Today, most marketing and sales professionals don't know the terms of B2B marketing and sales.
There are 129 important terms that can help you while planning your sales journey.
Here are some of the terms from all letters that can help you:
- ACCOUNT-BASED MARKETING (ABM): Long sales cycle +6 months, purchasing team of 3-5 people, average sales +30,000 USD, the total number of customers in a market +1000, hybrid sales (product+consulting+training ), etc.
- BUYER ENABLEMENT: Buyer enablement is more about helping potential customers buy than helping marketing and sales teams sell. Sales teams take on the role of educating customers more. On the other hand, potential customers are in demand. The journey of self-learning and purchasing is developing one step further into life every day. Buyer activation has become more popular, especially after inbound marketing (See also INBOUND MARKETING, SALES ENABLEMENT)
- CLICK THROUGH RATE (CTR): It is the ratio of the number of clicks on a link, that is, the page, to the number of impressions. An ad was clicked 1000 times and shown 10,000 times. The click-through rate is 10%
- DEMAND GENERATION: Contents and resources on a business that uses to raise awareness of potential customers on a self-learning journey. Podcasts, youtube videos, blogs, etc. can be considered from these sources. Contrary to demand generation, lead generation is focused on lead quantity. Lead generation is about marketing's relationship with sales, Demand generation is more concerned with the brand awareness side of marketing. (see also lead generation.)
- EXPANSION MRR: Indicates the situation of new revenue from customers with previous monthly recurring revenue. For example, upgrading. See also UPSELL (More in technology initiatives.)
- FIRMOGRAPHIC: Used to categorize organizations. For example, firmographic can be useful when determining the ideal customer profile. Whom are the top 10 customer accounts sold? What is the turnover? How many teams does it consist of or does the organization consist of? What is the geographic location of the company? In which country or region?
- GROSS MARGIN: / Total sales - the cost of goods sold. Not all costs. It can also be calculated proportionally. 70% can be expected in technology startups. (See also GROSS PROFIT, NET PROFIT)
- HAND-RAISER: This type of potential customer reaches the sales team to purchase after they have done all their research. A direct hot lead or a ready-to-sell lead. (See also HOT LEAD, SALES QUALIFIED LEAD)
- IDEAL CUSTOMER PROFILE (ICP): Ideal customer profile is the basic characteristic of customers with high purchasing ability or the most important cornerstone of a company. Companies that cannot define the ideal customer profile can not plan for the future. What is firmographics? Who is the purchasing committee? What are the characteristics of the most suitable qualified leads? What are the channels to reach these customers? Which companies do 20% of our turnover come from? …(See also BUYER PERSONA)
- JOBS TO BE DONE: A way to drill down into why potential customers are purchasing products. Consider, for example, a drill salesman. The drill vendor may appear to be selling drills. What is the job of the drill? Drill holes. Then that also means customers buy holes. The work method to be done can provide product pivots or pinpoint determinations in research and development processes.
- KEY ACCOUNT MANAGER: The key account manager manages the negotiations between the relevant company and the key customer, increasing the company's turnover by ensuring that key customers are satisfied with the products and services offered, and identifying new business opportunities for key customers.
- LIFETIME VALUE (LTV): The profit margin a company expects to earn from its business relationship (from.-to) with an average customer. For example, if the profit from the average product in the B brand is 100 USD, the customers will receive an average of 5 times a year in a 2-year cycle. Customer value (Customer value ) $100 x 5 = $500 Customer lifetime value (LTV)= $500 X 2 = $1000. For a SaaS product, the average profit from the subscription fee in one year is 5 USD / month. LTV is $5 x 12 = $60. In SaaS, CAC is another important metric. Let's say we had a marketing and selling cost of $3000 for 12 months. We have gained 200 customers. The cost of acquiring 1 customer is $3000 / 200 = $15. 60 USD LTV = 4 x 15 USD CAC. For SaaS, LTV > 3 x CAC is the appropriate rate. That's why tech startups try not to increase LTV but lower CAC. (See also CUSTOMER ACQUISITION COST)
- MARKETING QUALIFIED LEAD: Related qualified leads are also warm leads. The concepts of cold, warm, and hot are preferred in potential customer scoring. Marketing qualified's are interested in more than one marketing content of a company. The concepts of cold, warm, and hot are mostly used by sales teams. Marketing teams may prefer IQL, MQL, or SQL. Marketing Qualified lead is the 2nd of 3 types. (See also INFORMATION QUALIFIED LEAD, SALES QUALIFIED LEAD, COLD LEAD, WARM LEAD, HOT LEAD)
- NET RETENTION RATE (NRR): Monthly recurring revenue from existing customers, including cancellations within a specified period range, new MRRs (See also EXPANSION MRR), or downgrades (DOWNGRADES). ratio to total monthly recurring income. For example, company A sells packages for $1000 per month. It has 100 customers. MRR is initially calculated as $100,000. In 1 month, 2 customers switch to the 2000 USD package. 1 customer downgraded to a 500 USD package. Cancel at 1 customer. NRR = ($100,000 + ($2,000x2 ) - ($500 x 1) - $1,000) / $100,000 = $102,500 / $100,000=102.5% (See also NET REVENUE RETENTION, GROSS RETENTION)
- OPPORTUNITY: Opportunities are defined as hot leads (HOT LEADS) or ready-to-sale qualified leads (SALES QUALIFIED LEADS) in your sales pipeline.
- PERFORMANCE MARKETING: Performance-based marketing is a type of marketing that is mostly done by following certain data through internet advertisements.
- QUOTE: A certain quantity of a product or service is requested from suppliers in a certain time period for price and delivery time.
- ROAS (Return on ad spend ): Represents the amount of revenue earned for every dollar spent on a campaign. It shows the profit for each ad spent based on the return on investment (ROI) principle. For example, your advertising expenditure is 1000 USD and your turnover is 2000 USD. ROAS = $2000 / $1000. Ratio 2: 1
- SALES FUNNEL: An overall picture of the stages potential customers go through when they are scored (cold, warm, hot, 2-5-7) and from when they first enter the funnel to when they return to sale. For example, there are 1000 potential customers. All cold leads. Email marketing was done and 100 of them were interested and even wanted information. They are now lukewarm leads. They moved one step down the funnel. Negotiations have been made with 100 of them and 10 of them are very close to buying. They are now hot leads and 3 sales came out of the funnel. The funnel is a kind of metaphor. (See also FLYWHEEL)
- TOTAL ADDRESSABLE MARKET (FULL): Total Market size (TAM) is the largest set that can be mentioned for a company's product or service. The arrival of a single company can also be defined as dominating the market. On the other hand, TAM can be x8 times larger than companies calculate with the job-to-be-done approach (JOBS TO BE DONE).
- UNIT ECONOMICS: Unit economics focuses on increasing the profitability of a business and reducing the cost of acquiring customers through metrics such as customer acquisition cost (CAC) and customer lifetime value (LTV). In SaaS initiatives, the unit economy is expected to be LTV > 3x CAC.
- VALUE PROPOSITION: A statement or message to potential customers that summarizes the benefits or unique qualities of a product or service.
- WARM LEAD: A potential customer who is interested in a product or service offered by a business. The business may contact some customers from cold leads (COLD LEADS) and bring them into warm leads, or a potential customer in need may want to receive direct information from the business. They can also be classified as related leads (MQL).
