Customer relationship management (CRM) is a form of corporate software that supports sales, marketing, and customer care teams in managing customer contacts and sales CRM activities. Its purpose is to help organizations manage and analyze customer interactions and data throughout the customer lifecycle.
Simply said, customer relationship management software is designed to improve your company’s customer relationships and increase revenue.
In the sales sector, various terminologies are used, and some language is misused even by professionals. Mastering every sales CRM term is a challenging endeavor, but it is critical for effective communication within your sales CRM team and CRM software.
CRM Glossary: CRM and Sales
You are not alone if you need help understanding customer relationship management CRM software. CRM software is a strong tool that may help small companies acquire and keep customers. If you are unfamiliar with CRM software or CRM solutions in general, it may be one of the most difficult tools to utilise.
The first step in mastering CRM software is to learn the language. Here are some of the most often-used CRM software buzzwords.
Terms and Acronyms in CRM solution
In CRM software, a sales CRM acronym stands for Attention/Awareness, Interest, Desire, and Action.
Annual contract value (ACV)
ACV, or annual contract value, is a statistic used in CRM solutions to assess the worth of a continuing client contract by averaging and normalising its value throughout a year.
Annual recurring revenue (ARR)
ARR, or annual recurring revenue, is a metric that shows how much money a firm earns on a recurrent basis from all of its subscription customers.
The BANT framework is a checklist that is used throughout the lead qualification process.
B = Budget
A = Authorization
N = Need
T = Time
Business-to-business (B2B) sales are those that take place between two companies.
Business to customer (B2C)
B2C sales take place between businesses and individual customers.
Bottom of the funnel (BOFU)
Prospects at the bottom of the funnel (BOFU) are about to make a purchasing decision.
Cold calling is the process of making an unsolicited phone call to a qualified lead in the hopes of turning them into a prospect.
Customer acquisition cost (CAC)
The cost of getting a new client, including all efforts to move them through the funnel.
Customer loss at a business. This happens in every company at some point, but it is vital to keep an eye on it.
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The amount of paying customers that do not return as repeat customers or cancel their subscriptions throughout a specific time period.
The ongoing development of a consumer’s relationship with a company includes more than just the purchase. Furthermore, being intentional and consistent in this respect gives value to every customer interaction, which builds loyalty.
A method for business owners to understand more about their customers and their actions. This is typically an accomplishment via the use of customer relationship management (CRM) software.
An initiative or activity whose intention is to foster relationships with prospects, leads, or current customers. It might include both marketing activities like emails and sales CRM campaigns like cold call outreach.
Clearly, a marketing strategy that creates high-quality leads by capitalizing on brand awareness and interest. Part of this is making business marketing communications sound more authoritative.
An email drip campaign is a type of automated sales CRM outreach. Following a specific action, a series of emails are automatically sent to a definite audience.
Key performance indicators (KPIs)
KPIs are numerical measurements that demonstrate how well a firm or individual employee is performing. KPIs are frequently referred to as objectives rather than mandates. As a result, frequent KPIs include annual growth, conversion rates, the number of cold calls conducted, and the number of things sold.
A lead is any potential customer who has a strong interest in your company’s products or services. Leads might be incoming (the client approaches you) or outbound (you contact the client) (you reach out to them). As a result, most organizations focus their efforts on generating outbound leads via marketing strategies, social selling, and ad campaigns.
The source via which a lead first learns about your firm. Social media accounts, search engines, recommendations, events, and ads are all examples.
Marketing-qualified lead (MQL)
A marketing-qualified lead (MQL) is one that fulfills the marketing qualification requirement but not the sales CRM qualification criteria.
Middle of the funnel (MOFU)
Prospects in the middle of the sales funnel are known as middle-of-the-funnel prospects (MOFU).
Monthly recurring revenue (MRR)
Monthly recurring revenue (MRR) is identical to annual recurring revenue (ARR). Except that it is in monthly tracking.
Net Promoter Score (NPS)
NPS is a metric in use to assess client loyalty. In reality, it is measured by a survey. Consumers, on the other hand, get a questionnaire on how likely they are to recommend the firm or product to someone they know.
An on-site CRM is one that is purchased and installed on a company’s server. This needs the acquisition of a license, and users can only access the data in specified areas via desktop programs.
A prospect is a lead who has had contact with someone at your company. Another CRM solution sample. Additionally, difference assists your sales CRM team in determining who has to be in contact first and who is formally at the beginning of the sales CRM pipeline.
Service level agreement (SLA)
A service level agreement (SLA) is often a contract between sales CRM and marketing that states one department’s expectations of the other.
Top of the Funnel (TOFU)
Prospects at the top of the sales funnel (TOFU) in a CRM solution are also at the top of the sales CRM funnel.
360-degree customer view
CRM software collects data from the various touch points a client may use to contact a company in order to obtain products and services.
Learn the definitions of the terms of the most important sale in order to comprehend Sales CRM solutions and CRM software, whether you’re a salesperson or a marketer. As a result, you’ll be able to interact more effectively with colleagues, allowing you to spend more time selling and generating profitable content.