Demystify B2B SaaS Terminology So You Know the Answers When You Get Asked

Learn the meaning of Proof of Concept (POC) as it relates to the sales process and how a POC can be used to increase the conversions of hesitant prospects.

Learn what a deal desk means and how having a deal desk at your company can ensure your sales reps have the best chance of success at closing high-value deals.

The SaaS Magic Number is a formula for measuring the efficiency of your sales and marketing efforts over a given period of time. The standard formula takes into account your current quarter’s revenue minus your previous quarter’s revenue, and divides that by how much you spent on sales and marketing during your previous period. 

A clawback is the recovery (i.e. taking back) of any compensation already given to an employee. It's mostly to protect a company for when sales reps do bad deals with customers that don't pay their bill.

EOY stands for the End-of-Year and it is defined as the end of either the calendar year or fiscal year. 

A conversational growth strategy is the purposeful use of live chat/messaging apps, voice/video calls, or real-time chatbots to nurture and convert leads in a casual, conversational manner.

Quota relief is simply the ad hoc adjustment of a rep’s sales quota in the name of fairness - intended to lessen a rep’s stress and provide income stability.

MRR stands for 'Monthly Recurring Revenue'. It is the average monthly revenue your business generates from subscriptions. It tells you how much money in total your customers pay each month to use your SaaS product.

Net Revenue Retention (NRR) is a percentage that compares the amount of recurring subscription revenue you retain from your existing base of customers to the amount of new revenue you generate from them.

Customer acquisition cost (CAC) is the cost a business spends on average to acquire one new customer.