Like any industry or business niche, Revenue Operations has way too much industry jargon. From MQLs and CRMs to MAPs and more, it’s easy to get overwhelmed by the terminology. It does serve a purpose though. It increases the probability of alignment and quality execution by increasing the probability that we're all talking about the same exact thing.

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One RevOps becomes a high performing function within an organization, these terms appear in daily conversations without a second thought.

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We’ve put together this glossary ofthe most commonly used RevOps terms

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Core Terminology

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• Revenue Operations (RevOps) - The contemporary approach used by B2B companies integrates the operational functions of the entire revenue team, including sales, marketing, and customer success. This typically involves sales operations, marketing operations, and customer operations, with a focus on a unified revenue system that eliminates departmental silos and enhances overall revenue performance.

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• Ideal Customer Profile (ICP) - In marketing and sales, an ICP outlines the characteristics of customers who are most likely to benefit from your product or service and make ideal clients. For instance, in a B2B context, your ICP could specify the size of the company, its industry, and its revenue, helping identify businesses that would have a strong demand for your offering.

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• Buyer Personas - Detailed fictional profiles that represent different segments of the target audience. They include insights into demographics, behaviors, pain points, and motivations to tailor marketing and sales efforts effectively.

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• Bow Tie Funnel - A model that extends beyond traditional sales processes by incorporating post-sale activities, emphasizing customer retention and expansion. It illustrates how businesses can nurture relationships and drive long-term growth by focusing on the entire customer lifecycle.

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• Account-Based Marketing (ABM) - Account-Based Marketing (ABM) is a strategic approach where marketing, sales, account management, and customer success teams work together to acquire or expand business at the account level, rather than focusing on individual leads or contacts. The goal is to target and nurture entire organizations, recognizing that the most valuable B2B customers are companies as a whole, and success depends on winning over all key stakeholders within an account.

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• Top of Funnel (TOFU) - Top of the funnel (TOFU) refers to the awareness stage in the lead journey, where content is primarily educational. Marketing strategies at this stage aim to address the problems and questions prospects may have. Content types include blogs, whitepapers, ebooks, infographics, and videos.

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• Middle of Funnel (MOFU) - The middle of the funnel (MOFU) focuses on positioning the company or product as the ideal solution for the prospect. Content in this stage is more targeted to the prospect's needs and often includes comparisons, webinars, and other materials that highlight how the offering meets those needs.
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• Bottom of Funnel (BOFU) - Bottom of the Funnel (BOFU) refers to the final stage in the sales process, where prospects are close to making a purchase decision. During this phase, tools like case studies, trials, and live demos are used to help prospects validate their choice and move forward with the sale.

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Data

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• Annual Contract Value (ACV) - Total revenue generated from a single customer over one year. It represents the yearly value of a customer's contract or subscription.

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• Annual Recurring Revenue (ARR) - This calculation determines the total subscription revenue a company earns over a year.

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• Churn Rate - The percentage of customers who stop using a product or service over a certain period.

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• Cohort - A group of customers who started using a product or service at the same time. Looking at these groups helps businesses understand customer habits and loyalty.

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• Cost-Benefit Analysis - A way to compare the costs and benefits of a decision to see if it's worth it.

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• Customer Acquisition Cost (CAC) - The total money spent to get a new customer, including things like advertising and sales efforts.

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• Customer Satisfaction Score (CSAT) - A rating that shows how happy customers are with a product or service, usually measured on a scale.

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• Data Governance - The set of rules and guidelines a company follows to manage and protect its data properly.

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• Data Quality/Hygiene - Making sure business data is accurate, complete, and up to date so it can be useful.

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• Data Stewardship - The responsibility of managing and protecting a company’s data to make sure it is correct and used properly.

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• Lead Qualification -Checking if a potential customer is a good fit for a product or service based on certain criteria. Leads can be marketing-qualified (MQL), sales-qualified (SQL), or product-qualified (PQL).

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• Lifetime Value (LTV) - The total amount of money a customer is expected to spend on a business during their entire relationship.

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• Monthly Recurring Revenue (MRR) - The predictable income a business earns every month from its subscription services.

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• Net Promoter Score (NPS) - A simple way to measure customer loyalty by asking how likely they are to recommend a product or service to others, usually measured using an 11-point scale.

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• Total Contract Value (TCV) - The total money a business expects to earn from a contract, including all recurring and one-time fees.

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People

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• Account Executive (AE) -A sales specialist responsible for managing one or more accounts, engaging directly with potential customers to showcase products, and driving new business acquisition.

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• Business Development Representative (BDR) -A BDR is an entry-level sales professional responsible for identifying and qualifying new prospects, building initial relationships, and filling the sales pipeline with fresh leads for Account Executives (AEs). Sometimes, BDRs also schedule appointments for AEs after qualifying a lead.

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• Sales Development Representative (SDR) - An SDR is an entry-level sales role focused on identifying and qualifying new prospects, building initial relationships, and filling the sales pipeline with new leads for Account Executives (AEs). Sometimes, SDRs may also schedule appointments for AEs after qualifying a lead.

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• Customer Success (CS) - The Customer Success department in B2B organizations focuses on managing paying customers, aiming to enhance satisfaction, strengthen relationships, reduce churn, and increase Lifetime Value (LTV).

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• Deal Desk - A centralized hub (physical or virtual) where teams from sales, finance, legal, marketing, and customer success collaborate to discuss and make decisions on non-standard or complex sales deals.

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• Demand Generation -The Demand Generation division of a marketing organization focuses on creating new business demand for a product. It is typically measured by inbound leads, marketing's contribution to new business revenue, sales-accepted opportunities, or similar metrics.

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• Go to Market (GTM) - A go-to-market (GTM) strategy is a company's comprehensive plan for selling its products. It includes pricing, positioning, sales tactics, and more, often involving collaboration from various stakeholders within the company's revenue organization.

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• On-Target Earnings (OTE) - An employee's On-Target Earnings (OTE) represents their total potential compensation if performance targets are met. It typically includes a base salary along with variable components, such as commissions or bonuses.

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• Performance Improvement Plan (PIP) - A structured plan designed to help employees improve their performance by setting clear goals and providing necessary support and resources.

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• Pipeline -The complete overview of ongoing deals for a sales rep or team, usually covering deals at various stages, with details on expected deal value, timing, and the probability of closing.

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• Quote-to-Cash - The entire process starting from generating an initial sales quote and continuing through to the recognition of revenue.

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• Sales Enablement -Providing the sales team with the tools, resources, and training needed to effectively sell a product or service. This includes training on new features, preparing sales materials, offering guidance on effective sales strategies, and more.

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Technology

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• Business Intelligence (BI) -The practice of using data to support business decisions and improve processes. It involves tools that analyze and provide insights to ensure accurate and reliable data for tracking trends and optimizing operations.

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• Configure Price Quote (CPQ) - A process that helps businesses create accurate pricing and packaging quotes for customer orders, often using specialized software to streamline and automate the process.

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• Contract Lifecycle Management (CLM)- The process of managing contracts from creation through negotiation, approval, execution, compliance, and renewal, ensuring smooth operations throughout the contract's life cycle.

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• Customer Relationship Management (CRM) - A system that helps businesses track customer data and interactions. Commonly powered by platforms like Salesforce, it serves as the central hub for managing customer relationships and sales processes.

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• Enterprise Resource Planning (ERP) - Software that integrates core business processes across departments such as finance, sales, project management, and procurement, offering leaders a comprehensive view of business operations.

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• Lead Routing - The process of directing new potential customers to the right team or sales representative based on their stage in the sales process. For example, leads generated by marketing are assigned to sales representatives for follow-up.

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• Lead Scoring -A method used to rank leads based on their likelihood to convert into customers, considering factors such as engagement, demographics, and behavior.

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• Marketing Automation Platform (MAP) -Software that automates large-scale marketing activities such as email campaigns and social media outreach. It helps segment audiences and track performance, typically managed by marketing teams.

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• Revenue Lifecycle Management (RLM) - The process of managing revenue generation from initial sales through contract management and renewal. It ensures accurate tracking and optimization of all financial activities related to revenue.

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