Business jargon can be a tough nut to crack.

Stepping into new areas, especially with business software like CRM, often brings a slew of unfamiliar terms. For those who use CRM software daily, this language is second nature. But for those new to CRM systems, it's easy to feel swamped by the terminology.

That's where we step in. At ConsultMyApp, we have developed a comprehensive CRM Glossary. It's more than just a list; it's a tool to help you decipher all those CRM terms and features essential for your business's success.

Ready to conquer the jargon? Dive into our glossary and master the language of CRM.

What is a CRM Glossary?

A CRM (Customer Relationship Management) glossary is a comprehensive collection of terms and definitions related to CRM software and its usage. It encompasses a wide range of concepts, from basic functionalities to advanced features, providing a foundational understanding of CRM systems. 

This glossary is essential for anyone involved in customer relationship management, sales, marketing, or support, as it helps in navigating the complex landscape of CRM technology.

Why do I Need to Know These Terms?

1. Enhanced Understanding of CRM Software: Knowing CRM terminology allows you to better understand and utilize CRM software. This understanding is crucial for effectively managing customer relationships and optimizing the use of CRM tools.

2. Improved Communication: Familiarity with CRM terms ensures clear communication between team members and external CRM consultants or support teams. It eliminates misunderstandings that can arise from unfamiliarity with specific terms.

3. Efficient Training and Onboarding: For new employees or those new to CRM software, understanding these terms can significantly streamline their training and onboarding process.

4. Better Decision Making: Understanding CRM terms and concepts enables you to make informed decisions about choosing the right CRM tools and strategies for your business.

5. Staying Updated: The world of CRM is constantly evolving. Keeping up with the latest terminology helps you stay updated with new features, trends, and best practices in customer relationship management.

6. Enhanced Customer Service: A deep understanding of CRM terms can lead to better customer service practices. It equips you with the knowledge to use CRM tools more effectively in managing customer interactions.

7. Strategic Planning: Knowing CRM terms aids in strategic planning by providing insights into various CRM functionalities and how they can be leveraged to meet business objectives.

In summary, a CRM glossary is not just a list of terms; it's a gateway to mastering CRM software, enhancing team communication, improving customer service, and driving strategic business decisions.

Key CRM Terms in Alphabetical Order

Account

In a CRM context, an "account" denotes a business or entity with which your company maintains a relationship. This could be a client, a partner, or a vendor. An account may be linked to numerous contacts, tasks, and potential business opportunities and is typically overseen by an account manager or a customer success manager.

Action

Within CRM, "action" signifies a specific activity or operation in a workflow activated by a certain trigger. Actions could include sending an email, setting up a task, or modifying a record. Central to automating processes, actions streamline efficiency and enhance customer relationship management, often under the supervision of sales representatives or account managers.

Activity

"Activity" in CRM encompasses any task linked to an account, contact, lead, or potential deal. This includes interactions like phone calls, emails, and meetings, which are instrumental in tracking engagement with customers or prospects.

Campaign

In CRM, a "campaign" is a targeted marketing endeavor aimed at achieving specific objectives, such as boosting product awareness or sales. The effectiveness of campaigns is measured through the number of leads, opportunities, and sales they generate.

Ticket

A "ticket" in CRM terminology refers to a problem or issue reported by a customer. Used in customer service and support, tickets track the resolution process of customer-reported problems and are often linked to specific contacts or accounts.

Cloud-based CRM

"Cloud-based CRM", or SaaS CRM (Software as a Service), refers to a CRM system hosted online and accessible via a web browser. This model is usually subscription-based and offers the convenience of remote accessibility.

Company

In CRM, "company" denotes a business or corporate entity with which your organization has a relationship, whether as a customer, partner, or supplier.

Contact

A "contact" in CRM is a person associated with a business entity or account with which your company has a relationship. Contacts are often linked with specific accounts and can have related sales activities and opportunities.

CRM Roles

"CRM roles" define the specific access permissions and levels assigned to users within the CRM system based on factors like job function or department.

CRM System

A CRM system is a technological platform that manages all interactions and relationships between your company and its customers or potential customers. The aim of CRM software is to enhance business relationships, foster customer loyalty, and drive sales growth.

Customer

In CRM, a "customer" is an individual or organization that has established a business relationship with your company, having engaged in transactions or shown interest in your products or services.

Customer Journey

The "customer journey" in CRM encompasses the entire process a customer undergoes from initial contact with your company, through engagement, to developing a long-term relationship. This journey may also include subsequent phases like advocacy and providing feedback.

Customer Record

A "customer record" in CRM is a comprehensive collection of data and information about a customer, providing a complete profile that includes their interactions, preferences, purchase history, and other relevant details.

Customer Retention

"Customer retention" in CRM involves strategies and actions aimed at minimizing customer churn. These programs are designed to maintain customer loyalty and promote brand allegiance.

Customer Segmentation

"Customer segmentation" in CRM divides customers into groups based on shared characteristics, needs, or preferences. This segmentation is used to tailor marketing strategies effectively and can be based on demographics, behavior, geography, or purchasing patterns.

.csv File

A .csv (Comma Separated Values) file is a format used to store table-based data. In CRM, .csv files are commonly employed for data import and export tasks.

Dashboard

A "dashboard" in CRM is a visual interface displaying key performance indicators (KPIs) pertinent to specific business goals or processes. This could cover areas like sales, customer service, or marketing campaign results.

Deal

In CRM, a "deal" represents a potential sales opportunity or agreement that is in progress. Deals, associated with contacts and accounts, move through various stages like prospecting and negotiation before reaching a conclusion.

Duplicate

A "duplicate" in CRM refers to a record identical or very similar to another existing record in the system.

Duplicate Detection

"Duplicate detection" in CRM identifies and prevents identical or similar records from being created in the system. This feature is crucial for maintaining data accuracy and integrity.

Email Campaign

An "email campaign" in CRM is a series of coordinated email messages to persuade recipients to purchase or take a specific action. CRM systems assist in managing, tracking, and analyzing these campaigns.

Field

A "field" in CRM refers to a specific data entry point for a record, such as a contact's name or email. These fields help organize and categorize data efficiently.

Folder

In CRM, a "folder" is where various records are organized. Commonly, businesses have folders like "Leads" for individual customer records and "Companies" for corporate records.

Gmail CRM

"Gmail CRM" describes a CRM system that integrates seamlessly with Gmail, allowing users to manage customer relationships directly from their email inbox.

Helper

In CRM, a "helper" is a component in workflow automation that guides the progression of a workflow, which can include filtering conditions, path splitting, or setting wait times.

Integration

"Integration" in CRM involves connecting the system with other software to facilitate data sharing and streamlining workflow.

Lead

A "lead" in CRM is a potential contact interested in your products or services, often obtained through referrals or lead generation methods.

Lead Distribution

"Lead distribution" refers to assigning incoming leads to sales teams or representatives, ensuring a balanced and efficient approach to lead management.

Manager

In CRM, a "manager" generally refers to a user with higher-level access, overseeing other users' work, viewing reports, and making system-wide changes.

On-premise CRM

"On-premise CRM" is a CRM system installed on computers within an organization, as opposed to being hosted in the cloud.

Opportunity

An "opportunity" in CRM is a qualified lead with a high chance of conversion into a customer. Opportunities represent potential sales for specific products or services and are tracked through various stages.

Pipeline

A "pipeline" in CRM is a visual representation of the sales process, broken down into stages, showing the progression of deals or sales opportunities.

Priority

In CRM, "priority" denotes the level of importance assigned to a task, lead, or opportunity, often determined through lead scoring.

Quote

A "quote" in CRM is a formal offer from a seller to a buyer detailing the proposed cost of goods or services.

Related Record

A "related record" in CRM is a record connected to another due to an established relationship, like a contact linked to a specific company.

Report

A "report" in CRM is a document presenting data in an organized format, offering insights into various business aspects like sales or customer service.

Sales Cycle

The "sales cycle" in CRM refers to the sequence of stages a company goes through when selling a product or service, from prospecting to closure.

Sales Forecasting

"Sales forecasting" involves estimating future sales, using CRM data and tools to predict short- and long-term business performance.

Social CRM

"Social CRM" integrates social media channels into CRM platforms, enabling direct customer engagement and tracking of social media interactions.

Stage

A "stage" in CRM is a specific step in the sales process, such as prospecting or negotiation.

Task

A "task" in CRM is a specific action or item to be completed, linked to accounts, contacts, leads, or opportunities, and aids in managing sales or service activities.

Territory

In CRM, a "territory" refers to a specific geographic area or customer group assigned to a salesperson or team, aiding in workload balance and customer segmentation.

Timeline

A "timeline" in CRM is a chronological display of a customer's interactions with your business, including various types of engagements.

Trigger

A "trigger" in CRM is an event that initiates a specific process or workflow, like adding a new lead to trigger a welcome email.

User

A "user" in CRM is an individual with access to the CRM system, having various roles and permissions based on their job function.

View (Filter)

In CRM, a "view" or "filter" allows users to segment and organize data based on certain criteria, aiding in focused and efficient communication.

Workspace

A "workspace" in CRM is a customizable area for users to view and manage related information, such as leads, opportunities, and accounts in a sales workspace.

Workflow

A "workflow" in CRM is a series of automated actions triggered by specific criteria, used to automate routine tasks and enhance efficiency.

CRM Acronym Terms

CRM itself is short for Customer Relationship Management, so it makes sense that there are lots of short, easy-to-remember terms for more complex ideas. This is just like how CRM makes managing customers easier and more straightforward.

BANT (Budget, Authority, Need, Timing)

BANT is a strategic framework used in B2B sales to assess the suitability of a prospect. It involves evaluating a potential customer based on their budget, decision-making authority, specific needs, and the timing of their purchase decision.

CPQ (Configure, Price, Quote)

CPQ stands for the process that involves customizing products, setting prices, and generating quotes. This process is a critical component of the overall quote-to-cash cycle, playing a pivotal role in sales operations.

CX (Customer Experience) 

Customer Experience encompasses all the perceptions and emotions customers have as a result of their interactions with a brand's services and products. This includes elements like customer support and account management, which significantly influence customer satisfaction.

CRO (Conversion Rate Optimization)

CRO involves strategies aimed at increasing the percentage of users who perform desired actions on a website or app. This may include modifying site elements and conducting A/B testing to validate changes and improve conversion rates.

MQL (Marketing Qualified Lead)

An MQL is a lead evaluated and approved by the marketing team as meeting the necessary criteria to be forwarded to the sales department. These leads are considered more likely to become customers.

Sales SLA (Service Level Agreements)

Sales SLAs are agreements that outline key performance indicators and the relationship between sales and marketing teams. These contracts are increasingly popular for ensuring alignment and collaboration between these two critical business functions.

SQL (Sales Qualified Lead)

An SQL is a prospective customer who has undergone a thorough evaluation and is deemed to meet specific criteria, indicating a higher likelihood of completing a purchase. This process typically involves both the marketing and sales teams of an organization.

TAS (Target Account Selling)

Target Account Selling is a sales approach focused on personalized solutions. It targets potential clients seeking customized answers to their unique challenges, with solutions specifically tailored to their needs and pain points.

VOC (Voice of the Customer)

VOC is a key aspect of customer experience. It focuses on understanding and addressing customers' needs, desires, expectations, and preferences. In many businesses, the quality of customer experience is a crucial differentiator from competitors.

FAQ About CRM

CRM stands for Customer Relationship Management. It's a method companies use to manage their interactions with existing and potential customers. CRM makes things run more smoothly, helps build better customer relationships, grows sales, improves customer service, and helps the business earn more.

What are the 5 Components of CRM? 

The five main components of a CRM system are:

1. Database: Stores all client and business information, aiding in decision-making for sales, marketing, and customer service.

2. Data Warehousing: Keeps historical records from the CRM system, facilitating efficient operations and simplified data reporting.

3. Data Mining Tools: Analyze large data sets to identify key customer insights, aiding in targeted marketing and improved sales strategies.

4. Business Intelligence Tools: Help understand customer behavior and market trends to boost sales and customer loyalty.

5. Social Media Network: Used for marketing, brand promotion, and customer engagement, offering insights into public perception and relationship building.

What are the 4 P's of CRM? 

Some consider the "4 Ps of CRM Success" to be Planning, People, Process, and Platform, while others believe they are Product, Process, Policy, and People.

What are the 3 C's of CRM?

The three key elements of CRM are Customization, Communication, and Clean Automation. 

What are the Main Components of CRM System? 

1. Customer Satisfaction: Measures how customers perceive the quality of products, services, or the company, influencing their future purchasing decisions.

2. Customer Loyalty: Indicates repeat business and referrals, essential for consistent revenue and successful product engagement.

3. Profitability: Calculated as total revenue minus total costs, it's crucial for a company's survival, growth, and expansion.

4. Customer Retention: Tracks the number of customers who stay loyal over time, reducing the costs associated with acquiring new customers.

5. Marketing: Involves using CRM to enhance advertising strategies and personalize customer experiences through targeted marketing efforts.

6. Business Reporting: Provides visual reports to track data over time, aiding in forecasting and offering insights into business health and trends.

What are the 9 Components of CRM? 

1. Workflow Automation: Streamlines processes and reduces repetitive tasks, preventing time loss and excessive effort.

2. Sales Automation: Integrates marketing and sales for direct lead transfer and analysis of campaign results, aiding in revenue growth and sales evaluation.

3. Human Resource Management: Ensures that employee skills match their tasks and focuses on workforce growth and strategy development.

4. Lead Management: Tracks prospects and analyzes customer behavior to identify sales leads, essential for effective campaign management and communication.

5. Pipeline Management: Classifies customers based on their purchasing journey stage, aiding in tailoring offers and closing deals.

6. Marketing: Enhances advertising strategies by studying prospective customer behaviors, with diverse subcomponents like campaign and document management.

7. Customer Service: Gathers customer information to understand needs and complaints, continuing relationships post-sale for satisfaction and efficiency.

8. Business Reporting: Generates precise reports, including customer service analysis, providing insights into daily operations and goal alignment.

9. Analytics: Analyzes data to track market trends, using graphical representations to better understand business progress.

What are the 4 C's of CRM? 

The four C’s of CRM are currency, correctness, consistency and completeness. They are crucial in building deep, lasting relationships with customers.

What is CRM and Examples? 

CRM is a technology that helps businesses, big and small, to manage, automate, and bring together different parts of dealing with customers. This includes things like marketing, sales, helping customers, and giving support.

What are the 3 Pillars of CRM? 

The three pillars of CRM are Marketing, Sales, and Customer Support/Service.

What are the 3 C's of Customer Service? 

The three C’s of customer service include:

1. Consistency: Ensuring a uniform quality of experience and results across all channels, leading to increased customer satisfaction.

2. Completeness: Offering a comprehensive contact solution that smoothly transitions across various channels, meeting any customer needs regardless of how they engage.

3. Context: Providing relevant information to customers precisely when they need it, based on their specific interactions, needs, and preferences, including communication tailored to their chosen contact method.

What are 3 Types of CRM? 

The three main types of CRM are collaborative, operational, and analytical.

Understanding CRM terminology is not just about learning definitions; it's about gaining a comprehensive insight into how customer relationship management can transform your business. Knowing these terms empowers you to utilize CRM software to its fullest potential, enhancing customer relationships, streamlining your sales process, and boosting overall efficiency.

If you need more help with CRM, your next step is to get some free advice and contact the CMA team.