The world of sales is always evolving, and so is the industry lingo. Here’s a helpful list of important account based selling terms so you can stay on top of industry trends — and maybe even impress your team!
1. Account Based Everything (ABE)
Industry definition: It is a strategic approach which involves the orchestration of personalized marketing, sales development, sales, and customer success efforts to drive engagement and conversion at a targeted set of accounts. (Source: TOPO)
What it means? This model offers content that is customized and targeted to suit your buyer’s specific industry, company, and persona. Using this approach will help in transforming how companies grow by bringing together sales, marketing, and support teams around a specific set of account.
2. Account Based Marketing (ABM)
Industry definition: ABM is a form of strategic marketing strategy that focuses on individual prospects or accounts within a specific market. It focuses more on getting a defined list of accounts rather than a large number of prospective customers. (Source: Techtarget)
What it means? ABM ultimately treats individual accounts as markets. This enables marketers to come up with tailor made campaigns and messaging to specific accounts that they are targeting.
3. Account Based Selling (ABS)
Industry definition: Account based selling is about being hyperfocused on selling to the organizations that you can help the most. By utilizing an ABS strategy and Groove’s ABS metrics, sales reps can now identify target accounts and increase conversion rates due to a more strategic outreach tactic. (Source: Groove.co)
What it means? A proven highly effective sales strategy where the rep is focused on engaging an account and multiple prospects to understand how to convert the account. It means that a specific list of accounts are assigned to reps to convert using more targeted and personalized messaging and tactics.
4. Buyer Persona
Industry definition: Buyer personas are research based representation of who your buyers are, what they are trying to accomplish, what goals drive their behavior, how they think, how they buy, why they make buying decisions, where they buy as well as when buyers decide to buy. (Source: Upwork)
What it means? Personas are derived from interactions and interviews from real customers or buyers . It is important to keep in mind that when you create customer personas, you pay attention to demographics and psychographics. This will allow you to be able to attract the most valuable visitors, leads, and customers to your business.
Industry definition: It refers to how much information you have gathered about a given account. Hence, it is a measure of quality and completeness.
What it means? So it tells you how many relevant contacts you have identified from that account, whether or not your database has the right people in it. How much relevant information have you gathered so far? Coverage measures the completeness of the research you’ve done.
6. Customer Acquisition Cost (CAC)
Industry definition: This means the cost to acquire a customer. To calculate: (spend + salaries + commissions + bonuses + overhead) / #of new customers during that time period. (Source: Kissmetrics)
What it means? It refers to the resources that a business must allocate in order to acquire an additional customer. It includes the total cost of sales and marketing efforts that are needed to acquire a customer.
7. Customer Churn Rate (CCR)
Industry definition: A metric used to measure customer retention and value. CR = (# customers at beginning of measurement period – # customers at end of measurement period) / (# customers at beginning of measurement period). (Source: Retention Science)
What it means? Your churn rate is the amount of customers or subscribers who terminate the use of your service , product or company during a given time period. These customers have “churned.”
8. Customer Lifetime Value (CLV/ CLTV/ LTV)
Industry definition: It measures the profit your business makes from any given customer. It can be calculated using LTV = ARPA * % Gross Margin / % MRR Churn Rate. The purpose of the customer lifetime value metric is to assess the financial value of each customer. (Source: SAAS Metrics)
What it means? CLV is an important metric that helps to determine how much money a company wants to spend on acquiring new customers and how much repeat business a company can expect from certain customers.
9. Firmographic data
Industry definition: “Firmographic” can be defined as the characteristics of a company such as type of organization, industry, technologies, number of employees, annual revenue, location, etc. (Source: TechTarget)
What it means? In other words, it is like ‘demographics’ but the focus is on companies and firms. It is typically used for researching accounts and developing ideal customer profiles.
10. Ideal Customer Profile (ICP)
Industry definition: It is a customer to whom your product or service adds value, but who, at the same time, also brings value to your company as well. (Source: Datananas)
What it means? They are the most valuable customers and prospects who are also most likely to buy. So they are the ideal client for your product.
11. Lead Velocity Rate (LVR)
Industry definition: It calculates your growth in qualified leads and pipeline month over month, every month. LVR= Qualified leads current month- Qualified leads previous month/ Qualified leads previous month*100. (Source: Hubspot)
What it means? LVR quantifies your business’ growth in terms of qualified leads. Moreover, it is real-time and not lagging. It clearly predicts your future revenues and growth.
12. Lead Yield
Industry definition: It is an example of Lead Measure.It is a sales metrics that can help you understand how much value you get in return for your investments at each stage of the sales pipeline. (Lead Yield = Sales Revenue / # of Leads Generated) (Source: Velocify)
What it means? This metrics helps to determine which customer segments are most valuable. Hence, it adds value to your account-based selling strategies.
13. Lead Scoring
Industry definition: It is a methodology used by sales and marketing departments to determine the worthiness of leads or potential customers by attaching values to them based on their behavior relating to their interest in products or services. (Source: Search salesforce)
What it means? Lead Scoring helps in defining an order of priority between the different prospects according to their interest in the company.
14. Lead Nurturing
Industry definition: Lead nurturing is term used for building relationships with potential clients even if they are not currently looking to buy a product or service. It also involves educating and maintaining regular contact with the prospective customer whose may be in the stage where they are not yet interested in your product. (Source: Technopedia)
What it means? A company can benefit most from lead nurturing when it has a potential list of client contacts and is able to communicate with each one on a personalized level. It can be anything from sending an occasional email letting the clients know about updates about changes in price of the product or service, updates about the product or service.
15. Marketing Qualified Lead (MQL)/Marketing-Qualified Account (MQA)
Industry definition: A lead that has met some criteria that identifies it as having enough potential to warrant attention from your marketing department. (Source: Act on)
What it means? A lead who is more likely to become a customer in comparison to other leads.Simply put, it is a lead that has shown some level of interest in your product/service.
16. Net Promoter Score (NPS)
Industry definition: It is a customer satisfaction metric that measures the probability of whether people would recommend your business to others. NPS is measured on a scale of 0-10, with zero being least likely to recommend and 10 being most likely. (Source: SurveyMonkey)
What it means? This means how likely a customer is going to recommend your company/product/ service to a colleague or friend.
17. Predictive analytics
Industry definition: It is the use of data, algorithms and machine learning techniques that helps to identify the likelihood of future outcomes based on historical data. (Source: SAS)
What it means? It helps in optimizing campaigns and website behavior to increase customer responses, conversions and clicks, and to decrease churn. This means that each customer's predictive score tells us about the necessary steps for the organization to take with respect to that customer.
18. SQL- Sales qualified lead
Industry definition: It is a prospective customer that has been researched and evaluated by an organization's sales team. (Source: HBR)
What it means? It means that they have an intent to buy a company’s product or service and has met the organization's lead qualification criteria that determines whether a buyer is a right fit or not.
Industry definition: Thisrefers to the technologies that are used by companies currently and it could also include those technologies that customers might be thinking about investing in. (Source: Wordnik)
What it means? Looking at technographic data when researching accounts and developing ideal customer profiles would be very useful for sales and marketing teams alike.
20. Sales Enagement Software
Industry definition: Sales engagement software involves the quality of outreach, the efficiency of prospecting activity, and the effectiveness of conversion efforts. Better sales engagement generates higher sales, a pretty straightforward correlation. (Source: CIO)
What it means? It will help your team systematize personalized outreach, track the result of the efforts made and assist team members to make better strategic decisions.
Want to learn more about ABS? See how Groove can help you.