Dictionary of B2B Sales and Marketing
Account-based marketing (ABM)
Account-Based Marketing (ABM) is targeting and engaging specific high-value accounts, rather than the broader market.
Annual contract value (ACV)
The Annual Contract Value (ACV) is the average annual revenue generated from a customer's contract in a subscription-based business model.
Annual recurring revenue (ARR)
Annual Recurring Revenue (ARR) is the revenue generated from recurring customer subscriptions on an annual basis.
Bottom of the Funnel (BoFu)
Bottom of the Funnel (BoFu) is the final stage in the marketing and sales funnel, representing the phase where prospects are ready to make a purchasing decision.
A buyer journey refers to the process that a potential customer goes through from becoming aware of a product or service to the final stage of making a purchase decision.
A buying group refers to a collective of individuals or decision-makers within an organization who are responsible for making purchasing decisions.
Call to action (CTA)
A CTA, or Call to Action, is a prompt or instruction that encourages a user to take a specific action on a website, in an email, or within other marketing materials.
Churn refers to the rate at which customers or subscribers stop using a company's product or service over a specific period of time.
Customer acquisition cost (CAC)
Customer Acquisition Cost (CAC) is the total cost of acquiring a new customer.
Customer experience (CX)
Customer Experience or CX refers to the overall perception, emotions, and interactions a customer has with a brand or company.
Customer lifetime value (CLV)
Customer Lifetime Value (CLV) represents the total net profit a company can expect to earn from a customer over the entire duration of their relationship.
Demand generation is a set of marketing activities aimed at creating awareness, interest, and demand for a company's products or services among its target audience.
A discovery (disco) call is an initial conversation between a sales representative and a potential customer (prospect) aimed at understanding the prospect's needs.
A drip campaign, also known as an email drip campaign or marketing automation campaign, is a pre-designed series of automated, time- or action-triggered emails.
An economic buyer refers to the individual or decision-maker within an organization who has the authority and responsibility to make final purchasing decisions.
Growth marketing (also growth hacking), focuses on finding innovative, scalable, and cost-effective ways to acquire, engage, and retain customers.
Ideal customer profile (ICP)
An ICP, or Ideal Customer Profile, is a detailed description of the type of customer or company that would benefit the most from your product or service.
Inbound leads are potential customers who express interest in a company's products or services through their own initiative.
A lead refers to a person or organization that has shown interest in a company's products or services, and has provided some form of contact information.
Market size is the total potential sales or revenue opportunity for a specific product or service within a particular industry or market segment.
The marketing funnel is a visual representation of the customer journey, illustrating the stages a potential customer goes through.
Marketing qualified lead (MQL)
A Marketing Qualified Lead (MQL) is a prospect who has shown a level of interest or engagement with a company's marketing efforts.
MEDDIC is a B2B sales methodology designed to improve qualification process, drive better sales forecasting, and increase probability of closing enterprise deals.
Middle of the funnel (MoFu)
Middle of the funnel (MoFu) is the second stage in the marketing and sales funnel.
Net promoter score (NPS)
NPS, or Net Promoter Score, is a customer satisfaction metric used to measure likelihood of customers recommending a company's products to others.
An objection is a concern or issue raised by a prospect or customer that may prevent them from making a purchase.
Outbound leads in sales and marketing refer to potential customers or clients that a company proactively reaches out to.
Pay per click (PPC) advertising
Pay Per Click (PPC) advertising is a digital marketing model in which advertisers pay a fee each time one of their ads is clicked by a user.
A persona, in the context of marketing, is a fictional representation or profile of a company's ideal customer.
Product qualified Lead (PQL)
A Product Qualified Lead (PQL) is a potential customer who has demonstrated a strong interest in a company's product or service.
A prospect in sales and marketing is an individual or organization that has shown some level of interest in a company's products or services.
A sales cycle is the series of steps or stages that a salesperson goes through to convert a prospect into a paying customer.
Sales forecasting is the process of estimating the future sales of a company's products or services over a specific period.
A sales pipeline is a visual representation of the various stages that potential customers (prospects) go through in the sales process.
Sales qualified Lead (SQL)
A Sales Qualified Lead (SQL) is a potential customer who has shown a strong interest in a company's products and is deemed ready for direct sales contact
Search engine Optimization (SEO)
SEO, or Search Engine Optimization, is the process of optimizing a website to improve its visibility in search engine results pages (SERPs) for targeted keywords
Serviceable addressable market (SAM)
Serviceable Addressable Market (SAM) is a subset of the Total Addressable Market (TAM).
Serviceable obtainable market (SOM)
Serviceable Obtainable Market (SOM), also known as Share of Market, is the portion of the Served Addressable Market (SAM) that a company can realistically capture within a specific timeframe.
Top of the funnel (ToFu)
Top of the funnel (ToFu) is the first stage in the marketing funnel, representing the initial phase of the customer journey.
Total addressable market (TAM)
TAM represents the total potential revenue that could be generated if a company captured 100% of the market for a particular product or service.