Commonly used vocabulary in Tech Sales

In today's rapidly evolving tech sales landscape, effective communication is essential. This document serves as a valuable resource, providing a comprehensive collection of commonly used vocabulary and terminology in the field of technology sales:

Okay, guys. So let's go over some of the commonly used vocabulary in tech sales. By the way, this is a document that you, you know, you're gonna be able to download and save into your computer, feel free to study it, But make sure that you have a clear understanding on what these words mean because, you know, these are commonly used words and the tech sales industry, and you wanna know, you know, what they're talking, you know, when when someone says those words, what what they mean. Right? So let's start by sales funnel as we saw, and you guys also saw in your individual trainings of the CRMs.

A funnel is the stages through which potential customers move as a progress towards a purchase.

So they probably start at the top of the funnel where they have really no idea what your company does until they receive an email. And after receiving that email, they probably move into a a, a a part of a of of a funnel where they've seen your email. They might be interested. They might not be interested. They either don't react to it and stay there or they move to the next part of the funnel, which is probably a demo booked. Now you're gonna move them by either calling them sending them an email, etcetera, etcetera.

Let's go through lead. A lead is a potential customer who has shown interest in your product or service. We already went through this initially, a, let's say, a, a potential customer, sorry, let's say, you start your funnel with a contact.

And then that contact, you know, turns into a lead if there is interest in your product or service.

A prospect then is a lead who has been qualified as a potential buyer. So this is an action that your account executive makes. They qualify them as a potential buyer. Right, pipeline. Pipeline is a visual representation of the sales process that includes all the leads and prospects, being pursued by a sales team, a pipeline usually has a value. So let's say our pipeline is worth one point two million dollars right now based on the prospects and the leads, that are that have been qualified in, in the potential, let's say, package that we can sell to them.

Qualification is the process of determining a lead is likely to become a paying customer.

So it's, it's a problem that usually, an account executive has to follow, that initially won't be a responsibility that you will have to take on.

A discovery is the process of learning more about the its needs and requirements. This occurs in a demo, which is what you essentially book, for an account executive, and that's how you earn your commission bonuses, right? By actually booking discovery calls.

Pitch, a pitch is a presentation that explains the features and benefits of a product or service. Probably when you enter to your company, they're gonna give you a pitch or they're gonna give you a cold calling script to explain the features and benefits of your service or product to the company that you're trying to get on a call with your account executive.

An objection, an objection is initial or concern raised by prospect that prevents them from making a purchase. We're gonna go this we're gonna go over this in future modules where we're gonna explore typical objections from, something as simple as I'm not interested to something more complex related to the specific situation of your potential client. A close, it closes the process of finalizing a sale. Right?

The most exciting part of the process, either you close a deal or you do not close a deal. What is an upsell? An upsell is the process of convincing a customer to buy additional or more expensive products once they are already a customer So think about when you, let's say, purchase, you, you go to the store, right, and you only wanna purchase let's say something very cheap. Maybe let's say a hat that's worth five dollars.

Once you purchase it, the, the sales assistant that was helping you, shows you maybe another feature, another, another element that could go nice with the hat. So if the hat is green and they have maybe a bracelet that screen as well. They try to convince you into buying an additional element. And that's something that you don't have to do at this stage, but it's important for you to know.

Because you're gonna be better prepared. Right? Cross selling. Cross selling is a process of convincing a customer to buy complimentary products.

So it's similar to upsell in in the sense that you're convincing them to buy more products, but it differs in the sense. It differs in the sense that you are convincing them to buy specific, complementary products to the, to the, to the product that they already bought. Right? What is a churn or churn?

Turn is the rate at which customers stop using a product or service. This is important because let's say that your SaaS company has let's say, a churn rate of twenty percent per year, that means that every year, twenty percent of our customers decide to leave. Right? Retention, the process of keeping customers engaged and satisfied so that they continue to use a product or service.

The same example. The company has a retention rate of a hundred percent. That's great. In the past ten years in business, no one has left.

Right? Customer success, the practice of ensuring that customers achieve the desired outcomes from using a product or service.

It's important to have a healthy practice of customer success so that your your customers are happy, but that's not your responsibility. You know, your responsibilities to follow guidelines, essentially.

What what is account management? Account management is the process of managing relationships.

With customers to ensure they are satisfied and continue to use a product or service. That is something that you do, at the beginning, you ensure that they're happy and satisfied so that they, become, an open and account. So it, it, that could be you know, that, that could be account management, what you're gonna be doing, but essentially account management when they're already customers, that's handled by the account executive.

ROI return on investment. That's essentially what you make out of, you know, investing in something, right?

SaaS, you're gonna be working in a company that offers software as a service.

Software as a service is a software delivery model where the software is hosted in the cloud and accessed access over the Internet charged as a subscription on a monthly or yearly basis. So the company that you're gonna be working for, essentially offers a monthly or yearly program where their clients are able to access their platform or their technology. Right?

Customer relationship management is the software used to manage interactions with customers. CRM, we already went to it. Business to business, B2B.

Companies that sell products to other businesses.

B2C are companies that sell products to individual consumers.

So business to business, you can think of well, actually, I don't have an example of an example, right, out of the top of my head. But business to consumer, you know, it's it's probably companies that you that that access that you access the most when you go to, let's say, Walmart a business to consumer company or, let's say your typical, clothing store, that's a business to consumer company.

KPI key performance indicator. That's a metric used to measure the success of a particular process of activity.

Market marketing qualified lead. It's a lead that has shown a higher level of interest in a product or service. Those are leads that come through a marketing channel, and they already know what your service is about. Sales qualified lead, a lead that has been qualified as a potential buyer. So that's, as again, that's that's a qualification that, your account executive does, not yourself.

Closing ratio, the percentage of leads that result in a sale. Right? So out of a thousand leads, let's say, maybe five percent of them bought. Right?

Commission, the part that you like the most, the percentage of a sales that is, of a sale that a sales person earns as a commission. But in, in your case, you're gonna earn commissions per appointments booked. So the more appointments that you book, the more money you're gonna make. Cold calling, the practice of reaching out to potential customers who have not shown prior interest in your product or service.

Essentially, when when the customer hasn't seen anything of your company and you call them, trying to get them on the phone and trying to explain what you do. Warm calling is more close to what you're gonna be doing. It's the practice of reaching out to potential customers who have shown was shown level of interest in your product or service. So let's say you've sent an email to them. And, Let's say they they saw the email, right? And maybe they haven't even shown interest in your product or service.

But, but, they they've at least seen an email, and they know what you're talking about. Right?

Sales cycle, the length of time it takes to convert a lead into a paying customer. So let's say that, it takes five months for your company to convert a lead a paying customer, right? Sales cadence, the frequency and method of outreach used to engage with potential customers.

So, you know, a cadence consists of several actions. It's usually emails and calls, but maybe you can include something like a personalized LinkedIn outreach task in there as well. Sales pitch deck. Sales pitch deck that is essentially your PowerPoint presentation that highlights the key features and benefits of a product assurance.

A playbook A playbook is the process and strategies used by the sales team to, you know, essentially make more money.

Sales enablement is a process of providing sales teams with the resources and tools that they need to close, that they need to have, to close more deals.

Sales automation.

Sales automation is the use of technology to automate repetitive sales tasks and streamline the sales processes.

Account based marketing.

Account based marketing is a marketing strategy that targets specific accounts for companies with personalized campaigns.

Customer acquisition costs, the cost that your company inquire inquirers to acquire new comp or new customers. So let's say they they have to spend a hundred dollars a new customer that is gonna bring them two hundred dollars in, in, in a sale, right? The lifetime value, the total value of a customer that is expected to generate over the course of the relationship with the company.

Sales forecasting, the process of estimating future sales based on historical data and market trends.

Sales quota. This one is very important. This is a specific target set for individual sales rep or teams to achieve within a given time period. In your case, you're gonna have a quota of appointments booked. So your your company is gonna tell you, listen, every quarter, you're gonna have to book a certain amount of demos.

If you surpass those demos, you're gonna be able to make more money. If, you know, you failed to book the amount of demos made, then you're gonna be in trouble, essentially.

Sales pipeline management, the process of tracking and managing the various stage of the sales processes.

Sales prospecting the practice of identifying and reaching out to potential customers who may be interested in your product or service, essentially what you're gonna be doing. Sales velocity, The rate at which sales are generated over a given period of time.

Deal size, the monetary value of a sales opportunity. Sales objection handling. Again, the practice of addressing objections. We're gonna study this in the future of, of, you know, the, the future modules of the, of the boot camp.

The conversion rate of sales, the percentage of leads that ultimately to result in a sale. And the follow-up, as I said, one of the key elements to being successful in in this game is following up as much as you can in order to close either an appointment booked or a sale. Okay, guys, that's it. Make sure to download this document, study it and have it saved in your computer.

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