145 Sales Terms To Learn: Definitions and Examples

Definitions of Common Sales Terms
  • ABC: Always Be Closing.
  • AIDA: Attention, Interest, Desire, Action.
  • BANT: Budget, Authority, Need, Timeline.
  • Commission: The payment a sales rep gets when they successfully sell something.
  • Discovery call: The first call a sales rep makes to a prospect.

20 SALES TERMS EVERYONE SHOULD KNOW

Why is it important to understand sales terminology?

When working in sales-related roles, it’s crucial to comprehend sales terminology. Here are a few instances of how being familiar with sales jargon will help you:

What is sales terminology?

There are many different words and expressions used in the sales industry, which are all included in sales terminology. These phrases outline various steps in the purchasing process and shed light on how sales are conducted.

145 examples of sales terminology

To improve your knowledge of sales terminology, look over the following examples:

1. ABC

Always Be Closing is referred to by the acronym ABC. It is employed by salespeople when speaking with customers because it helps them keep in mind to try to close throughout the exchange.

2. A/B testing

Sales and marketing experts employ the technique of A/B testing to ascertain which of two variables has the greatest impact on sales. They do this by examining data such as the click-through rate.

3. Account

Account is the name given to a customer or client who works with a company. Sales professionals monitor customer or client accounts to oversee transactions.

4. Account-based marketing

Account-based marketing is a tactic employed by sales and marketing experts to promote new or ongoing business from a select number of targeted accounts. They do this by designing marketing plans for different clients.

5. Account-based selling

B2B companies frequently employ the sales model known as “account-based selling.” When this occurs, salespeople create unique sales pitches and plans for particular clients or leads.

6. Account development representative

Account development representatives are sales experts who concentrate on generating leads and cultivating positive client relationships.

7. Account executive

A mid-level salesperson who manages several client accounts for a company is an account executive. Additionally, they are in charge of account development representatives’ daily tasks.

8. Accounts payable

A statement called accounts payable lists the sums that a company owes to customers or partners in commerce.

9. Accounts receivable

A statement that details how much a customer or business partner owes a company is called accounts receivable. Sales representatives use documents related to accounts receivable to locate unpaid invoices and collect them from debtors.

10. AIDA

The acronym AIDA, which stands for awareness, interest, desire, and action, is intended to represent the steps a customer takes when making a purchase.

11. Amortization

Amortization is the procedure used by businesses to set a specific amount of time for paying off their debts.

12. Annual recurring revenue

The method by which a company receives revenue that normalizes each month or year is referred to as annual recurring revenue. This is typically used by subscription services to estimate future revenue.

13. Annual contract value

The average annual revenue a company can anticipate from a client contract is referred to as the “annual contract value.”

14. Average dollar sale

The average dollar sale is a concept used by businesses to estimate the amount of money they will receive from their clients depending on a variety of variables such as the day of the week, the cost and quality of the product, the sales strategy, and more. By dividing one transaction by the total number of times a customer has made a purchase from you, you can determine the average dollar sale for a given customer.

15. B2B

B2B stands for business-to-business or a business-to-business company. This occurs when a company offers its goods or services to other companies.

16. B2C

B2C stands for business-to-consumer. Businesses that cater to consumers want to sell goods and services to the general public.

17. BANT

BANT stands for budget, authority, need and timeline. This acronym is used by salespeople to determine whether it is worthwhile to pursue a lead.

18. Baseline

Baseline refers to a financial target or volume of sales that a company wants to reach. Salespeople use baselines to monitor their collective and individual growth over time.

19. BOFU

BOFU stands for “bottom of the funnel. “This phrase is used by salespeople to describe the closing phase of sales funnels. Here, salespeople attempt to close deals with potential customers.

20. Brand

The term “brand” describes how customers perceive a company, its goods, services, and values. Salespeople must consider their company’s brand when presenting ideas to clients.

21. Buyer

A buyer is a consumer or client who makes a purchase from a company. Additionally, it describes people who buy goods from wholesalers on behalf of a business.

22. Buyer behavior

The method by which consumers make purchasing decisions is known as buyer behavior. When creating marketing or sales materials, sales and marketing professionals take the idea of purchasing behavior into consideration.

23. Buying criteria

Buying criteria are possible inquiries a customer may have regarding a company’s goods and services. This enables sales representatives to anticipate inquiries and provide useful information.

24. Buying intent

Businesses use buying intent as a tool to assess the likelihood that a lead will convert into a customer within a specific time frame.

25. Buying signal

A buying signal is an action a customer takes to express their intention to buy something. These take the form of inquiries, comparisons of options, or positive remarks about a company.

26. Buying persona

A buying persona is an image of a company’s intended market. To determine how to market and sell their products to various niche groups, sales and marketing professionals develop buying personas.

27. Call for proposal

A request for proposals is when a potential client solicits bids from rival companies. They use this information to decide which company they want to sign a contract with.

28. Challenger sales model

In the challenger sales model, a salesperson adopts an authoritative demeanor when making a sale. They accomplish this by enticing clients to alter some aspect of their lifestyle or business practices. The ultimate objective is to assist them in the purchasing process so they can make a purchase they otherwise wouldn’t.

29. Channel sales

The process by which a company divides the sales department into various niche teams is known as “channel sales.” For example, inside sales vs. outside sales.

30. Churn rate

Businesses use the concept of churn rate to estimate customer turnover over a predetermined period of time. They determine this by choosing a time period, then dividing the quantity of lost business by the quantity of clients they had at the start.

31. Click-through rate (CTR)

Sales and marketing experts use the click-through rate as a metric to count how many website visitors click on a link or advertisement. This is divided by the number of website impressions a link sends over a certain period of time.

32. Client

A client is an organization or person that does business with and purchases from a company.

33. Closed opportunities

Anytime a salesperson makes or loses a sale, it is referred to as a “closed opportunity.”

34. Closed-won

When a salesperson makes an effort to close the sale and is successful, it is referred to as “closed-won.”

35. Closed-lost

When a salesperson tries to close the sale but is unsuccessful, the situation is known as a “closed-loss.”

36. Closing ratio

Businesses can compare their sales team’s close-win percentage to the total number of leads they previously received using the closing ratio.

37. Cold calling

Cold calling is the process by which sales representatives make unannounced contact with potential business leads. Salespeople introduce themselves and make a sales pitch to a customer during cold calls.

38. Cold emailing

Cold emailing is the practice of sending emails to prospective customers without first getting in touch with them. Salespeople introduce themselves and lay out a sales proposal in cold-calling emails.

39. Commissions

Commissions are instances where companies give salespeople a portion of the proceeds from each item they sell. This acts as a motivator for selling more.

40. Complex sales

Complex sales are those negotiated between two companies in a B2B setting. These sales typically involve custom deals or pricing in exchange for something else and can take months or even years to complete.

41. Conversion

The process by which a salesperson or sales team persuades leads to become customers is known as conversion.

42. Conversion path

An organization may use one or more conversion paths to interact with customers and influence their purchasing decisions. This typically consists of attracting, converting, closing and delighting.

43. Conversion rate

The term “conversion rate” describes how quickly a business can draw in customers and convince them to buy its products using landing pages, advertisements, and other digital marketing techniques.

44. Consumer

Consumer refers to a customer who makes a purchase from a company in a particular market or industry.

45. Cost of goods sold (COGS)

Cost of goods sold is a term that describes expenses incurred during product manufacturing and design. When profits are compared to relative costs, sales, and inventory over a specified period of time, this aids businesses in evaluating their profitability during that time.

Additional important sales terms to know

Here are some additional sales terms:

FAQ

What are sales terms examples?

4 Types of Selling
  • Transaction Selling. Transaction selling works well with simple, commodity products.
  • Relationship Selling. Relationship selling usually involves simple or moderately complex products.
  • Solution Selling. As the name suggests, solution selling helps a customer find a solution to a business issue.
  • Partnership Selling.

What is the most powerful word in sales?

The 5 Most Powerful Words in Sales
  • Focus on benefits, not specifications. I wanted to cut up some fallen trees.
  • Focus on value, not price. …
  • Focus on show, not learn. …
  • Focus on emotions, not reasons. …
  • Focus on you, not I.

Related Posts

Leave a Reply

Your email address will not be published. Required fields are marked *