🔤Glossary
The purpose of this document is to define common definitions as seen around our documentation, metrics, and day-to-day conversations.
Metrics
Prospect:
Visitors on the website or any other medium, although they didn’t share any type of personal/company information or interest (sources).
Responsible: Marketing
Lead:
Someone that expresses interest and shares more information that has:
Shared personal information but no company information
Registered on newsletter, events, etc
Responsible: Marketing
Marketing Qualified Lead (MQL):
Someone that expresses interest and shares more information regarding the company that has:
Shared individual and company information
This is the point where the lead is ready to talk to an SDR
Responsible: Marketing
Product Qualified Lead (PQL):
Someone that has engaged on a free trial or in our community version and has a score above a threshold considering size, industry, and country.
This is the point where the lead is ready to talk to an SDR
Responsible: Marketing and Product
Sales Qualified Lead (SQL):
Someone that the SDR has already talked to and fits the target profile has the pain identified, and the timing is right.
At this stage, the SDR will have already talked to the client and identified a potential opportunity (need, time, authority, budget)
This is the point where the lead is ready to talk to a closer
Responsible: Sales (SDR)
Forecasting Category (former "Confidence Level" on Zoho CRM):
Commit (former "Very Confident"): either a late-stage deal OR a well-progressed deal that the rep says will close as part of their forecast for the current quarter. All deals in Verbal Approval with a closing date in the current quarter must be selected as Commit.
Best Case: upside or viable opportunities that could be accelerated to close in this quarter or advance with solid chances for us to win eventually. Rep has a solid amount of confidence in closing but may miss a key "SPICED" element such as decision-maker, timing, OR any other. However, two things must be certain: we can solve their PAIN and they see IMPACT.
Early Stage: uncertainty on many key elements of the SPICED framework that limit the ability to have any higher confidence level or inclusion in committed forecast number.
Omitted: For just created opportunity or super early prospecting/discovery analysis. Opportunities may only exist because the company is in our ICP. Likely only "situation" or no elements of the SPICED framework have been identified/validated.
Forecasting Scenarios:
Optimistic:
Commit = 100%; Best Case = 50%; Early Stage = 10%
Base:
Commit = 90%; Best Case = 40%; Early Stage = 0%
Conservative:
Commit = 80%; Best Case = 35%; Early Stage = 0%
Lagged Contracts:
New Sale / Upsell contracts closed at t, but starting at t + 1 (i.e. closed in April, but starts in May)
Contract Consumption:
How much (%) of the total contract has been consumed.
Logos:
Synonym for "Company" used in the context of Logo Churn and New Logo.
Opportunity (Opp):
Someone that was verified by the sales team (closer/hunter) that benefits from the product and passes the SLA of opportunity.
At this stage, the Closer will have already talked to the client and identified an opportunity (need, time, authority, budget)
Responsible: Sales (Closer)
Recurring Revenue Concepts
Refer to Whimsical for more info regarding recurring revenue..
ACV = Annual Contract Value:
All contracts (Non-recurring such as Events and Professional services included)
Value of contracts on a yearly basis
Contracts that are > 12 months will be annualized
Contracts that are < 12 months won’t be annualized
TCV = Total Contract Value:
Takes into account non-recurring businesses
"Amount" field in Zoho CRM fields
Back to our previous example Ex1 = $10k and Ex2 = $10k
Bookings ARR (Annual Recurring Revenue):
Deprecated since Feb 2021
Only recurring contracts (events and professional services not included)
Value of contracts on a yearly basis
Contracts that are > 12 months will be annualized
Contracts that are < 12 months won’t be annualized
Ex1: 2 year contract worth $10k - Bookings ARR = $5k
Ex2: 6 month contract worth $10k - Bookings ARR = $10k
Deals Won
Amount of deals on the stage closed won
Includes all types (new sale, upsell, renewal)
Open Deals
Amount of deals on pipeline meaning the stage is not closed, won or lost
Overdue Tasks
Tasks still open with the current date being after the deadline to complete the task
Target
Sales quota based on ACV
Average Ticket Won
ACV / Deal Won
Average Discount
Takes into account all deals Closed Won divided by their supposed full price
(TCV (Amount) Closed Won / (TCV (Amount) Unit Price per Product x Seats Closed)
Win Rate:
Only for New Sale deals
Only for Opportunity onwards
Closed won deals / (Closed Won + closed lost)
Sales Cycle
Only for closed Won Deals
Only for type New Sale deals
Sum of days spent on each stage
Renewal Rate:
Only for type Renewal
Closed Won / (Closed Won + Closed Lost)
Can be by Amount ($) or by the logos (#)
Pipeline:
All stages different from Closed Won and Closed Lost for types Upsell and Renewal
From opportunity onwards not including Closed Won and Closed Lost for type new sale
SaaS (Software as a Service):
"Software as a service is a software licensing and delivery model in which software is licensed on a subscription basis and is centrally hosted.". Check this video for more info.
Sales Enabled:
Customers who were acquired by the Sales Team. They could be SaaS (Gold, Silver, and Bronze) or Self-Managed (Pro and Enterprise).
Self-Service:
Customers who haven't gone through the Sales Team. Exclusively SaaS (Gold, Silver, and Bronze).
Community Size Composite Index:
This index was created so we can better measure our Community Size growth. Find below its components and weights.
30% Users on Open Server
30% Users on forums.rocket.chat
20% Unique Users Creating Issues on GitHub
Revenue Weekly - SDRs
All the metrics below exclude Deals that went directly from Pre-Pipeline to Closed Lost.
Sales Territory
How we get the Sales Territory
# of SQL Created
Count of New Sale Deals.
# of Opps Created
Count of New Sale Deals that left the Pre-Pipeline Stage.
Total Current Pipeline
Sum of Current Deal Amount of New Sale Deals in all Stages EXCEPT Pre-Pipeline.
Open Current Pipeline
Sum of Current Deal Amount of New Sale Deals in OPEN Stages EXCEPT Pre-Pipeline.
Amount when Deal was created
Snapshot Sum of Deal Amount when New Sale Deals were created.
Partners
We use the "Partner (Lookup)" field from the Deals module on Zoho CRM to define which partner is related to an opportunity and create the proper metrics on Zoho Analytics.
We also have a "Partner (Lookup)" field in the Accounts module on Zoho CRM but it's only used for visual reference by the Salespeople.
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