If you’re new to the world of CRM software, you may be overwhelmed by the number of terms and acronyms used in this industry. The CRM software glossary is here to help provide clear and concise definitions of the most commonly used terms in the CRM field.
Whether you’re a business owner looking to improve customer interactions or a sales professional looking to increase efficiency, this guide is essential reading.
360-Degree Customer View
A comprehensive view of a customer includes all interactions and information about them, such as demographics, purchase history, and communication preferences.
A method of testing two versions of a landing page or email campaign to determine which version performs better in conversions or engagement.
A company or organization that a business is doing business with.
An interaction between a business and a contact or lead, such as a phone call, email, or meeting.
A user with special privileges within a CRM system is responsible for managing the system, setting up user accounts, and configuring system settings.
The process of analyzing data to extract insights and inform decision-making.
An application programming interface that allows different software systems to communicate with each other.
Automating the scheduling of appointments and meetings with customers, such as demos, consultations, or service calls.
Artificial Intelligence (AI)
The simulation of human intelligence in machines programmed to think and learn like humans.
A pre-written response is automatically sent to a customer in response to a specific trigger or action.
The use of software to automate repetitive tasks, such as sending follow-up emails or scheduling appointments.
A framework to qualify sales leads based on budget, authority, need, and timeline.
Business Intelligence (BI)
The process of collecting, storing, and analyzing data to gain insights into business performance and inform decision-making.
A series of marketing or sales activities targeted at a specific group of contacts or leads.
The process of planning, executing and measuring the success of marketing campaigns.
Incidents or problems that customers report and need to be resolved.
A framework to qualify sales leads based on challenges, authority, money, and priorities.
A completed transaction where a customer has purchased a product or service.
CRM software is hosted on remote servers and accessed through the internet rather than installed on a local computer.
Cloud- or Web-Based
Refers to software accessed and stored on the internet rather than on a specific computer or server.
The ability of different users to share and access data within the CRM system, such as by allowing multiple users to view and edit the same contact or opportunity record.
A person or organization a business has had or is interacting with.
A centralized location where customer service representatives interact with customers via telephone, email, or chat.
A software that helps sales teams configure, price, and generate quotes for products and services.
A collection of information about customers and other contacts, such as contact details and communication history.
Organizing and maintaining information about contacts and customers.
The role of a contact in a company or organization, such as a decision-maker, influencer, or end-user.
Creating, managing, and tracking contracts between an organization and its customers, partners, and vendors.
A lead that has been successfully converted into a customer.
The percentage of leads or visitors successfully converted into customers.
CRM Analytical Reporting
Reports that provide insights into customer data and help to analyze customer behavior, sales performance, and other metrics.
Software that helps businesses manage customer interactions, sales, and support and analyze customer data.
A plan for implementing and using a CRM system to improve customer relationships and drive sales and revenue.
A file format that stores tabular data in plain-text form, with each line representing a row and each field (column) within that row separated by a comma.
The ability to tailor the CRM system to fit the specific needs of a business, such as by creating custom fields, forms, or reports.
Additional fields can be added to a CRM system to store specific information about a customer or contact.
Information about a customer, such as contact details, purchase history, and communication preferences.
The level of interaction and involvement that a customer has with a company or brand.
Customer Experience (CX)
The overall experience a customer has with a company, including interactions with products, services, and customer service.
Customer Experience Management (CXM / CEM)
Managing and improving the overall customer experience.
The series of customer interactions and experiences with a company over time.
The degree to which a customer is committed to a company or brand and is likely to continue doing business with them.
Customer Relationship Management (CRM)
Managing interactions and relationships with customers, including sales, support, and marketing.
The ability of a company to keep its customers over time and prevent them from switching to a competitor.
The degree to which a customer is happy or satisfied with a company’s products, services, or overall experience.
Customer Satisfaction Score
A numerical rating or score that reflects a customer’s level of satisfaction with a company or brand.
Customer Service Management
Managing and improving customer service interactions and support.
Customer Success Management
Ensuring customers are successful and satisfied with a company’s products or services.
The process of determining the value of a customer to a business.
The process of examining, cleaning, transforming, and modeling data to extract useful information and insights.
The knowledge and understanding that is gained from data analysis.
Adding additional data to the CRM system, such as demographic information, job titles, or company size, to improve segmentation and personalization.
The process of safeguarding data from unauthorized access, use, disclosure, disruption, modification, or destruction.
The protection of personal information, such as customer data, by ensuring that it is collected, used, and shared in compliance with legal and ethical standards.
A visual interface that provides an overview of the critical metrics and data related to the business’s CRM system.
A lead that is no longer considered viable or active, usually because they have not responded to previous attempts to contact them.
Creating interest in a product or service through marketing campaigns and lead generation efforts.
A view of a customer’s record that displays all the information and details about that customer.
A digital file, such as a PDF or Word document, can be stored and shared within a CRM system.
A nurture campaign where emails are sent at predefined intervals, such as daily or weekly, to leads who have yet to convert.
A duplicate customer record can occur when a customer is entered into the system multiple times.
The use of email to communicate with leads and customers, such as sending newsletters, promotional offers, and event invitations.
Email Response Management
Managing and responding to customer emails, typically through automated tools or templates.
An automated message to remind a user of an upcoming event or task.
A pre-written email message can be used as a starting point for creating new messages, often with placeholders for customizing the message for specific recipients.
The different types of data stored within a CRM system, such as customers, leads, and cases.
The process of escalating a customer issue or request to a higher level of support or management.
A scheduled meeting, call, or other activity within a CRM system.
Additional functionality can be added to a CRM system, such as integrations with other software or custom fields.
Specific information can be stored about a customer, such as their name or email address.
The first point of contact a customer has with a company or salesperson.
The process of keeping track of a customer’s interactions and activity within a CRM system.
A calculation that can derive a value from other fields within a CRM system.
A field calculated using a formula rather than manually entered.
A prediction or projection of future sales or revenue.
The speed at which leads move through the sales funnel is measured in the number of leads or the rate of conversions.
Using game-like elements, such as points, badges, and leaderboards, to motivate and engage employees using the CRM system.
A customer support service that provides assistance and answers customer questions and issues.
A software system that manages and tracks customer support requests and interactions.
Helpdesk Ticketing System
A specific helpdesk system that uses “tickets” to track and manage customer support requests.
A record of a customer’s interactions and activities within a CRM system.
The main page of a CRM system typically displays an overview of the user’s activity and recent updates.
HyperText Markup Language is a programming language used to create web pages.
A specific installation or configuration of a CRM system, such as a test instance or a production instance.
The ability of a CRM system to connect and share data with other software systems, such as email marketing, accounting, and social media platforms.
A document that lists the goods or services provided to a customer and the amount due for payment.
A visual workflow management system that uses cards or columns to track the progress of tasks or projects.
A view within a CRM system that displays tasks or leads in a kanban format.
Storing, managing, and sharing information about customers, products, and services within the CRM system.
A web page specifically designed to capture leads, typically through a form or call-to-action (CTA).
The last point of contact a customer has with a company or salesperson.
The arrangement and design of the fields and information displayed within a CRM system.
A view within a CRM system that displays a list of customers, leads, or other entities.
A potential customer or client who has expressed interest in the business’s products or services.
The process of identifying the source of a lead, such as a specific marketing campaign or website referral, to measure the effectiveness of different lead generation methods.
The process of capturing leads from various sources, such as website forms, landing pages, and social media, and storing them in the CRM system.
The process of turning a lead into a customer, typically through sales or onboarding.
Lead Conversion Process
The series of steps or actions to convert a lead into a customer.
Lead Conversion Rate
The percentage of successfully converted leads into customers.
Removing duplicate leads from the CRM system ensures that each lead is counted only once.
The process of routing leads to the appropriate sales representatives based on factors such as territory, industry, or product interest.
The process of adding additional data to a lead record, such as demographic information, filmographies, or social media profiles, to improve lead segmentation and personalization.
The process of identifying and acquiring new leads through various tactics, such as content marketing, SEO, PPC, and social media advertising.
A valuable piece of content, such as an e-book, webinar, or template, is offered in exchange for contact information, such as an email address.
The process of tracking and managing leads throughout the sales cycle, from initial contact to purchase, including lead scoring, qualification, and nurturing.
The process of building relationships with leads over time through targeted marketing campaigns, such as email campaigns, webinars, and events.
The process of identifying which leads are most likely to become customers based on factors such as budget, authority, need, and timing (BANT).
Assigning a numerical value to a lead based on their likelihood of becoming a customer.
Lead Scoring Decay
A mechanism for reducing the lead score over time if a lead does not engage with the company in a certain period.
Lead Scoring Model
A set of rules or criteria is used to assign a numerical value to a lead based on factors such as demographics, behavior, and buying stage.
Lead Scoring Threshold
A cutoff value is used to determine which leads are considered “qualified” and should be passed to sales.
Lead Scoring Exclusion
A mechanism for removing leads from the lead scoring process, such as leads from specific regions or industries or leads that have opted out of marketing communications.
The origin or source of a lead, such as a referral, a website, or a trade show.
The process of converting a lead into a customer and then processing the payment for the sale.
A type of AI that enables systems to learn from data and improve their performance over time.
The process of promoting and selling products or services through advertising, promotions, and public relations.
The use of data and statistics to track the performance of marketing campaigns and websites, such as by measuring the effectiveness of lead magnets, landing pages, and nurture campaigns.
The process of identifying the marketing channels and tactics that contributed to a sale to measure the effectiveness of different marketing methods.
The use of software to automate repetitive marketing tasks, such as email campaigns, lead nurturing, and social media marketing.
A visual representation of a potential customer’s stages before becoming a customer, from initial awareness to final purchase.
Marketing Performance Management
Tracking and analyzing the performance of marketing campaigns, such as marketing ROI, lead generation, and lead conversion, to identify areas for improvement and set goals.
Marketing-Qualified Lead (MQL)
A lead has been identified as having a higher likelihood of becoming a customer based on their engagement with marketing materials or campaigns.
CRM software can be accessed on mobile devices like smartphones or tablets.
Natural Language Processing (NLP)
A subfield of AI that deals with the interaction between computers and human languages.
A menu or bar on a CRM system that allows users to navigate to different sections or pages.
A message or alert is generated within a CRM system, such as a reminder or an update.
A series of automated email messages are sent to leads over time to build relationships and move them closer to a sale.
A specific item or data within a CRM system, such as a customer or a lead.
Refers to software installed and running on a specific computer or server rather than on the internet.
A CRM system is installed and runs on a specific computer or server rather than on the internet.
A system whose source code is publicly available and can be modified and distributed by users.
A potential sale or revenue-generating event.
The process of tracking and managing potential sales opportunities.
Tailoring the customer experience using data from the CRM system to deliver personalized content, offers, and recommendations.
The stages or steps a lead or opportunity goes through before becoming a customer.
The process of tracking and managing the progress of leads and opportunities through the sales pipeline.
The use of data, statistical algorithms, and machine learning techniques to identify the likelihood of future outcomes based on historical data.
The likelihood or chance of a specific outcome occurring.
Potential customers who have been identified as having a high likelihood of becoming customers.
A prospect generated by the marketing department and evaluated by the sales department as meeting the criteria for an ideal customer who intends to purchase.
Leads that still need to be qualified or contacted.
The process of understanding and leveraging the relationships between different customers, leads, and contacts.
Managing and maintaining relationships with customers, leads, and contacts.
A lead that has been contacted and engaged with in the past but has yet to become a customer.
A method of displaying ads to people who have previously visited a website or interacted with a brand to bring them back and convert them into customers.
The total amount of money a company generates from its sales or business activities.
A prediction or projection of future revenue for a business.
A test environment or instance of a CRM system where users can experiment and make changes without affecting the production system.
The process of selling products or services to customers.
Sales-Accepted Lead (SAL)
A lead that has been qualified by the sales team and is considered viable for follow-up and conversion.
Providing guidance, training, and feedback to sales representatives to help them improve their skills and performance.
The system of rewards and incentives used to motivate sales representatives, such as commissions, bonuses, and stock options.
Providing sales representatives with the tools and resources they need to sell more effectively, such as product information, case studies, and competitive intelligence.
Using data from the CRM system to predict future sales and revenue based on historical data, sales pipeline, and lead conversion rates.
Sales Force Automation (SFA)
The use of software to automate and streamline sales processes, such as lead management and opportunity tracking.
A visual representation of the different stages a lead goes through on its way to becoming a customer, such as awareness, interest, evaluation, and purchase.
The process of improving sales performance by analyzing data and identifying opportunities for improvement.
Sales Performance Management
Tracking and analyzing the performance of sales representatives, such as sales volume, win rate, and activity level, to identify areas for improvement and set goals.
A representation of a lead or opportunity’s stages to becoming a customer.
Sales-Qualified Lead (SQL)
A lead that has been qualified by the sales team and is ready to be passed on to the account management team.
A target or goal for the number of sales a sales representative or team should achieve within a specific period.
Sales-Ready Lead (SRL)
A lead has been identified as having a high likelihood of becoming a customer and is ready to be passed on to the sales team.
The different stages or steps a lead or opportunity goes through before becoming a customer.
The individuals were responsible for selling a company’s products or services.
Sales Territory Management
Dividing the sales area into smaller regions and assigning sales representatives to specific areas based on demographics, industry, and buying behavior.
The rate at which a company can generate revenue from its sales efforts.
Measures are taken to protect the data stored in the CRM system, such as encrypting data in transit and at rest or implementing user access controls.
The process of dividing a customer or lead list into smaller groups based on specific criteria, such as demographics, behavior, or purchase history.
A web-based interface that allows customers to access information, track orders, resolve issues, and manage their accounts independently.
Automating and streamlining customer service processes, such as ticket management, case management, and customer feedback.
A CRM software that integrates with social media platforms, such as Twitter and LinkedIn, to allow businesses to track and engage with customers and leads on social media.
The integration of a CRM system with social media platforms, such as Facebook or Twitter, to track and manage customer interactions and engagement.
Software as a Service (SaaS)
A delivery model in which software is provided over the internet rather than installed on a specific computer or server.
Potential customers are identified as having a low likelihood of becoming customers.
To-do items or actions must be completed within a CRM system.
A pre-designed document, email, or page that can be used as a starting point for creating new content.
The overall design or visual style of a CRM system.
The integration of a CRM system with software or platforms not developed by the same company.
Tracking and managing customer support requests, typically through “tickets.”
A software system that manages and tracks customer support requests and interactions.
A URL is used to track the performance of a marketing campaign or the activity of a specific customer or lead.
Reports that provide detailed information about specific transactions, such as sales or customer interactions.
An individual who has access to and uses a CRM system.
Information or data that is created or contributed by users of a CRM system.
User Interface (UI)
A software system’s visual and interactive elements, such as buttons and menus, allow users to interact with the system.
The overall experience of using a software system, including ease of use, functionality, and design.
The specific permissions and responsibilities assigned to a user within a CRM system.
Voice of the Customer (VoC)
The feedback and opinions of customers are collected through surveys, interviews, and other methods.
A specific layout or display of information within a CRM system.
The integration of a CRM system with Voice over Internet Protocol (VoIP) technology, allows for voice and video calls to be made directly from the system.
An online form that collects information from customers or leads.
A CRM system is accessed and stored on the internet rather than on a specific computer or server.
A feature that allows leads to be generated from website forms or other online sources, where customers can input their contact information and become leads.
A feature that allows a CRM system to communicate with other systems or platforms by exchanging data via HTTP requests.
A set of predefined steps or actions automatically triggered by specific events or conditions in the CRM system.
The use of software to automate and streamline business processes, such as lead management and opportunity tracking. It helps in reducing human errors and improves overall efficiency.
This glossary is just the beginning of your journey to mastering CRM software.
Now that you better understand the CRM software industry, it’s time to put that knowledge to use with Mekari’s Qontak CRM software.
Our platform offers a wide range of features and easy-to-use interfaces to help you manage and improve customer interactions. Give it a try and see the results for yourself.