What The Actual F**k Are These CRM Terms?

Business jargon explained like a human, not a textbook.

CRM

Customer Relationship Management. Software that helps you track customers, leads, and interactions.

Real talk:

A fancy database for remembering who the hell your customers are and what you talked about. Because your brain can't hold that shit.

Lead

A potential customer who has shown interest but hasn't bought yet.

Real talk:

Someone who might give you money but probably won't. Most leads are just tyre-kickers who filled out a form and forgot about you five minutes later.

Contact

Any person stored in your CRM, whether they're a customer, lead, or just someone you met.

Real talk:

A human being you've reduced to a row in a spreadsheet. Welcome to business.

Deal

A potential sale you're tracking through your sales process. Also called an opportunity.

Real talk:

Money that might come in. Emphasis on "might." Don't spend it until it's in your bank account, you optimistic bastard.

Pipeline

A visual representation of where all your deals are in the sales process.

Real talk:

A bunch of columns that make you feel productive. Most deals will die somewhere in the middle and you'll never know why.

Funnel

The journey from first awareness to becoming a customer, shaped like a funnel because people drop off at each stage.

Real talk:

A depressing diagram showing how most people who hear about you will never buy from you. The wide part is your hopes, the narrow part is reality.

Churn

The rate at which customers cancel or stop buying from you.

Real talk:

People leaving you. It hurts. High churn means you're either shit at your job or attracting the wrong customers. Sometimes both.

CAC

Customer Acquisition Cost. How much you spend to get one new customer.

Real talk:

The depressing maths of how much money you burn to convince someone to give you money. If this number is higher than what they pay you, you're fucked.

LTV / CLV

Lifetime Value / Customer Lifetime Value. The total revenue you'll get from a customer over time.

Real talk:

How much a customer is worth before they inevitably leave you for someone cheaper or just disappear. Should be way higher than your CAC or you're running a charity.

MRR

Monthly Recurring Revenue. Predictable income that comes in every month.

Real talk:

The money you can actually count on. The holy grail. The thing that lets you sleep at night instead of lying awake wondering if anyone will buy your shit next month.

ARR

Annual Recurring Revenue. MRR multiplied by 12.

Real talk:

MRR but bigger so it sounds more impressive on Twitter. VCs love this number. It's just MRR × 12, calm down.

Conversion Rate

The percentage of people who take a desired action, like signing up or buying.

Real talk:

The brutal truth about how many people actually do what you want them to. Spoiler: it's always lower than you hoped. A 2% conversion rate is considered good. Let that sink in.

Follow-up

Reaching out to someone again after initial contact.

Real talk:

Pestering people who are ignoring you. But here's the thing: most sales happen after 5+ follow-ups, so you need to do it. Just don't be a dick about it.

Cold Outreach

Contacting people who have no prior relationship with you.

Real talk:

Messaging strangers who didn't ask to hear from you. Feels gross, sometimes works, mostly gets ignored. The email equivalent of knocking on doors.

Warm Lead

A lead who has shown genuine interest or been referred to you.

Real talk:

Someone who might actually reply to your email. Treasure these people. They're rare.

Nurturing

Gradually building a relationship with leads over time through content and communication.

Real talk:

Sending emails to people who aren't ready to buy yet, hoping they'll remember you when they are. It's a long game and most people give up too early.

Onboarding

The process of getting new customers set up and using your product.

Real talk:

Hand-holding people so they don't immediately regret paying you. Mess this up and they'll churn before you can say "but did you read the documentation?"

Upsell

Selling a more expensive version or add-on to an existing customer.

Real talk:

Convincing someone who already paid you to pay you more. Easier than finding new customers. This is where the real money is.

Cross-sell

Selling a different product to an existing customer.

Real talk:

"You bought the thing? Great, here's another thing." Amazon made billions doing this. "Customers who bought this also bought..."

Retention

Keeping existing customers rather than losing them.

Real talk:

Not being so shit that people leave. It's 5-7x cheaper to keep a customer than find a new one. Yet most businesses obsess over acquisition and ignore retention. Idiots.

Segmentation

Dividing your contacts into groups based on shared characteristics.

Real talk:

Putting people in boxes so you can send them different emails. "Enterprise clients" vs "cheapskates on the free plan" is a segment, whether you admit it or not.

Touchpoint

Any interaction between a customer and your business.

Real talk:

Every time someone encounters your brand. Your website, your emails, your tweets, your support chat. Each one is a chance to impress or disappoint. No pressure.

Sales Cycle

The time it takes from first contact to closing a deal.

Real talk:

How long you have to wait before someone finally pays you. B2B sales cycles can be months. Enterprise can be a year. You'll age visibly.

Qualified Lead

A lead that meets certain criteria suggesting they're likely to buy.

Real talk:

A lead that isn't a complete waste of time. Has budget, has need, has authority to buy. Most leads are unqualified, which is why salespeople are always annoyed.

Discovery Call

An initial call to understand a prospect's needs and determine fit.

Real talk:

A call where you figure out if this person can actually afford you and isn't a tyre-kicker. Also where they figure out if you're full of shit.

Proposal

A formal document outlining what you'll deliver and what it costs.

Real talk:

A document you spend hours on that will either get signed or ghosted. No in-between. The waiting period after sending one is psychological torture.

Closed Won

A deal that has been successfully completed.

Real talk:

They paid. You did it. Pop the champagne. This is the only status that actually matters.

Closed Lost

A deal that didn't happen.

Real talk:

They said no, went with a competitor, ghosted you, or their budget evaporated. It happens. Learn from it and move on. Or stew in resentment. Your call.

Win Rate

The percentage of deals you close compared to total deals pursued.

Real talk:

How often you actually land the sale. 20-30% is typical. If you're closing everything, you're not charging enough. If you're closing nothing, well...

Activity

Any action taken related to a contact or deal—calls, emails, meetings, notes.

Real talk:

The paper trail that proves you actually did something. Log your activities or your future self will have no idea what happened with that client six months ago.

Integration

Connecting your CRM to other software so data flows between them.

Real talk:

Making your tools talk to each other so you're not copy-pasting shit between 47 browser tabs. Half the integrations don't work properly. Welcome to software.

Data Hygiene

Keeping your CRM data clean, accurate, and up-to-date.

Real talk:

Cleaning up the mess in your database. Duplicate contacts, outdated info, leads from 2019 you never deleted. Nobody does this until it becomes a crisis.

Missing a term? Got a better definition? We're always adding to this.