Sales Dictionary: Top 153 Key Sales Terms to Help You Win More Deals

Sales is not just about selling, it’s about knowing how to sell smart. But here’s the problem – 

• If you don’t know the difference between a lead and a prospect, you might be wasting time on the wrong customers.
• You could lose sales if you don’t understand how a sales funnel works.
• Your customers may be leaving for competitors without you realising why!
• You’re probably missing out on extra revenue in your business if you don’t know what exactly upselling and cross-selling techniques are.

If any of this sounds familiar, don’t worry. Knowing key sales terms can help you close more deals, increase revenue, and build a loyal customer base.

Key Sales Terms Based on Selling Approach

1. Inbound Sales: This method involves customers reaching out to a brand after they discover its content or come across it on different platforms.
2. Lead Generation: This refers to spotting and developing people who might buy a company’s products or services.
3. Lead Nurturing: Businesses use this approach to grow relationships with potential customers during different points in the sales process by offering useful advice or help.
4. Lead Scoring: A methodology used to rank potential leads on a scale that measures how valuable they might be to the company.
5. Conversion Rate: This is a metric that tracks the percentage of people who take an action you want, like signing up or making a purchase.
6. AIDA (Awareness, Interest, Desire, Action): A marketing framework that explains the stages a consumer in the process before buying a product or service.
7. Top of the Funnel: The Top of the Funnel is the early phase of a buyer’s journey when people notice a problem and learn about a brand.
8. Bottom of the Funnel: The BoF shows the end of the buying process. At this stage, a potential customer is likely to purchase and is close to deciding.
9. Click-Through Rate: CTR refers to the portion of viewers who click on a link or ad after seeing it.
10. Social Selling: This is a sales approach that uses social media platforms to find and connect with people, understand them, and build relationships to drive sales.
11. Customer Relationship Management (CRM): A tool or software that companies use to manage how they interact and build relationships with both current and possible customers.
12. Outbound Sales: A method of selling where the seller connects first to potential buyers by cold calling, sending emails, or meeting people at events.
13. Cold Call: A phone call from a salesperson to someone who has never interacted with the company before.
14. Cold Email: An email sent to someone the sender has never contacted before to explore business opportunities.
15. Decision Maker: The person in a company who has the power to approve deals, purchases, or other key business choices.
16. Discovery Call: Salespeople meet potential customers to understand their needs and see if the product works for them.
17. Pain Point: A specific issue or challenge a customer is dealing with.
18. Prospecting: The process of identifying and contacting target customers, or prospects.
19. Qualified Lead: A prospect who meets certain criteria and could become a customer.
20. Sales Cycle: This refers to the sequence of predictable phases a salesperson requires to sell a product or service, from initial contact to a closed deal.
21. Always Be Closing (ABC): A sales philosophy that pushes sellers to keep moving toward getting a deal closed.
22. Consultative Sales: A sales methodology that means the seller takes on the role of an advisor. They first try to understand what the customer needs, then suggest a solution tailored to that.
23. Value Proposition: A statement that clearly identifies what unique advantage a product or service offers to its customer.
24. Buying Intent: This refers to how likely it seems that a potential buyer will make a purchase. It is often guessed based on their actions and how engaged they are with the seller.
25. Buying Criteria: These are the specific requirements or factors a customer looks at when deciding to buy something, such as cost, quality, or specific features.
26. Opportunity: This refers to a lead that has been verified as serious, showing real interest and a strong chance of turning into a paying customer.
27. Account: This refers to an individual or business that could become or already is a customer for a salesperson.
28. Customer Lifetime Value (CLV): This means predicting the total profit a business might gain from its future dealings with a customer.
29. Customer Acquisition Cost (CAC): This means measuring all the money spent to bring in a new customer. It includes both marketing and sales expenses.
30. Upselling: A sales technique where sellers use this method to convince buyers to choose a pricier or better version of a product.
31. Cross-selling: This refers to a sales tactic that encourages customers to add related or complementary products to their purchase.
32. Onboarding: This refers to a process companies use to guide new customers on how to use a product or service.
33. Transactional Sales: This sales term refers to a sales approach that focuses on completing fast, one-time deals with a priority on speed and simplicity.
34. Churn: This refers to a metric that shows the percentage of customers who either stop using or choose not to renew a subscription or service over a specific time.
35. Low-Hanging Fruit: This refers to the simplest sales opportunities that can be closed with very little effort.
36. Mark-Up: The amount added to the cost of a product to determine its selling price.
37. Margin: The difference between a product’s selling price and its cost of production.
38. Gross Margin: This means what you get when the cost of goods sold (COGS) is deducted from the revenue made through sales.
39. EBITDA: This means Earnings Before Interest, Taxes, Depreciation, and Amortisation. It shows the company’s overall financial performance.
40. Solution Sales: A sales methodology revolves around identifying the customer’s issue and offering a comprehensive solution to resolve it.
41. Pain Point Analysis: The process of identifying and understanding a customer’s struggles to offer a solution that fits their situation.
42. Needs-Based Selling: This is a sales approach that focuses on matching what the customer requires and values most.
43. ROI Justification: The process of demonstrating the financial or strategic return on investment that a product or service will deliver.
44. Consultative Selling: This is a sales technique that involves becoming a trusted advisor while working with customers to find the best solution for their needs.
45. Value Proposition: It explains the core benefit a product or service offers and how it matters to the customer.
46. Bundling: The practice of combining several products or services into one package makes it easier to present as a single offering.
47. Problem-Solution Fit: This refers to the alignment between what a product or service offers and the customer’s specific issues or needs.
48. Long-Term Relationship: This refers to building a steady and trusting bond with a customer that lasts beyond just the first purchase.
49. Post-Sale Support: Help and services given to customers after they buy something to keep them happy and loyal.

Key Sales Terms Based on Target Audience

50. B2B (Business-to-Business): A business model where one business buys and sells to other businesses.
51. BANT (Budget, Authority, Need, Timeline): This refers to a framework to evaluate if a sales lead is qualified by looking at their Budget, the Authority to decide on buying, the need for what’s being sold, and their Timeline for planning the purchase.
52. C-Level or C-Suite: This refers to a company’s highest-ranking leaders, like the Chief Executive Officer (CEO), Chief Financial Officer (CFO), and Chief Operating Officer (COO).
53. Pipeline: This refers to a visual representation of a diagram or chart showing how sales deals move through various steps in the sales process.
54. KPIs or Key Performance Indicators: These are metrics/numbers used to measure how well sales activities are doing and how successful they are.
55. Annual Recurring Revenue (ARR): This refers to the income a business expects to earn every year from things like subscriptions or long-term agreements.
56. Monthly Recurring Revenue (MRR): This refers to the income a business expects to earn each month from subscription-based services.
57. B2C Sales (Business-to-Consumer): This is a business approach where a company sells to an individual buyer.
58. B2G Sales (Business-to-Government): This refers to a business model that focuses on selling goods or services to government bodies, whether they are local, state, or federal.
59. Request for Proposal (RFP): A formal document issued by an organisation (often a government agency) soliciting bids from vendors for a specific project.
60. Government Contracting: This is a process businesses go through to provide products or services to government agencies under agreed terms.
61. Procurement Process: This refers to a structured method that governments and big organisations follow to buy goods or services from external vendors.
62. Bid Submission: This refers to when a company sends its official offer to try and win a government contract after the government asks for bids.
63. Compliance Requirements: These refer to the rules and laws a business must follow to qualify for government contracts.
64. GSA Schedule: This is a list of approved vendors allowed to sell to U.S. federal agencies at agreed-upon prices.
65. Federal Acquisition Regulation (FAR): This refers to the rules guide on how the U.S. government buys goods and services.
66. Small Business Set-Aside: This is a government contract set aside for small businesses so they can compete more.
67. Public Sector Sales: This refers to selling goods or services to governments, schools, or other public groups.
68. Sole Source Contract: A refers to a type of government deal given to one vendor without holding a competition to find others.
69. D2C Sales (Direct-to-Consumer): A way businesses sell straight to their customers, skipping over retailers or middlemen.
70. Brand Identity: The unique personality, values, and visual elements that define a company and differentiate its products.
71. Customer Retention: This means the plans businesses use to keep regular customers coming back to buy again.
72. Direct Marketing: A promotional strategy where businesses connect directly with their target audience using things like email, social media, or ads.
73. Omni-Channel Sales: This refers to a unified sales approach that lets customers shop across different platforms such as mobile, online, or physical stores.
74. Influencer Partnerships: This means partnering with social media influencers to promote products and connect with specific audiences.

Key Sales Terms Based on Industry

75. Retail Sales: This refers to selling products to customers either in stores or online.
76. Point of Sale (POS): This refers to the spot, online or in person, where customers finish buying something. It can be a checkout page or a cash register.
77. Merchandising: This means taking actions and plans to show and advertise products to boost sales.
78. Inventory Turnover: The rate at which a business sells and restocks its goods within a given time.
79. Sales Associate: A worker in retail who helps shoppers and makes sales happen.
80. Foot Traffic: The count of shoppers or customers who visit a brick-and-mortar store over a set timeframe.
81. E-commerce Sales: This means selling products or services on the internet using websites, apps, or online marketplaces.
82. Cart Abandonment Rate: This shows how many shoppers put things in their cart but never buy them.
83. Buyer’s Journey/Conversion Funnel: This is the path a customer follows on a website, starting from their first visit up to buying something.
84. Dropshipping Model: In this setup, stores don’t keep items in stock. Stores order from suppliers and send items straight to the buyer.
85. Payment Gateway: This is a system that handles payments between buyers and stores.
86. User Experience (UX): This refers to how a customer feels and what they think while using an online store/website. It has an influence on how much they engage and whether they buy something.
87. Real Estate Sales: This refers to buying and selling properties like homes, offices, or land.
88. Property Listing: A listing works as an advertisement showing a home or commercial space available to buy on a real estate website.
89. Closing Costs: These refer to the charges and fees, like taxes or legal services, that buyers or sellers pay to complete a property sale.
90. Market Value: This is the price someone might pay for a property in the market at a particular moment.
91. Mortgage Approval: A lender’s confirmation showing a borrower is approved to take out a home loan after checking their finances.
92. Open House: A scheduled period when people can view a property for sale without needing to set up an appointment ahead of time.
93. Pharmaceutical Sales: The business of selling both prescription and non-prescription medicines to doctors, pharmacies, or hospitals.
94. FDA Regulations: This refers to the guidelines created by the U.S. Food and Drug Administration to make sure drugs are safe and work as intended.
95. Drug Formulary: A catalogue of prescription medications included under a certain health insurance policy.
96. Payment Plan: This refers to a financial option to buy items through options like financing agreements or rental payments over time.
97. Additional Warranty: An extended insurance plan that pays for fixing a product after the regular warranty from the company ends.
98. Sale of Insurance: This refers to selling policies that give money protection for problems like accidents, medical needs, or damage to property.
99. Policyholder: A person or a company that has an insurance plan and gets coverage from it.
100. Payment Premiums: The usual monthly or yearly payments someone makes to keep their insurance active.
101. Risk Assessment: An analysis of what influences the chances of claims, which helps decide policy costs and limits of coverage.
102. Claims Processing: A system used by insurance companies to review and approve claims to see if payment can be made.
103. Underwriting Steps: This refers to how insurance companies check risk, set rules for plans, and decide costs.
104. Technology Sales: This refers to the business of selling software, hardware, or IT services either to people or businesses.
105. SaaS (Software as a Service): A software service in which software is licensed on a subscription basis by users and is centrally hosted.
106. API Integration: This refers to a method to connect different programs so they can share data and work together.
107. Scalability: This means a product or service’s ability to grow in workload without losing performance.
108. Technical Demos: This refers to live product presentations to explain features and how they work to target buyers.
109. Subscription Model: This refers to a business structure in which customers pay a recurring fee to use a service or product.

Key Sales Terms Based on Sales Channel

110. Direct Sales: This means selling products or services directly to customers without using retailers or middlemen to handle the process.
111. Door-to-Door Sales: This refers to a sales technique where a salesperson visits people’s homes without invitation to offer and sell their products or services.
112. Face-to-Face Selling: This means meeting customers in person to discuss and sell products to them.
113. Demonstrations: A live presentation is done to explain how a product works, what features it has, and why it is useful.
114. Closing Techniques: These are methods used to convince someone to decide to buy the product or service being offered.
115. Prospect Qualification: This refers to a process that involves checking if potential buyers are likely to purchase by assessing their interest and needs.
116. Indirect Sales: This refers to a strategy to sell products by relying on third parties, like distributors, resellers, or affiliates, to reach customers.
117. Channel Partner: This term refers to a third-party company that handles selling, marketing, or delivering products on behalf of another business.
118. Distributor Agreement: This refers to a legal contract that sets the conditions and responsibilities between a manufacturer and its distributor.
119. Cold Calling Script: This refers to a written guide salespeople use while talking to potential buyers over the phone to guide their conversations.
120. Handling Objections: This refers to a process of handling customer concerns or questions during sales discussions to close the deal or provide clarity.
121. Call-to-Action (CTA): These are instructions that encourage customers to act for purchase immediately, ike “schedule a demo” or “purchase now.”
122. Call Centre Stats: This refers to the key metrics that help track how well telemarketing performs. Metrics include things like how long calls last and how many lead to sales.
123. Auto-Dialers: This refers to the tools or software that make calls automatically. They let sales teams handle more calls in less time.
124. Field Sales: This refers to a sales approach where sales reps go out to meet clients or prospects face-to-face.
125. Area Management: This refers to a process of planning work and improving sales strategies in a certain location or region.
126. Travel Costs: This refers to the money spent by salespeople when travelling to meet clients. This can include things like hotels, food, and transportation.
127. Sales Quota: This means a specific sales target or revenue goal that a salesperson has to achieve within a certain timeframe.
128. Product Demonstrations: This refers to the live or interactive presentations that explain or show how a product works to potential customers.
129. Networking: This means building and maintaining connections with clients, partners, and industry professionals.
130. Inside Sales: This refers to selling products or services from a distance using phones, emails, or online tools instead of meeting face-to-face.
131. Remote Selling: This refers to a process that happens online where customer interactions take place through channels like emails, video calls, or phones.
132. Virtual Meetings: This refers to the process that allows sales teams to present and discuss ideas with customers through online video or audio platforms.
133. Email Nurturing: This refers to a strategy that uses a planned series of personalised emails to grow connections and guide prospects closer to making a purchase.
134. CRM Software: This refers to a tool that keeps track of customer interactions, organises sales pipelines, and stores data to help businesses manage relationships.
135. Sales Automation: This means using a technology that handles repetitive tasks in the sales process to speed things up and boost productivity.

Key Sales Terms Based on Business Model

136. Subscription Sales: This refers to a business model where customers pay a set fee to use products or services instead of a single payment.
137. Churn Rate: This refers to the percentage of people who stop their subscriptions during a time period.
138. Monthly Recurring Revenue (MRR): This measures how much income a company earns every month from active subscriptions.
139. Free Trial Conversion: This refers to a rate that shows how many free trial users decide to switch to a paid plan.
140. Auto-Renewal: This refers to when a customer renews a subscription unless the user cancels it before the term ends.
141. Enterprise Sales: This means selling complex, high-value solutions to big companies takes time and involves detailed processes.
142. Procurement Process: This means that when companies follow set steps to choose, evaluate, and buy products or services.
143. Multi-Touch Sales Cycle: A sales process that requires multiple interactions with various stakeholders within an organisation to close a deal.
144. Executive Buy-In: Senior leaders need to approve and back a purchase or project to make it happen.
145. Contract Negotiation: Before sealing a deal, teams discuss and settle on price, terms, and conditions.
146. Sales Engineering: This job mixes technical knowledge with sales skills to explain and set up complicated solutions for clients.
147. Wholesale Sales: Businesses sell large amounts of goods to retailers or companies at cheaper rates.
148. Bulk Pricing: A tiered pricing structure offering a cost per unit when someone buys in bigger quantities.
149. Minimum Order Quantity (MOQ): The smallest amount of product that a buyer must purchase in a single order.
150. Supply Chain Management: People manage how products move from factories to wholesalers and then to stores.
151. B2B Discounts: This refers to businesses that give lower prices to other businesses that buy a lot or order often.
152. Distribution Channels: Goods move from makers to wholesalers, then to shops, and to buyers.
153. Franchise Sales: This sales term refers to the companies selling the right to run a business using their brand and system.

Final Thoughts

When you and your team speak the same sales language, decision-making becomes more effortless, marketing gets sharper, and sales efforts become more effective.

So, start using these sales terms today and watch your business grow! 

Building a business that grows consistently requires a clear plan and the right structure to overcome challenges.

These were just sales terms. Now, if you want to learn how to do sales, increase your sales numbers, or create sales strategies. Read our sales blogs here.