understand the main terms of the area – WAU
Keeping up with the terms used in a given area is essential to optimize your communication with customers and coworkers. In this article, you will know the main terms related to Inside Sales and understand their meanings!
If you have some knowledge in the commercial environment, you have certainly heard of Inside Sales.
The method, which seeks to bring the entire sales process into the company, aims to optimize employee time and productivity management, focusing on developing the best approach to win the customer.
Its use is booming in London. According to 65% of the companies interviewed for the Inside Sales Benchmark Brasil 2018, this is their main sales channel. This represents a growth of 8% in the period of one year.
But, to understand and use this technique well, you need to know its terms. With that in mind, we have created this Inside Sales glossary. Next, you will learn about the main expressions in this methodology and their meaning. Follow!
Widely used in Inbound Marketing strategies, this term refers to the first stage of the sales funnel, when the objective is to attract the potential customer to the company’s content.
The attraction is made through several techniques, which have the ultimate goal of converting the visitor into a lead.
Refers to a methodology created to qualify sales opportunities. The word BANT is an acronym that brings together 4 items, of which the client must gather at least 3 to be considered qualified. Are they:
- Budget (budget);
- THEuthority (authority);
- Need (need);
- Time (time).
The lead base is the list that gathers all the contacts of a company. Leads can be in email, phone, or any other contact information.
Acronym for Business Development Representative, which can be freely translated as “business development representative.”
The term refers to the sales professional whose main objectives are find new business opportunities and ensure compliance with established goals.
It is the name used to designate a company that has stood out and achieved the benchmark in the market.
Benchmarking is crucial for analyzing the external factors of a business. It is the act of comparing processes and performances between your company and others that are considered references in the same sector.
In other words, it is an assessment of competition.
It is one of the first stages of a company’s business process. Through pre-established questions, crucial information about the business and the customer’s problems is obtained.
From there, it is possible to put together a sales strategy with the potential to make an impact.
One of the most important metrics for assessing the effectiveness of a strategy, CAC is the acronym for Customer Acquisition Cost – or Cost of Customer Acquisition.
Calculating CAC is a way for managers to understand how much needs to be invested to acquire a new consumer.
In literal translation, it means “connection”. Within an Inside Sales strategy, the term is often used to refer to calls made to meet and talk to potential or existing customers.
Often described simply as a bounce rate or cancellation fee, Churn refers to the percentage of customers who leave the company’s services in a given period.
The sales cycle starts at the moment of the customer’s first contact with the company and extends to the post-sale period.
When observing each cycle, it is possible to define the average time required for a successful negotiation. The shorter the sales cycle, the greater the efficiency.
It refers to the development of some skill. In the case of Inside Sales, it seeks to work on the attributes of the seller, so that he can perform his function with greater quality and efficiency.
Literally translated as “cold call”, it is a communication made by the seller with some potential customer who has not shown any prior interest in the products or services offered by the company.
Cold calls hardly bring any kind of positive result.
It is the word used to refer to companies that are customers of other companies, as in the B2B business model.
It is very common among agencies that provide marketing, for example.
Acronym that stands for Customer Relationship Management or, in London, Customer Relationship Management.
With a direct impact on sales and marketing strategies, CRMs are software that facilitate the registration and registration of customer information. They allow for greater ease in controlling interaction with contacts.
Cross sell is a strategy that seeks to sell other products or services to customers who already do business with the company.
Can be complementary or exclusive offers. The goal is to present new solutions in order to have a positive impact on the consumer experience.
Another acronym for an English term: Call to Action – literally translated as “call to action”.
CTA is used in digital marketing to encourage people consuming some content to take action (call, buy, contact, etc.).
It is the English word that translates to “negotiation”. Deal is used to refer to a business that is being worked on or has already been closed by a seller.
Negotiations that have not yet been opened are not treated as deals, but as prospects.
Sometimes, the customer decides to reduce the value of the plan or service previously agreed. This action is called a downsell.
As the name suggests, the accordion effect is the act of constantly moving the sales funnel. That is, working on a specific part of the funnel very intensely in a short time.
It is the rating that a prospect receives to determine that it fits the criteria established for the company’s ideal customer.
If a lead is considered fit, it means that him fits the profile that your sales team is looking for.
Do you know when you close a deal and get in touch with the customer to receive feedback or just to keep the communication open?
This process is called follow up, and it is essential to establish a good relationship with the consumer.
The forecast seeks to predict how many new transactions can be completed in a given period.
To achieve this result, salespeople’s performance, customer characteristics and open opportunities in the sales funnel are taken into account.
It is the graphic representation of consumer journey, from the moment you have your first contact with the company until the time of purchase decision. The funnel has 3 steps:
- top: attraction;
- medium: consideration;
- background: decision.
Remember that the sales funnel has 3 steps? Passage triggers generate the necessary conditions for the lead to advance from one stage to the next.
ICP is the acronym for Ideal Customer Profile, which is translated into London as “profile of the ideal customer”.
With the ICP well defined, it is possible to focus on strategies and content generation to impact the audience that best fits the profile.
Also known as “attraction marketing”, the idea of this strategy is to make the customer find the company, instead of the other way around.
To achieve this, SEO and content marketing techniques are used.
Derived from Inbound Marketing, this methodology seeks to make sales teams receive generated and qualified leads, usually coming from digital marketing strategies.
It concerns the 4 steps that consumers go through in an Inbound Marketing strategy. Are they:
- learning and discovery;
- recognition of the problem;
- consideration of the solution;
- buying decision.
Key Performance Indicators are the indicators defined by the company to measure the efficiency of its strategies in the search for a pre-established goal.
It refers to the person who shows some kind of interest in the products, services or content made available by the brand.
The lead is generated after some type of first contact that generates information for the company, such as subscribing to a newsletter or downloading an e-book.
These are the contacts that have already made the first contact and have been validated by the marketing team. In other words, within the defined criteria, they have characteristics that place them within the ideal customer profile.
The raised hand refers to the moment when the lead is willing or interested to be contacted by someone from the commercial team. Identifying that moment is crucial to the success of the entire strategy.
In literal translation, it meanscustomer lifetime. It is a way of measuring and estimating the gains generated by a customer during the time of his relationship with the company.
They are used to determine the success of the strategies employed by the company. With metrics, it is possible to evaluate results, trends and behaviors related to different areas of a business.
Acronym for Marketing Qualified Leads, MQL refers to leads that have met the minimum prerequisites defined by the company to be considered qualified leads. At that moment, the lead moves from marketing to the sales team.
Acronym for Monthly Recurring Revenue, this is a metric that aims to present the amount of recurring revenue that the company will receive over a period of 30 days.
It is the technique used to feed the lead with information aimed at encouraging its progress through the sales funnel, bringing it closer to the moment of purchase decision. It is a practice widely used in email marketing strategies.
It is a modeled work environment for teams to find it easier to integrate.
Therefore, there are no walls or partitions. This also makes it possible to bring managers and other collaborators together, facilitating management follow-up.
Leads captured by an active prospecting system. They are very common when the company uses email lists or databases provided by third parties.
It is nothing more than the traditional marketing model. Advertising techniques are used by the company to offer its products and services to consumers, for example.
Unlike Inbound Marketing, this technique seeks to approach the customer, not attract it.
Unlike Inbound Sales, this technique does not deal directly with qualified leads. Therefore, it makes a more direct contact, without the lead being prepared and educated to receive the approach.
The persona is a semi-character who represents the ideal customer of a company. For its construction, demographic data and real characteristics of consumer behavior are used.
The use of the persona is essential to segment and optimize marketing strategies.
It is a ready speech that seeks to introduce a product or service to a potential buyer. It is developed based on the prospect’s needs.
Regarding the activity of searching for new leads and preparing them for the first commercial contact to be made.
Individuals or companies that have the potential to become customers of a brand, if the commercial approach is carried out in the most efficient way. The prospect is seen as the evolution of the lead.
Improvement opportunities that can be carried out quickly and cheaply, bringing a high level of benefits.
Focusing on quick wins gives the seller the possibility to offer solutions that can be quickly adopted by the consumer.
Acronym for Return on Investment or, in London, return on investment. ROI is nothing more than the relationship between the amount invested in marketing and the amount received in return.
Software as a Service is a business modality that guarantees the licensing or access to software through a monthly payment.
Acronym for Sales Accepted Lead, defines the lead that has already gone through the qualification process and was accepted by the sales team. The moment it is approached by the commercial team, it becomes SQL.
Skills required for an employee to perform a certain function efficiently.
SPIN selling is a methodology that seeks to indicate the right questions to be asked at each stage of a business process. It is separated into 4 topics:
- Nneed for solution.
Acronym for Sales Qualified Lead, is the lead that has been qualified, accepted by the sales team and demonstrated real interest in investing in the company’s services to solve your problem.
Conversion rate is the percentage that indicates the number of conversions achieved, either in the sales sector or in the marketing sector.
Conversions can be visitors who filled out a form or leads who made a positive buying decision.
Represents the average amount that customers spend on purchases at your store, whether physical or a e-commerce.
The value is determined by the relationship between the amount generated by sales and the number of consumers who made a purchase.
Unlike downsell, it occurs when an existing customer decides to invest in more products or services, increasing the amount invested monthly.
It is a concept in which the salesperson acts as a consultant. Together with the customer, he performs a diagnosis and defines whether the product or service offered is really the best solution.
It is nothing more than the lead who completed the purchase process and purchased a product or service. The term “won” is widely used within CRMs.
Regardless of the stage of your relationship with the internal sales methodology, understanding the meaning of the main terms related to the technique is essential for its more efficient use.
With this Inside Sales glossary in hand, you will have an easier time communicating with customers and employees involved in the process.
So, did you know all the terms presented or did you find some news? Do you really want to know everything about Inside Sales? Take a look at this course offered by Websites Are Us University!