Discover the meaning of 78 terms in this complete SaaS Glossary! – WAU

The acronym SaaS stands for “software as a service” (Software as a Service, in English). It is a differentiated model of distributing and selling software, based on subscriptions. As it is a market that has gained more and more evidence, if you are interested in investing in this type of enterprise or want to better understand the subject, it is very important […]

The acronym SaaS means “software as a service” (Software as a Service, in English). It is a differentiated model of distributing and selling software, based on subscriptions.

As it is a market that has gained more and more evidence, if you are interested in investing in this type of enterprise or want to better understand the subject, it is very important to know in depth the terms it contemplates.

Some have already been adapted for London, while others still keep the term in its original form – which makes it even more important to have a SaaS Glossary on hand.

In this post, we have gathered 78 terms of sales, marketing and metrics related to the routine of SaaS companies and that you need to have at your fingertips – or easily accessible on your computer or mobile device. Check out:

Index

THE

1. Sales accelerator

Tool used in order to boost sales. It has a similar function to CRM and marketing automation software.

2. PPC ad

They are the adverts in which amounts are paid per click (Pay-Per-Click.) to attract people to a blog / website.

3. Marketing automation

We can define how marketing automation the strategies adopted, by means of software, to put into practice tasks and activities in an intelligent, organized and efficient way, prioritizing important demands.

B

4. Backlog

These are the negotiated revenues, but which have not yet been agreed in the contract or which have not yet been accepted.

5. Billings

It is a recipe already confirmed and established in the contract and which should be paid soon.

6. Bookings

These are contracts closed over a certain period or that have undergone some type of change.

7. Burn Rate

It is the metric that calculates the time or speed that a company takes to “pay for itself”, that is, when it becomes profitable. It can also be said that it has reached break-even.

Ç

8. Cadence of sales

Sales cadence refers to the number of times that a manager / leader meets with his team or with a specific employee, in order to closely monitor the development and the results presented by the team in a given period.

9. Cash Collection

It is the payment or money transfer made by the customer.

10. Commission

Amount of money a certain salesperson or consultant receives for closing a sale.

11. Churn

The churn rate reflects the number of customers who canceled a service during a specific period of time. It is an extremely relevant metric for companies operating in the recurring revenue model.

Through constant monitoring and analysis of the churn rate, it is possible to see how the company is developing, whether it is growing or not, in addition to pointing out the size of the financial loss caused by the cancellations of that month, quarter or year.

12. Cold Calling / email

Through this prospecting technique, contact with the potential customer is made without having had any previous interaction with the seller. It is not highly recommended by the inbound methodology because of the low success rate.

13. Sales compensation

Also known as On-target earnings (OTE), in English, sales compensation represents how much a seller will receive if he closes a deal, considering the base salary and commission.

14. Customer Acquisition Cost (CAC)

Through the Customer Acquisition Cost or customer acquisition cost (CAC) you will get a sense of how much your company is spending to gain new customers.

15. Cost of Products Sold (CPV)

To calculate the Cost of Products sold, it is necessary to take into account any type of cost related to maintaining an active customer in the base, during a certain period of time.

16. Customer Lifetime Value (CLV)

It is a metric that represents how much revenue a customer will bring while he is active on a company’s basis.

To find out if the contract with a customer is being beneficial for a business, the ideal is that the CLV is compared with the CAC, that is, cost of acquiring customers.

If the value found for the CLV (or LTV, as it is also known) is far below, it is a sign that some changes need to be made in the strategy.

It is also common for you to find Customer Lifetime Revenue as another variation of the term.

17. Customer Success (CS)

Customer Success is the professional responsible for ensuring a good relationship with the client, guiding him and monitoring the progress of the strategies adopted, in addition to certifying his satisfaction with the product or service provided by the company.

18. Cost per click (CPC)

O cost-per-click is how much you’ll pay for each user’s click on an ad, such as Adwords.

19. Cost Per Thousand Impressions (CPM)

O CPM refers to the amount invested in an ad to reach 1000 impressions on a blog / website. It will depend on both the budget available to invest and the time required for the goal to be achieved – the shorter the time, the higher the cost.

D

20. Deferred Revenue

These are deferred revenues, that is, those that, despite the deal being closed, will be received in the future.

21. Display Advertising

It is advertising done online, through advertisements on websites and blogs, for example, in order to gain qualified and targeted traffic.

22. Downsell

When a customer has a certain package, but decides to reduce the amount of services provided by a company and, consequently, the monthly fee, this is called a downsell.

AND

23. Earned Media

When the public produces or disseminates any type of information about a brand, whether in word of mouth, in forums, publications on social networks, etc., this is called earned media, as the company “conquered” this advertising spontaneously.

24. Account executive

This is the professional responsible for managing and developing strategic accounts. Based on a market assessment, he is able to identify trends and propose new business opportunities.

F

25. Field sales

It is what we know as field sales. Despite needing a more expensive investment, this business model is still widely used. In it, the consultant or person responsible for the sale goes to the client to hold meetings as many times as necessary.

26. Cash flow

Cash flow consists of the circulation of cash in a company’s cash, regardless of whether it is a revenue or expense.

27. Sales funnel

During the entire process of buying / selling a product, the consumer goes through different phases, known as sales funnel.

To be successful in a negotiation, it is important to understand which stage of the funnel the lead is in, in order to adopt the appropriate approach and maximize the chances of success.

G

28. Lead generation

When you get information about potentials, in order to optimize the sale of your products and services, this process is known as lead generation.

29. Subscription management

It is the periodic monitoring of all customers and, consequently, their subscriptions and billing.

30. Gross Margin

Gross Margin or Gross Margin is the amount that a venture made after deducting business costs.

I

31. Inbound Marketing

Inbound Marketing is any marketing strategy that aims to attract people’s interest in

32. Inside Sales

Inside Sales it is the sales process carried out by an internal team. To contact the customer, the salesperson or consultant usually uses tools such as video conferencing software or telephone.

33. Sales Intelligence

We can consider as factors that are part of sales intelligence the strategic use of data, technologies, integration and analysis of information to support the salesperson’s performance.

L

34. Landing Page

Landing Pages are the pages created with the intention of offering something to the visitor of a website or blog. Its objective is to make them convinced and follow CTA’s guidance.

35. Lead

Lead is a potential customer, who after contacting your content, has shown interest in your product or service – either because you downloaded an e-book, made a registration, subscribed to the newsletter etc.

36. Lead share

We call lead quota the required number of leads or MQLs that must be recruited by the marketing industry during a certain period.

37. Lead velocity rate (LVR)

It is the analysis made, month by month, of the growth of qualified leads.

M

38. Account Based Marketing

Account-based marketing (ABM) or Account Based Marketing is a strategy that has been gaining more and more strength and that aims to act very close to the performance of the sales sector, seeking to nurture and integrate everyone involved in decision-making – be it during a sale, to achieve an upsell or avoid a churn.

39. Marketing & sales alignment

To ensure that the sale is successful, investing only qualified leads, an alignment agreement between the Sales and Marketing.

40. Content Marketing

Content Marketing it is a way to engage with the target audience and grow the network of customers and potential customers. This happens mainly through the creation of relevant and valuable content, attracting, involving and generating value for people, in order to create a positive perception of a brand and, thus, generate more business.

41. Multichannel marketing

It is the ability of the marketing team to communicate with the target audience through different channels and platforms.

42. Paid Marketing

These are the marketing strategies you adopt, in a paid way, so that your target audience reaches your blog or website.

43. MQL

Is the qualified lead, who carried out the raising of the hand, that is, who is polite, knows what he wants and is already prone to close deals with his company.

44. MQR

Professional who has the function of following the lead and by what type of content he is being influenced. It does not normally close sales.

45. MRR

It is through the Monthly Recurring Revenue or MRR that you can see how much a company will receive in a given month.

In SaaS-type companies, that is, Software as a Service, there is a constant search for maintaining the MRR and also increasing it over time, gaining new customers and upselling current accounts.

46. ​​MRR Cohort

MRR cohort contemplates customers who have similar characteristics and metrics, during an established period.

47. MSP

Minimum Sellable Product (MSP) is a strategy / tool widely used to reduce time-to-market, focusing exclusively on customer needs.

48. MVP

Minimum Viable Product or Minimum Viable Product (MVP) is the prototype launched for a product or service, in order to test its usability and customer experience.

N

49. Standardization of contracts

The normalization of contracts is done to make contracts similar or equivalent, aiming at the measurement and analysis of metrics – normally, MRR or ARR is taken into account.

50. NPS

NPS is the methodology used to assess how satisfied or not a customer is with your company. He can be classified as a detractor, passive or promoter.

51. Lead nutrition

Lead nutrition is the technique that, by means of strategic and automated sending of e-mails, aims to win over a user who has shown some kind of interest in a product or service.

O

52. Omnichannel marketing

It aims to make transparent, positive and integrated the interaction of the user or potential customer in any means of communication that he comes in contact with the company.

53. Onboarding

It is the initial phase of a customer in your company, in which strategies will be planned and adopted, in addition to guiding and helping the customer to better understand how your product or service can help you.

54. On-Premises Software

When you have your own server, installed and depending on IT resources within your company, this is called an on-premises system.

55. Sales opportunity

We can consider an opportunity to sell an SQL, that is, a qualified lead who has shown a real interest in purchasing your product or service.

56. Outbound Sale

The sale carried out by the outbound method is one in which the action starts, first, from the seller. Whether through cold calling, at events and fairs, telemarketing etc.

57. Conversion Optimization (CRO)

Through Conversion Rate Optimization or Conversion Optimization it is possible improve performance of a website, Landing Pages, Rich materials and CTAs, investing in assertive and intelligent strategies to increase traffic.

P

58. Ideal Customer Profile (ICP)

Is your client unable to improve metrics? Do you constantly complain about your deadlines and processes? The sale was probably made to a consumer who does not represent the ideal customer profile, that is, the lead does not fit with your company.

59. Pipeline

It is through the pipeline that it is possible to identify which stage of the sales funnel the consumer is in and, thus, adopt the best strategy to conquer it.

60. Product Market Fit

It is the product capable of meeting the needs of a specific market and meeting its demands.

61. Product Qualified Leads (PQLs)

They are customers who used a product or service for free and who showed an interest in evolving the account to the subscription mode.

62. Cash Flow Projection

Based on the Cash Flow, an estimate is made of how the money will move in the future of the company, considering inflows and outflows. For this, data and projections of a possible scenario are considered.

63. Prospect

Despite having a similar meaning to that of the lead, the prospect, despite having shown interest in his product or service, has not yet been sure that he wants to close a deal at the moment.

R

64. Rapport

Rapport is a technique widely used by salespeople to create a relationship with the consumer, demonstrating, through their actions, empathy with their need.

65. Average monthly revenue per customer

Also known as ARPA (Average Revenue per Account), this metric shows how much your active customers earn on average per month.

66. Annual Recurring Revenue (ARR)

We can call Annual Recurring Revenue (ARR) all revenues that are regular. For example, payment of isolated fees does not fit this metric.

67. Committed Recurring Monthly Revenue (CMRR)

Committed Recurring Monthly Revenue (CMRR) represents the contracted MRR, from the signing of the contract to a possible churn, and does not take into account non-recurring revenue.

s

68. SDR

SDR stands for Sales Development Representative also known as BDR, it is the professional responsible for making the first contact with the lead.

He must qualify you efficiently, in order to refer you to the commercial process already prepared and practically decided to close the deal.

69. Sales Development

The development of the sale is done by the Sales Development Representative (SDR) or, as it is also known, BDR (Business Development Representative).

The purpose of this function is to prepare the lead and make it as qualified as possible for the sale of the product or service.

70. Sales share

Sales target determined for each salesperson in a given period.

71. SEO

We understand as SEO (Search Engine Optimization) the strategies used to optimize a website, using specific keywords and, thus, contributing to a content that is attractive to personas and search engines.

72. Service Level Agreement (SLA)

To ensure that both sides of a negotiation comply with their parties and follow certain requirements, the SLA is signed.

It is widely used in companies across the sales and marketing sectors.

73. SQL

Sales Qualified Leads (SQLs) are those who have accessed rich content, can already be considered qualified leads and, therefore, move on to another phase of the sales process.

T

74. Customer renewal / retention rate

It is the number of customers who renewed the service with your company after ending the period defined in the contract – this can happen automatically or not.

75. Time to pay back

It is the time that your company takes to recover the capital invested in the business.

76. Time to value (TTV)

It is the metric that measures how long it takes for the consumer to be able to understand the need for a product or service. The shorter this time, the better it will be for the company.

U

77. Upsell

If your customer updates the contract to include other services or improve the plan used, therefore increasing the amount paid monthly, this is called an upsell.

V

78. Annual Contract Value

This metric (Annual contract value) indicates the average value of annual contracts.

We hope that with this material you have expanded your knowledge of the SaaS companies’ market and that, thus, you will be able to have insights to develop your own business!

Now that you have your own SaaS Glossary, check out this post and learn how to make a style guide for your company!