Sales Vocabulary

ICP - Ideal Customer Profile

BANT - Budget, Authority, Need, Timeline

MQL - Marketing Qualified Lead

SQL - Sales Qualified Lead

SAL - Sales Accepted Lead

Process Prospect -> Marketing Qualified Lead -> Sales Qualified Lead -> Sales Accepted Lead -> Client

Customer Journey Marketing Department -> Sales Department -> Onboarding (Customer Success) -> Account Management

ARR - Annual Recurring Revenue

MRR - Monthly Recurring Revenue

BDR - Business Development Representative

BDE - Business Development Executive

SDR - Sales Development Representative

AE - Account Executive

AM - Account Manager

MVP - Minimum Viable Product

CVP - Customer Value Proposition - your key hooks/benefits for the customer

Founder Selling - People want to hear founder story, so they are enthusiastic

Opener-Closer - SDR is opener and AE is closer

Draw - New-hires are paid a commission even when they don’t have/meet their quota during the initial period when they are ramping up

Value Prop - Value proposition

LTV - Life Time Value

Top-down Sales - Salespeople will need to appeal to the key decision-makers and executives from a prospective customer. This kind of strategy is well-known in the business-to-business sales world.

Bottom-up Sales -> To approach lower-level management or just directly potential users of the product

Key skills of SDR/AE -> Navigate Decision Hierarchy, Find the buyer quickly (BANT), Articulate value proposition, Handling objections, Position your product and deposition competitor, Know how to handle IT,

Pipeline Velocity Rate = Open opportunity * Sales cycle * Avg deal size * Win Rate

ARPU - Average Revenue Per User or Customer = Total Revenue/No. of Customers. Typically measured for a year's time.

TAM - Total Addressable Market