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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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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Sales Leadership & Management

Leading Indicator

A metric predicting future outcomes based on current activities (e.g., pipeline generation).
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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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Pricing & Contract Terms

Net 30/60/90

Contract terms that outline payments due 30, 60, or 90 days after invoice date.
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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 Pipeline

Opportunity

A qualified prospect actively progressing through the sales process with forecastable revenue potential.
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Sales Methodology & Process

Pain Point

Specific buyer problems creating measurable business impact that sales solutions address.
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Pricing & Contract Terms

Payment Terms

Conditions specifying when and how payment will be made.
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Sales Pipeline

Pipeline

A visual representation of active opportunities by sales stage used for forecasting and execution.
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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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Pipeline Health & Deal Management

Pipeline Review

A regular meeting for assessing pipeline health, forecast accuracy, and rep performance.
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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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Sales Execution & Deal Closing

Procurement

A corporate function managing vendor evaluation, negotiation, compliance for optimal purchasing outcomes.
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Lead Management & Qualification

Product Qualified Lead (PQL)

A lead identified by real usage of the product, such as activation, feature adoption, or team expansion. PQL status indicates readiness for a sales conversation.
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Sales Methodology & Process

Proof of Concept (POC)

A limited, time-bound test of your product in a prospect’s environment designed to prove technical fit, usability, and value before full rollout.
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Sales Execution & Deal Closing

Purchase Order

An official buyer document committing to purchase specific goods or services from a seller under agreed terms.
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Sales Performance Metrics

Quota Attainment

The percentage of a sales target a rep, team, or org achieves in a given period (for example, “92% to quota this quarter”).
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