Glossary

Glossary

Docs / Glossary

Account-Based Marketing (ABM)

A strategic approach to business marketing in which an organization targets specific accounts with personalized campaigns, treating individual accounts as markets in their own right.

Aging Cohort

Aging Cohort is the current age bucket that a deal is in, as determined by the Aging Schedule. It is used to gain an objective view into the performance of sales teams and monitor their progress over time.

Aging Schedule

An Aging Schedule is a data model used in PRO that tracks and analyzes the age of deals over time. It is designed to provide insights into the typical timeline for a deal to win in the sales cycle. The Aging Schedule allows sales teams to optimize their performance and increase the probability of closing more deals.

Annual Recurring Revenue (ARR)

The value of the recurring revenue components of your subscriptions normalized to a one-year period. Commonly used in SaaS and subscription-based businesses.

Business Intelligence (BI)

Technologies, applications, and practices for the collection, integration, analysis, and presentation of business information. The objective is to support better business decision-making.

Churn Rate

The percentage of customers or revenue lost over a specific time period. Lowering churn rate is crucial for maintaining growth, especially in subscription-based businesses.

Customer Acquisition Cost (CAC)

The cost of acquiring a new customer, including expenses on marketing, sales, and any advertising efforts.

Customer Lifetime Value (CLV, TLV or ALV)

The total revenue a business can reasonably expect from a single customer account throughout the business relationship.

Customer Relationship Management (CRM)

Software used to manage a company's interactions with current and potential customers. It helps track sales, marketing efforts, and customer service activities.

Deal

A qualified sale opportunity or potential in the pipeline

Deal Flow

The rate at which new sales opportunities are entering the pipeline.

Funnel

The multi-stage process that prospects go through from the first interaction to becoming a customer. It typically includes stages like awareness, consideration, decision, and purchase.

Ideal Customer Profile (ICP)

A detailed description of the type of customer that would benefit the most from a company’s product or service. The ICP includes characteristics like industry, company size, revenue, geographic location, and specific pain points, helping businesses focus their marketing and sales efforts on high-value prospects.

Key Performance Indicators (KPIs)

Measurable values that indicate how effectively a company is achieving key business objectives. Common RevOps KPIs include CAC, CLV, churn rate, and sales cycle length.

Lead Scoring

A methodology used to rank prospects against a scale that represents the perceived value each lead represents to the organization. The resulting score is used to prioritize leads.

Marketing Qualified Lead (MQL)

A lead judged by the marketing team to be high enough probability to win to be added to the CRM for follow up by the sales process.

Net Promoter Score (NPS)

A customer loyalty metric that measures the likelihood of customers to recommend a company’s product or service to others.

Predictive Analytics

Techniques that use historical data to predict future outcomes. In RevOps, predictive analytics can be used to forecast sales, customer churn, and other important metrics.

Product Market Fit (PMF)

The degree to which a product satisfies a strong market demand. Achieving product-market fit means that the product has been validated by the target market, indicating that the business can scale efficiently. It’s often considered a critical milestone for startups and new products.

Revenue Attribution

The process of identifying which marketing channels or sales activities are driving revenue. This helps businesses optimize their investments and strategies.

Revenue Growth Rate

The percentage increase in a company’s revenue from one period to another. It’s a key indicator of business health and growth prospects.

Sales Cycle

The length of time it takes to complete a sale from initial contact with a prospect to the closing of the deal. Understanding the sales cycle is crucial for forecasting and strategy.

Sales Cycle Distribution

The period when deals typically win within the total sales cycle, either early, middle, late or multi-modal. The period when a company wins their deals has an impact on sales process and win probabilities.

Sales Pipeline

The process of moving sales from beginning to end through a defined sales process. It includes various stages such as lead, opportunity, proposal, and closed (won or lost).

Sales Qualified Lead (SQL)

A lead vetted by the sales team and deemed ready for the next stage in the sales process, usually direct sales engagement. In PRO, a Qualified Deal is synonymous with a SQL

Silos

Situations in which different departments or sectors of an organization do not share information, goals, tools, priorities, and processes with other departments. Reducing silos is a key objective of RevOps.

Total Addressable Market (TAM)

The total revenue opportunity available if a product or service achieved 100% market share. It’s a key metric for understanding market potential.

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