Have you ever overheard sales professionals having a conversation and had no idea what some of the sales terminology meant? This glossary of sales terminology will help you understand conversations within the sales industry.
Moreover, if you want to pursue a career in sales, knowledge of sales terms will make it easier for you to break into the sales industry. You can learn more about the sales terminology cheat sheet in this article.
What Is Sales?
Sales refer to all the activities or business processes aimed at selling products or services. Companies have sales organizations that are divided into various groups or teams. These sales teams specialize in specific products or services, target audiences, and geographical areas.
The salespeople in these teams reach out to potential customers to offer them a solution that leads to the purchase of their product or service. Although most marketing departments are concerned with meeting daily, weekly, monthly, and annual sales targets, the primary goal of sales is to provide a positive user experience and ensure customer success.
Who Uses Sales Terminology?
Sales professionals such as customer sales reps, sales directors, managers, real estate agents, and insurance sales agents use sales terminology. These terms are frequently used in discussions or meetings for salespeople.
List of Sales Terms: Things Every Sales Professional Should Know
- ABC (Always Be Closing)
- Account-based marketing
- Buying process
- Business proposal
- Churn rate
- Conversion rate
- Customer acquisition cost
- SPIN Selling
- Emotional sale
- Inbound sales
- Marketing department
- Outbound marketing
- Potential customer
- Purchasing decision
- Sales funnel
- Sales pipeline
- Sales representative
- Sales strategy
Glossary of Sales Terminology: 5 Common Sales Terms
When discussing sales issues with colleagues or in sales meetings, salespeople use specific terms to refer to various things. Below are some of the sales jargon you will hear frequently.
The buying process refers to the stages that the buyer persona goes through when looking for a solution and purchasing a product. It is a key aspect of buyer behavior. This process is typically divided into three steps, namely awareness, consideration, and decision.
The first step, awareness, is when the customer recognizes their problem and seeks to understand it. The second step, consideration, is when the client conducts research on the problem and considers the various options. Finally, the third step, decision, is when the ideal customer settles for a solution.
Why Sales Professionals Needs to Know About Buying Process
Sales professionals are responsible for creating a sales strategy, and without a proper understanding of the buying process, they may develop an ineffective plan. To outline the proper sales methodology, they must first understand where the prospective customer stands, after which they can decide on a strategy, such as emotional selling or social selling.
A potential customer is someone who is willing to buy a product or service from a company. They are capable buyers, so you must devise a strategy to convert them to customers.
Why Sales Professionals Needs to Know About Potential Customer
Potential customers, also known as the target audience, are an important group for your company. As a sales professional, you must identify this group and their buyer behaviors because it is critical in increasing or decreasing your company’s revenue. You must also devise a marketing strategy that is tailored to the potential buyer’s needs and preferences to persuade them to buy from your company.
A lead is a person or organization who expresses an interest in a product or service. It could be as simple as subscribing to your email, completing a survey, or disclosing contact information in exchange for a coupon. Leads can also be generated through cold calling.
Why Sales Professionals Needs to Know About Lead
It is critical to plan exercises to generate enthusiasm for a project or service to increase average revenue. A sales professional has to investigate the ideal customers to sell to in their industry and make the right marketing efforts for lead generation. They can increase their future sales by generating leads.
A sales strategy is a plan for accomplishing sales goals. It governs a company’s sales activities, whether it is new or established. Since selling is vital to a company’s success, sales strategy positions a company to accomplish it.
Why Sales Professionals Needs to Know About Sales Strategy
An effective sales strategy helps a business acquire, retain, and increase customers. A sales professional should understand the components of a sales strategy and how to develop one. This will assist sales teams in dealing with the various challenges that people face when trying to sell.
A sales team is the department in charge of meeting sales targets. A sales manager creates a sales team, including sales specialists, customer service representatives, and sales representatives, and leads them. They work to achieve daily, weekly, monthly, and yearly objectives.
Why Sales Professionals Needs to Know About Sales Team
A sales team focuses on customer acquisition, sales generation, and customer retention. Each member of a sales team plays a part to ensure the overall growth of a company. Hence, they have to collaborate with each other to develop an effective plan that their department can implement.
Sales Terminology Cheat Sheet: 5 Advanced Sales Terms
When interacting with salespeople, you may come across difficult or rare terms. This helps in effective communication between sales colleagues. Read below to find out about five advanced sales terms and their meaning.
ABC (Always Be Closing)
Always be closing is a sales strategy based on the concept that every step that a sales representative takes must be aimed at closing a sale. As a result, if the sales rep does not close active deals, every task they complete is viewed as futile.
Why Sales Professionals Should Know About ABC
Since ABC is a sales strategy, the sales professional should understand how it works to determine if it is appropriate for a given situation. For example, when using the inbound methodology, the preferred ABCs are Always Be Helping and Always Be Connecting.
Conversion rate is the percentage of people who completed a desired action, such as filling out a web form. This is a useful form of sales metrics that indicates what percentage of customers is engaging with the sales process according to plan. For example, high conversion rates indicate that a page is performing well, while low conversion rates indicate that a page is performing poorly.
Why Sales Professionals Should Know About Conversion Rate
Sales professionals in a marketing team are involved in developing and executing marketing campaigns. They analyze conversion rates to assess the effectiveness of their strategies. For example, when they use call to action buttons on websites, they can determine whether or not they are making good progress by analyzing the conversion rate.
Inbound sales refers to a technique in which a company pulls leads or interested prospects to determine whether they are a good fit for their product or service. Simply put, inbound sales focus on the client’s needs, and the salesperson acts as an advisor to convert the lead into a buyer.
Why Sales Professionals Should Know About Inbound Sales
Since inbound sales is a technique that helps increase sales revenue, sales professionals should understand how it works to help the sales team implement it. Moreover, understanding inbound sales will help them use business intelligence to analyze data if their approach does not yield substantial results.
A sales funnel is a visual representation of the sales cycle that a sales representative takes a prospective customer through before making a purchasing decision. Typically, a sales funnel is divided into three stages, namely top of the funnel, middle of the funnel, and bottom of the funnel.
Why Sales Professionals Should Know About Sales Funnel
Understanding the sales funnel helps the sales professional develop a sales approach that meets the prospective customer’s needs. For instance, if you propose a plan for a target audience at the top of the funnel, you will ensure it focuses on spreading awareness of your product or service.
Churn rate refers to the rate at which a client ceases doing business with a company over a certain period. This term can also refer to subscribers who cancel or do not renew their membership.
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Why Sales Professionals Should Know About Churn rate
The churn rate helps sales professionals identify why they can’t meet their sales goals. It also helps them develop a plan to solve churn-related problems, boost business, and increase sales.
How Can I Learn Sales Terminology in 2022?
Some sales terms can be difficult to understand, which is why some professionals pursue a college degree in sales-related subjects to become marketing professionals. However, that is not the only way to build a career in this field.
You can learn sales terminology in 2022 through sales bootcamps. These bootcamps can provide you with the knowledge you’ll need to build a successful career in sales. You can also take online courses on platforms like Udemy or Coursera. Alternatively, you can follow sales blogs to gain relevant information and stay updated on the latest trends in the sales industry.
Some of the most common sales acronyms include KPI (Key Performance Indicator), SQL (Sales Qualified Lead), CRM (Customer Relationship Management), NPS (Net Promoter Score), and BDR (Business Development Representative).
Unvalidated sale refers to a subclass sale that was not selected through a sampling process and has not been confirmed to be validated or invalidated.
This refers to the process through which businesses sell products or services to customers directly. Companies that identify sales opportunities and make direct sales to clients can be referred to as B2C companies.
A sales professional earns an average of 60,638 per year as of January 30, 2022, according to ZipRecruiter.
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