Same words, same counts

Every term has a one-line definition. Terms that are numbers also show the formula, what it leaves out and the decision it supports.

Stages

Lead, inquiry A person or company that showed interest: they wrote, called or left a request. Conversation You found out the customer’s need, budget and timeline. Proposal The customer received a price and terms in writing. Decision The customer answers “yes,” “no” or “I need time” and names a date. Payment The customer agreed, and you need to send an invoice and name a due date. The deal counts as a sale under the rule you chose: when the money arrives or when the contract is signed. After the sale The stage after payment: a review, a repeat purchase, a referral.

Conversations

Discovery call The first real conversation with a customer, where you ask questions and listen before you offer anything. Objection A reason the customer gives for not buying yet, such as price, timing or doubt about the result. Concession Something you give up in a deal: price, terms, scope or time, ideally in exchange for something from the customer. Decision maker The person who can say yes to the purchase and sign, or approve the money for it. Champion Someone on the customer's side who wants you to win and moves the deal when you are not there. Script Suggested words for one moment in a conversation, such as an opening or an objection, not a speech to read. Value proposition Why this customer should care about your offer, said in their terms: their problem, the change and what the problem costs. Pain The customer's problem that costs them money or time, described in their words and in its cost. Budget The money the customer can actually spend on solving the problem, and who controls it. Price anchoring Showing the full price or the larger option first, so the customer judges the offer against it. Trade-off A rule of negotiation: you give a concession only in return for something of value from the customer.

System

Deal One customer and one possible sale, from the first inquiry to payment or refusal. Channel The way a customer reaches you: phone, messenger, email, website form. Funnel (sales funnel) The path of deals through the stages from inquiry to payment. Qualification A few short questions to find out whether to spend time on the customer: is there a need, a budget and a timeline. Next step A specific action on a deal: what, who, by what date. action + owner + date Decision date The date by which the customer promised to answer. It is recorded from the customer’s words, not from your expectations. Active deal A deal where the customer has confirmed interest and a next step with a due date is recorded. Leak The stage where the funnel loses the most customers. CRM A program or spreadsheet where customers, deals, conversations and tasks are recorded and nothing gets lost. Deal stage A named step a deal moves through, with a written rule for when it moves to the next one. Stalled deal An open deal where the customer has taken no action for longer than your normal pace allows. Lead owner The one person responsible for a lead at any moment: they answer it, move it and close it. Lead routing The rule that decides which seller gets each new inquiry, and how fast it reaches them. Required field A CRM field that must be filled before a deal can move to the next stage or close. CRM hygiene Keeping every deal in the CRM complete and current, so the numbers built from it can be trusted. Lost reason The main reason a deal was lost, chosen from a short list and recorded when the deal closes. Playbook The written way your team sells: stages, questions, messages and rules, kept in one shared document. Follow-up The planned next contact with a customer after a meeting or call, with a purpose and a date. Ghosting When a customer stops replying without saying no, and the deal sits open with no answer. Ideal customer profile (ICP) A short written picture of the customers who buy from you most easily: size, industry and signs of need.

Metrics

Conversion The share of deals that moved from one stage to the next. moved on ÷ at the stage Win rate Of the deals the customer has decided on, the share that ended in a sale; open deals are not counted. won ÷ (won + lost) Average deal size How much one sale brings on average: revenue for the period divided by the number of sales. won revenue ÷ won deals Sales cycle How many days pass from the deal appearing to the sale. close date − open date Cost per inquiry How much you spend on advertising to get one inquiry. ad spend ÷ inquiries CAC Customer acquisition cost: how much it costs to win one new customer, counting advertising and the work of the sales department. A new customer is one who bought for the first time. costs ÷ new customers Profit per deal How much is left of the deal amount after the direct costs of delivering it: materials, contractors, commissions. (revenue − costs) ÷ deals ROMI Return on advertising: how much profit advertising brought beyond the money put into it. (profit − ads) ÷ ads LTV Customer lifetime value: how much profit a customer brings over the whole time they work with you. profit per deal × purchases Pipeline coverage Open pipeline value for a period divided by the target for that period. open value ÷ target Lead response time Time from an inquiry arriving to the first reply from a person. first reply − arrival Forecast An estimate of sales for a period with the assumptions named. Three versions are better: cautious, base and good. Commit The open deals a seller is ready to stand behind as closing this period, each with a confirmed decision date. Best case Open deals that could still close this period if everything goes right, kept apart from commit. Activity metrics Counts of what sellers do, such as calls, emails, meetings and proposals sent, read next to the results they lead to. Outcome metrics Results the business keeps: deals won, revenue, margin and win rate, counted by close or payment date. Churn The share of customers who stop buying or paying during a period, out of those you had at its start. Customers lost in the period ÷ Customers at the start of the period × 100% Upsell Selling more to a customer you already have: a larger package, an extra service or a repeat order. Sales dashboard One screen with the few sales numbers the team acts on each week, each with a written definition. Margin What is left from the price after the direct costs of delivering the sale, shown in dollars or as a percent. (Price − Direct costs) ÷ Price × 100%

Rhythm and roles

Management rhythm Your regular actions with a fixed time and a written outcome. Task An agreement: what, who, by when. Response standard The time within which you commit to reply to a customer in each channel. Sales manager The person who answers for the result of the whole department, their own sales included. Owner The person who sets the goals and resources and receives your report. One-to-one (1:1) A regular private meeting between the head of sales and one seller about their deals, skills and plan. Onboarding The first weeks of a new seller's job, planned so they can run deals on their own as soon as possible. Ramp time The time from a new seller's first day until they reach the result you set as full productivity. Date of reaching the agreed result − Start date Quota The sales target one seller is responsible for in a period, usually in revenue, set from the team plan. Win-loss review A regular study of recently won and lost deals to find what repeats, then change how the team sells. Call review Listening back to a recorded sales call with the seller to coach one specific moment in it. Role play Practicing a hard sales conversation with a colleague playing the customer, before the real one happens. Account manager The person who keeps existing customers, solves their problems after payment and grows what they buy. Handover Passing a lead or customer to a colleague with the full context, so the customer never repeats themselves. Backup The named colleague who answers a seller's inquiries and customers while that seller is away. Commission plan The written rules for how sellers earn on what they sell: the base, the rate, when it is paid. Accelerator A higher commission rate a seller earns on sales above their quota for the period. Clawback A rule that takes back commission already paid if the customer does not pay or leaves within a set period. Territory The region, customer segment or named list of accounts that one seller owns and works. Weekly pipeline review A short weekly meeting where the head of sales and sellers check open deals, next steps and the forecast. Discount authority A written rule on who may approve a discount and up to how much, by role. Sales capacity How many deals your team can really run and close in a period with the sellers it has today. (Ramped sellers + New sellers × Ramp share) × Average deals closed per ramped seller per month Hiring profile A written description of the seller you need: the job, the skills, the evidence you will look for.

TOOL · $29

Put the definitions to work every week

Seven weekly numbers: one spreadsheet, a 13-page guide to reading it and a numbers agreement for your team.

See what's included