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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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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Customer Success & Post Sale
Health Score
A metric indicating a customer's likelihood to renew based on usage, engagement, and satisfaction.
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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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Customer Success & Post Sale
Implementation
The technical setup and deployment of a SaaS product in the customer’s environment, turning the signed deal into a working solution users rely on.
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Customer Acquisition & Outreach
Inbound Sales
A strategy where prospects initiate contact after engaging with marketing content.
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Sales Leadership & Management
Key Performance Indicator (KPI)
A critical metric used to evaluate success against objectives.
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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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Sales Leadership & Management
Lagging Indicator
A metric measuring outcomes that have already occurred (e.g., closed revenue).
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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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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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Customer Success & Post Sale
Onboarding
The structured process of integrating new customers and getting them fully operational with your product so they reach value within a defined, measurable timeframe.
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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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