Advantage: positive attributes of a feature kept in relative terms (not in emotional or beneficial terms). Example: “An advantage to having a 4 wheel drive (feature) is that the driver may be able to navigate through adverse weather conditions more easily than if possessing only a 2 wheel drive.” (Not to be confused with the benefit)
Appointments Set: Total number of appointments set (to conduct a sales presentation) during a call period, whether in-person or via the phone. One of the vital sales stats.
Average Dollar Per Sale: (DPS) Your average dollar per sale. Can be derived by dividing total sales dollars for a given time period by the number of sales (closed deals.) Click here for additional information. One of the vital sales stats.
Back-out: A customer who is trying to or did cancel their order.
Base: Base Salary.
Beating Objections: (Overcoming Objections) Answering questions or addressing concerns allowing your prospect to make an intelligent purchasing decision.
Bell Shaped Curve: Visual representation displaying how a sales person’s skills impact their sales results (click here for additional information regarding the bell shaped Curve in direct sales)
Benefit: The emotional enhancement provided by the advantage of a product. Example (continuing with the 4 wheel drive example above in advantage): “The 4 wheel drive my wife and children were driving prevented them from driving over the cliff and falling 3500 feet below during the horrible snowstorm.”
Bounce Back Coupons Offers: Offers, discounts, or coupon “enticements” delivered with physical products or emailed with digital confirmation or receipts. The goal of a Bounce Back Coupon is to “entice” a customer to place a follow-up order or to renew their contract for the next period of time by offering a discount or special if the customer responds by a certain date or time. You can read our full article about bounce back coupon offers and watch our video here.
Brag Book: A presentation binder or book featuring stories, pictures, or testimonials regarding previous projects performed for customers. Sales people often present their Brag Books to prospects to display their success providing products or services for current and past customers.
Buy Line: A graphical, visual “line” that denotes where a prospect is: regarding emotionally and intellectually being sold. If a prospect is “above the buy line,” he would theoretically sign the contract if asked to do so.
Buyer’s Remorse: A customer feeling anxiety after making a purchase commitment that can often lead to a back-out or cancellation if not handled properly.
Buying Atmosphere: Setting up your sales presentation so that your customer has a great experience, thus avoiding pressure or awkward moments. People, in general, like to feel that they’re making a purchase decision, but, in general, don’t like to feel they’re “being sold” on a product or service.
Call-back: Making repeated phone calls or contacts to attempt to get a prospect to purchase or to find out if a prospect has made a decision regarding purchasing a product or service.
Call-blocks: A span of time, normally 2 to 4 hours, spent telemarketing to data-mine, prospect, or perform phone demos and follow-ups.
Calls: Lead and Prospect contacts. Can be conducted in-person or via the phone, at trade shows, or any other way that you make actual attempts to contact your lead or prospect.
Call-in: When a prospect contacts you or your company first expressing interest in your products or services.
Cancellation Prevention: Also known as ‘solidifying your sale.’ Intended to help prevent buyer’s remorse and cancellations.
Cash Collection: (also referred to as Payment Arrangements) Step six in the Sales Cycle. Click here for additional information about Payment Arrangements. Setting up arrangements for payment for your products or services. Could include credit, payment in full, or a deposit.
Close: Bringing the prospect to a point of decision. Step five of the Sales Cycle. Click here for additional information regarding the close.
Closing Ratio: Number of sales divided by the number of sales presentations over a period of time. Example: if you perform 10 sales presentations and close 4 sales, your closing ratio for these 10 sales presentations is 40%. Click here for more information about closing ratio. One of the vital sales stats.
Cold Calling: Making contacts with possible prospects (via phone or in person) to attempt to set an appointment, conduct a phone or in person sales presentation, and ultimately close a sale.
Commission: Your compensation for closing a sale. Usually based on a percentage of the gross sale or profit margin of the sale.
Contact: Your first contact with your lead or prospect. Can be conducted via phone or in person. Goal of Contact is to set an appointment, or to ‘sit down’ with your prospect.
Conversion: The act of converting a prospect to a client or customer
Critical Questions: Asking the Qualifying and Procrastination questions in the Presentation.
Current Customer: A customer who has ordered in the last 12 to 18 months depending on your product or service cycle.
Current Customer Referrals: Attempting to obtain referrals of other possible prospects from your current customer (usually while making a current customer call.) Click here for additional information on current customer referrals.)
Current Customer Upselling: Contacting your current customers and attempting to sell them additional products or services (either current product “add-ons” or entirely new products or services.) Click here for additional information about Current Customer Upselling.
Cycle Of Sales: The seven steps that must be followed to most efficiently and effectively sell your products or services.
Data-mining: Researching to find leads or ‘most probable customers’ in your territory. Usually includes first and last name, title, gender, availability, and names in common.
Deal-flow: Number of potential deals you have in your ‘pipe-line.’
Definition Of Selling (simple): Persuading someone (a prospect) to purchase something from you. (click here for the technical definition of selling)
Demo: Slang for a sales presentation. The act of presenting your product or service to a prospect. Our litmus test to declare an appointment an actual sales presentation (or an actual demo) is if price is discussed.
Demo Goals: Number of demos (sales presentations) you wish to accomplish each week.
Demo Ratio: The percentage of demos divided by contacts. Example: If you make 100 contacts and accomplish 10 demos, your demo ratio is 10%.
Direct Response Marketing: Utilizing direct marketing via mailers, emails, postcards, etc. to solicit interest from prospects.
DOA Customer: A customer who is no longer able to purchase for any reason.
Dollar per Customer: (DPC) Your average dollar per customer including all their orders in a regular product purchase cycle.
Dollar Per Sale: (DPS) Your average dollar per sale. Can be derived by dividing total sales dollars for a given time period by the number of sales (closed deals.) See also Average Dollar Per Sale. Or click her for additional information regarding “vital sales stats.”
Draw Cap: The max amount your draw can add up to or the most you can “go in the hole” with your draw.
Drive By: “Dropping in” on a lead or prospect in person, and unannounced.
Feature: Quantitative properties of a product or service. Example: a 4 wheel drive
s.u.v evenly disburses the weight and traction of the vehicle, receives 15 miles/
gallon, goes 0 to 60 in 20 seconds, and has 7 drink holders. See also advantage & benefit
Field Day: When a candidate for a sales position rides-along with an experienced sales rep to learn more about the position she’s interviewing for.
Four Stages Of Learning: The four different steps a person goes through when learning any new skill or trade. Click here for more details about the Four Stages Of Learning.
Footprint: The exact steps an order must go through from acquisition to delivery.
Gatekeeper: Person (usually a secretary or person answering the phones or greeting people in an office or company) who often is responsible for “screening” sales people or strangers who call the company prior to forwarding these sales people or strangers to purchasing agents, managers, or owners.
Gift Of Gab: The perceived or actual skill or ability for a sales person to easily converse or communicate with a prospect or customer.
Goal Card: A paper or electronic tool to track demos, calls, and sales.
Goal-D Card Incentive Program: A sales incentive program developed by Cycle Of Sales. Designed to motivate and encourage positive sales related results from a small to large sales team.
Law of Averages: Your statistical average of getting a sale from calls to demos. A person can plan his or her results with a fair amount of accuracy if he knows his statistics and thoroughly believes and follows the law of averages.
Law of Compensation: If you help enough people get what they want, you in turn will get what you want.
Lead: Anyone you could approach to attempt a sale or demonstration or anyone who may be a viable prospect who could become a customer.
Lead Generation: Researching the “most probable customers” in your are or sales territory. This is the list of “leads” or contacts you will eventually approach. Lead Generation is also often referred to as “prospecting,” although technically prospecting has a different definition (see prospecting.)
Marketing: The act of promoting your company, products, and services in the effort to attract a primary influence to your company (normally pertains to customers).
Mom & Pop: Small business usually family owned.
Monday Morning Meeting: A sales meeting conducted at the start of each work week, usually on Monday mornings. Typical topics include discussing the previous week’s sales activities and accomplishments, covering the next week’s goals, and communicating other important information.
Name Based Rapport: Utilizing “3rd Person Selling” or, in essence, sharing names that both you and your prospect know in common to create credibility and trust. Not to be confused with “name dropping.” Name based rapport, when utilized effectively, can create interest and help your prospect become “open minded” to your ideas. Click here for additional information regarding name based rapport.
Name Dropping: Mentioning or “dropping names” that make no sense to your prospect. Name dropping becomes obvious and possibly annoying to your prospect if he or she feels you’re blatantly dropping names for personal gain or to brag.
New Customer: A customer who has never ordered before.
Non-Sales-Related-Activities (“NSA’s): Any actions that are not directly related to “sales-related-activities” (prospecting, setting appointments, doing demos, closing the deal). NSA examples include “surfing the web,” “doing quotes,” and even “obsessive email/voicemail checking.”
Objections: Any question or concern voiced by a prospect that possibly could cause you to not close a sale.
Off-Schedule: A sales person who is not performing the agreed upon or necessary tasks to fulfill his/her obligation or quota.
Open Accounts: Accounts that are ready to be re-sold, and/or accounts that need additional work or attention to close or complete to delivery.
Package Sale: Selling multiple items at one demo. (Click here for additional information about Package Selling.)
Past Customer: A customer who has not ordered in the last 12 to 18 months.
Payment: Discussing and agreeing on payment terms for your sale.
Pipe-line: The line of potential candidates you have who will more than likely purchase within a given amount of time.
Pitch: Or, “Pitching your product”: the act of selling your goods or services
Presentation: The actual sales presentation, also known as the “demo.” The goal of the presentation is to make the emotional and intellectual sale.
Pressure Sales Words: Words that can cause concern, or stress, on your Prospect. Click here for more information regarding pressure sales words and recommended replacements.
Price-build-up: Creating a relativity point to discuss the price of your product or service.
Primary Influences: (to your company) Customers, Employees, Lenders, Vendors, and
Procrastination Objection: Being “put-off” by a prospect. Leaving without a yes or no. Click here for additional information regarding the procrastination objection.
Profile: Researched information regarding your lead or prospect such as first and last name, best time to call, background information, possible needs, and most importantly, names in common that you can use to build rapport.
Protected Territory: When your area is protected against other representatives from your company from calling on the same leads that you are to call on.
Qualifying Your Prospect: Attempting to obtain a verbal affirmation that your prospect is indeed the person capable of making a purchasing decision. Click here for additional information regarding qualifying your prospect.
Quota: The minimum volume a sales person must produce within a given amount of time.
Rapport: Things you have in common with a prospect. With our system, we usually refer only to what matters most: names in common (also known as name based rapport.)
Referral Appreciation Gesture: Acknowledging your appreciation for receiving a referral from a prospect or current customer by sending a thank you note or small present. Click here for more information regarding referral appreciation gestures.
Retention Rate: Your client retention percentage. How many clients are you keeping as repeat customers?
Sales Bundle: The articles you need to properly submit your sale to customer service. Usually includes contract, payment arrangement, artwork or job specifications.
Sales Calls: Phone or in-person contacts to find prospects, to set an appointment, or to conduct a sales presentation or phone demo. One of the vital sales stats.
Sales Cycle: The beginning to end of your sales process. Starts normally with data-mining, and ends with attempting to get referrals from your client.
Sales Manager: Usually the individual responsible for training or motivating and managing/accounting for the results of a sales team.
Sales Presentation (or sales “demo”): The event of meeting with a client with the objective of making a sale. Sales presentations normally involve a product or service demonstration. One of the vital sales stats.
Sales Related Activities: Actions DIRECTLY related to closing a sales demo. Usually include prospecting, setting appointments, doing product “demos,” and attempting to close the sale. Prospecting and setting appointments can sometimes be performed through marketing systems.
Sales Territory: A sales person’s “area of focus” from which they are to obtain sales. Most territories are organized by zip codes or geographical boundaries.. Many territories are “protected,” meaning that companies prohibit competition among their own sales reps and disallow a sales rep to sell in another team member’s territory. See also Territory Management.
Schedules and Habits: Your regular sales schedules and habits which will dictate the amount of demos and sales you ultimately make.
Sealing-Off Objections: A technique used to “post-beat” objections and bring an end to any additional objections. Can be used to prevent an endless stream of objections and may be used to bring your prospect to a point of decision (close) Click here for additional info regarding sealing-off objections.
Selling The Sizzle: A term used to refer to selling the emotional part of the sale, or the “benefit” (versus the “feature” or “advantage.”) Example: a hot, juicy, steaming, medium-rare Porterhouse vs. a slab of protein-filled, hormone-injected steak.
Side-selling: The art of selling an additional “complimentary product’ to a prospect who is already using a competitor for your lead product.
Slump (Sales Slump): A period of time when a sales person is having problems or challenges making sales.
Straight-Commission: Working on a commission ONLY basis. No base, draws, etc.
Target Market: Group of people (prospects) that a company focuses its marketing effort with the goal of converting these people into customers. Target Markets usually share important traits in common such as industry, demographics, geographic location, income, or sales revenue.
Technical Definition Of Selling: Selling is the act of communicating information to a Prospect that “triggers” an emotional and intellectual desire to purchase a product or service. (Click here for the simple definition of direct selling)
Temperature Questions: Questions you ask to find out where the prospect is on the buy-line such as “how am I doing so far” or “can you see why so many people are getting these?”
Territory: A sales person’s “area of focus” from which they are to obtain sales. Most territories are organized by zip codes or geographical boundaries.. Many territories are “protected,” meaning that companies prohibit competition among their own sales reps and disallow a sales rep to sell in another team member’s territory. See also Territory Management.
Territory Management: Properly “working” a geographically defined sales area or “protected territory,” where the sales rep is the only person allowed to sell in this defined area. The goal is to maximize sales results from this territory while minimizing the inefficiencies relating to travel or missing potential Prospects. Click here for additional information regarding Managing Your Sales Territory.
Time Bandits: Any “non-sales-related-activities” (NSA’s) that “steal” time away from your “sales related activities” (prospecting, setting appointments, doing product demos, closing the deal.) Hundreds if not thousands of time bandits exists from obsessively checking y our email to searching social sites to going on unqualified appointments.
Trade-shows: A marketed event that your leads attend to gain information about their occupation or industry. The trade shows are usually sponsored by vendors wishing to gain exposure in front of their most probable customers.
Training Period: Usually refers to the amount of time allocated to a newer sales rep before they are expected to meet quota or start producing sales results.
Turn-Over Rate: How often a sales position becomes vacant. For example, if the average sales person in a position lasts six month, then this position would be experiencing a 6 month turn-over rate. Sales, in general, normally has a high turn-over rate compared to other positions.
Up-sell: Selling additional products or services to your existing clients.
Vital Sales Stats: The most important sales numbers to track and monitor including: number of sales calls, appointments set, presentations made, number of sales closed, and dollar per
sale. Click here for additional information regarding vital sales stats.
Zeroed Out (Draw): When a sales person sells enough to earn enough commission to make his draw balance equal zero.