.
Call Reluctance
The fear of making sales calls.
Capacity
The number of products or services that a company is able to produce or deliver.
Closing
The process of converting a prospect into a paying customer is called sales closing.
Competitive advantage
Something that sets a company or product apart from its competitors.
Contributing margin
The portion of each sale that contributes to covering fixed costs and profits.
Customer Acquisition Cost (CAC)
The cost of acquiring a new customer, including marketing and sales expenses.
Customer Relationship Management (CRM)
A system or strategy for managing customer relationships.
CMS
A software platform used to create, edit and publish digital content.
Co-marketing
A marketing arrangement between two companies in which they promote each other’s products or services.
Crowdfunding
The practice of raising money from a large number of people, typically via the Internet.
C-Suite
The group of senior executives in an organization, typically includes the CEO, CFO, and COO.
Conversational intelligence
The ability to build rapport, trust, and credibility with others.
Challenger sales model
A model in which the salesperson takes a more proactive and consultative approach to prospects is called the challenger sales model.
Cold calling
The process of making phone calls to people who have not expressed interest in your product or service is called cold calling.
Cross-selling
It is the practice of selling additional products or services to an existing customer.
Complex sale
A sale that includes multiple decision-makers and takes longer to close.
D
Data-driven decision making
The process of making decisions is based on data and analytics.
Demand Creation
The process of creating demand for a product or service.
Discount
A reduction in the price of a product or service.
Database
A collection of data that can be accessed by computers.
Database marketing
The process of using customer data to create and deliver personalized marketing messages.
Demand
The quantity of a product or service that customers are willing and able to buy at a given price, within a given time period.
Deal
An agreement between two or more parties, usually involving the exchange of goods or services.
Deal management
The process of tracking, managing, and analyzing deals is termed deal management.
Demand forecasting
The process of estimating future demand for a product or service.
Direct mail
A marketing method in which physical mail is sent to potential customers.
Discount
A reduction in the price of a product or service.
Deal flow
The number of sales opportunities in the pipeline.
Demand generation
The creation of demand or interest in a product or service.
Drip campaign
Drip campaign is an email marketing campaign in which a series of emails are sent over a period of time.
E
Economies of scale
The cost advantages that a company enjoys as it grows larger.
Enterprise resource planning (ERP)
A software system that helps businesses manage their operations, including inventory, manufacturing, and financials.
Exclusive distribution
A type of product distribution in which a company gives one retailer the exclusive right to sell its products in a given geographic area.
Experimental design
The process of creating and testing marketing campaigns to determine their effectiveness.
Extended warranty
A warranty that covers a product for a period of time after the standard warranty expires.
Economic Buyer
The decision-maker who has the authority to approve a purchase.
Eligible prospect
A prospect that meets the criteria for being a good potential customer.
Engagement
The process of interacting with prospects and customers to build relationships.
Escalation
The process of moving a sale to a higher-level decision maker.
Estimate
A prediction or calculation of the likely amount, size, or cost of something.
Exception report
A report that shows items that fall outside of specified limits or criteria.
Engagement
The level of interaction that a prospect has had with your brand.
Enterprise sales
Enterprise sales is the process of selling to large organizations.
F
FAB
Features, advantages, and benefits represented by the salespeople in order to explain the value of a product or service to their clients.
Forecasting
The process of making predictions about future events, based on past data and current trends.
Field sales
Sales activities that take place outside of a company’s office, such as meeting with the customers or with the prospects in their homes or places of business.
Force-field analysis
Force field analysis is a tool for analyzing the forces that are driving or restraining a change.
Franchise
A business model in which a company licenses its brand and business model to independent businesses.
Fulfillment
The process of delivering products or services to customers.
G
Gross margin
The difference between a company’s revenue and the cost of goods sold.
Gatekeeper
The person who controls access to a decision-maker.
Geographic targeting
The process of targeting marketing messages to specific geographic areas.
Gift certificate
A document that can be redeemed for goods or services at a later time.
Goal
A desired result or outcome that a company or individual strives to achieve.
Growth hacking
A marketing technique focused on rapid growth by using creative and unconventional methods.
Guarantee
A promise by a company to refund a customer’s purchase price if they are not satisfied with the product or service.
Goal card
A physical or digital card that salespeople use to track their progress toward their quarterly or annual sales goals.
Gap Analysis
The process of identifying the difference between the current state and the desired future state.
H
Hard close
A sales tactic in which the sales rep tries to pressure the prospect into making a decision.
I
Implementation
The process of putting a plan or system into effect.
Incentive
A reward or bonus that is given for achieving a certain goal.
Influencer
Someone who has the power to influence the decisions of others, without having formal authority.
Inside sales
Inside sales is the process of selling products or services over the phone or the internet.
Ideal Customer Profile (ICP)
A description of the type of customer that is most likely to buy your product or service.
Intellectual sales
Selling products or services that require a high degree of understanding on the part of the customer.
K
Key Performance Indicator (KPI)
A metric used to measure progress towards a specific goal.
Kickers
It refers to the additional products or services that a salesperson can offer to close a deal.
Key account management
The process of developing and maintaining relationships with key accounts.
L
Lead
A potential customer who has expressed interest in your product or service.
Lead nurturing
Lead nurturing is the process of building relationships with leads, even if they are not yet ready to buy.
Long-term customer value
The total amount of revenue that a customer is expected to generate over the lifetime of their relationship with a company.
Lead scoring
The process of assigning a score to leads based on their likelihood of converting into customers.
Lost sale
A sale that is not completed because the prospect chooses to buy from a competitor.
M
Make-or-Buy decision
A decision about whether to produce a product or service in-house or to purchase it from an external supplier.
Margin
The difference between the selling price and the cost of goods sold.
Market segmentation
The process of dividing a market into smaller groups of potential customers, based on shared characteristics.
Mark up
It is the business’s extra value, which is to increase the selling price of a product in order to make more profit.
Middle of the funnel
The stage of the sales process in which a prospect is interested in your product or service but has not yet made a purchase.
Mirroring
The sales technique of matching the prospect’s body language.
Mass customization
The process of providing each customer with a personalized product or service.
Matrix organization
A type of organization in which employees report to more than one manager.
Milestone
A significant event or achievement in the progress of a project.
Minimum Viable Product (MVP)
A version of a product with just enough features to be usable by early customers, and to provide feedback for further development.
N
Negotiation
The process of bargaining and trying to reach an agreement between two or more parties.
Non-Competitive Bidding
A type of bidding in which only one company submits a proposal or bid.
Natural language processing
The ability of a computer to understand human language.
Net Promoter Score
A metric used to measure customer satisfaction.
Net Asset Value
The value of a company’s assets minus its liabilities.
Need based selling
A selling technique in which the salesperson tries to identify the prospect’s needs.
New customer
A customer who has never purchased from a company before.
News release
A written or recorded communication sent to media outlets that are intended to generate publicity.
Non-Disclosure Agreement (NDA)
A contract in which one or more parties agree not to disclose certain information.
O
Objection
A reason why a prospect may not want to buy a product or service.
Offer
A proposal to sell a product or service at a certain price.
Outsourcing
The process of hiring an external supplier to provide goods or services that could be provided internally.
Overhead
Indirect costs that cannot be directly attributed to the production of a good or service.
Onboarding
The process of orienting and training new employees.
Open-ended question
A question that cannot be answered with a simple yes or no.
Operations
The process of creating and delivering a product or service.
Order Form
A document that is used to place an order for goods or services.
Organizational buyers
People who buy goods or services for their organization, rather than for themselves.
Over-the-counter (OTC)
A security that is not traded on a formal exchange.
Outbound sales
The process of actively seeking out potential customers, rather than waiting for them to come to you.
P
Pilot
A small-scale test or trial of a new system, product, or service.
Power dialer
Power dialer is a type of feature that automates the process of making phone calls.
Pain point
It is a problem that a prospect is experiencing and that your product or service can solve.
Predictive analytics
The use of data and statistical techniques to make predictions about future events.
Price elasticity
The degree to which demand for a product or service changes in response to changes.
Pipeline
The path that a sales deal takes from initial contact to close and then nurturing.
Price
The amount of money that a customer pays for a product or service.
Price elasticity of demand
A measure of how much demand for a good or service changes in response to a change in price.
Prospect
A potential customer who has been identified as a good fit for your product or service.
Pressure selling
A selling technique in which the salesperson uses high-pressure tactics to try to close the deal.
Product
A good or service that is offered for sale.
Pro-rata
The portion of a subscription that is billed for the number of days used.
Promotion
A marketing activity that is designed to increase demand for a product or service.
Proposal
A written offer from a seller to a prospective buyer.
Prospecting
The process of seeking out new potential customers.
Product Life Cycle
The stages that a product goes through, from development to retirement.
Proof of Concept (POC)
A prototype that is used to test whether a concept is feasible.
Product lifecycle management
The process of managing a product from development to retirement.
Profit margin
The amount of money that a company has left over after paying all of its expenses.
Promotional mix
The combination of marketing activities that a company uses to promote its products or services.
Public Relations (PR)
The deliberate attempt to influence the public’s perception of a company or its products.
Q
Qualified lead
A lead that has been vetted and is ready to be passed on to the sales team.
Quote
A document that details the price of goods or services.
R
Rack rate
The standard price for a good or service, without any discounts.
Reciprocity
The exchange of goods or services of equivalent value.
Referral
A lead that comes to a company through word-of-mouth.
Remote sales
The process of selling to customers who are not physically present.
Regression analysis
A statistical technique that is used to understand the relationship between variables.
Reseller
A company that buys goods or services from a supplier and then sells them to customers.
Retailer
A company that sells goods or services directly to consumers.
RFP (Request for Proposal)
A document that solicits proposals from potential suppliers.
RFQ (Request for Quotation)
A document that solicits quotes from potential suppliers.
Return on Investment (ROI)
The ratio of money gained or lost on an investment, relative to the amount of money invested.
Revenue
The total amount of money that a company brings in from sales.
S
SaaS (Software as a Service)
A type of subscription software that allows users to access and use the software, without having to install it on their own computers.
Sales
The process of convincing someone to buy a product or service.
Sales cycle
The steps that a salesperson takes to close a deal.
Sales manager
The person responsible for managing a team of sales reps.
Sales quota
The minimum amount of sales that a salesperson is expected to achieve in a given period of time is called sales quota.
Sales target
The specific sales goals that a company or salesperson sets.
SDR: (Sales Development Representative)
A salesperson who is responsible for generating new leads and setting up appointments.
Secondary market
A market where buyers and sellers trade goods or services that have already been used.
Sales automation
The process of automating your sales process using sales automation software.
Sales acceleration
The process of using technology to speed up the sales process.
Sales enablement
The process of providing salespeople with the tools and resources they need to be successful.
Sales operations
The department in a company that is responsible for the sales process.
SQL (Sales qualified lead)
A sales qualified lead is a lead that has been vetted by the sales team and determined to be a good fit for the product or service.
Social selling
The process of using social media to build relationships and generate leads.
Spiff
It is an incentive that is offered to salespeople to encourage them to sell a particular product or service.
Stakeholder
A person or group of people who have an interest in the outcome of a sale.
Segmentation
The process of dividing a market into smaller groups, based on shared characteristics.
Skimming price
A pricing strategy in which a company charges a high price for its product, in order to make a large profit.
Sandler training
A sales training method that is based on the premise that people do not like to be sold, but they like to buy.
Supplier
A company that provides goods or services to another company.
Sales Funnel
A visual representation of the journey that a potential customer takes, from awareness to purchase.
Satisfaction guarantee
A promise to refund the customer’s money if they are not satisfied with the product or service.
Sales kickoff
A meeting at the beginning of the year, in which sales goals are set and strategies are discussed.
Sales tax
A tax that is levied on the sale of goods or services.
Seasonality
The fluctuations in demand for a good or service, that occur at different times of the year.
Secret shopping
The practice of sending undercover customers to evaluate a company’s products or services.
Scalability
The ability of a system to handle an increased workload without breaking it down.
Service Level Agreement (SLA)
A contract that sets out the terms of a relationship between a service provider and a customer.
Smarketing
The alignment of sales and marketing teams to work together toward common goals.
SPIN Selling
A sales technique that is based on asking questions, rather than making statements.
Subject matter expert
A person who is an expert in a particular field.
Solution selling
A type of selling in which the salesperson tries to find a solution to the customer’s problem, rather than just selling them a product.
Supply and Demand
The availability of goods or services, and the willingness of people to buy them.
SWOT Analysis
A tool for evaluating a company’s strengths, weaknesses, opportunities, and threats.
T
Target
A specific group of people that a company or salesperson wants to sell to.
Testimonial
A statement from a satisfied customer, that is used to promote a product or service.
Tenor
The length of time that a sales contract is in effect.
Top of the Funnel (TOFU)
The stage of the sales funnel in which potential customers are first exposed to a company’s products or services.
Trial close
A question that is asked during a sales pitch, in order to gauge the customer’s level of interest.
Total available market
The total number of potential customers for a product or service.
Tranches
A type of financing in which a large sum of money is divided into smaller payments.
Tender
An offer to supply goods or services at a certain price.
Territory
A defined area in which a salesperson is responsible for making sales.
Test market
A small-scale trial of a product or service in a particular market, to see if it is viable.
Trade show
An event where companies showcase their products and services to potential customers.
U
User story
A description of how a user would use a product or service, from their point of view.
Unique Selling Proposition
The reason why a customer should buy a product or service from a particular company, rather than from its competitors.
Upselling
Upselling is the practice of selling a more expensive product or service than the one that was originally requested.
User Experience
The experience the user has after using the product or service.
User Interface
The part of a product or service that the user interacts with.
Unicorn
A startup company that is valued at over $1 billion.
V
Value proposition
A statement that explains how a product or service solves a customer’s problem or meets their needs.
Vendor
A company that sells goods or services to another company.
W
Warranty
A guarantee that a product will be free from defects for a certain period of time.
Warm call
A call that is made to a potential customer who has already been contacted by the salesperson, and is, therefore “warmed up” to the idea of doing business with them.
Whale
A customer who spends a lot of money with a company.
Website
A collection of web pages that are hosted on a server and accessible via the Internet.
White paper
A document that provides information about a product or service, or a problem and its solution.
Wholesaler
A company that buys goods in bulk from manufacturers and sells them to retailers at a higher price.
Workflow
The sequence of steps that are followed in order to complete a task.
Y
Yield
The rate at which a product or service is sold, or the amount of it that is produced.
Conclusion
Thanks for reading our glossary of sales terms! We hope you found it helpful.
Dhara Thakkar
Dhara Thakkar is a seasoned marketer at Salesmate. She thrives on trying new organic strategies to improve traffic & conversions, and has in-depth knowledge on how search works. When she's not working, you will find her travelling or binge watching F.R.I.E.N.D.S