The Language of Sales
Like most departments in a business, sales has a language all of its own. Here are some of the terms that you may come across when talking sales:
- ABCAlways Be Closing , a theory where everything the sale person says is geared to getting the sale.
- Account ExecutiveUsually a person who has several customers (accounts) and looks after them trying to grow them into bigger accounts.
- AnalyticsStudying data (which usually comes from website/social media activity, but can also extend to coupon redemption) to try to identify patterns which can then be turned into strategy and action to help sales.
- Annual Recurring RevenueSales that happen every year - such as an annual subscription.
- Average Contract Value (ACV)The average amount of money you receive from a single customer over a fixed period - could be per day, week, month or year.
- BenefitThe value of the product/service that the user experiences – this is different to a feature.
- Business-to-Business(B2B)A business that markets – or sells – to other businesses only.
- Business-to-Consumer(B2C)A business that markets and sells to the public (consumers).
- BuyerThe person (or company) that actually buys the product – not to be confused with the consumer (who is the person who uses the product).
- Buyer BehaviorHow a person decides to buy the product – often influenced by the consumer's wants, desires and background.
- Buyer PersonaA way to describe your typical customer – usually based on research and analytics. Helps to target better leads.
- Buying Process/CycleThe process buyers go through before making their decision – normally aligns to the Sale funnel in terms of stages.
- Buying Process/CyclePotential customers will often give subtle signals suggesting they are ready to buy – for example asking about when it will be delivered. Pay attention to these signs, as they are often missed, but critical in securing that sale.
- Call for Proposal(RFP)Request from a company who wishes to buy something – usually via a pitch/tender process – where companies will compete to win the business.
- ClientSomeone who buys your product – also called a customer.
- Cold CallingCalling someone who has never had direct contact with you previously to sell them your product – hard work and not every efficient.
- CommissionThe payment a salesperson receives as part of the sale.
- ConsumerThe person (or company) that uses the product – not to be confused with the buyer (who is the person who buys the product).
- Cross-SellingWhen a sales person can add a second sale at the time of initial purchase. For example, selling some trainers and then selling some cleaning product to go with the trainers.
- CustomerSomeone who buys your product - sometimes called a client.
- Customer Acquisition Cost(CAC)The amount of money it takes to acquire a new customer – this is worked out by (Money + Time Spent)/Number of New customers – for example £2,000 spend during the month generated 100 new customers meaning the CAC was £20 for the month.
- Customer LoyaltyWhen a customer repeatedly buys the same product.
- Customer Relationship Management (CRM)A way to manage the information you hold on a customer. If done correctly, a CRM will help your relationship and therefore ability to sell. Can even proactively help with your sales process by automating certain activities like emails, booking follow-ups etc.
- Decision-MakerThe person who makes the final decision of a sale. They are often "guarded" by a gatekeeper.
- DiscountThe reduction in price given to help secure a sale.
- FeatureThis is the what your product can do - the actual physical appearance or capability of the product rather than the benefit – so for example – batteries included, high in protein, over 65 flavours etc. – rather than "ready to use", "heathy" or “plenty of choices" – which are all benefits.
- ForecastingEstimating future sales based on history and/or upcoming opportunities.
- Intellectual SaleA sale that is about logic rather than emotion – usually more business than personal.
- LeadSomeone who has been identified as interested in your product – they have usually shared their details or have spoken to you and shown an interest in buying what you want to sell. They can be qualified (normally a good lead) which means they have been highlights as someone more likely to want to buy or a bad lead (meaning they are unlikely to turn into a sale).
- Lead GenerationThe process to generate leads – might be through marketing, advertising, referrals, partnerships or even outbound marketing – anything that will help identify and provide good/qualified leads.
- Lead NurturingLooking after leads, and engaging with them and building longer terms relationships so they have a natural inclination to buy your product and become a loyal customer.
- MarginThe difference between cost price and selling price – net profit.
- Mark-UpThe amount added to the cost price – same as mark-up – to create the selling price.
- NegotiationThe discussions that take place to reach an agreement.
- NSAsNon-sales-related activities, such as admin, personal calls etc.
- ObjectionWhen a prospect questions something that you’ve said as part of the sales process. It is a normal part of the process, but how you handle those objections will go a long way to deciding if the sale will/can be made.
- PipelineThe steps taken to convert a prospect into a customer – like a Sale Funnel.
- ProductProduct refers to anything (an idea, item, service, process or information) that you are selling.
- Profit MarginThe profit a company makes and keeps after all the bills have been paid – can be net income divided by revenues or net profits divided by sales.
- QuarterThe way a business normally splits up the year and reports their performance. Every 3 months is split into a quarter – making it easier to see how the business is progressing in terms of sales and costs.
- Quota/TargetsThe number of items that need to be sold (usually within a quarter) to help the company achieve its aims.
- RevenueThe amount of money generated by sales.
- Sales CycleThe process one needs to go through to complete a sale.
- Sales DemoShowing a potential customer, the benefits and features of your product to help with the process of selling.
- Sales Funnel List of potential sales by stage. Sales funnel stages can vary – but normally things like product awareness, product interest, evaluating product decision making and finalising contracts.
- Sales MethodologyThe "how to sell" systems – of which there are hundreds – we will cover a few later later in this badge.
- Sales ProspectA potential consumer of your product or service who meets a given set of benchmarks; typically, a sales lead whose financial capacity, buying authority and willingness to purchase are found sufficient enough to qualify and be upgraded in the sales funnel as a prospect.
- Sales ProspectingThe way to find potential customers through networking, cold calling, advertising and other engagement methods.
- Unique Selling Point/Proposition (USP)A way to differentiate or show your key advantage/benefit compared to other similar products – could be cheaper, better made, new features etc.
Task
Can you match the statement to the correct sales term?
1/4
A way to show that your product is different to all the others.
2/4
If a product box displayed the line ‘Our pens write upside down and in space’, this is a:
3/4
B2B stands for:
4/4
ABC is an acronym for which of these: