CRM
Customer Relationship Management - software system and set of business processes for managing relationships with customers and prospects. A CRM centralizes contacts, communications, opportunities, and activities, allowing marketing, sales, and customer success teams to collaborate on a shared data foundation. The most widely used platforms are Salesforce, HubSpot, Pipedrive, Zoho CRM, and Microsoft Dynamics 365.
CAC
Customer Acquisition Cost - total cost incurred to acquire a new paying customer, calculated as the sum of marketing and sales expenses divided by the number of new customers in the period. CAC is distinct from CPA (Cost Per Action): CPA measures the cost of a specific action (click, form submission, lead), not the full conversion to paying customer. Using CAC and CPA interchangeably introduces serious errors in profitability calculations.
LTV
Customer Lifetime Value (also CLV) - total economic value generated by a customer over the entire relationship with the company. Estimated as: Average purchase value × Purchase frequency × Average relationship duration. The LTV:CAC ratio ≥ 3 is considered an indicator of sustainable growth.
NPS
Net Promoter Score - customer loyalty metric based on the question "On a scale of 0-10, how likely are you to recommend us?" Respondents scoring 9-10 are promoters, 7-8 passives, 0-6 detractors. NPS = % promoters − % detractors. It is a quick synthesis indicator, not a replacement for granular satisfaction metrics.
MQL
Marketing Qualified Lead - lead that has met engagement criteria defined by marketing (lead scoring, site behavior, event participation) and is passed to the commercial team for follow-up. The MQL has not yet been contacted and qualified by sales.
SQL
Sales Qualified Lead - lead contacted and evaluated by the commercial team that has confirmed need, budget, authority, and timeline (BANT framework or equivalent). The SQL is converted into an opportunity in the CRM and becomes the direct responsibility of the assigned salesperson.
MRR
Monthly Recurring Revenue - subscription or recurring contract revenues normalized on a monthly basis. Breaks down into New MRR, Expansion MRR, Contraction MRR, and Churn MRR. The fundamental KPI for evaluating SaaS or subscription model health.
ARR
Annual Recurring Revenue - annual equivalent of MRR (MRR × 12 for monthly subscriptions). Primary metric for valuing SaaS companies, representing the predictable recurring revenue baseline.
ICP
Ideal Customer Profile - detailed description of the type of company or person that derives the most value from the product and that the company serves optimally. The ICP guides lead qualification, targeting, and product development, and is derived from analysis of the most successful customer cohorts.
TAM
Total Addressable Market - total revenue opportunity available for a product/service if 100% of the target market could be served. Used with SAM (Serviceable Addressable Market) and SOM (Serviceable Obtainable Market) to size the business opportunity.
BANT
Budget, Authority, Need, Timeline - lead qualification framework used by commercial teams to assess whether a prospect has the characteristics to become an SQL. A BANT-qualified lead has available budget, is the decision-making counterpart, has a real need, and a defined timeline for purchase.
MEDDIC
Metrics, Economic Buyer, Decision Criteria, Decision Process, Identify Pain, Champion - advanced qualification framework for complex enterprise sales. Compared to BANT, MEDDIC adds mapping of the internal decision-making process and identification of an internal champion within the prospective customer company.
CPA
Cost Per Action (or Cost Per Acquisition) - cost associated with a specific conversion action (click, sign-up, lead, purchase). CPA is different from CAC: CPA measures a single marketing action, while CAC accounts for all marketing and sales expenses needed to transform a lead into a paying customer.
CSAT
Customer Satisfaction Score - customer satisfaction score measured via survey after a specific interaction (purchase, support, onboarding). Typical question: "How satisfied are you with this experience?" on a 1-5 scale. CSAT complements NPS: it measures point-in-time satisfaction rather than overall loyalty.
CES
Customer Effort Score - measures the level of effort perceived by the customer to complete an interaction with the company. Typical question: "How easy was it to resolve your issue today?" Low CES (less effort) correlates with higher retention and reduced churn.
SLA
Service Level Agreement - agreement defining guaranteed service levels, including response and resolution times for each request category. In the context of the MQL→SQL handoff it defines within how many hours sales must contact a qualified lead; in customer support it defines maximum response times by priority.
ACV
Annual Contract Value - annualized value of a recurring contract. For multi-year contracts with variable amounts, ACV normalizes comparison between customers. It differs from ARR: ARR aggregates all contracts, ACV refers to a single contract's annual value.
TCV
Total Contract Value - total value of a contract for its entire duration, including professional services and one-time components. TCV is useful for evaluating the overall size of a deal; ACV is more useful for comparing the recurring health of the business.
NRR
Net Revenue Retention (or Net Dollar Retention) - percentage of recurring revenues retained and increased from existing customers in the period, inclusive of expansion MRR and churn MRR. NRR > 100% means recurring revenues from existing customers grow even without new customers. It is the primary indicator of product-market fit and customer success health.
GRR
Gross Revenue Retention - percentage of recurring revenues retained from existing customers excluding expansion. GRR measures the pure retention capability without the upsell effect. GRR < 80% signals a structural churn problem; GRR > 90% indicates strong customer base satisfaction.
ABM
Account-Based Marketing - strategy in which marketing and sales collaborate to target a selected set of high-value accounts with personalized campaigns and messages rather than broad approaches. ABM inverts the traditional funnel: it starts from identifying ideal accounts and builds targeted relationships, with account engagement metrics rather than lead volume.
CTA
Call To Action - communication element (button, link, phrase) that explicitly invites a prospect or customer to take a specific action: "Request a Demo," "Download the Guide," "Contact an Expert." An effective CTA is specific, visible, and aligned with the recipient's funnel stage.
SDR
Sales Development Representative - commercial role specialized in outbound qualification: researches prospects, executes outreach campaigns, qualifies leads, and passes SQLs to account executives. The SDR does not close deals: they focus on filling the top of the pipeline.
BDR
Business Development Representative - similar to the SDR but often focused on strategic prospects or new markets. In some organizations BDR and SDR are used interchangeably; in others the SDR handles inbound and the BDR handles outbound on target segments.
AE
Account Executive - salesperson responsible for managing and closing deals, usually starting from SQLs provided by SDRs. The AE conducts demos, negotiations, and contract signing. In enterprise organizations, the AE also manages relationships with already-acquired key accounts.
CSM
Customer Success Manager - responsible for customer success after purchase: onboarding, product adoption, contract renewability, and expansion. The CSM works proactively to ensure the customer achieves their objectives, reducing churn and maximizing NRR.