Business Glossary

Business Glossary is a dictionary in “human” language for translating business, marketing, economics and technology terms.

Would you like to know what on earth web marketing experts are talking about?

Want to know the terms of the trade? Would you like to avoid being caught unprepared?

A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z

A

ABOVE THE FOLD = In a website, it means anything that is immediately visible based on the device size (computer, tablet or mobile). The rest of the website that is visibile only if you scroll is called “BELOW THE FOLD“.

ADS (FACEBOOK, GOOGLE, ECC.) = Advertisement (Sponsorship/Advertisement), these are paid ads on a platform to promote a brand/product/service.

The most traditional means are TV (advertising spot), radio, billboard, and magazines.

The most modern means are social or entertainment platforms (game apps) and generally take the name of the platform + ads (google ads, facebook ads, youtube ads, etc.).

Unlike traditional means, modern ones are accessible to everyone, even with a limited budget, and can reach their target in various specific conditions (based on location, interests, user searches).

AI = Artificial Intelligence, is the ability of a machine to reason and perform actions according to typically human logic.

It also refers to the branch that studies and seeks to improve machines to make them capable of solving problems and reproducing human functions.

Examples of AI: virtual assistants (Siri, Alexa, Cortana, etc.), customer service bots, video games, adapted recommendation systems (advertising, streaming), smart car/home.

An important observation is the future impact that AI development will have: many businesses and jobs will not need human labor, and famous personalities like Stephen Hawking and Elon Musk have warned about how potentially dangerous AI can be for humanity (as seen in science fiction movies).

In the bestseller “Rich Dad Poor Dad” by Robert Kiyosaki, an alternative definition is proposed that separates an asset from a liability (debt/responsibility):

anything that “brings money into my pockets” is an asset
anything that “takes money out of my pockets” is a liability.

Assets like a house (for living) or a car, which normally have potential monetary value if sold, are therefore considered liabilities/responsibilities for bills, insurance, and taxes to be paid, thus they do not bring profit per se.
A rental house, investments, dividends, or profitable businesses are examples of assets.

AUR = Average Unit Retail, the average selling price of a single item.

AUR = Total Sales / Number of Items Sold

Example: If a store sells 3 shirts for $10, $15, and $25, the AUR is $16.67.

B

BACK-END = In websites, it represents the administrative part “behind the scenes” (website creation, content production, data processing, etc.) that makes the visible and usable interface possible for the user, also called Front-end.

BACK-END PROFIT = In business, it means all the profit derived from customers who buy or return to buy after the first purchase.
Example: at a dealership, the additional options of a car are part of the back-end profit. For a bar or restaurant, the back-end profit corresponds to the additional gain when the customer returns to consume again.

Example: a web agency with 100 clients to whom it created a website, keeps 80 clients who buy a website assistance and backup package for €150 per year.

Average back-end profit = €150 per year x 80% (only 80 out of 100 adhere) = €120/year

It means that on average each client brings €120 extra per year. It is an important factor to consider when making budget decisions to acquire new customers (CPA), which can even justify free promotions, in light of a large back-end profit. Unfortunately, it is difficult to calculate this number, especially for traditional businesses, which do not take into account the retention rate (the percentage of returning customers).

BACKUP = The reserve/support, in IT terms, refers to the saving of data (e.g., website database) by creating a copy as a restoration point in case there is irreparable damage to important data. It is fundamental for webmasters.

BENCHMARK = A standard or point of reference used to measure and compare performance.
Example: A company might use sales figures from the previous year as a benchmark to evaluate current performance.

BITCOIN = Bitcoins are “digital” money that can be used to pay in stores that allow bitcoin payments. Just like the dollar or the euro, bitcoin is a currency (or “cryptocurrency”). The value of bitcoins fluctuates radically unlike others because it is not regulated by financial, banking, or governmental systems, but by real-time supply and demand. It constitutes a fertile opportunity to explore precisely because it is not currently known and adopted by most people.

BLUE OCEAN STRATEGY = Blue Ocean Strategy, trying to create a totally different product or service, creating a new industry or niche without initial competition (e.g., Airbnb, Uber, Glovo, iPhone, iPod). Conversely, in the Red Ocean, there is a bloody struggle to be better than others, with price-cutting strategies and terms of comparison. The term is taken from the book written by W. Chan Kim and Renée Mauborgne.

BOUNCE RATE = The percentage of visitors who enter a website and then leave (“bounce”) rather than continuing to view other pages within the same site. A high bounce rate may indicate that the site’s content is not engaging or relevant to its visitors.

BRAND IDENTITY = Brand Identity, the set of elements that make the brand recognizable and unique (name, symbols, logo, slogan, jingle, etc.) as well as the complex of entrepreneurial values that distinguish a brand from its inception and determine its future evolution. The brand identity reflects the company’s orientation and objectives, as well as the brand’s personality and values.

BRICK-AND-MORTAR = A physical store or business location that customers can visit in person.
Example: A local grocery store or a clothing shop in a mall.

C

CHURN RATE = The churn rate shows what percentage of people stop using a product or service over a certain time. It helps to know if customers are happy enough to stay.

Example: Imagine a YouTube channel with 1,000 subscribers at the start of the month. If the channel gains 20 new subscribers but ends the month with only 900 subscribers, it means 120 subscribers left.

Churn Rate = 120 / 1,000 x 100 = 12%

This means 12% of the channel’s subscribers were not happy and unsubscribed. What’s a good churn rate? It depends on the context and industry. Some businesses have high churn rates, like car sales, because most people don’t buy cars every month or year.

CLV = Customer Lifetime Value (also CLTV, LCV, LTV), shows how much profit a single customer brings over a specific time (usually one year).

Example: If I have a product that costs €100 and makes €30 profit after expenses, and the customer buys it 3 times a year:

M = Margin (profit after expenses)
R = Re-purchase (how often a customer buys in a year)
CLV = M * R = €30 * 3 = €90

This means one customer is worth €90 in profit each year.

So, I can spend even up to €45 to get new customers because I know they will bring in €90.

This helps decide how much to invest in getting new customers along with CPA (Cost Per Acquisition).

CONTENT MARKETING = A marketing strategy that involves creating and sharing valuable content (like articles, videos, and social media posts) to attract and engage a target audience. The goal is to provide helpful information that makes people interested in your product or service.

COPYWRITER/ING = A copywriter is a person who writes the text for ads (like titles, slogans, and website content). Modern copywriters also need to know about SEO (making content searchable), SEM (search engine marketing), and SERP (search engine results pages).

CPA = Cost Per Acquisition, shows how much it costs to get a new customer from an ad campaign. It is calculated with this formula:

CPA = Online advertising cost / Number of sales.

Example: If using Google ads costs €1,000 and brings 100 new customers, the cost per customer is €10.

CRM = Customer Relationship Management, a software or system that helps businesses manage interactions with current and potential customers. It provides data to improve sales, customer relationships, and loyalty.

CRR = Customer Retention Rate is the opposite of Churn Rate. It shows the percentage of customers who stay with a service or product over time. It helps to know if customers are happy to continue using it.

Example: “Company A” has 10,000 customers at the start of the month, gains 1,000 new customers, but ends with 9,000 customers (losing 2,000 customers).

CRR = [(customers at end of month – new customers during the month) / customers at start of month] x 100
CRR = (9,000 – 1,000) / 10,000 x 100 = 80% (the churn rate is 20%)

This means Company A keeps 80% of its customers.

What is a good retention rate? In many industries like finance, e-commerce, and IT, it’s normal to have a retention rate below 20% over 8 weeks.

CSS = Cascading Style Sheets, is a language that controls how web pages look. It works with HTML to manage the structure and content of the page.
Example:

h1 { text-align: center; }

This means the H1 heading (title) will be centered on the page.

CTA = Call To Action, an invitation for visitors to do something, like “subscribe to the channel,” “call now,” “schedule an appointment,” “download for free,” “buy,” or “register.” It shows what you want users to do on the page or section.

CUSTOMER LOYALTY (PROGRAM) = the process of keeping customers who have already bought from you. There are many strategies to intentionally keep customers loyal. Some examples are:

Fidelity card: a discount bonus for buying 9 times, and the 10th purchase is free.
Bronze, Silver, and Gold levels: creating categories for customers with benefits at each level. If you earn X points by buying, you can access extra services or discounts.
Reminders: a simple phone call for services that need to be done periodically (dentist every 6 months, car check-up every year, etc.).

D

DATA ANALYTICS = The process of examining data to draw conclusions and make better business decisions. It helps companies understand trends and patterns.

DEMAND = The desire or need for a product or service by people. If many people want something, the demand is high.

DEMOGRAPHICS = Information about people, such as their age, gender, income, and education, used to understand the audience for a product or service.

DIRECT MARKETING = A way of selling products directly to customers through methods like email, phone calls, or mail, without using a middleman.

DISCOUNT = A reduction in the usual price of a product or service to encourage people to buy it.

DISTRIBUTION = The process of getting a product from the manufacturer to the customer, including transportation and delivery.

DIVIDEND = In economics, it is the portion of a company’s profits that is distributed to those who have invested in it (shareholders).

DIVERSIFICATION = A strategy of adding new products or services to a company’s offerings to reduce risk and reach more customers.

DOMAIN NAME = The address of a website that people type into their browser to visit it, like www.example.com.

DROPSHIPPING = A business model where online stores sell products without keeping them in stock. When a customer orders something, the store buys the product from a supplier who ships it directly to the customer.

Example: An online store selling t-shirts that are printed and shipped by another company only after a customer makes a purchase.

DUE DILIGENCE = The research and analysis done before making a big decision, like buying a company, to make sure everything is as expected.

E

E-COMMERCE = Electronic Commerce, buying and selling goods or services over the internet. Examples include online shopping websites like Amazon or eBay.

ENGAGEMENT = The level of interaction and involvement people have with a brand or product. This includes likes, comments, shares, and other ways people show they are interested.

EXPENSE = Money spent by a business to run its operations. Examples include paying for supplies, rent, and salaries.

EMAIL MARKETING = Using emails to promote products or services to customers. This includes sending newsletters, special offers, or updates to keep customers informed and engaged.

EARNINGS = The money a company makes from its business activities after subtracting expenses. It’s also known as profit.

ECOSYSTEM = A network of interconnected businesses and services that support each other. For example, a smartphone ecosystem includes apps, accessories, and services that work together.

EQUITY = Ownership interest in a company. If you own shares in a company, you have equity. It can also refer to fairness and justice in business practices.

EXPOSURE = The amount of attention a brand or product gets from potential customers. High exposure means more people are aware of the brand or product.

EXECUTION = The process of carrying out a plan or strategy to achieve business goals. It’s about turning ideas into actions and results.

F

FREEBIE = A small gift, a marketing strategy to increase sales. There are different types:

Free trial for X days, to remove the fear of buying an unknown product or service, let customers “taste” the benefits, and get familiar with it.
A free digital guide (E-book), to solve a customer’s problem, like a guide on “how to lose 10kg in 1 month” from a fitness coach.
A free sample, like a perfume sample or a food taste test.
Free first consultation, for professional services.
Newsletter subscription, if you regularly send useful and/or entertaining information in your field.

FRONT-END = On websites, the front-end is everything visible and interactive to the user through the website address (URL). Generally, the front-end is any interface or program an external user can interact with. It collects input data and may process it to send to the back-end, which generates the interface, processes data, and modifies it.

FUNNEL = A funnel, in marketing, describes the process a potential buyer goes through until making a purchase, divided into several steps. There are different models, but the first one was AIDA (Awareness, Interest, Desire, Action). A better division of the marketing funnel is:

Awareness: The potential customer becomes aware of your brand/product/service. The more they see or hear about your brand, the easier they move to the next stage. For websites, this includes 100% of site visitors.
Consideration: The potential buyer seriously considers buying your product/service. They ask for a quote, seek information, compare options, try a free trial, or leave contact info to learn more.
Conversion: The first purchase is made, the customer decides to try your product or service at least once or twice.
Loyalty: Through the process of customer loyalty, some customers continue to buy regularly, becoming “regular customers.”
Advocacy: When customers not only buy often but also recommend and talk about your brand/product/service, they become “fans,” the best relationship you can have with a buyer.

G

GOOGLE ANALYTICS = A free service from Google that lets you analyze detailed statistics about visitors to a website. The data collected helps you understand if a website has visitors, how long they stay, how many leave quickly (bounce rate), and more.

This information helps professionals analyze the website and understand how to improve it.

GOOGLE BUSINESS PROFILE (GOOGLE MY BUSINESS) = A free service from Google to list your physical business (store, restaurant, office, etc.) with an address on Google Maps and a Google listing. It provides directions, phone numbers, working hours, reviews, and other information.

It is essential for businesses with a physical location because it’s a potential free source of new customers who search for what you offer nearby.

It’s important to include keywords that users search for in your business name.

GOOGLE SEARCH CONSOLE = A free service from Google that lets you list your website in the SERP, making it visible to people who search on Google. It provides data about your web pages’ rankings, the most searched keywords you appear for, the number of impressions and clicks on your pages, and more.

GUERRILLA MARKETING = A low-cost marketing strategy using unconventional communication to make a big impact, create news, and sometimes cause a scandal to draw attention to a goal (not always financial). Coined by writer Jay Conrad Levinson. Examples:

The environmental association “Terra!” placed gas masks and road signs on 150 historic statues in Rome to protest against CO2 emissions and greenhouse gases.
Painting pedestrian crossings in rainbow colors for an LGBT campaign against homophobia or creating McDonald’s french fries and logo on the crossings.
To promote a horror movie featuring a girl with telekinetic powers (Carrie remake, 2003), marketers staged a scary event in a cafe, making the video go viral.
To promote the TV series “Romanzo Criminale,” four statues of the Magliana gang were placed in front of the EUR building, causing a stir, criticism, but mostly a lot of media attention.

H

HARDWARE = The physical parts of a computer or device, like the keyboard, mouse, and hard drive. It’s the stuff you can touch.

HASHTAG = A word or phrase with a # sign in front of it used on social media to categorize and find posts about specific topics. For example, #fun or #learning.

HEADLINE = The title of an article or webpage. It grabs attention and tells you what the content is about.

HEADING = A title or subtitle in a document or webpage that helps organize and separate sections of content. It’s like the titles of chapters for a book.

HIT = When someone visits your website, it’s called a hit. It’s a way to measure how many people are looking at your website.

HOME PAGE = The main page of a website that you usually see first. It acts like the front door of a website.

HOSTING (WEB HOSTING) = In computing, it’s a network service that allows you to upload web pages to a web server making them accessible and visible on the internet. It’s like renting a space for your business, similar to the walls of a building where you set up your shop.

HTML = HyperText Markup Language, the “markup language for hypertext” and it is not a programming language. It is the code used to describe the structure of a web page’s content.

Examples:
<h1>”Our Title”</h1>
<p>”Our first paragraph”</p>

HUMAN RESOURCES (HR) = The department in a company that handles hiring, training, and helping employees. They make sure everyone is treated fairly and gets paid.

HYPERLINK = A clickable link in a document or on a webpage that takes you to another webpage or document when you click it. It’s like a bridge connecting two places on the internet.

I

IMPRESSION = When you search on Google (or other search engines), a list of websites appears as search results. Each time a website appears in these results, it counts as “1 impression,” meaning 1 chance to be seen by the user searching. So saying “my website received 100 impressions” means that during 100 different searches, the website appeared 100 times.

Note: This does not mean the user saw or clicked on your website, especially if the site is at the bottom of the page. If the user clicks another link before scrolling down, they haven’t even seen your site, but it still counts as 1 impression.

INFLUENCER = A person who has many followers on social media and can influence their followers’ opinions and behaviors. Companies often work with influencers to promote their products.

INNOVATION = Creating new ideas, products, or ways of doing things that improve what we have now. It’s like inventing something new or making something better.

INVENTORY = The goods and materials a business has in stock and available for sale or use.

IPO (INITIAL PUBLIC OFFERING) = When a company sells its shares to the public for the first time. It’s how a company becomes publicly traded on the stock market.

J

JINGLE = A short musical tune that announces or accompanies, usually, an advertisement or slogan to help people remember a brand.

Examples:

“Para pa pa paaa, I’m Lovin’ it.”
“Redbull gives you wiiings.”
Windows opening sound.
Netflix opening sound

JOINT VENTURE = A business arrangement where two or more companies work together on a specific project or business activity, sharing resources, risks, and profits.

JUST-IN-TIME (JIT) = A production strategy that aims to reduce inventory and increase efficiency by receiving goods only as they are needed in the production process.

Example: Dropshipping is a type of JIT strategy where online stores only order products from suppliers after a customer places an order, so they don’t keep products in stock.

K

KEYWORD = A keyword is a search term that people use on search engines like Google. It’s a simple way to look for information online. Keywords are crucial for SEO and for anyone doing marketing with websites or blogs because they need to understand which keywords users use, what their intent is, and how to strategically position (or index) their website for those keywords.

Example: If I’m looking for a cooking class in Rome, I might use the keyword “cooking class Rome”.

KIT = A set of materials or tools needed for a specific purpose, often sold together as a package. In business, a “media kit” might include photos, logos, and information about a company for use in advertising.

KYC (KNOW YOUR CUSTOMER) = A process businesses use to verify the identity of their clients. It helps to prevent fraud and ensure the customer is trustworthy.

KPI = Key Performance Indicator, a measurable value that shows how well a company is achieving its business goals.

For example, a KPI for a website might be the number of visitors it gets each month.

L

LANDING PAGE = A specific page on a website where visitors land after clicking an ad or link. It’s designed to encourage them to take a specific action, like signing up for a newsletter or making a purchase.

LEAD = In marketing, a lead is a potential customer who has shown interest in your product or service. The term is often used online for someone who has left their contact information to receive a freebie or subscribe to a newsletter.

LEAD GENERATION = The process of attracting and converting strangers into leads, or potential customers, who have shown interest in your product or service. This includes a variety of marketing strategies both online and offline:

Email marketing, the most used and effective channel to communicate with potential customers.
Ads online or traditional advertisements (magazines, newspapers, billboards, etc.).
Content Marketing, creating content (articles, posts, videos) to attract the attention of potential customers.
SEO, which means positioning yourself on search engines.
Events, trade shows, meet-ups, online groups on Facebook, etc.

LEAD MAGNET = See Freebie.

LIABILITY = See Asset.

LTV = Life Time Value, also called CLV (Customer Lifetime Value). See CLV.

M

MARKET RESEARCH = The process of gathering information about consumers’ needs and preferences. This helps businesses understand what products or services people want.

MARKETING = The activities a company does to promote and sell products or services, including advertising, selling, and delivering products to people.

MARKETING MIX = The combination of factors that can be controlled by a company to influence consumers to purchase its products. Often referred to as the 4 Ps: Product, Price, Place, and Promotion.

MARKUP = The difference between the cost of a product and its selling price. It’s how businesses make a profit on what they sell.

Example: If a store buys a toy for $5 and sells it for $10, the markup is $5.

MEDIA = Various means of communication used to reach and influence people, such as television, newspapers, and the internet.

MENU = In web design, a menu is a series of links, usually at the top of a webpage, that allows users to access the main pages of the site.

Example: HOME | ABOUT US | SERVICES | BLOG | CONTACT

MOBILE MARKETING = A type of marketing aimed at reaching people on their smartphones or tablets through apps, social media, or text messages.

MONETIZATION = The process of making money from something, especially a website or app or social media followers, by selling ads, subscriptions, or other services.

MVP (MINIMUM VIABLE PRODUCT) = The simplest version of a product that can be released to see if customers like it. It’s used to test ideas quickly and make improvements based on feedback. It can also be used to validate a business, pre-sell products and services before spending a lot of money and time to produce them.

Example: A new app with only its most essential features to see if people like it before adding more complex functions. A game demo or trailer showing how it will be, before it’s fully developed.

N

NAME DOMAIN = The unique, identifying name for a website.

Examples:

google.com
apple.com
youtube.com

Do not confuse with URL, which represents the entire web address link: https://en.wikipedia.org/wiki/Main_Page

NEWSLETTER = A bulletin, usually referring to a periodic message (daily, weekly, monthly) sent via email to customers/users about a specific topic. There are various types of newsletters:

News/Updates about the company or industry.
Useful information, such as guides, lists, and instructions.
Promotions and discounts on products, featuring products of the day/month.

NICHE MARKET = A small, specialized market for a particular kind of product or service. It’s a specific group of people with unique needs or preferences.

NPS (NET PROMOTER SCORE) = A metric used to measure customer loyalty and satisfaction. It asks customers how likely they are to recommend a company to others on a scale of 0 to 10.

NURTURE = In marketing, nurturing refers to building relationships with potential customers through consistent and relevant communication, often to guide them through the sales funnel.

O

OMNICHANNEL = A strategy that uses multiple channels (like physical stores, online shops, and mobile apps) to provide a seamless customer experience.

ONBOARDING = The process of helping new customers or employees get started with a product, service, or company.

Example: Teaching new users how to use an app.

ORGANIC SEARCH = When people find a website by typing words into a search engine like Google, without clicking on ads.

Example: Searching for “best pizza recipes” and clicking on a result that isn’t marked as an ad.

OUTBOUND MARKETING = Traditional marketing methods where a business reaches out to customers through activities like TV commercials, print ads, and cold calling.

OVERHEAD COSTS = The ongoing expenses of running a business that are not directly tied to creating a product or service.

Example: Rent, utilities, and salaries of office staff.

P

PAY-PER-CLICK (PPC) = An online advertising model where advertisers pay a fee each time one of their ads is clicked.
Example: A business pays Google each time someone clicks on its ad in the search results.

PERSONALIZATION = Tailoring a product or service to meet the individual needs and preferences of a customer.
Example: A website showing product recommendations based on what you’ve looked at before.

POP-UP AD = An advertisement that suddenly appears in a new window on a website, trying to grab your attention.

PROFIT MARGIN = The difference between the cost to produce a product and its selling price, shown as a percentage.
Example: If a product costs $20 to make and sells for $50, the profit margin is 60%.

PROTOTYPE = An early sample or model of a product used to test a concept or process.
Example: A company might make a prototype of a new toy to see how kids like it before making more.

PURCHASE FUNNEL = The steps a customer goes through before buying a product, from becoming aware of it to making the purchase.
Example: Seeing an ad, visiting the website, adding the product to the cart, and then buying it.

Q

QUALITATIVE DATA = Information that describes qualities or characteristics, often collected through interviews, surveys, or observation.

Example: People describing how they feel about a new product.

QUANTITATIVE DATA = Information that can be measured and written down with numbers.

Example: The number of visitors to a website or the amount of sales in a month.

QUERY = A question or request for information, often used in the context of search engines or databases.

Example: Typing “best pizza near me” into Google is a query.

QUOTA = A specific target or goal set by a company that needs to be achieved within a certain time frame.

Example: A sales team might have a quota to sell 100 units of a product each month.

R

RETENTION RATE = The percentage of customers who stay after their first purchase or desired action (like signing up for a newsletter or downloading a free app) over a certain period of time. See CRR.

RETURN POLICY = The rules a store has about returning items. It tells customers how long they have to return a product and under what conditions.

Example: A store might allow returns within 30 days with a receipt.

REVENUE = The total amount of money a business makes from selling products or services before subtracting any costs.

Example: If a lemonade stand sells 50 cups of lemonade for $1 each, the revenue is $50.

ROI = Return On Investment, a term used mainly in economics and accounting. It represents the percentage of profit relative to the initial investment over a certain period of time.

Example: If I invest €10,000 in a bank and earn €200 net (after taxes and fees) in a year:

ROI = (€200 / €10,000) * 100 (percentage) = 2%. The bank investment gives me a 2% ROI (net profit on investment).

S

SALES FUNNEL = The steps a customer goes through before making a purchase, from becoming aware of a product to buying it.
Example: Seeing an ad, visiting the website, adding the product to the cart, and then buying it.

SaaS (SOFTWARE AS A SERVICE) = A software distribution model where applications are hosted by a service provider and made available to customers over the internet.
Example: Using Google Docs or Microsoft Office 365 online.

SEO = Search Engine Optimization, the actions and activities done to improve the indexing and visibility of a document on the internet (like a website) by search engines (Google, Yahoo, Bing, Baidu, etc.) to get a better ranking on the SERP (the page with the results when we do a search). It generally involves studying Keywords (search terms), making it easier for search engines to find and rank the site.

SERP = Search Engine Result Page, the page that appears after performing a search, usually composed of sponsored (paid) results and organic (merit-based) results.
Example: After searching for “How to build a website” on Google, the page with the search results (SERP) will appear.

SITEMAP = A web page that contains a list of all the pages on a website in a hierarchical order, useful for visitors (users) but generally created to help search engine crawlers (Google, Bing, Yahoo, etc.) understand the structure of your website and classify it in the SERP.

SOCIAL MEDIA MARKETING = Using social media platforms like Facebook, Instagram, and Twitter to promote a product or service.
Example: Posting pictures of a new product on Instagram to get people interested in buying it.

SUBSCRIPTION MODEL = A business model where customers pay a recurring fee to access a product or service.
Example: Paying monthly for a streaming service like Netflix.

T

TARGET AUDIENCE = The specific group of people a product or service is aimed at.
Example: A toy company’s target audience might be children aged 5-10 and their parents.

TEMPLATE = A pre-made layout or design that can be used and modified for various purposes. In websites, it refers to a pre-designed structure to make creating and editing a website easier, even for those who don’t know coding or programming.

TRAFFIC = The number of visitors who go to a website.
Example: A website with a lot of traffic gets many visitors every day.

TRIAL = A test period during which a product or service is offered for free to let customers try it out.
Example: Free 30-day Netflix trial, free 30-day Audible trial, trying a free perfume sample, or receiving five pairs of Warby Parker glasses to try at home without cost.

TURNAROUND TIME = The time it takes to complete a process or fulfill an order.
Example: If you order a book online and it arrives in 3 days, the turnaround time is 3 days.

U

UI (DESIGNER) = User Interface, in computing, it’s the means by which we humans communicate and interact with machines.
Example: Screens, mice, keyboards, and remote controls are classic examples.

There are different types of UI, with the most famous being the GUI (Graphic User Interface) and recently the VUI (Voice User Interface), which involves voice recognition through AI like Siri, Alexa, Google Assistant, and Cortana.

USP = Unique Selling Point, a feature that makes a product or service stand out from its competitors.
Example: A smartphone with the longest battery life on the market.

UNIQUE VISITOR = In the context of websites and marketing, it means that when a user “sees” a website or email, they are counted only once, even if they revisit the same website in the future. In reality, servers mainly track the IP address. The number of “unique visitors” represents the number of different users.

UNSUBSCRIBE = The action of removing oneself from a mailing list or service.

Example: Clicking “unsubscribe” at the bottom of an email to stop receiving newsletters.

URL = Uniform Resource Locator, the unique address used to locate a resource on a computer or the internet. It’s generally the web address you type in the top bar of a browser.
Example:
https://www.google.it
https://it.wikipedia.org/

Do not confuse with the Domain Name, which is just a part of the URL (google.it and wikipedia.org).

USER = A person who uses a product or service, especially a computer or internet service.

UGC = User-Generated Content, Content created by users of a product or service rather than by the company itself.
Example: Customer reviews, social media posts, and videos about a product.

UX (DESIGNER) = User Experience, refers to the overall interaction of a user with a product, brand, or organization. The UX Designer (often associated with UI) is responsible for designing and managing everything that can be part of the user’s experience (the 5 senses).

V

VALUE PROPOSITION = A statement that explains what benefits a product or service provides and why it is better than others.
Example: “Our vacuum cleaner is the most powerful and affordable on the market.”

VENDOR = A person or company that sells goods or services.
Example: The ice cream vendor at the park sells different flavors of ice cream.

VIRAL MARKETING = A marketing strategy that encourages people to share content with others quickly and widely, like a virus.
Example: A funny video that people share with their friends on social media.

VISUAL MERCHANDISING = The practice of displaying products in a way that makes them look attractive and appealing to customers.
Example: Arranging clothes in a store window to catch the attention of people walking by.

VLOG = A video blog where content is presented in video format instead of written articles.
Example: A YouTube channel where someone shares daily life updates or reviews products.

W

WEB DESIGN(ER) = The graphic and functional design of a website’s entire structure. The web designer decides how to set up navigation, user experience (UX), graphics, and website functions based on strategy and goals.

WEB DEVELOPER = The web developer is responsible for writing the programming code to create what the web designer has conceptualized. Skills usually include knowledge of HTML, JavaScript, CSS, and MySQL.

WEB HOSTING = A service that allows individuals and organizations to make their websites accessible on the internet.
Example: Companies like GoDaddy and Bluehost provide web hosting services.

WEB MARKETING = Promoting products or services online through various strategies like SEO, social media marketing, and email marketing to reach and engage customers.

WEBINAR = A seminar conducted over the internet. It can be a presentation, lecture, or workshop delivered via a web platform.
Example: An online class about digital marketing techniques.

WEBSITE ANALYTICS = The collection and analysis of data about website visitors and their behavior. This helps businesses understand how people use their site and how to improve it.
Example: Google Analytics shows how many visitors come to your website and what pages they visit.

WHITE PAPER = A detailed report or guide about a specific topic that provides information and arguments to help readers understand an issue, solve a problem, or make a decision.
Example: A white paper on the benefits of using solar energy for homes.

X

XML (eXtensible Markup Language) = A language used to define rules for encoding documents in a format that is both human-readable and machine-readable. It helps store and transport data.

X-FACTOR = A unique quality that makes a product, service, or business stand out from the competition.
Example: A company’s exceptional customer service can be its x-factor.

Y

YEAR-OVER-YEAR (YOY) = A comparison of a statistic for one period to the same period the previous year. It helps to analyze growth or change over time.
Example: If a company made $100,000 in sales in January this year and $80,000 in sales in January last year, the year-over-year growth is 25%.

YIELD = The amount of profit or return on an investment, usually expressed as a percentage.
Example: If you invest $1,000 in a savings account and earn $50 in a year, the yield is 5%.

YTD (YEAR TO DATE) = A period starting from the beginning of the current year to the present date. It is used to measure performance over this time frame.
Example: If it’s April, the YTD sales would include sales from January 1 to the current date in April.

Z

Z-INDEX = In web design, it is a CSS property that specifies the stack order of elements on a web page. An element with a higher z-index will appear in front of an element with a lower z-index.
Example: If you want a popup to appear above the rest of the content on your webpage, you give it a higher z-index.

ZERO-BASED BUDGETING (ZBB) = A budgeting method where all expenses must be justified for each new period, starting from a “zero base.”
Example: Instead of using last year’s budget as a starting point, a company must justify all of its expenses as if it were starting from scratch.

ZIP CODE MARKETING = A marketing strategy that targets customers in specific postal code areas.
Example: A restaurant sending coupons to people living in nearby zip codes to attract local customers.

ZONE PRICING = Setting different prices for a product based on the geographic area where it is sold.
Example: A company might charge more for a product in a big city than in a small town due to higher costs.

A

ABOVE THE FOLD = In a website, it means anything that is immediately visible based on the device size (computer, tablet or mobile). The rest of the website that is visible only if you scroll is called “BELOW THE FOLD“.

ADS (FACEBOOK, GOOGLE, ECC.) = Advertisement (Sponsorship/Advertisement), these are paid ads on a platform to promote a brand/product/service.
The most traditional means are TV (advertising spot), radio, billboard, and magazines.
The most modern means are social or entertainment platforms (game apps) and generally take the name of the platform + ads (Google Ads, Facebook Ads, YouTube Ads, etc.).
Unlike traditional means, modern ones are accessible to everyone, even with a limited budget, and can reach their target in various specific conditions (based on location, interests, user searches).

AI = Artificial Intelligence, is the ability of a machine to reason and perform actions according to typically human logic.
It also refers to the branch that studies and seeks to improve machines to make them capable of solving problems and reproducing human functions.
Examples of AI: virtual assistants (Siri, Alexa, Cortana, etc.), customer service bots, video games, adapted recommendation systems (advertising, streaming), smart car/home.

ASSET = Asset, it means any resource of an individual or company that is or can be monetized. Generally, property such as a house, business equipment, or investments in trading are considered, but the concept can also be expanded to simple skills (cooking, teaching, fixing, etc.).
In the bestseller “Rich Dad Poor Dad” by Robert Kiyosaki, an alternative definition separates an asset from a liability:

anything that “brings money into my pockets” is an asset
anything that “takes money out of my pockets” is a liability.

AUR = Average Unit Retail, the average selling price of a single item.
AUR = Total Sales / Number of Items Sold
Example: If a store sells 3 shirts for $10, $15, and $25, the AUR is $16.67.

AWARENESS = The degree to which a target audience recognizes and recalls a brand, product, or service. It is the first stage of the marketing funnel and the starting point of any customer relationship. Awareness is built through advertising, content, social media, PR, and word of mouth.

B

B2B = Business to Business, a commercial model in which a company sells products or services to other companies, rather than directly to individual consumers.
Example: A software company that sells a CRM tool to marketing agencies operates in B2B.

B2C = Business to Consumer, a commercial model in which a company sells directly to the end consumer.
Example: An e-commerce store selling shoes to individual shoppers operates in B2C.

BELOW THE FOLD = The portion of a web page that is only visible after the user scrolls down. Content placed here receives less immediate attention than content above the fold.

BOUNCE RATE = The percentage of visitors who land on a page and leave without taking any action or navigating to another page on the same site. A high bounce rate can indicate poor content relevance, slow loading speed, or a mismatch between the ad/search result and the page content.

BRAND = The set of perceptions, emotions, and associations that a person has about a company, product, or person. A brand is not just a logo: it includes tone of voice, values, visual identity, reputation, and customer experience.

BRAND AWARENESS = The extent to which consumers recognize and remember a brand. High brand awareness means that when a person thinks of a product category, the brand name comes to mind.

BUDGET = The total amount of money allocated to a marketing activity, campaign, or department over a defined period. Setting a budget is fundamental to planning and measuring the efficiency of any marketing investment.

C

CAC = Customer Acquisition Cost, the total cost of acquiring one new customer.
CAC = Total Marketing + Sales Spend / Number of New Customers Acquired
Example: If a company spends €5,000 in a month and acquires 50 customers, CAC = €100.

CALL TO ACTION (CTA) = An instruction that encourages the user to take a specific action: “Buy now”, “Subscribe”, “Download the guide”, “Book a free call”. A well-written CTA is direct, benefit-oriented, and creates a sense of urgency or clarity about what happens next.

CHURN RATE = The percentage of customers who stop using a product or service over a given period. High churn signals a problem with retention, product value, or customer satisfaction.
Churn Rate = Customers Lost During Period / Customers at Start of Period × 100

CLICK-THROUGH RATE (CTR) = The percentage of people who click on a link, ad, or CTA out of the total number who saw it.
CTR = Clicks / Impressions × 100
A high CTR indicates that the message and offer are relevant to the audience.

CONTENT MARKETING = A strategy that involves creating and distributing valuable, relevant content (articles, videos, podcasts, guides) to attract, educate, and retain a defined audience, with the goal of driving profitable customer actions.

CONVERSION = Any desired action that a user takes on a website or funnel: a purchase, a form submission, a subscription, a phone call. Conversions are the measurable outcomes of marketing activities.

CONVERSION RATE (CR) = The percentage of visitors who complete a desired action.
CR = Conversions / Total Visitors × 100
Example: 1,000 visitors, 30 purchases = 3% conversion rate.

CPC = Cost Per Click, the amount paid each time a user clicks on a paid ad.
CPC = Total Ad Spend / Total Clicks
Used in Google Ads, Facebook Ads, and other pay-per-click platforms.

CPL = Cost Per Lead, the cost of generating one qualified lead through a marketing campaign.
CPL = Total Spend / Number of Leads Generated

CPM = Cost Per Mille (Cost Per Thousand Impressions), the cost of showing an ad 1,000 times, regardless of clicks or actions. Used to measure the efficiency of brand awareness campaigns.

CRM = Customer Relationship Management, both a strategy and a category of software tools (e.g., HubSpot, Salesforce) used to manage interactions with current and potential customers. A CRM stores contact data, tracks communications, and helps businesses nurture relationships at scale.

D

DATA-DRIVEN MARKETING = A marketing approach that uses data and analytics to guide decisions, optimize campaigns, and personalize communication, rather than relying on intuition alone.

DEMOGRAPHICS = Statistical data that describes a population segment: age, gender, income, education, location, occupation. Used in marketing to define and target specific audience groups.

DIVIDEND = A portion of a company’s profits distributed to its shareholders. In marketing and investment contexts, dividends are an example of passive income generated by an asset.

DRIP CAMPAIGN = A series of pre-written, automated emails sent to a contact over time based on specific triggers or schedules. Used to nurture leads, onboard new customers, or re-engage inactive subscribers.

E

E-COMMERCE = The buying and selling of products or services online. It includes direct-to-consumer stores (Shopify, WooCommerce), marketplaces (Amazon, Etsy), and digital product sales.

EMAIL MARKETING = The use of email to communicate with a list of subscribers or customers. It includes newsletters, promotional offers, automated sequences, and transactional messages. Email marketing typically has the highest ROI of any digital marketing channel.

ENGAGEMENT RATE = The percentage of people who interact with a piece of content (likes, comments, shares, saves, clicks) out of the total who saw it. A measure of how compelling and relevant content is to its audience.

EVERGREEN CONTENT = Content that remains useful, relevant, and searchable over time, regardless of when it was published. Unlike news or trend-based content, evergreen content continues to generate organic traffic long after publication.

F

FACEBOOK ADS = Paid advertising on the Facebook (and Instagram) platform managed through Meta Ads Manager. Allows targeting by demographics, interests, behaviors, and custom audiences. Operates on a CPM or CPC model.

FUNNEL (MARKETING FUNNEL) = A model that represents the stages a potential customer goes through before making a purchase: Awareness > Interest > Consideration > Decision > Action. Each stage requires different content, messaging, and strategies.

FUNNEL, BOTTOM OF (BOFU) = The final stage of the marketing funnel, where the prospect is ready to make a purchase decision. Content here includes case studies, demos, pricing pages, and testimonials.

FUNNEL, MIDDLE OF (MOFU) = The consideration stage of the funnel, where the prospect is evaluating solutions. Content here includes comparisons, guides, webinars, and email sequences.

FUNNEL, TOP OF (TOFU) = The awareness stage of the funnel, where potential customers first encounter the brand. Content here includes blog posts, social media, and ads designed to attract a broad audience.

G

GEO = Generative Engine Optimization, the practice of optimizing digital content to appear in AI-generated responses from tools like ChatGPT, Gemini, Claude, and Perplexity. Unlike traditional SEO (which targets search engine rankings), GEO focuses on being cited, referenced, or surfaced by AI systems when they answer user queries.

GOOGLE ADS = Google’s paid advertising platform (formerly Google AdWords). It allows businesses to show ads in Google Search results, on YouTube, and across the Google Display Network. Ads are triggered by keywords, audiences, or placement targeting.

GOOGLE ANALYTICS = A free web analytics tool by Google that tracks and reports website traffic, user behavior, conversion rates, and other performance metrics. Essential for data-driven marketing decisions.

GROWTH HACKING = A data-driven, experiment-based approach to growing a business rapidly, typically with limited resources. Common in startups. Growth hackers test channels, messages, and product features rapidly to find the most efficient path to user acquisition and retention.

H

HASHTAG (#) = A word or phrase preceded by the # symbol used on social media platforms (Instagram, X/Twitter, TikTok, LinkedIn) to categorize content and make it discoverable by people interested in that topic.

HOOK = The opening element of a piece of content (video, email, ad, article) designed to immediately capture attention and make the audience want to keep watching, reading, or listening. A strong hook is the most important element of any marketing communication.

HEATMAP = A visual tool that shows where users click, scroll, and spend time on a web page. Used in conversion rate optimization (CRO) to identify friction points, ignored areas, or high-engagement zones.

I

IMPRESSIONS = The total number of times a piece of content or an ad is displayed on a screen, regardless of whether it was clicked or actively viewed. Impressions measure reach and visibility.

INBOUND MARKETING = A strategy that attracts customers by creating valuable content and experiences tailored to them, rather than interrupting them with outbound tactics. SEO, content marketing, and social media are inbound channels.

INFLUENCER MARKETING = A form of marketing that involves partnering with individuals who have a significant and engaged following on social media or other platforms, to promote a brand, product, or service to their audience.

K

KPI = Key Performance Indicator, a measurable value that shows how effectively a company or campaign is achieving its objectives. Examples: monthly revenue, lead volume, CTR, CAC, churn rate. KPIs must be specific, measurable, and tied to a business goal.

KEYWORD = A word or phrase that a user types into a search engine. In SEO and paid search, targeting the right keywords ensures that content or ads appear in front of the right audience at the right moment.

L

LANDING PAGE = A standalone web page designed for a single marketing objective: capturing a lead, promoting an offer, or driving a specific conversion. Unlike a homepage, a landing page has no distractions and a single clear CTA.

LEAD = A potential customer who has shown interest in a product or service by providing contact information (name, email, phone number), often in exchange for a free resource, demo request, or inquiry form.

LEAD GENERATION = The process of attracting and converting strangers into leads. Common tactics include paid ads, content marketing, SEO, webinars, and lead magnets.

LEAD MAGNET = A free resource (ebook, checklist, template, webinar, free trial) offered in exchange for a user’s contact information. Designed to attract and qualify potential customers.

LIABILITY = The opposite of an asset. In Robert Kiyosaki’s framework from “Rich Dad Poor Dad“, a liability is anything that takes money out of your pockets, such as a personal car, a mortgage on a primary residence, or consumer debt.

LIFETIME VALUE (LTV or CLV) = The total revenue a business can expect from a single customer over the entire duration of their relationship.
LTV = Average Purchase Value × Purchase Frequency × Customer Lifespan
Comparing LTV to CAC is fundamental to understanding the profitability of a marketing channel.

M

MARKET SEGMENTATION = The process of dividing a broad target market into subsets of consumers with common needs, characteristics, or behaviors. Segments can be demographic, geographic, psychographic, or behavioral.

MARKETING MIX (4 P’s) = The four fundamental elements of a marketing strategy: Product (what you sell), Price (what you charge), Place (where and how you sell), Promotion (how you communicate and advertise).

MEDIA BUYING = The process of purchasing advertising space or time on a platform, channel, or publication. In digital marketing, media buying is managed through ad platforms (Google Ads, Meta Ads) or directly with publishers.

META ADS = The advertising platform managed by Meta (formerly Facebook Inc.) that allows running paid ads across Facebook, Instagram, Messenger, and the Audience Network.

N

NICHE = A specific, well-defined segment of a market with particular needs or interests. Targeting a niche allows businesses to differentiate themselves, reduce competition, and speak more precisely to their ideal customer.

NPS = Net Promoter Score, a metric that measures customer loyalty by asking: “On a scale of 0-10, how likely are you to recommend this product/service to a friend?” Scores are classified as Detractors (0-6), Passives (7-8), and Promoters (9-10).
NPS = % Promoters – % Detractors

O

OMNICHANNEL = A marketing approach that provides a seamless and consistent customer experience across all touchpoints and channels: online, in-store, mobile, email, social media, and customer support.

ORGANIC TRAFFIC = Visitors who arrive at a website through unpaid channels, primarily search engines (via SEO), social media, or direct links, as opposed to paid advertising.

OUTBOUND MARKETING = Traditional, interruption-based marketing where a brand pushes messages to a broad audience: cold calls, TV commercials, banner ads, cold emails. The opposite of inbound marketing.

P

PAID MEDIA = Any marketing channel where visibility is bought, including Google Ads, social media ads, display advertising, and sponsored content. Contrasts with owned media (your website, social profiles) and earned media (press, reviews, word of mouth).

PERSONA (BUYER PERSONA) = A semi-fictional representation of the ideal customer, based on research and real data about demographics, behaviors, motivations, goals, and pain points. Used to guide content creation, product development, and messaging strategy.

POSITIONING = How a brand or product is perceived in the mind of the target customer relative to competitors. Effective positioning is specific, differentiated, and aligned with what the customer values most.

PPC = Pay Per Click, an online advertising model in which the advertiser pays a fee each time a user clicks on their ad. Google Ads and Facebook Ads both support PPC models.

R

REMARKETING (RETARGETING) = A paid advertising strategy that shows ads to users who have previously visited a website or interacted with a brand, but did not convert. It keeps the brand top-of-mind and encourages return visits.

ROAS = Return on Ad Spend, a metric that measures the revenue generated for every euro/dollar spent on advertising.
ROAS = Revenue from Ads / Ad Spend
Example: €1,000 in ad spend generating €4,000 in revenue = ROAS of 4x (or 400%).

ROI = Return on Investment, a measure of the profitability of an investment.
ROI = (Net Profit / Cost of Investment) × 100
In marketing, ROI measures how much revenue was generated relative to what was spent on a campaign or channel.

S

SEM = Search Engine Marketing, the practice of gaining visibility on search engines through both paid ads (PPC) and organic optimization (SEO). The term is sometimes used exclusively to refer to paid search advertising.

SEO = Search Engine Optimization, the process of improving a website’s visibility in organic (non-paid) search engine results. It includes on-page optimization (content, keywords, structure), technical SEO (speed, crawlability), and off-page SEO (backlinks, authority).

SERP = Search Engine Results Page, the page displayed by a search engine in response to a user’s query. It includes organic results, paid ads, featured snippets, images, maps, and other rich elements.

SOCIAL PROOF = Evidence that other people have used and approved of a product or service. Forms of social proof include customer reviews, testimonials, case studies, star ratings, social media mentions, and the number of customers served.

T

TARGET AUDIENCE = The specific group of people a marketing campaign or message is designed to reach. Defined by demographics, interests, behaviors, and needs. The more precisely defined the target audience, the more relevant and effective the marketing.

TOUCHPOINT = Any interaction a potential or existing customer has with a brand, whether online or offline: seeing an ad, visiting a website, reading an email, speaking to customer service, or receiving a product.

TRADING = The buying and selling of financial instruments (stocks, currencies, commodities) with the goal of generating profit from price fluctuations. In marketing and financial literacy contexts, trading is referenced as a way of managing or growing assets.

TRAFFIC = The volume of visitors who arrive at a website or digital platform. Traffic can be organic, paid, direct, referral, or social, depending on the source.

U

UGC = User-Generated Content, any content (photos, videos, reviews, posts) created by customers or users rather than the brand itself. UGC is a powerful form of social proof and is often used in social media and e-commerce marketing.

USP = Unique Selling Proposition, the specific benefit or characteristic that differentiates a product, service, or brand from its competitors. A strong USP answers the question: “Why should I choose you over everyone else?”

UTM PARAMETERS = Tags added to a URL that allow tracking tools (like Google Analytics) to identify the source, medium, and campaign that drove a specific visitor to a page.
Example: ?utm_source=newsletter&utm_medium=email&utm_campaign=april-promo

V

VALUE PROPOSITION = A clear statement that explains how a product or service solves a customer’s problem, what benefits it delivers, and why it is better than the alternatives. It is the core of any marketing message.

VIRAL MARKETING = A strategy that encourages people to share a message, piece of content, or campaign with others, creating exponential reach at low or no additional cost. Viral content typically triggers a strong emotional response: humor, surprise, inspiration, or controversy.

W

WORD OF MOUTH (WOM) = The organic spread of information about a brand, product, or service through personal recommendations between consumers. It is one of the most trusted and effective forms of marketing because it comes from a peer rather than the brand itself.

Y

YOUTUBE ADS = Paid video advertising served on the YouTube platform through Google Ads. Formats include skippable in-stream ads, non-skippable ads, bumper ads (6 seconds), and display ads. YouTube Ads are particularly effective for brand awareness and product demonstration.

A

ACCOUNT = In sales, an account is a client or prospect company that a salesperson is responsible for managing. Accounts can be new (prospects being pursued) or existing (current clients being retained or upsold).

ACQUISITION = The process of gaining a new customer. Acquisition is measured by CAC (Customer Acquisition Cost) and contrasts with retention, which focuses on keeping existing customers.

AVERAGE ORDER VALUE (AOV) = The average amount spent each time a customer places an order.
AOV = Total Revenue / Number of Orders
Example: €10,000 in revenue from 200 orders = AOV of €50.

B

B2B = Business to Business, a sales model in which a company sells products or services to other companies rather than to individual consumers. B2B sales cycles are typically longer, involve multiple decision-makers, and require more relationship-building than B2C.

B2C = Business to Consumer, a sales model in which a company sells directly to the end consumer. B2C sales are typically faster and more transactional than B2B.

BOTTOM OF FUNNEL (BOFU) = The final stage of the sales funnel where the prospect is close to making a purchase decision. Sales activities at this stage include demos, proposals, pricing discussions, and closing techniques.

BUYER JOURNEY = The process a potential customer goes through from first becoming aware of a problem to making a purchase decision. The three stages are: Awareness, Consideration, and Decision. Effective sales aligns its approach to wherever the buyer is in this journey.

C

CAC = Customer Acquisition Cost, the total cost of converting one new customer, including all sales and marketing expenses.
CAC = Total Sales + Marketing Spend / Number of New Customers
Example: €10,000 spent to acquire 100 customers = CAC of €100.

CHURN = The loss of customers or revenue over a given period. High churn means the business is losing existing clients faster than it is acquiring new ones. Common causes: poor onboarding, product-market fit issues, or lack of follow-up.
Churn Rate = Customers Lost / Total Customers at Start × 100

CLOSING = The final stage of the sales process in which the salesperson secures a commitment or purchase from the prospect. Common closing techniques include the assumptive close (“When would you like to start?”), the urgency close (“This offer ends Friday”), and the summary close (recapping all agreed benefits before asking for the decision).

COLD CALL = An unsolicited phone call made to a prospect who has had no prior contact with the salesperson or company. Cold calling is an outbound sales tactic. Effectiveness depends heavily on targeting, script quality, and timing.

COLD EMAIL = An unsolicited email sent to a prospect who has not previously expressed interest. Like cold calling, it is an outbound tactic used for lead generation and prospecting.

COMMISSION = A performance-based payment given to a salesperson, usually calculated as a percentage of the revenue they generate.
Example: A 10% commission on a €5,000 sale = €500 earned.

CONVERSION = Any moment a prospect moves to the next stage of the sales process: from lead to qualified lead, from demo to proposal, from proposal to closed deal. The final conversion is a purchase.

CONVERSION RATE = The percentage of prospects who complete a desired action or stage.
Conversion Rate = Conversions / Total Prospects × 100

CRM = Customer Relationship Management, a system used to track and manage all interactions with prospects and clients throughout the sales cycle. Common tools: HubSpot, Salesforce, Pipedrive. A CRM is the central tool of any organized sales operation.

CROSS-SELLING = Offering a related or complementary product to an existing customer.
Example: A customer buys a laptop, and the salesperson offers a protective case and extended warranty.

D

DEAL = A sales opportunity that has progressed to the point of active negotiation or proposal. A deal has a defined prospect, a product or service being discussed, an estimated value, and a projected close date.

DEAL SIZE = The monetary value of a specific sales opportunity. Tracking average deal size helps forecast revenue and prioritize efforts.

DECISION MAKER = The person in a company or household who has the authority to approve a purchase. In B2B sales, identifying the decision maker early in the process is critical. Sometimes multiple stakeholders are involved (buying committee).

DISCOVERY CALL = An early-stage sales conversation designed to understand the prospect’s needs, pain points, budget, and timeline. A good discovery call informs whether the prospect is a good fit and what angle to use in follow-up.

F

FOLLOW-UP = Any contact made with a prospect after an initial interaction. Follow-ups can be emails, calls, or messages. Most sales require multiple follow-ups before a decision is made. The rule of thumb: most deals close between the 5th and 8th touchpoint.

FORECAST = A projection of future sales revenue based on pipeline data, historical close rates, and deal stages. Sales forecasts help businesses plan resources, hiring, and cash flow.

FUNNEL (SALES FUNNEL) = A model that represents the stages a prospect moves through before becoming a customer: Awareness > Interest > Consideration > Intent > Evaluation > Purchase. The funnel narrows at each stage as prospects drop off.

G

GATEKEEPER = A person (often a receptionist, assistant, or junior employee) who controls access to the decision maker. In outbound sales, handling the gatekeeper politely and professionally is often the first challenge.

I

INBOUND LEAD = A prospect who contacts the company on their own initiative, typically after finding it through SEO, content, social media, or referrals. Inbound leads are generally warmer and easier to close than outbound leads.

ICP = Ideal Customer Profile, a description of the type of company or person most likely to buy, get value from, and stay as a long-term customer. The ICP guides prospecting, targeting, and messaging. Defined by: industry, company size, budget, pain points, and buying behavior.

K

KPI = Key Performance Indicator, a measurable value used to track sales performance. Common sales KPIs include: number of calls made, leads generated, deals closed, revenue per rep, average deal size, and close rate.

L

LEAD = A person or company that has shown some level of interest in a product or service. A lead becomes a qualified lead once it is confirmed they have the need, budget, and authority to buy.

LEAD GENERATION = The process of identifying and attracting potential customers. In sales, this includes cold outreach, networking, referrals, inbound content, and paid advertising.

LEAD QUALIFICATION = The process of evaluating a lead to determine whether they are worth pursuing. The most common framework is BANT: Budget, Authority, Need, Timeline.

LOST DEAL = A sales opportunity that did not result in a purchase. Analyzing lost deals by reason (price, competitor, timing, no decision) is essential for improving the sales process.

M

MQL = Marketing Qualified Lead, a lead that has been identified by the marketing team as having a higher likelihood of becoming a customer, based on engagement (e.g., downloaded a guide, attended a webinar, visited a pricing page). MQLs are passed to the sales team for follow-up.

N

NEGOTIATION = The stage in the sales process where both parties discuss terms, pricing, and conditions to reach a mutually acceptable agreement. Effective negotiation focuses on value, not just price, and avoids unnecessary discounting.

NO-SHOW = A prospect who scheduled a call or demo but did not attend. No-shows are common in sales and are typically addressed with a confirmation sequence (reminder email + SMS the day before and one hour before).

O

OBJECTION = A concern or hesitation raised by a prospect during the sales process. Common objections: “It’s too expensive”, “I need to think about it”, “We already use another tool”, “Now is not a good time.” Handling objections with empathy and evidence is a core sales skill.

OBJECTION HANDLING = A structured approach to addressing prospect concerns without being defensive or pressuring. A common framework: Acknowledge > Clarify > Respond > Confirm.

OFFER = The specific combination of product, price, terms, and bonuses presented to a prospect. A strong offer makes the value clearly greater than the cost and reduces the perceived risk of buying.

ONBOARDING = The process of welcoming and guiding a new customer after a purchase. Good onboarding reduces churn, increases product adoption, and creates the conditions for referrals and upsells.

OUTBOUND SALES = A sales approach in which the salesperson proactively contacts prospects who have not expressed prior interest: cold calls, cold emails, LinkedIn outreach, and networking. The opposite of inbound sales.

P

PIPELINE = The visual representation of all active sales opportunities and their current stage. A healthy pipeline has a mix of deals at different stages and enough total value to hit revenue targets. Pipeline management is a core responsibility of any sales role.

PITCH = A structured presentation of a product or service to a prospect. A strong pitch is tailored to the prospect’s specific pain points, focuses on outcomes rather than features, and ends with a clear next step.

PROPOSAL = A formal document sent to a prospect that outlines the recommended solution, scope of work, pricing, and terms. A proposal is typically sent after discovery and qualification, not before.

PROSPECT = A potential customer who fits the Ideal Customer Profile (ICP) and has been identified as a sales target. A prospect becomes a lead once contact is initiated, and a qualified lead once their fit is confirmed.

PROSPECTING = The activity of identifying and reaching out to potential customers. It is the top-of-funnel activity that feeds the entire pipeline. Methods: cold outreach, networking, LinkedIn, referrals, inbound leads, and events.

Q

QUALIFIED LEAD = A lead that has been evaluated and confirmed to have the need, budget, authority, and timeline to make a purchase. Qualification saves time by focusing sales effort on the most promising opportunities.

QUOTA = A sales target assigned to a salesperson or team, usually expressed as a revenue or volume goal for a specific period (monthly, quarterly). Meeting or exceeding quota is the primary performance measure in most sales roles.

R

REFERRAL = A new lead or customer generated through a recommendation from an existing customer or contact. Referral leads are typically the highest-quality leads because they come with built-in trust. Referral programs formalize this process with incentives.

RETENTION = The ability to keep existing customers over time. Retention is measured by the inverse of churn rate. Retaining customers is almost always more cost-effective than acquiring new ones.

REVENUE = The total income generated from sales of products or services before any costs are deducted. Revenue is the top-line figure in any business and the primary output metric of sales.

ROI = Return on Investment, the measure of profit relative to the cost of an investment. In sales, ROI is often used to demonstrate to prospects the financial return they will get from purchasing the product or service.
ROI = (Net Profit / Cost of Investment) × 100

S

SALES CYCLE = The total time it takes to move a prospect from first contact to closed deal. B2B sales cycles can range from days to months. Shortening the sales cycle without sacrificing quality is a key sales efficiency goal.

SALES PROCESS = The defined sequence of steps a salesperson follows to move a prospect from initial contact to closed deal. A documented sales process improves consistency, training, and forecasting.

SOCIAL PROOF = Evidence that other customers have bought and benefited from a product or service. In sales, social proof includes testimonials, case studies, client logos, reviews, and data points (“over 500 companies use this”). It reduces the perceived risk of buying.

SQL = Sales Qualified Lead, a lead that has been evaluated by the sales team (not just marketing) and confirmed as ready for direct sales engagement. An SQL has demonstrated clear buying intent and meets the ICP criteria.

T

TOUCHPOINT = Any interaction between a salesperson and a prospect across the sales process: an email, a call, a LinkedIn message, a demo, a follow-up. Multiple touchpoints are usually required before a prospect converts.

TOP OF FUNNEL (TOFU) = The awareness and prospecting stage of the sales process. Activities here focus on generating visibility and identifying potential customers, not yet on pitching or closing.

U

UPSELLING = Encouraging an existing or new customer to purchase a higher-value version of the product or service they are considering.
Example: A customer is looking at the basic plan, and the salesperson explains the added value of the professional plan.

V

VALUE PROPOSITION = The specific reason why a prospect should choose your product or service over alternatives. In sales, the value proposition must be translated into concrete outcomes the prospect cares about: time saved, revenue generated, risk reduced, cost eliminated.

W

WIN RATE = The percentage of qualified opportunities that result in a closed deal.
Win Rate = Deals Won / Total Qualified Opportunities × 100
Win rate is one of the most important metrics for evaluating sales effectiveness and forecasting accuracy.

WARM LEAD = A prospect who has already had some form of contact or engagement with the company (visited the website, opened emails, attended an event) and is therefore more receptive than a cold prospect.