Important Sales Acronym Glossary

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.

What is an Invoice and how to prepare one?

If you are a seller, you might often come across the term “Invoice”. If you are still unaware of it or have an iota of doubt on this topic, read on to know more.

What is an Invoice?

  • An Invoice is a document that is given by the seller to the buyer, as a legal and formal way of requesting for payment in lieu of the products and/or services rendered to the Buyer. 
  • It primarily contains the list of items being sold along with the price of each item. 
  • This document acts as a formal and legally binding way of asking for payment and can hold good in case of any dispute on any payment dues or terms of service since it acts as a proof that the customer was notified on the request for payment. 
  • Having said that, the more important purpose of using Invoice is for tracking the payments made for the goods and services sold.


What should be present in an Invoice?

For a document to be qualified as a formal Invoice, It should contain the following basic details:

  • The Name “Invoice” is on top of the document.
  • A Unique reference number, also known as the Invoice Number. It should be unique so that you can track it properly in your CRM or ERP.
  • Date the invoice was generated or sent to the customer.
  • Date of sales or the time period in which the service was provided to the customer.
  • Name and Contact information of the Buyer
  • Name and Contact information of the Seller.
  • Line-wise listing of product items or services sold to the customer.
  • Per unit cost of each line item being sold to the customer.
  • It should mention any applicable discount on each line item or can be present at the end.
  • It should mention the applicable Tax on the sales of goods or services as per the applicable local laws governing the business.
  • And finally, it should mention the Total Amount to be paid by the Buyer.
  • Additionally, you may want to include your company logo on it (the Seller Company’s logo) to make it look more appealing, it helps in your branding as well.

Check out the sample Invoice document:

Invoice Sample

What is the difference between Sales Invoice and Purchase Invoice?

Sales Invoice: From the Perspective of the Seller, the invoice listing the products and/or services being sold is called a Sales Invoice.

Purchase Invoice: From the Perspective of the Buyer, the invoice listing the products and/or services which he purchased is called Purchase Invoice from his reference.


How can you send invoices to your Customers?

If you are a Seller, you might be required to send the Invoice to your customers. If the number of invoices you send usually is less and can be managed manually, then you can manually type it in a Word document in a pre-defined template and send it to your customer.

However, if you are in a growth stage and want to scale up, you should definitely use a CRM, ERP, or Accounting software that can help you with an auto-generated invoice, so that it would be easier for you to organize loads of invoices, track the payments better and reduce any manual errors.


How to generate an Invoice instantly online?

If you want to generate an Invoice online instantly. You may check out our free tool for generating invoices instantly. You can generate invoices without the need to log in.

Tool: Online Invoice Generator


I hope you found this article useful. Let us know with your comments.

Are you looking for a good CRM? Try out ToolsonCloud Sales CRM, It's Free,
How we got Organic leads using only Social Media (Case Study)
A few months back, I along with my friends did a consulting project for a startup in order to get more lead inflows into their sales pipeline. In this post, I would like to share my experience as to how we did it and how you can also follow the same Lead Generation Strategy in order to develop your Lead Pipeline.

What is Churn Rate?
If you run a subscription based business where you gain monthly or periodically recurring revenue, Churn Rate is one of the important parameters to consider for forecasting your future revenues. This metric is not just a KPI for Sales & Marketing department but also directly impacts Finance department for their future financial forecasts as well as impacts Operations or Delivery department in order to plan for scaling up or scaling down of existing business operations or infrastructure.

What exactly is Churn rate then?

In Simple terms, as the name suggests, Churn rate signifies the rate at which you lose your recurring revenue. Churn Rate can be estimated either on revenue or on the user headcount numbers depending on the way your business operates. In the Software subscription (SaaS) Industry, Churn Rate is usually calculated on user base.

Hence if you have 100 users at the start of the month and you lost 5 users by the end of the month. It would mean your churn rate is 5%.

However, I would also suggest you should keep a tab on Churn rate based on Revenue. This is because subscription rates of different types of users may differ based on the complexity of your business model and hence the user based Churn rate calculation may not give you an accurate view.

Churn Rate based on Revenue can be calculated similarly. If your Monthly Recurring Revenue (MRR) was 100,000 USD at the beginning of the month and by the end of the month you lost some 5 users who contributed 20,000 USD to your MRR. Then your Churn Rate would be 20%.

Why is it Important?

Churn Rate directly impacts your revenue and financials and is also an indicator of how dissatisfied are your customers. If you observe a series of increasing Churn Rate month over month, then it should definitely raise a flag and you need to accept that there is something definitely wrong which is leading to a spike in number of users opting out of your subscription or rental service.

Also, in order to stay in the game, your business should sustain for long.

What would happen if you fill a bucket with 1 mug of water every second but the bucket has a hole which keeps leaking 1.1 mug of water every second?


Leaking bucket of Water

You would never reach your goal of filling your bucket completely. Similarly, for your business to stay sustainable, its Customer Acquisition Rate should more than the Churn Rate. Otherwise you know what would happen.

Hope you liked reading this post. In the next post, I shall bring to you some tips to reduce your Churn Rate. Stay tuned and do subscribe us our Social Media Channels.

Related Post:
Stop committing these 15 Costly Sales Mistakes
I tend to read a lot of books on Sales Methodologies. Now that I have read a numerous materials on Sales, I felt let me share a list of Costly Sales Mistakes or Situations which every sales professional should try to avoid in a Sales Process.

As per my experiences, the following 15 types of sales mistakes should be avoided at any cost:
Why newbies should focus on Vertical Selling instead of Horizontal Selling
Are you a Newbie just delving into your Sales Career?
or
Are you a Sales Manager looking for assigning a territory to a newbie in your team?

or
Are you a Newbie startup looking to start with Selling your Product or Solution?


If answer to any of these questions is "Yes", 
Then you should focus on Vertical Selling instead of Horizontal Selling!


Surprised? In this post, I would tell you why is that so!


3 Price Negotiation Mistakes every Salesperson should avoid
Often, Salespersons tend to make mistakes during their Sales Negotiation conversations and tend to lose out on the sales wondering what exactly happened. The lead which they have been following up for many month now is lost just at the last phase of the sales cycle at the time of Sales Negotiation. These are the 3 expensive mistakes which every sales person should avoid at the time of negotiation.


1. Price Negotiation on High Cost Products


Avoid negotiation with Customers for reducing the price of high cost products. Always try to negotiate with customers only for the low cost products having a high perceived value in the minds of the customers. If you reduce the price of High Cost Products, then customers would expect that every time they buy from you. This is detrimental for your business growth since you would find it difficult to run your business on thin margin for a prolonged period of time.


2. Not knowing the Urgency for Customers


As a Salesperson, you would stand good at negotiating position if you are aware of the extent of urgency of the customer who wants to buy from you. If they are having less time and the purchase of the product you are selling is urgent for them, then you stand a better chance. In this kind of situation, you have more chances to crack the sales deal with lesser amount of negotiation with the customer. This is because since customer doesn’t have much time to search for another vendor, they would happily agree with your price. 


3. Starting Negotiation without understanding the needs of the customer



You should never start sales negotiation at the start of the sales cycle even without understanding the needs of the customer in the discovery phases of the sales cycle. The more questions you ask to your customer during the Need Discovery phases of the sales cycle, the more information you will get on the needs and requirements of the customers. This will help you set the expectations of the customers and would help you negotiate better. The more you know about the expectations of the client, the more you would be able to point out those facts during your sales negotiation conversations and hence customers would be willing to pay a higher price if their expectations are met.

What is Sales Prospecting
A complete Sales lifecycle comprises multiple stages. But it always tends to start with Prospecting. But often newbie salespersons ponder upon the same question, 

"What exactly is Sales Prospecting?".

In this post, I would like to help those newbie and ambitious salespersons to understand what exactly is Sales Prospecting.
5 features to look before buying a Sales CRM
Very often CEOs and CMOs of startups who are searching for a CRM for their Sales Team find themselves in a confused state. With numerous CRM applications available in the market, they are in a dilemma to choose from various available options.

To decide which CRM is the best for you, you need to list down the functionalities you expect from a CRM system. After my interaction with multiple people in sales on LinkedIn, I found a number of things which are being expected from a CRM.

Sales Manager [Image Credits]
In short, modern sales teams consider following 5 things to be must have functionalities in a CRM without which a CEO or CMO should never purchase a CRM from any vendor.

1. Deals or Leads tracker.

A Good CRM should have a Deals or Leads tracker within it as a primary functionality. With this functionality, your sales team members should be able to add Deals or Leads into your CRM system so that it can be tracked as it traverses through various stages of the sales process which might be analogous to sales stages of New, Contact Made, Meeting Scheduled, Presentation Made, Negotiation, Won or Lost Deals stage, etc. 

  • This gives a transparent view to the sales manager who can visualize as to which deal is stuck at a particular stage for long and need attention or follow ups. 
  • It also helps forecast the sales for upcoming months based on the number of deals or Leads which are present in the sales pipeline based on the conversion ratio of each stage. 
  • This helps you plan the number of deals required at each stage of sales process to have a steady flow of revenue every month.
  • This also helps Sales Managers prioritize the Deals based on multiple parameters like Deal size or Winning probability, etc.


2. Contact Management Functionality

Your CRM should have a Contact Management functionality which helps you organize the contact information of your clients whom you need to interact with regards to the various deals in your sales pipeline. A good Contact Management feature should allow the sales team members to not only add contacts of people but also contact details of a company with which the deal is in sales pipeline. 

  • Most importantly, the contact management functionality should have a sync with your Deals or Leads tracker rather than acting as a separate functionality in silos. 
  • This feature should allow you to visualize the relationship with contacts and deals. Hence, if you view a contact, your CRM should be in a position to give you information on which all deals you are interacting with that contact, the past conversations you had with the concerned contact and other information about the contact which can help you crack the concerned deal.


3. Sales Reporting & Analytics

Your CRM contains lots of data entered into the system about deals, contacts and associated activities happening on each of them. But as a Sales Manager or a CMO or a CEO, what you need to know is the status in terms of numbers. Hence your CRM should give a bird eye view of where do your sales team stand in terms of sales status. 

  • It can be in terms of numbers of upcoming deals in the pipeline, Deals Won or Lost in a specified time period, Reason for winning or losing the deals, Revenue forecast, Deviation of actual revenue from the forecast or sales goal, etc.
  • This helps Sales Managers act instantaneously as and when they observe any anomaly in the Real Time Reports & Analytics 


4. Multi User functionality

Since CRM is to be used by your sales team it should have functionality to support multiple users. Unlike shared spreadsheets shared among multiple users which has no logs of which user updated the excel file, your CRM should track activities of each individual user. 

  • It should enable the team members to stay accountable for their activities and not avoid accountability while entering status trackers which might happen when people are just editing a single excel file shared at a common location as it happens in a conventional companies which are yet to go Digital.


5. Flexibility in designing Sales Processes

Every business is different both in terms of the way they manage their sales process. Hence your sales CRM shouldn't force you to follow a rigid sales process which is difficult for your business due to complexities involved. 

I believe CRM should empower the sales teams rather than creating difficulties for your sales personnel. This means your CRM should be flexible enough to fit in your sales team within it rather than your sales team trying to fit their already established processes as per the CRM.

  • Hence your CRM should allow you to design and re-design your Sales Stages. 
  • Some Organizations might follow sales stages as New Deal, Contacted, Presentation, Negotiation, Won. 
  • While at the same time another Organization might want to design sales stages as New, Contacted via Phone, Proposal Made, Presentation, Demo,  Negotiation, Contract Preparation, Contract Approval etc. 
  • At the same time, some startup Sales Manager would like to experiment with different sales processes until they hit across a process which works out right for them.

Hence a good CRM should empower the sales managers with the flexibility to design their sales processes as and when they require.


Hence before buying your first CRM, do checkout these 5 must have functionalities for your CRM.

Related Posts:
Introduction to Social CRM, Facts, Benefits, Advances

What is Social CRM?

Social CRM refers to approach of managing customer relationship by using Social media as the channel to listen and engage with Customers.

In CRM Software context, when a traditional CRM is integrated with your social media channels to help you manage your customer relationships from social media channels, it is termed as Social CRM.


Need for Social CRM:

Marketers tends to make mistake of thinking Social Media platforms as the place to only broadcast their social media posts and drive traffic. 

But there is more to it. Social Media should be used for more for listening to the customers or prospects and engaging with them. 

Social CRM Landscape


Some associated facts:

As per a 2017, Techwire Asia article 
  • 95% of customer complaints on social media don’t reach companies.
  • 1/3rd of all customer complaints on social media are ignored.
  • 80% of surveyed companies said they deliver exceptional customer service on social media but only 8% of their customers agreed on the same.
  • 63% customers expect companies to offer customer service on Social media channels.
  • 90% of social media users used social media to engage/communicate with a brand.
  • When people get responses on social media, they are 30% more likely to recommend a brand to others.
  • Implementing a good Social CRM could help improve annual revenue by 81% through referrals as well as reduce customer churn by helping you improve customer retention up to 92%.

Benefits of social crm for sales teams:

  • Increase in Lead Inflow: Sales teams get to generate more leads from Social Media.
  • Hot Leads: The Leads from social media are mostly comes from referrals via viral posts or comments from their friends thus they are far more likely to convert.
  • Reduced Sales Cycle: The leads from Social Media are informed prospects, hence the sales cycle duration reduces thus helping in faster sales conversion.
  • Multichannel Selling: Modern Social Media platforms are also equipped with sales store front. Thus Social CRM helps track the sales or leads getting generated from multiple social media channels and bring it together inside one single CRM, thus enabling the organization towards multi-channel sales.

Benefits of social crm for Marketing team:

  • Better Customer Segmentation: Social CRM contains a lot of customer demographic information from social media. It helps the Marketers in better customer segmentation and enables them to create more contextual and personalized marketing campaigns.
  • Instant Feedback & Sentiment Analysis: Customers find it easier to interact on social media comments and messengers compared to usual email or ticket based communication on website. Social CRM is helping the Marketers get more up-to date real-time customer sentiments and feedback about their products and services from social media. This helps them improve their product and service offerings. Also it helps them optimize & improve their marketing communications.

Benefits of social crm for service teams:

  • Customer Issue Resolution: Sometimes Customers use social media channel as an escalation mechanism if they are not happy with the resolution provided by your usual service help desk. This shall help Service teams take the issue on priority and shall help them transfer the ticket to a more experienced customer service rep to take it to satisfactory closure. 
  • Process Improvement and Knowledge base Development: With social media sentiments on the issues, you get to understand certain frequently occurring issues which are painful for your customers. This data helps you do deep dive towards improving your customer resolution process better and improves you’re the knowledge base documentations for your service teams to serve future similar issues better.
  • Ease of Connect: Whenever customers are unable to get certain help with your product and services from available public sources, they find it easier to interact with their brands via social media or on your social media community to find answers to their queries.

Things to look for in a social crm:

  • Integration: Features such as Integration with top social media platforms such as Facebook, Twitter, LinkedIn, Instagram, YouTube, Pinterest, Telegram, WhatsApp, etc.
  • Analytics & Insights: The platform should be equipped to extract data from your social media channels to give you reports, analytics and actionable real-time insights on what is working out versus what is not working.
  • Social Media Management: It should let you manage your multiple social media accounts from one single platform such as post scheduling, comment and message notifications. Primarily it should equip you with Listening, Publishing and Engagement on your social channel.
  • Team Collaboration: It should offer a collaborative way of working so that you can add your team members in the application and work together.

Advances in Social CRM:

  • Automated Chat bots for answering to user messages, product enquiries, frequently asked questions sent on Social Media messengers.
  • Follower tracking features which lets you track lost followers in addition to new followers. Source of followers such as organic vs paid.
  • RoI Insights such on Organic Impressions vs Paid Impressions.
  • Budget based alerts and controls on Paid Social Media campaigns.
  • Integration with Video meeting platforms such as Skype, Zoom, Slack , etc, to take up instant product demo, calls or meetings with prospect.
  • Integration with document storage platforms to automatically sync and store artifacts related to key client conversations.
  • Social media sales workflow for automating many repeatable sales processes associated with new lead capture and nurturing via social media channels.
  • Ability to pull contact and other information from Prospect’s social media public profiles such as LinkedIn, Public databases, etc.

If you liked reading this post, Do comment below and let me know your thoughts. 

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