The culmination of Tech Sales has brought significant changes in the lives of the masses. Terms like CRM, convertible leads, inbound and outbound marketing, etc., are known only by a few, but people are interested in learning these B2B-related concepts. While learning a new language, the first thing we are made to do is understand the ABCs of it. Likewise, Tech Sales requires individuals to acquaint themselves with its terminologies to derive the maximum output. The Software Sales industry has some terms similar to the offline market, though not all. This article will help you dive deeper into the ABC of Tech Sales and ensure your growth as a SaaS business operator.
Tech Sales Terminologies
Understanding Tech Sales fundamentals is a prerequisite for establishing any business. A long learning curve is needed to learn the basics of B2B sales and marketing. For starters, we have a full-fledged list of all terminologies regarding the world of B2B Sales. Walk through the A to Z of Tech Sales to comprehend the basics of the SaaS industry in the most uncomplicated manner:
1. A- Annual Recurring Revenue
‘A’ stands for Annual Recurring Revenue which indicates the monetary value of a company’s yearly subscription. ARR is a normalized metric that reflects the value of revenue generated by various business pricing plans during 12 months. It also helps estimate the total profits accrued by a business annually.
2. B- B2B
B2B is short for business-to-business and refers to the commercial transaction between two business entities. Such a transaction occurs between operators with a product, information, or service that another business requires. It focuses special attention on long-term objectives along with customer relationship-driven transactions. It is essential in today’s virtual marketplace because every Tech Sales company must buy something from another to diversify and grow.
3. C- CRM
CRM is an acronym for Customer Relationship Management. It is a software system in the B2B marketplace that assists Tech Sales executives in managing company relationships with every client and prospect. CRM serves the purpose of strengthening business relationships. It helps build long-term relations with customers by tracking their data efficiently. By sorting, analyzing, and observing customer data, CRM allows SDRs to focus on the core aspects of their SaaS business.
4. D- Decision Maker
Next up on the ABC list is ‘D,’ which stands for Decision Maker. In the SaaS industry, a decision maker is someone with the ultimate authority to make decisions regarding purchasing a certain product or service. This qualified individual belongs to the buyers’ side and can be a C-level executive responsible for approving purchases.
5. E- Enterprise
The million-dollar SaaS industry opens doors for new startups, small businesses, etc., to seal deals with big businesses. You need not have a thriving SaaS business in order to collaborate with enterprises. Even basic Tech Sales can result in enterprise Software Sales when the stakes are high. The SaaS industry empowers individuals to take greater risks, sign multiple-year contracts, and partner with big businesses.
6. F- Forecasting
Nowadays, Software Sales can be forecasted because of the surge in technology. Forecasting enables SDRs to calculate aggregate revenue yielded in the coming weeks, months, and so on. The phenomenon is highly useful as it allows companies to predict the future requirements of resources and allocate or redistribute them accordingly. Tech Sales forecasting offers a data-driven approach to estimating short-term and long-term revenue generation.
7. G- Gatekeeper
The letter ‘G’ stands for Gatekeeper, a professional responsible for controlling information access from one end to another. The gatekeeper in the B2B marketplace stands between the seller and the prospect. Mostly, large businesses and enterprises hire gatekeepers who fix their meetings and appointments with qualified sellers. You must be proactive while approaching clients and positively impact gatekeepers to deliver your message.
8. H- Heat Maps
Heat maps are analytics tools businesses use to represent their crucial data in a visual format. Instead of displaying company information in the traditional numerical format, you can summarise your data via heat maps. The two-dimensional, graphical heat maps use colors to distinguish between variables. Such tools enable a simple understanding of complex data sets by presenting information clutter-free.
9. I- Inside Sales Rep
The next alphabet, ‘I,’ stands for Inside Sales Rep, an individual accountable for conducting market research, customer outreach, and pitching products. An SDR is expected to understand the challenges faced by prospective customers and provide them with constructive solutions. The sales rep can connect with clients through varied channels like LinkedIn outreach, cold calling, or sending cold emails. SDRs are the first point of contact in the long sales cycle and can have either a value-driven or feature-based approach toward B2B.
10. J- Journey
The journey of being in Software Sales is dissimilar to other career paths. The B2B sales cycle begins with leads research. Hereafter comes prospecting, lead qualification, pitching ideas, negotiations, closing the deal, and finally, the cycle ends with a follow-up. In this Tech Sales journey, an SDR is the first touchpoint. The inside sales rep is responsible for outreaching and prospecting clients alongwith lead qualification. SDRs generate awareness among buyers about their business model and guide prospects through the sales funnel.
11. K- KPIs
Key Performance Indicators measure the performance rates of individuals and departments for attaining particular objectives. KPIs enable your teammates to be involved in important business processes. These indicators ensure that the company is dedicated to working towards achieving the desired goals. KPIs are key to every B2B activity as they prompt company individuals to make prudent decisions.
12. L- Lead Generation
A Tech Sales-related alphabet series is incomplete without discussing the lead generation process. It aims to capture customer interest for a specific product or service and later convert them into potential buyers. Leads refer to individuals who have exhibited an interest in your services in the past. During lead generation, you identify the target leads for starters and then strategically convert them into prospects.
13. M- MRR
MRR is an acronym for Monthly Recurring Revenue and is the anticipated revenue generated by the company every 30 days. It is a normalized method of predicting monthly income, giving businesses a competitive advantage over other companies. The MRR system permits companies to run on a subscription-based model wherein pricing tiers can be created to suit several SaaS business levels.
14. N- Nurturing
Lead nurturing is crucial to every business, big and small, as it reflects a company’s performance and how relevant it is in present times. The lead nurturing mechanism includes lead scoring, email marketing, website optimization, etc. SDRs are responsible for nurturing prospects and improving customer retention rates by selecting contacts from the database. They leverage automation by creating a great content marketing strategy. After sending personalized emails and messages to prospects, SDRs rank the leads and follow up with them.
15. O- Opportunity Pipeline
Opportunity Pipeline provides information regarding the total number of converted opportunities, opportunities in percentage format, multiple positive and negative opportunities, etc. It is accountable for the opportunity management process and helps SDRs to focus on opportunities with a better scope. A comprehensive series of steps helps an opportunity to convert prospective clients.
16. P- Prospect
‘P’ stands for Prospect, an individual or a buyer company that qualifies the eligibility criteria of a seller to become a potential customer. In Tech Sales, you can become a prospective client only when you match the ideal customer profile of the respective business brand.
The criteria for selecting potential customers and convertible leads differ across all SaaS businesses.
17. Q- Quota
A Software Sales quota is the targeted or expected performance of the business operators. These strategies enable businesses to achieve the set goals within a specific time span. Quotas inspire companies or sellers to keep striving till they accomplish their desired goals. It also enables Tech Sales reps to overcome frustration by being a constant source of satisfaction.
18. R- Revenue
R stands for revenue or the income received by the enterprise from advancing its services or selling products. Businesses acquire many different methods to augment their B2B Sales and thus yield greater revenues. The revenue generated by closing multiple deals drives the companies to provide better client services.
19. S- Sales Pipeline
A sales pipeline in B2B is a powerful tool to convert qualifying leads into prospects. It comprises the various stages of Software Sales in a pictorial format. The sales pipeline is an organized method to track your performance in the B2B marketplace. It also measures the progress of potential clients as and when they move across different stages of purchasing products from the SaaS industry.
20. T- Target
Target in Tech Sales refers to the goal set by the respective company to measure the number of B2B sales, closed deals, revenue generated from them, etc. It is a metric to analyze the total products or services a company must sell to accrue certain pre-decided profits. Software Sales target enables SaaS businesses to improve efficiency and augment the team’s productivity and vitality.
21. U- Upselling
The ‘U’ in this alphabet series stands for Upselling by the companies. The SDRs must build a strong customer relationship and reveal the add-ons or upgrades in subsequent stages. SaaS Businesses often acquire this strategy to maximize profits and augment their revenue rates.
22. V- Value Proposition
The value proposition is a component of Tech Sales that summarises the whole need for a customer to purchase a commodity or service. Assigning value to your services in relation to your competitors’ services is essential. Value Proposition lets the world know what is unique about your business. It determines how your service stands out from other products in the crowded B2B market. The value proposition tool is important for maintaining the integrity of any company and expanding its customer base.
23. W- Whale Account
If you are in the B2B market, you certainly enjoy taking risks. Whales are prospective buyers that outgrow your usual average clients and are even larger than enterprises. Spotting whale accounts in the SaaS industry is a rare phenomenon. Companies have to go the extra mile to capture such expensive leads. Even though landing on a whale account is full of perils, it generates extremely high returns.
24. X- XML
XML is the abbreviated version of Extensible Markup Language. The primary function of this tool is to describe data to the target audience in a structured manner. XML provides format flexibility while tailoring the data required to encode document and transaction-related information. It allows users to create content once and for all and use it repetitively in various formats.
25. Y- Year End
The letter ‘Y’ indicates the year-end, the end of any organization’s fiscal year. The accounting year is 12 months and may vary from the traditional calendar year. The year-end is different for every business according to the requirements and diversification of each of them. A B2B organization must keep track of its fiscal year to prepare accurate annual financial statements.
26. Z- Zohort
Finally, we have Zohort, a platform that aims to guide the youth toward a path of accomplishment and success. It is a potential platform for polishing individuals’ skill sets and developing their SDR profiles. The experienced mentors at Zohort leave no room for doubts and explain all concepts in-depth. Their excellent training program makes learners well-equipped with Tech Sales which is also apparent in their 100 percent placement success.
If you desire to reach new heights in B2B Sales, you have landed on the right page. We have tried to simplify the ABC of Tech Sales for easy understanding of the readers. Although there is no particular algorithm to ace your SaaS business, you must acquaint yourself with the basic Tech Sales terminology. The above alphabet series is the ultimate guide you need to become a tech-savvy individual and kickstart a flourishing Tech Sales business at the earliest.