CRM Glossary & Key Terms SMB Owners Should Know

Are you new to using CRM software? If so, the list of CRM software terms can get overwhelming  fast.  Don’t fret! Because you’ve just found yourself a complete CRM glossary containing everything you need to know! I’m AJ! I spent years growing my business (and eventually selling it), and much of my success is credited to CRM software. I built Small Business Bonfire (SBB) to help other entrepreneurs grow successful businesses! What CRM terms are critical? And which aren’t all that important? Stick with me as I cover the most important terminology related to CRM software!















360-Degree Customer View



A 360-degree customer view is a comprehensive profile of each person that purchases a business’s products or services. Some of the information that makes up a 360-degree customer view includes the following details: Marketing campaigns Sales opportunities Contact information Incidents Acquisition history Other aspects of the customer journey















Account



An account is an individual or group record for each customer, company, or other contact. Sometimes, companies use the term “account” to reference the name of a company in correspondence. An account makes it easy for sales reps to keep customer contacts organized. 















Activities



Activities are specific actions a current or potential customer takes. CRM software keeps track of customer activities to create a customer profile.  Some examples of activities include the following: Phone call history Emails Meeting notes Buying patterns Sometimes, sales teams can manually enter activities into a CRM system.















Ad Hoc Reporting



Ad hoc reporting is when reports are generated or created on request. Typically, companies create ad hoc reports for specific use to answer a certain question.  For instance, you can use an ad hoc report to answer the question, “Where is our sales pipeline struggling?”















Analytics



Customer relationship management technology gathers analytics that helps your marketing and sales team make fast decisions. Analytics are data points including trends and behavior patterns such as: Sales pipeline data Win-loss tracking Financial analyses Segmentation recommendations Companies also use analytics for marketing campaigns and decisions regarding the sales cycle. 















API



API stands for application program interface. An API has instructions and technical specifications for web developers to customize their software.  Essentially, an API allows professionals to make customer relationship management (CRM) software operate as a company requires.















AppExchange



AppExchange is a Salesforce app that allows companies to integrate third-party applications into their CRM software. Some examples of the integrations available in AppExchange include the following: Mailchimp (email marketing) DocuSign (electronic signatures) QuickBooks (accounting software) Third-party integrations improve business software and streamline marketing efforts, the sales funnel, etc. 















Artificial Intelligence



Artificial intelligence is a computer program that mimics human behavior. CRM software can integrate AI to guide customer service, marketing campaigns, and sales operations. For instance, AI can suggest relevant content or products for customers based on past purchases.















Auto-Responder



An auto-responder is a form of sales automation in the CRM workflow. Sales reps can utilize an auto-responder to automatically perform certain actions, including the following: Sending emails to a prospective customer Sending SMS messages with discounts and deals Sending reminders to sales and marketing teams















B.A.N.T



BANT stands for “budget,” “authority,” “need,” and “timeline.” The acronym and sales qualification methodology provides the basic framework for sales reps to ask potential customers questions. BANT aims to provide easy-to-follow guidance for getting customer information a sales representative could extract from a normal conversation. Also, these guidelines help teams determine whether a customer is sales-qualified.















Business Intelligence (BI)



Business intelligence is part of analytics, consisting of things like: Sales process reports Pivot tables Dashboards Sales forecasting Customer success management Companies use business analytics to make better decisions that boost sales and create effective marketing efforts.















Campaign



A campaign is a collection of marketing efforts. For instance, a campaign can consist of the following actions: Email marketing Social media marketing Print ads Online ads In-person events Product launches Direct mail A campaign aims to attract a potential customer and draw attention to your products or services. 















Campaign Management



Campaign management describes an individual or team’s steps to plan, launch, monitor, and analyze marketing efforts. Typically, campaign management consists of three steps; planning, management, and analysis. Campaign management ensures a business takes calculated steps to reach its target audience.  As a result, marketing strategies are less expensive and more effective, targeting the proper customer base.















Cloud- or Web-Based



A cloud-based CRM software is available via a web browser or mobile app. Cloud or web-based systems are available from any device with an internet connection. A CRM system available from any device allows employees to be more productive and flexible regarding their place of work.  Ultimately, a cloud and web-based CRM system leads to happier employees because they can work remotely.















Configure/Price/Quote



Configure, price, and quote (CPQ) are the processes businesses use to sell customizable products. CRM software makes this process faster and more reliable by storing records and previous quotes, ensuring you don’t over or undercharge a customer. Customer self-service is more accurate when creating quotes for products or services with several feature options.















Contact



A contact is an individual record that stores the following information about a customer: Name Phone number Email Mailing address Buying patterns Additionally, companies can use a contact to store a prospect, associate, company, or other party a representative interacts with. 















Contact Database



A contact database is all your existing customers and businesses you interact with. Contact databases are a key function of CRM software, serving as a digital Rolodex of all your contacts and business partners. 















Contact Management



Contact management is an essential business practice. You and your team must keep existing and potential customers organized, with customer information and behaviors stored properly within your CRM software.  Contact management ensures your sales reps and other team members can access the data they need to improve relationships.















Contact Role



A contact’s role tells a sales rep who to talk to and the best time to reach out for each account for potential customers. For instance, contact role labels include the following: Decision maker Buyer Influencer Job titles (owner, CFO, president, etc.) Put simply; a contact role indicates the level of authority or seniority of each person in their contact base. 















Contract Management



Contract management involves managing contracts, deadlines, terms and conditions, and deliverables. Also, individuals in charge of contract management must ensure customer satisfaction. Contracts are vital features for business deals, ensuring each party lives up to their end of the deal.  Fortunately, CRM software makes writing and managing multiple contracts easier.















CSV File



CSV (comma-separated values) files are used to store data. For instance, a CSV file is the most efficient way to store and share contact information with others. Also, CRM software can use CSV files for importing and exporting customer databases and sales cycle spreadsheets into the platform.















Custom Code



Custom code allows professional web developers to build and customize a company’s CRM software. For example, web developers write custom code to change a CRM system’s interface, functions, and look.  While more CRM platforms don’t require a ton of custom code, it’s an excellent option if you run a large business or have specialized needs.















Custom Fields



Custom fields are a CRM feature most platforms include. This feature allows users to add personalized data fields in addition to essential contact information, names, and roles.  Custom fields are a nice feature because they provide a more comprehensive view of an existing or potential customer.















Customer Data



Customer data is every piece of information a business has about a paying customer. When team members collect this information, they store it in a customer’s profile on the CRM system. Additionally, CRM technology automatically collects and organizes customer data for employees to use later.  Some examples of customer data include the following: Names Contact information Ideas Customer habits Preferences Profitability Buying history















Customer Experience (CX)



Customer experience (CX) is the customer’s overall impression of a company or product. CRM software plays an integral role by keeping notes on customer interactions, contacts, and transactions. Plus, CX data can help businesses understand how to make improvements and enhance relationships with existing customers. 















Customer Experience Management



Customer experience management (CXM) ensures customers have a pleasant experience with your products or services. CRM software allows businesses to track customer satisfaction ratings and feedback, improving CX for potential and existing customers. This data can help you tailor your marketing efforts to meet customers’ needs better.















Customer Self-Service



Customer self-service allows businesses to provide online customer support without having any interaction with an agent. A CRM system typically includes AI features automatically responding to general customer emails or live chat inquiries. Therefore, your customer agents are more productive and aren’t responsible for as many customer support requests.















Customer Service Management



Customer service management stores integral customer information to offer better, more personalized customer support. Some details customer service management platforms store include the following: Communication records Purchase histories Incidents Contact information Better customer support leads to more positive reviews and better customer loyalty. 















Customer Relationship Management



Customer relationship management is a system that stores customer contact information, buying history, and other data. CRM software makes creating customized marketing messages, streamlining processes, and increasing customer loyalty easier.  CRMs are essential for small business owners looking to simplify sales cycles and build better customer relationships.















Customer Valuation



Customer valuation places “value” on each customer, determining the best contacts for marketing campaigns. CRM software uses the following information to qualify leads, prospective, and paying customers: Analytics Artificial intelligence Behavioral data Buying history Customer valuation ensures sales teams don’t waste time pursuing a lead with little to no chance of purchasing a company’s products or services. 















Dashboards



Dashboards are CRM features that summarize a company’s key performance indicators. For instance, a dashboard shows a user a list of weekly tasks, sales funnel performance, sales progress, etc. Often, dashboards showcase data in easy-to-understand graphs and charts, allowing users to see important information immediately. 















Data Enrichment



Data enrichment adds more relevant customer data to an existing profile. CRM systems often utilize public records, online activity, and social media platforms to gather more contact information. This data type can help sales reps discover new leads faster and better understand the customer’s needs before reaching out.















Data Protection



Customer information is sensitive, containing private information like credit card numbers, social security information, etc. Your CRM system must have measures to protect this information, preventing hackers from finding and taking advantage of it.  I’ve found implementing a third-party security feature useful, ensuring sensitive data is safe!















Data Export



Data export allows companies to move customer information from the CRM system into other programs. For instance, you can export contact information into a spreadsheet for others to use or move data to another CRM platform.  A data export feature is handy to transfer information quickly and accurately.















Data Field



A data field is a specific piece of data. For example, a customer’s address is a data field indicating where a company can send print ads. Several data fields comprise a record (a complete customer view).















Data Import



Data import is the opposite of data export. Imports allow users to bring customer information from other programs into their CRM system.  Importing data is especially handy for teams transitioning from one CRM platform to another. A data import feature is also helpful when a company must transfer customer information from a separate software quickly.















Dead Lead



Dead or cold leads are potential customers who make it challenging for sales reps to guide them into the sales funnel. A sales team shouldn’t spend too much time on a dead lead because they will unlikely convert into a paying customer.  While sending cold leads an occasional message or reminder is okay, salespeople shouldn’t spend too much time or energy trying to convert these customers.















Demand Generation



Demand generation is an effective marketing strategy. With this strategy, sales reps look at what a specific customer needs and form an effective way to draw their attention to the company’s products or services.  With demand generation, showing customers  why  they need your products or services is critical because this encourages them to purchase things.















Email Response Management



Email response management is a CRM feature that allows users to set up and send automatic email responses. Businesses can create predefined rules and set responses based on specific requirements. Email response management saves companies time and effort by handling mundane tasks.















First Touch



First-touch attribution analyzes the first point of contact that drew a prospective customer in. For instance, you can observe whether a social media presence, email campaign, or a limited deal resulted in customer attention. First-touch data is important because it shows you which customer interactions are most effective.















Funnel Velocity



Funnel velocity is the speed at which a customer moves through the sales process. For instance, how long does it take a potential customer to visit a website, download an ebook, or complete a survey? The velocity of customers in your funnel helps you determine if you must adjust campaigns and pricing to increase conversions.















Hot Lead



Hot leads are customers that are closer to making a purchase. Sales reps should spend more time on hot leads, providing additional information and special offers to encourage them to convert into paying customers.  Additionally, it’s important to personalize a sales-ready lead because customers are likelier to buy things when the sales process is tailored toward their preferences.















Indemnify and Hold




Indemnify and hold is a legal term CRM providers and end users use in their contracts. This phrase protects CRM companies from liability if an end user experiences losses, damages, or technical mishaps.















Intellectual Property Rights




Intellectual property rights refer to anything proprietary to the CRM software. These intellectual property rights can include the following: HTML codes Software design User IDs Passwords Logos Visualization Intellectual property rights ensure other providers don’t copy a software’s functionality or look. 















Junk Lead



Junk leads are contacts from dubious sources, such as email lists sold online. Sales teams shouldn’t pursue these leads because they likely won’t convert into customers.  Instead, you should focus your efforts and energy on leads that will become paying customers, such as people who fill out forms on your website.















Last Touch



Last touch attribution allows teams to observe paid advertisements’ performance and CRM data collection. Last touch attribution gives all the credit to the final touchpoint before a customer purchases your products or services.















Lead Generation



Lead generation is how a company finds potential customers. Some methods companies use for lead generation include: Social media statistics and activity Email newsletters and sign-up forms Surveys and pop-up forms on a website















Lead



A lead is a potential customer at the initial stage of the sales pipeline. There are several methods to find leads, including referrals and ad campaigns.















Lead Conversion



Lead conversion is when companies turn potential customers into paying ones. Each lead is assigned to a sales rep, who utilizes personalized selling strategies to guide them through the sales process. A marketing-qualified lead is converted into a prospect and, finally, a customer.















Lead Nurturing



Prospects and leads don’t naturally navigate the sales funnel without assistance. Instead, your sales team must nurture these people through the sales pipeline to ensure they secure a sale. Lead nurturing involves monitoring, assigning leads to reps, and tracking their activities. 















Lead Qualification



Lead qualification is a set of requirements for a potential customer to be considered a qualified lead. Labeling potential customers to determine whether they are ready to purchase your products and services is essential. Chasing poor leads wastes time, energy, and money!















Lead to Cash



Lead to cash is the entire journey from prospecting to sales conversion. This term includes lead generation, nurturing, and qualification-to-conversion. Lead to cash ensures customers don’t spend too much time in the sales funnel.















Marketing Automation



Marketing automation is a CRM feature that automatically completes certain marketing-related tasks. Some marketing automation examples include sending emails, creating reports, and posting social media con