Glossary Sales Terms Sales All A B C D E F G H I J K L M N O P Q R S T U V W X Y Z Filter All A B C D E F G H I J K L M N O P Q R S T U V W X Y Z A Annual Recurring Revenue / Marketing Annual Recurring Revenue measures predictable yearly revenue for subscription businesses. It shows expected income from ongoing contracts and subscriptions, excluding one-time fees. C Customer Acquisition Cost / Marketing Customer Acquisition Cost (CAC) is the total expense for acquiring a new customer. It includes marketing and sales costs divided by new customers, helping assess efficiency. L Lifetime Value / Marketing Lifetime value (LTV) estimates total revenue from a customer over their relationship, considering purchase value and frequency. It helps businesses assess marketing impact, set acquisition budgets, and focus on long-term strategies. Lead Generation / Marketing Lead generation attracts potential customers, converting their interest into qualified leads. It uses tactics like content and ads to encourage contact information sharing for sales. Lead Nurturing / Marketing Lead nurturing builds relationships with potential customers throughout the buyer’s journey. It delivers relevant content to guide and engage leads until they are ready to buy. M Monthly Recurring Revenue / Marketing Monthly Recurring Revenue is the predictable income subscription businesses generate each month. It tracks ongoing subscriptions and excludes one-time or variable fees, aiding in forecasting and strategic decisions. Minimum Viable Product / Marketing Minimum viable product (MVP) is a basic product version with core features to satisfy early users and get feedback. It helps businesses launch quickly, test assumptions, and learn from customer interaction. N Net Revenue Retention / Marketing Net revenue retention (NRR) tracks recurring revenue from existing customers, including changes from upgrades and cancellations. It shows how well a business grows revenue without new customer acquisition, calculated by adding expansion revenue to the starting base. P Product Qualified Lead / Marketing Product qualified lead (PQL) is a potential customer who has experienced value from a product and is ready to convert. Unlike other leads, PQLs are identified by actual product usage, not just marketing interactions. Q Qualified Lead / Marketing Qualified leads show genuine interest in a brand and meet specific criteria indicating high purchase potential. These leads are valuable to marketing and sales for prioritization and increased conversion rates. R Return on investment / Marketing Return on investment (ROI) evaluates an investment's profitability and efficiency, calculated by subtracting cost from revenue, dividing by cost, and multiplying by 100. It helps businesses determine campaign success and allocate resources effectively. S Sales Qualified Lead / Marketing Sales qualified leads are vetted prospective customers ready for sales engagement. They show strong purchase intent, evaluated by factors like budget, authority, need, and timing. T Total Addressable Market / Marketing Total addressable market (TAM) is the full revenue potential for a product or service in a market, assuming complete penetration. It helps assess growth, prioritize markets, and guide development with a focus on maximum theoretical demand. W Word-of-mouth / Marketing Word-of-mouth is trusted marketing based on shared experiences, recommendations, and opinions about products or services. It can be organic or encouraged through programs and reviews, influencing others through personal or online interactions.