As a Sales Development Representative (SDR) in the tech industry, you’ll hear a lot of jargon on-the-job that may feel unfamiliar at first. Don’t let acronym overload get you down!
SDRs aren’t expected to immediately know every term thrown their way, but the more you familiarize yourself with common sales terminology now, the less likely you are to fumble for answers later.
Vendition’s Coaching Team has pulled together an SDR Glossary of top terms with quick definitions you need to know so you can focus on building confidence in your abilities instead of spending time sorting out abbreviations!
Glossary of Top Sales Terms for Tech Sales Reps
Our top sales terms are listed in alphabetical order for your easy reference as a new SDR.
Sales Glossary Definitions | Letters A – H
Accounts contain all the records of customer interactions, including contact information, preferred services, and transactions with your business. An account is created after a customer buys from your business the first time.
Activity Metrics are a variety of data points that reflect the performance of your sales team, such as the number of calls they make, emails sent, leads created, and more.
ACV can refer to either Average Contract Value or Annual Contract Value. Annual Contract Value is the total amount a contract is worth each year. For example, a 2 year deal for $48,000 and $5,000 in implementation fees has an ACV of $29,000 in year 1 and $24,000 in year 2. Average Contract Value is the average amount that each deal closes for and is an estimate by the sales organization.
AE or Account Executive is the person responsible for managing customer accounts. They communicate with both prospects to understand their pain points, address concerns, and close deals. An Account Executive needs to have extensive knowledge of the business’s value proposition so they can relate it back to the needs of a particular customer.
ARR or Annual Recurring Revenue is the annual version of Monthly Recurring Revenue (MRR) and is used to describe the predictable income a business can expect yearly. For example, a 1 year deal for $2,000 a month has an ARR of $24,000 (12 months x $2,000).
CRM or Customer Relationship Management is a tool used to keep track of all customer interactions. The most common CRM is Salesforce, with approximately 80% market share.
CSM or Customer Success Manager is a hybrid role between customer service and sales that works to bring both teams together in support of customers as they transition from pre-sale to post-sale in the pipeline.
Demos are software demonstrations led by Account Executives and Sales Engineers that allow them to visually showcase how their product works in action, pointing out important features that can help solve prospective customers’ problems and answering questions along the way.
Discovery Calls can be made by any member of the sales team, usually during the beginning of the sales process, and are used to learn more about the prospect; and qualify whether or not they are a potential buyer.
Sales Glossary Definitions | Letters I – P
Inbound Sales are when a lead comes in from a prospect who has indicated that they are interested by taking an action, such as reaching out to your company for more information on a product or service; these are typically called warm leads.
MQL is a Marketing Qualified Lead. A lead is designated an MQL by marketing when they have shown various indicators that this person might be interested in the product/solution. Someone might “MQL” when they “Request a Demo,” download content from the website, or attend a webinar.
MRR or Monthly Recurring Revenue is the term used to describe the predictable income a business can expect every month. This term can be in the context of a specific client or the business as a whole. For example, a 2 year deal for $48,000 and $5,000 in implementation fees ($53,000 total) has an MRR of $2,000 as it is based on the contract amount only ($48,000 divided by 2 years = $24,000 per year, divided by 12 months per year = $2,000). Implementation fees typically do not count in MRR calculations as they are often due quickly after contract sign and do not recur monthly.
Outbound Sales are when a lead is generated from a sales rep reaching out to a prospect who has not shown marketing indicators of interest; these are typically called cold leads.
Pipeline or Sales Pipeline is the amount of potential revenue that the sales department is expected to have a chance at closing during that fiscal period.
Sales Glossary Definitions | Letters Q – Z
Quota is a targeted sales goal that individual SDRs and teams aim to achieve by the end of a specific period of time, usually monthly or quarterly, to earn their incentive pay. Examples of quota are number of meetings set or number of deals closed.
RFI or Request for Information is an informal evaluation of what solutions are in the marketplace. This is usually a buying sign that the prospect will probably buy from you or your competitors in the coming months/year.
RFP or Request for Proposal is a formal evaluation process in which the prospect engages in evaluating a variety of vendors. It is common for a salesperson to write the RFP, often showing their product/solution as the best possible option to resolve the prospect’s pain points.
ROI or Return on Investment is a measurement calculated to reflect the ratio of net profit over the total cost of an investment, typically expressed as a percentage. For example, if a company invests $1,000 to obtain a new client, and the total contract is for $5,000, the net income is $4,000. Take the net income divided by the investment ($4,000/$1000)*100) and you get 400%.
Sales Engineer is a sales professional who specializes in understanding all of the technical aspects of a product or solution and can clearly explain the technical ins and outs of a product to qualified leads to help drive decision makers forward.
SQL is a Sales Qualified Lead and is the Account Executive’s indicator that the deal has a decent chance of closing within the fiscal quarter. Most sales leaders don’t forecast/look at deals that are not at a stage of SQL or higher.
TVC or Total Contract Value is the total value of the contract. For example, a 2 year deal for $48,000 and $5,000 in implementation fees has a TCV of $53,000.
Be sure to bookmark this SDR glossary so it’s handy next time you’re looking for a definition!
Striving to Land Your First SDR Role? We Can Help
If you found this blog because you are still growing your knowledge in hopes of becoming an SDR, lean on Vendition’s team of experts for free help breaking into tech! Our 12-week Sales Apprenticeship is ideal for motivated individuals who desire on-the-job tech sales experience and are eager to learn how to get their foot in the door, stand out, and develop their skills.
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