Common Sales Related Definitions For The Beginner:
B2B Selling – “B2B Selling” is an acronym commonly used to describe sales people who engage in selling their product or service to another company instead of the individual consumer.
An example of B2B selling would be commercial real estate sales professionals.
B2C Selling – “B2C Selling” is an acronym common used to describe sales people who engage in selling their product or service to the individual consumer instead of someone who is buying on behalf of their business’s needs.
An example of B2C selling would be retail stockbrokers who specialize in selling equity to the “Average Joe” and “Average Jane.”
Email Blast – An email blast is a mass email sent out by a company to leads that typically were purchased (sometimes illegally) in the hopes of reaching thousands of potential buyers, hoping to circumvent tedious, unprofitable cold-calling sales techniques.
Sales Cycle – A sales cycle is the time it takes from the sales professional’s first meeting meaning phone, email or in-person with a prospect until the service agreement is signed by the buying party.
Long sales cycles have been notoriously known for significantly damaging a company’s finances and available cash flow.
Sales into the government are very lucrative for the sales professional who can effectively do so because it takes a special patience and bureaucratic savvy to get anything done.
After 7 years of successful sales employment into municipalities, base salaries excluding commission can reach well into the $115,000 range.
Warm Prospect – A warm prospect is a term that signifies a potential buyer who has familiarity with the sales representative’s company as well as has shown some interest in the product or service.
If the account is not managed properly by the sales representative, a warm prospect can quickly turn cold, unresponsive and elusive to any attempted contact.
Cold Prospect – “Hi Stranger,” is the basic idea behind sales to what is referred to as a cold prospect.
You don’t know them, they don’t know you and to make things even more difficult, they probably don’t know your company and may not be in the market for your product.
For a sales representative, it takes a lot of skill, patience and hard work to see a cold prospect from initial contact to client.
Consultative Selling – Even though there are formal definitions, knowing them by the book may not prove to be advantageous as the phrase is simply used to convey to the sales applicant that the employer wants somebody who is not pushy, who is ethical, competent and solves the needs of the client.
Value Based Selling – Value based selling is a sales technique that focuses on heavily pitching any perceived value that the buyer will see or experience if he or she purchases their product.
Value Based Selling, just like the other sales tactics preaches knowing what the customer wants, a simplistic, but important theory to learn as a younger sales professional.
Aggressive Selling – There is no real formal word used too frequently in the sales arena that describes a sales approach that is intrusive, quasi unethical and pushy.
“We don’t want used car salesman,” is a phrase our sales and marketing staffing firm hears a lot.
In the end, they are trying to convey one of the golden rules of sales that states that nobody likes to be “sold” because nobody likes to be feel swindled regardless of the amount of the transaction.
“Chop – Shop” – A chop shop is slang in the sales world for a company that sells no real product, is full of cold-callers and is usually rampant with a lack of ethics.
A good example can be taken from the movie “Boiler Room.” Brokerage and insurance houses are the most frequently tagged business institutions.
Quotas – Quota is the number of sales, usually measured by top line revenue that a sales representative is expected to meet.
Quotas are mostly done annually and, but broken down into quarters.
If a sales representative exceeds their quota, they will usually get some form of bonus.
Most American companies give a higher percentage of the sales that are brought in after the target number is met while most European and Canadian firms give out a lump sum of money that sometimes results in the commission getting capped.
Conversely, if a sales employee consistently misses his or her quota they are let go from the company. The quotas can make a sales professional wealthy or make them unemployed and, if the trend continues at their next job, unemployable.