What are the most practical sales terms to know and use
Sales may be overwhelming if you haven't worked as a seller. Even if you do, this world is ever-changing. What was true a few years ago, may be false today. As buyer personas change constantly and the buying process with it.
In this article on "sales terms you should know", we'll charm you with apprehending sales generally and the sales cycle you will have to walk through. We'll explain briefly the general terms in sales, terms for sales preparation, within the sales process and after. We'll end with a touch on sales statistics.
Before we start, let's postpone on numbers.
Statistics of the sales world
Most of the sales would be done by only 20% of salespeople. These are the top sellers which exceed their sales goals each time period. Read more here.
The best sales teams can preform up to 115% of their annual targets. Read more here.
Table of content
General terms in sales
Think about this situation. You call potential buyers. Once in a while you get hung up, and it is hard to do anything about that. Many times, it occurs due to misunderstanding the sales worlds. Potential customers still think that sale is all about pushing and selling what they don't need or want. Hence, they get intimidated (perhaps you are also). Whereas sales is all about addressing needs and fulfilling customers' ambitions.
In this part, we'll charm you a bit with basic sales terminology. So, you can be less intimidated by this amazing world.
Sales
Selling is pulling the customers to you. Meaning, giving them the entire reasons why they should break their status quo. A great sales rep would bring the customers to a decision that they need or want a product. He or she helps the prospective buyers to solve a problem or reach a goal.
Telemarketing
This is one of the methods to sell. It is selling on the phone. The purpose of these cold calls or hot calls is to take credit card numbers or sign consumers on a contract.
Telemeeting
This is another method to sell on the phone. The difference is that the sales rep would want to appoint a meeting with the customers.
Door to Door
This is another way of selling. In this case, you will search for sales opportunities by knocking on private customers or businesses doors.
Frontal sales
These are a kind of sales that you sit with the customers and sell to them face to face. They can expect your meeting, or it can be achieved by door to door.
Business to Business
This is a term that describes your target audience, which are businesses. In other words, you, as a business, sell to another business (business to business).
Business to Consumer
This is a term that describes your target audience, who are private customers. In other words, you, as a business, sell to a private person.
Prospects
They are prospective customers. As a seller, you have to move them throughout the sales funnel. That from being exposed to you the first time to make a purchasing decision.
Current customers
These are the people who pay for the product. Most likely they will also consume it. However, in some cases, they buy the product and give it to a third person, like a child, friend, etc.
Consumers
These are the people who use the product. It can be children who received a gift from their parents.
End users
These are the people who use the product, but not necessarily pay for it. In some cases, they can be consumers, but it is not a must. For instance, an end user can be someone who uses Facebook.
Note - the difference between end users and consumers is that end users may use the product for free. Whereas consumers are people who bought the product or receive it as a gift.
Lead generation
This is the process where you search for potential customers, the first phases in the sales funnel. You do that by determining your ideal customer profile, where, and how you will reach them. Many times, you will have to combine a marketing process by establishing content marketing and email marketing. Hence, customers will be exposed to you, engage with you and eventually leave their contacts, like: emails or phone numbers. This is also called prospecting. For instance:
As a beauty salon owner, you search for females aged between 20 and 60 years old from the local neighborhood. You know that you can find them on Instagram, local and general female groups on Facebook. One of the messages you plan to write is: I'm starting my own beauty salon. For the opening, I'm giving 30% off my entire treatments. This is limited only to the first 30 clients. So who is the first to exploit the discount?
Leads
This is the result of the lead generation process. You gather the contact information of the individual consumer. It can be customers who want and know you will refer to them via email or a call. But, it can also be prospects who are not expecting that you will try to reach them. In this case, you will try to warm them up by cold emailing or cold calling.
Hot leads
These are people who leave their contact willingly. Hence, they expect you to send a direct email or try to sell them via phone, video or frontal meeting.
Cold leads
These are people who don't know that you will try to reach them. Thus, they are cold. You can find them by allocating their contacts on yellow pages, buying contact lists, scraping their emails and phone numbers on their web or social media (LinkedIn, Instagram, etc).
Try to use Texau to prospect cold leads. You can scrap and extract their information on LinkedIn, or on their website. Then, send them a warm-up email with applications meant for that. In addition, you can advertise to them with Facebook campaigns. You can add their contacts to look alike marketing campaigns and then target them or similar people. You can read about look alike campaigns via Facebook here.
Incoming sales calls
This is one of the types of hot leads. These are people who call you, so they are the best sales prospects. Meaning, they want to receive information on your products. So how do you make customers call you?
Most likely, you will have to do a lead generation process by social media marketing that would lead to your website. Then you will give them a reason to call you like: benefit, discount, great product value and so on. You can, also, try promoting with: Facebook, LinkedIn, Twitter, Google Ads, etc.
Outgoing sales calls
In this case, you will initiate phone calls. You will refer to cold leads, and warm them up.
Notice that the only difference between incoming and outgoing sales calls is that people don't expect your call. Whenever you overcome the first barrier of cold calling, then you will discover that they have the same pain points, desires, and objections.
Decision makers
These are the people who will determine the outcome of the meeting, or call in the buying process. You will have to find and reach them to close the deal. It is more likely to encounter this scenario, when you sell to businesses or work in B2B companies.
Gatekeepers
These are the employees who stand in the gate and prevent you from reaching the decision makers. Most likely, you will encounter them, when selling to other businesses. Many times, it will be the secretary or lower status employee. For instance, if you want to reach the sales director, you probably will have to pass the sales rep or manager.
Notice that the gatekeepers will have a different need than the decision makers. When speaking with them, you will have to find what will motivate them. Hence, they will let you speak with the decision makers.
CRM
This is an application that aims to help you manage your customers. This is why its initials are customer relationship management. Mainly, it is a system where you will receive the leads and manage what happens with each lead, manage the sales pipeline. Many CRMs will allow you to send emails, SMS and even use automation to do that. You could also settle credit cards, save them in the system and charge them automatically. In addition, you could add your products, prices, send invoices, upload files, sales revenue, examine conversion rate, closing ratio and churn rates to understand better the buyer behavior.
Here, you can find CRM applications with discounts and some for lifetime.
Note: This is what a process of sales pipeline would look like regarding CRM - You will receive a lead without any records. Then, you will call him or her. Alternatively, try to reach him or her in other ways, like: email, door to door and so on. After the first interaction, you will have to add a record and change the status of the follow-up. You will, somethimes, use the CRM to send emails or SMS with more information on you and products. Then, you will schedule a time frame to return to the leads again. Whenever the time arrives to reach the customer again, you should find the lead in the daily tasks. Then, there can be 3 options. First, customers buy the product, and you charge them inside the CRM. Second, customers continue to postpone their decision, so you change the date to return to them. Third, customers refuse. Then, you can forget about the lead or send them to an automotive follow-up system inside the CRM. Pay attention that sometimes you will sell the first interaction or be refused.
ERP
This is another application which is mainly being used in larger companies. It allows creating customer accounts, managing invoices, receipts, procurement, project management, etc. It aids with supporting your marketing and sales strategy.
Notice that in small and medium businesses you probably won't need ERP system. This is because many CRM have some ERP functions that would be enough for you.
Product's character
This is what describes the product you sell. It can be size, functions, color, location, time that the product can be used, etc.
Product's benefits
This is what the customers accept from the product's characters. For instance:
Regarding size - It is compact that can be packed almost everywhere.
Regarding functions - It gives the capability to use the product in many cases.
Regarding color - It is eye catching and makes the surrounding prettier.
Added value
This is the main benefit of the product. This is the primary reason why customers would prefer your product rather than your competitors. You have more of a benefit, less of a flow or a unique advantage. For instance:
A farmer who has a unique breed of tomatoes.
A sweet drink that has less cholesterol or sugar.
An application that gives you more features than its competitors.
Competitive advantage
This is the outcome of the added value. It is a unique benefit you have that your competitors don't have or have less. For instance: let's charm you with the example of the farmer who grows a unique breed of tomatoes. His competitive advantage can be: tomatoes that grow faster, more sustainable, and so on.
Need
This is the main reason why customers will choose to buy a product. It is their pain points or problems they suffer from. A sales representative will try to search and reveal these pains. Then, address them with the right product solutions.
Desires
This is the other reason why customer journey will end in a sale. This is customers' ambitions, goals or dreams they wish to achieve. You will try to discover their desires, when you sell luxury and quality of life products, entertainment, courses and so on.
In this part, we charmed you with the basic terms to enlighten the sales world. Hence, you would be more sales qualified. Next, we'll elaborate on terms of sales preparation.
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Terms of sales preparation
Think over a seller who needs to sell face to face. She comes with sloppy clothes, looks angry and doesn't know how to present the solutions to customers. What do you think would happen?
In this part, we'll charm you with the most essential sales terminology before you start selling.
Sales approach
Any sales leader knows that you need to believe in your sales skills, that customers would want to buy the product, and you can deliver the best solutions for them. This is the essence of the right sales perception. To do that, you need to know how to involve your private life with business by adopting: hobbies, healthy life routine, spare time with family, etc.
Sales habits
These are the entire activities you will do before, while, and after the sales process that aren't including sales. It can be sleeping 7-8 hours a day, eating healthy breakfast, doing sports, going on vacation each period of time, doing breaks each 2-3 hours of sales work, and so on. This will affect upon creating a positive sales approach.
Sales agent objections
This is the seller's internal resistance to the very sale process. It can be selling the product, prices, the time it consumes, some product functions, the obligation period, etc. It can also be objections to himself or herself, like: their sales skills or even that they wouldn't use the product themselves.
Note that this is one of the most crucial objections you must solve with yourself. Whenever you suffer from these types of objections, you will receive the same objection over and over from customers. For instance, if you think that you can't find the time to use the product, your customers will think the same.
Sales leading
This is how you manage the sales conversation. In any sales processes, you will have to know to control the discussion. It can be done by active listening to your customers and by knowing when you should return to the sales script.
Active listening
This is one of the main factors that will raise drastically the chances to close customers and turn some of them into loyal customers. Active listening means to show your customers that you are not only hearing what they say, you understand the meaning of what they say, both visible and hidden. You do that by mirroring, mimicking their pace and tone of voice, speaking in terms that they understand better and so on.
Note that customers have to speak at least 50% of the sales conversation. Hence, you will have more chances to close them.
Sales scripts
Similar to a play, you need to know your role, right? In sales, it is the same. You are an actor that needs to know each time frame what to say to your prospects. You ought to know how to answer questions to the point, how to start, continue, and end a sales conversation, how to handle objections, how to increase sales for exiting customers and how to follow-up prospects. Let's postpone briefly each sales script.
Conversation script - This is the script for how to manage the sales discussion from beginning to end: introduction, questions, presentation, and closing.
Questions and answers script - This is a script with 4-5 common questions that clients use to ask regularly. You will add to the script 2-3 answers to each common question.
Objections handling script - This is a script with 4-5 common objections customers tend to raise. You will insert 2-3 solutions to each objection.
Increasing sales script - This is a script you use after you close the customers. Its role is to aid in selling more products to same customers by up-selling and cross-selling. It will also serve you to take leads from new and exiting customers.
Follow-up script - This is a script to assist with returning to customers who postpone their decision or refuse. You will use it to know how to return to these customers and try to make them interested in the product again.
You can read more about sales scripts in this guide. Note that you have to insert your email to download the guide.
In the next part, we'll charm you on terms inside the sales process.
Terms within the sales process
This is where sales specialists can show their magic. It is the entire process of the sales discussion, from beginning to end. Let's look at the next example to understand better what it means.
A business consultant is calling an owner of a diner. The owner has left her a message on her website, asking to return to him with more details. She introduced herself by asking if she speaks with the person who left her a message. Then, she said: who is she, what her added value, what main problem she wants to solve in the market and how she is doing that. Next, she asked a few questions regarding the diner, starting with characterization questions, moving to problem questions, sharpening the problems and ending with maturity to buy questions. In between, the business owner asked about the price. But she insists on keeping understanding his needs, and that she has to find the right solution for him. In the third phase, she elaborated a bit on the product solutions regarding his needs. At the end, she moved to the closing phase by asking him if he could meet in the morning or noon. She knew that the customer would have to spend thousands of dollars, so it is going to be a complex sale. This is the reason she has set a goal, to meet with the customers and then try to sign him on an agreement.
In this example, we charmed you with a description of the entire sales process. Next, we will explain a bit each term described here and more.
Introduction
This is the first phase in the sales process. This is where you make the first impression. You introduce yourself, ask if you speak with the right person, mention the goal of the conversation and why you are the right sales specialist to speak with.
Power questions
This is the second phase in the sales process. Here, you will try to reveal why you are speaking and how much the problem interferes with the customer's life. That by asking characterization questions, problem or desire questions, questions to dive deeper (sharpening questions) and maturity to buy questions. This is the most important phase. When doing it correctly, it raises the chance dramatically to customer acquisition.
Note that you need to ask customers in a specific form. Meaning you, always, start with general questions and then ask more private questions as you move along. You start with characterization questions that describe the situation customers are facing. Then, you dive deeper with problem questions or desire to reveal their needs and wants. You continue with sharpening questions to understand more about customer pain points or ambitions. You end with maturity buying questions to truly comprehend how urgently the customers want to reach their goals or solve their problems.
Product solution
This is the third phase in the sales process. This time you will address clients needs by presenting the product. Sales leaders know that it doesn't matter if these are complex sales or simple, you will always have to match the right product benefits to the needs of the customers. This is what will convince customers that you have the solution for them in the market.
Closing
The fourth and last phase in the sales process. Here, you will present the price, mention one more benefit and ask the customers to buy, sign an agreement or meet. In this stage, you should be focusing on listening for a buying signal and where there are closed opportunities.
Note that you will use active listening. Try to interpret customers reactions to you and the product. This action, you will do the entire sales conversation. Many times, customers will ask or say something that is a buying signal, like: in which color the product is, where is the best time to start, I heard a recommendation on you from X and so on. Whenever they do that, you should aim as fast as you for closing.
Until now, we have discussed the stages in the sales process. Still, there are few more points to charm you on, in the conversation with customers.
Objections
As you probably understand, prospects won't let you easily move from one phase to another. Many times, they will raise concerns regarding themselves, the product, its worth, the company or even you. This is called objections. This is just another common obstacle in the sales conversation that clients say: "not yet, I'm not ready to buy". Sales specialists know that and are prepared to answer any concerns raised by customers.
Notice that in any product you will sell, there will be 2-3 common objections that will repeat over and over in different forms. Most likely, these objections will be categorized as trust issues, lucrative, and third factor. As long as you build trust and address customers needs, you will encounter softer objections. These are objections that are easier to handle. However, if the customers are suspicious, they will raise more objections and harder. Meaning, it will be much more difficult to solve.
Trust
This is the X factor in every sale. When you build it correctly, the chances to have a customer acquisition goes up. The customers are naturally suspicious of you, themselves and the product you sell. Hence, they raise objections, ask questions and tend to postpone decisions. This is where you should work on 4 important tools to lower their barriers, such as: professionalism, consents, dialogue, and building rapport.
Let us charm you with more information in this article.
In this part, we charmed you with the sales terminology to convince more customers to close. Next, we'll expand a bit on terms to increase revenues.
Terms to increase revenues in sales
This is the phase where you sell the most expensive products. In this stage, you will try to upgrade the same product, sell another or better product, or take leads from new and existing customers. Not convinced? Let's charm you with the next example to show how important it is.
You develop an antivirus software which prevents customers from getting the computer infected. It also has a firewall, and it blocks you from visiting contagious websites. Now, you want to sell another product which improves the computer performance by cleaning its cache, both on the internet and inside the computer. First, you try to announce about the new product with social selling, send cold emails to prospects who were interested but didn't close and call to cold and hot leads. However, it consumed too much time and had little results. You said to yourself: I know that I'm afraid to try reaching my paying customers as they can cancel the deal. Nevertheless, it may be easier to cross-sell them. Hence, you decide to send them a direct mail. Furthermore, you call them and present yourself as the customer success team. You were surprised that it was much easier to close them. They were more cooperative and very few asked to cancel the deal. The closing percentage of customers was almost 6 times higher!
In this example, you could realize how significant it is to try increasing sales from new and exiting customers. It is so much easier to close them than even hot leads. In this part, we'll charm you a bit with increasing sales terms such as: up-sales, cross-sales, referrals and follow-ups.
Up-sales
This is an upgrade of a product to a prospective customer that has already made purchase decisions. You call, meet, send an email, SMS, WhatsApp or any other tool to ask paying customers to buy a better version of the product, larger or a longer period of obligation. It can be buying a longer subscription to the gym for less money a month, an application you pay more a month and receive more features to use and so on.
Cross-sales
It happens when you sell an additional product. It can be complementary or unrelated. You can sell viable products like new software, services, etc. It can be more complex products like TVs to customers who bought cable subscriptions. You can also sell complementary products to a customer who has annual car care like: engine cleaning oil, wipers, car axle lubrication oil, etc.
Referrals
This is one of the easiest ways you can increase revenues fast in your business. You simply ask customers that decided to buy in the decision stage, if they have colleagues or friends that would be interested in buying the products you offer. These are the best qualified leads.
You can read more about up-sales, cross-sales and referrals in this guide. Note that you have to insert your email to download the guide.
Follow-ups
Follow-up is when you try to reach prospects two or more times after you have had at least one interaction. It can be for paying and none paying customers. You can try reaching the customers via phone, meeting, email, SMS, WhatsApp and so forth.
You can read more about follow-ups in this guide. Note that you have to insert your email to download the guide.
In this part, we charmed you with terms to leverage customer acquisition cost by increasing sales for existing, new customers and following-up prospects. In the last part, we'll explain a bit about terms in sales statistics you should know.
Terms in sales statistics
As always, let's start with a short example.
You are a franchisee who sells communication packages. You have a small sales team. Every month they don't succeed to reach the goals you set. You don't understand why it is happening. Then, you sit with a business development personal assistant. She says that you don't track your sales reps data. So, you create a worksheet with the amount of sales for each representative, average sales a day, week and month, conversion rate, amount of potential leads, income from each lead and how much sales you should end each month. Then, you start tracking again. Each month, you see that you are not in the right pace to achieve the goals, you motivate your sales team, and give special benefits and discounts for a short time frame. Now, you have succeeded in reaching targets.
In this example, you could realize why it is so important to have sales statistics. In the part, we'll charm you a bit with 3 common sales statistics terms.
Conversion rate
This is the sales prospect for each seller separately and together. It is the number of closures divided by the number of leads. For instance, if you have 10 leads, and you close one prospect. You have a 10% conversion rate.
Average sales a month
This is the amount of sales you have made multiplied by the days that have passed a month. That score you should divide with the amount of working days there are in a specific month. This is a very important statistic as it helps you reveal how much sales you would end a month. Meaning, if you take the score of average sales a month and multiply it in the days that have left for the same month, you can predict how many sales you will end a month. This is also named predictive statistics.
Average income from sales a month
This is the amount of income you have made multiplied by the days that have passed a month. That score you should divide with the amount of working days there are in a specific month. It is calculated almost the same as average sales a month. However, you ought to know it, so you can calculate how much a lead is worth for you and the closing costs.
You can read more about statistics in this guide. Note that you have to insert your email to download the guide.
Summary of sales terms you should know
In this article we've charmed you with the most important and practical terms in the sales world. These terms, you will actually use most often. Thus, you need to know them to better understand the sales world and to sell more.
We recommend that you move over these terms a few times. Read this article with this guide. In addition, pay attention to the links inside below some sections and click on them. It will assist you with comprehending each sales term and knowing how to implement it.
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