Hey folks, I keep hearing from newbie sales professionals that they get stunned hearing some new sales jargon every day and are sometimes left blank when they get asked about those from their bosses.
So, Here is the compilation of some Important Sales Acronyms that came to my mind instantly.
- MQL - Marketing Qualified Lead
Usually, new leads arrive on top of the Marketing funnel as a result of Marketing efforts or campaigns. It is then validated by the Marketing team on whether they are worth sending them to the Sales team for further one-to-one prospecting by deal closure.
- SQL - Sales Qualified Lead
It refers to the leads who have been validated by the sales team that they are qualified enough to be pursued further for deal closure. MQL is transferred to the sales teams to qualify them as SQL.
- MRR - Monthly Recurring Revenue
This is primarily applicable for a business operating Subscription or SaaS-based pricing model. Once a subscription is confirmed by the customer, it becomes a recurring revenue. Hence MRR refers to the repeatable revenue generated by the business every month.
- ARR - Annual Recurring Revenue
Similar to MRR, ARR is also applicable for businesses having a subscription pricing model. It refers to the repeatable revenue generated by the business every year.
- CLTV - Customer Lifetime Value
CLTV refers to the average revenue a customer will generate or is expected to generate over the complete duration of his relationship with your company.
- CAC - Customer Acquisition Cost
As the name suggests, CAC refers to the cost of acquiring a customer in the initial stages usually to pursue him to make his first purchase with your company.
- NPS - Net Promoter Score
NPS is an industry-recognized benchmarking score to measure your customer engagement and loyalty.
You can learn more about NPS in detail here. Also, you may check out our free NPS calculator with a sample NPS survey here.
- CRM - Customer Relationship Management
Customer Relationship management is the refers to the strategy an organization undertakes to manage their relationship with its customers. Overtime CRM has been considered synonymous with CRM Software which are usually tools and technologies which enables the organizations to execute their CRM strategy and vision.
You may read more about CRM here: Frequently asked questions about CRM
- SDR - Sales Development Rep
SDRs are usually the inside sales representatives whose primary responsibilities revolve around Prospecting and Lead Qualification. Once a lead is qualified they are usually handed over to Account Executives.
- ACV - Annual Contract Value
This term is mostly used in SaaS Sales metrics. Annual Contract Value refers to the annualized revenue a client account is going to generate for you over one year.
Note: ACV is different from ARR (Annual Recurring revenue)
- BDR - Business Development Rep
- CCR - Customer Churn Rate
- CTA - Call To Action
- FAB - Features, Advantages, Benefits
- RFP - Request for Proposal
- RFI - Request for Information
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