A quick guide to some of the terms used in sales and CRM.
Account
An account is a record containing all the information about a current or prospective customer. BuddyCRM splits these into Accounts and Leads, respectively.
This record typically includes details like contacts, address, background information, all previous interactions with the company, including notes and emails, and possibly even personal preferences.
API (Application Programming Interface)
A set of rules and protocols for accessing a web-based software application.
AI (Artificial Intelligence)
The simulation of human intelligence in machines that are programmed to think and learn like humans.
Big Data
Large and complex datasets that can be analysed to identify patterns and trends.
Case Study
A case study is a detailed description of a real customer’s experience using your product or service.
They are used to showcase how you helped the customer solve their problems and achieve their goals including results where available.
Case Studies serve as social proof and help other prospective customers with similar issues see what they can get if they buy from you. The end goal of a case study is to inspire prospects to purchase from you based on the results of similar companies in relatable industries.
Related terms:
- A testimonial is a written or spoken statement in the form of a quote from an existing customer advocating for your product or service.
- Use case is a specific situation in which a product or service could potentially be used. Providing examples of these can help prospective customers imagine themselves using your product or service.
Churn
The rate at which customers stop doing business with a company.
Closed Sale
A closed sale refers to a lead that has turned into a paying customer for a company.
Cloud Computing
A model of providing computing resources, such as storage and processing power, over the internet on demand.
Contacts
Contacts are individuals connected to an Account who your company may conduct business now or in the future.
Customer Journey
The series of interactions a customer has with a company, from initial contact to post-purchase support.
Customer Lifetime Value (CLV)
The total amount of revenue a customer is expected to generate over the course of their relationship with a company.
Customer Relationship Management
Customer relationship management (CRM) is a company-wide practice for keeping track of all the business interactions with existing, past, and potential customers.
Related terms:
Customer relationship management software like BuddyCRM is used to collect information on all your past, current, and potential customers. In addition, it keeps track of all interactions with them across multiple channels and provides analysis on these to create actionable insights into your sales performance and consumer behaviour. The purpose of using CRM is to improve relationships, retain customers, and increase sales. Read more on What is CRM.
Data Mining
The process of extracting useful information from large datasets.
Garbage In, Garbage Out (GIGO)
GIGO is the concept that flawed or nonsense (garbage) input data produces nonsense output. In relation to a CRM, this is when data is imported to the database that has not been verified or checked thoroughly for duplicates, correct contact details, spelling mistakes, or worse.
Knowledge Base
A knowledge base is a self-serve online library of information about a product, service, department, or topic. In the CRM world, the knowledge base is often the centre of the support system allowing users to find information for themselves on their topic of interest. ie. how to send an email to a target segment.
KPI (Key Performance Indicator)
A measurable value used to track progress toward a business goal.
Lead
A potential customer who has expressed interest in a product or service, usually through a form or other contact. Leads will eventually become accounts if they purchase from the company.
Machine Learning
A type of artificial intelligence that uses algorithms to learn from data and make predictions.
Opportunity
This is a qualified lead that has been identified as having a high likelihood of becoming a customer. Opportunities can be managed in BuddyCRM through the opportunity management module and enter the sales pipeline
Pipeline
The series of stages a lead goes through before becoming a customer. Typically a salesperson will set up a series of stages that a prospect will work through before the sale is completed or ‘closed’. Each stage may be weighted with a certain amount of points out of 100. eg. Initial contact = 10, a positive follow-up phone call with the prospect may be worth 20, a request for a quote might be worth 20. This would be totaled (50) and indicate that the opportunity (lead) was half way through the pipeline.
ROI (Return on Investment)
A measure of the profitability of an investment, calculated by dividing the return by the investment.
SaaS (Software-as-a-Service)
A software delivery model in which the software is hosted by a third-party provider and accessed over the internet. BuddyCRM uses this method to deliver its CRM, access via browser or mobile app over the internet.
Sales Forecast
A prediction of future sales is often used to guide resource allocation and planning.
Sales Funnel
A visual representation of the sales process, from lead to customer.
Social Listening
The process of monitoring social media channels for mentions of a company, product, or service.
Webhooks
Webhooks allow you to send real-time data from one application to another whenever a given event occurs. For example, when an opportunity closes in your CRM and becomes a sale, automatically create an invoice to send to the customer from your accounting software.