Term | Definition |
|---|---|
The average amount of money each of your customers pays during their engagement with your company. | |
A tangible or emotional result driven by your product on the customer’s metrics | |
A person who does not support your product and can block the sale. | |
It is the role that a person plays during the buying process | |
An ability unlocked by using a product: something the user can do and could not do without using the product | |
A person who actually cares about the pain you solve, for this reason pushes for your product, and is or has access to decision-makers. | |
A person who actually cares about the pain you solve, for this reason supports your product, but has no internal power or influence to secure a purchase decision. | |
Selling additional products (i.e. add-on functionality, or a product serving a different business line) to an existing customer | |
The average amount of money you spend to acquire each of your customers. | |
The amount of money that one specific customer is likely to pay during their engagement with your company. | |
The person who has the final call on the decision to purchase. | |
The person who holds and controls the budget for the product. | |
A concrete functionality of a product: something the product does and enables one or more capabilities. | |
It measures the accuracy of your forecast. It’s the relative difference (in %) between what you forecasted and what you end up closing. | |
It is a product used by many personas and/or industries. Marketing a horizontal product presents specific challenges, especially in making messaging relevant to such a diverse audience. | |
It is a description of the organization that is the most likely to buy and benefit from your product: location, industry, size, and other characteristics. It is defined by analyzing your current customer base and is used to focus your sales and marketing activities on the most likely buyers. | |
It is a description of the individuals within your Ideal Customer Company Profile (ICCP) who are the most likely to buy and/or benefit from your product: demographics, typical roles, characterization, Job-to-be-done, likely buying role, etc. It is defined by analyzing your current customer base and is used to focus your sales and marketing activities on the most likely buyers. | |
It is a description of your “perfect customer”. It is the most likely to buy and benefit from your product. It is defined by analyzing your current customer base and is used to focus your sales and marketing activities on the most likely buyers. In B2B, the definition is ambiguous: it may refer to both organizations and individuals. For this reason, I prefer using the terms Ideal Customer Organization Profile (ICOP) and Ideal Customer Persona Profile (ICPP), depending on the context. | |
A framework to optimize go-to-market strategy by analyzing the “jobs” that prospective customers need to do (fulfill a certain need, perform a certain task, reach certain objectives, etc) and which drive their decision to buy a product | |
The aggregate amount of money that your customers are likely to pay during their engagement with your company. | |
A metric often used as a rule of thumb to evaluate a firm’s performance, with 3:1 set as a good benchmark. Despite its name, it is more accurately defined as the ratio between the Average Customer Lifetime Value (ACLV) of customers acquired in a certain period and the average Customer Acquisition Cost for that same period. | |
A metric often used as a rule of thumb to evaluate a firm’s sales and marketing performance, with the range from 1 to 1.5 set as a good benchmark. | |
It is the net increase in Annual Recurring Revenue over a certain period (a month, a quarter, a year): the ARR at the end of the period minus the ARR at the beginning of the period | |
It is the ARR added over a certain period (a month, a quarter, a year) by winning new customers, up-selling, or cross-selling | |
A metric often used as a rule of thumb to evaluate a firm’s performance. The rule says that profit margin + growth rate should exceed 40% to indicate a great business model. Values above 50% indicate that you could grow faster and are likely under-investing in sales and marketing. | |
Selling more of a product (i.e. additional users) or a higher-end product (i.e. upgrade from professional to enterprise plan) to an existing customer |