B2B Sales Glossary
Master the essential revenue and financial metrics that drive B2B SaaS success. From ARR and MRR to retention metrics and customer economics, these terms are critical for understanding pipeline health, forecasting growth, and making data-driven decisions.
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Sales Methodology & Process
Discovery Call
An early-stage sales conversation that uses structured questions to understand a prospect’s situation, needs, and fit before moving to demos or proposals.
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Revenue Metrics & Financial Terms
Expansion Revenue
Additional recurring revenue generated from existing customers through upsells, cross-sells, add-ons, seat increases, or plan upgrades, excluding any revenue from newly acquired customers.
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Sales Performance Metrics
Forecast Accuracy
How closely actual revenue matches forecasted revenue across categories (commit, best case, etc.) for a given period.
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Revenue Metrics & Financial Terms
Gross Revenue Retention (GRR)
The percentage of recurring revenue retained from an existing customer cohort over a period, after churn and downgrades, but excluding any expansion, upsell, or cross-sell revenue. Also called Gross Dollar Retention (GDR) or Gross Renewal Rate.
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Lead Management & Qualification
Ideal Customer Profile (ICP)
An Ideal Customer Profile (ICP) is a detailed description of the company types and buyer personas that represent the highest fit, value, and profitability for a product or service.
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Revenue Metrics & Financial Terms
LTV:CAC Ratio
Compares the Customer Lifetime Value (LTV) to the Customer Acquisition Cost (CAC) to gauge the efficiency and profitability of customer acquisition efforts in B2B SaaS businesses.
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Lead Management & Qualification
Lead
Any individual or company that has expressed interest in a company's offering through marketing activities, inbound inquiries, or outbound prospecting efforts.
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Lead Management & Qualification
Lead Qualification
The process of evaluating leads against criteria like budget, authority, need, and timeline to identify sales-ready prospects worth pursuing.
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Lead Management & Qualification
Lead Scoring
A data-driven method that gives numerical scores to leads based on fit (demographics) and behavior (actions) to rank and prioritize sales-ready opportunities.
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Revenue Metrics & Financial Terms
Logo Churn
Measures the percentage of customer accounts (“logos”) that cancel or fail to renew their subscription over a given period, regardless of how much revenue each one contributes. Also called customer churn.
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Lead Management & Qualification
MEDDIC
A sales qualification framework (Metrics, Economic Buyer, Decision Criteria, Decision Process, Identify Pain, Champion) for qualifying complex enterprise deals.
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Lead Management & Qualification
MEDDPICC
A framework (Metrics, Economic Buyer, Decision Criteria, Decision Process, Paper Process, Identify Pain, Implications of Pain, Compelling Event, Champion) for qualifying $500K+ enterprise deals.
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Lead Management & Qualification
Marketing Qualified Lead (MQL)
A lead that has met specific behavioral and demographic scoring thresholds, indicating readiness for sales engagement.
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Revenue Metrics & Financial Terms
Monthly Recurring Revenue (MRR)
Predictable monthly revenue from subscriptions, a key metric for tracking revenue health.
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Sales Methodology & Process
Needs Analysis
A structured process for uncovering and prioritizing a buyer’s goals, challenges, requirements, and constraints to ensure the proposed solution truly fits.
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Revenue Metrics & Financial Terms
Net Revenue Retention (NRR)
Measures the percentage of recurring revenue retained from an existing customer cohort over a period, after accounting for expansion, downgrades, and churn, but excluding new customer revenue. Also called Net Dollar Retention (NDR).
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Sales Pipeline
Open Opportunity
Active opportunities in the pipeline that aren’t Closed-Won or Closed-Lost yet.
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Sales Methodology & Process
Pain Point
Specific buyer problems creating measurable business impact that sales solutions address.
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Sales Performance Metrics
Pipeline Coverage
The ratio of total pipeline value to sales quota (or target revenue) for a given period, indicating how much "coverage" reps need to hit their numbers.
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Pipeline Health & Deal Management
Pipeline Management
The discipline of generating, inspecting, and optimizing sales opportunities to hit targets.
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Sales Performance Metrics
Pipeline Velocity
The rate at which opportunities in your pipeline generate revenue over time, calculated using the number of qualified opportunities, average deal size, win rate, and sales cycle length.
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