If you’re new to sales, congratulations on joining this magical realm. You’ve aced the interview and landed your first job, and now comes the fun part: onboarding.
Get ready to be bombarded with more acronyms and unknown terms than you have heard in your entire life leading up to this point. Sounds dramatic, but depending on your vertical, that could be an understatement.
Trying to figure out all the definitions of things can get frustrating…as if you didn’t have enough on your plate, here’s a slew of slang that you can’t seem to crack. It can feel hella awkward asking coworkers every time you don’t know what something means. and the worst part is Google doesn’t always have a helpful definition for acronyms, especially when they’re industry-specific (looking at you, healthcare).
So, here’s your handy dandy guide to common business and sales terms, including breakdowns of all the pesky acronyms that keep popping up.
Let us also make one thing clear: this guide is not limited to newbies. Whether you’re transitioning from another industry, can’t keep track of all the acronyms, or recently came across an acronym you haven’t seen before, this is a guide for everyone who finds themselves asking, “WTF do all of these acronyms mean?”
Universal Business Terms
- A/B Testing
- Using two variations, like email copy, to test the efficacy or another factor over a period of time. (also known as “split testing”)
- Annual Contract Value. The annual amount a customer will pay based on their subscription terms.
- Average (monthly) Recurring Revenue Per Account
- Annual Recurring Revenue (i.e. 12 months x MRR)
- Business to Business. A company that sells to other businesses (rather than directly to individual consumers)
- Budget-Authority-Need-Timeline. BANT is a methodology used to sift out qualified leads worth pursuing from the rest of the pack, using the four aforementioned items: the prospect’s budget, authority, current need, and timeline
- Customer Acquisition Cost (Also, CPL: Cost per Lead). The cost of gaining a new customer, as calculated by spend (overhead, bonuses, etc.) divided by the number of customers acquired during a set time period (e.g. one quarter)
- Customer Lifetime Value. A forecast of the monetary value a customer will bring during their entire subscription tenure with the company
- Call to Action. A phrase that encourages an action (e.g. “Let’s schedule a call for next week”)
- Customer Experience. The whole of interactions a customer has with your company, including with you, the platform, support, etc
- User experience, which is typically used in the product sense
- Direct to Consumer
- End of Day/End of Week
- Enterprise sales
- Selling to large organizations, which typically entails bigger deal sizes, longer deal cycles, and longer contracts
- Key Performance Indicator. KPIs track progress towards a goal, and ultimately success, in a quantifiable way. KPIs are used internally by all teams. Some example KPIs for sales teams are opportunity-to-win ratio, CAC, and customer retention
- (Customer) Lifetime value
- Monthly Recurring Revenue
- Net Promoter Score. A way to measure customer satisfaction, as calculated by substrating “detractors” from “promoters"
- Objectives and Key Results. Individuals, teams, and larger organizations use OKRs to set goals for improvement or growth in certain aspects of the business. As such, KPIs inform OKRs, and vice versa
- Out Of Office. Use this when you’re going on vacation, need to step away for an appointment, or will be otherwise unreachable. Some companies also have OOO calendars to keep teammates in the loop with your schedule
- Relationship Building Extra. Basically a gift could be a Uber eats giftcard or company swag
- Request for Proposal. A publicly-posted document (typically used by governments, but also other private organizations) announcing a project, and also defines said project, the bidding process, and the terms of the contract. RFPs are typically used when there is a need for multiple sub-contractors (hence why governments typically use them)
- Return on Investment
- Service Level Agreement. A commitment from the service provider stipulating the services to be provided and any relevant standards (e.g. resolution times for support tickets). There are multi-level, customer, and internal SLAs
- Specific, Measurable, Attainable, Realistic, Time-bound
- Situation, Problem, Implication, Need
- Otherwise known as a “SWOT analysis.” Strengths, Weaknesses, Opportunities, Threats
- Small and Medium Businesses
- Too late; didn’t read. Use this before giving a brief synopsis of something.
- Work From Home
Don’t see a term you need or think people should know? Have terms for specific industries? Share them with us in a "TSAGYFF?? Same" post.