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Glossary

B2B Marketing Terms, Defined Simply.

Cut through the jargon. These are the terms that matter for revenue-focused B2B marketing — defined in plain language.

MQL — Marketing Qualified Lead

A lead that marketing has determined is ready to pass to sales based on defined behavioral and demographic criteria. The MQL definition is the most important shared agreement between marketing and sales.

SQL — Sales Qualified Lead

A lead that sales has reviewed and accepted as meeting their criteria for a real sales opportunity. The gap between MQL and SQL acceptance rate is where most B2B revenue leaks.

CAC — Customer Acquisition Cost

Total marketing and sales spend divided by new customers acquired in a period. The single most important efficiency metric for any B2B growth program.

LTV — Customer Lifetime Value

The total revenue a customer generates over their entire relationship with your company. The LTV:CAC ratio tells you whether your growth model is sustainable.

ROAS — Return on Ad Spend

Revenue generated divided by advertising spend. A 6:1 ROAS means $6 in revenue for every $1 in ad spend. For B2B, ROAS should be measured on pipeline influenced, not just direct response.

ICP — Ideal Customer Profile

A detailed description of the company that gets the most value from your product or service and is most likely to buy, stay, and grow. Your ICP drives every targeting decision you make.

Demand Generation

The full-funnel practice of creating awareness, nurturing interest, and converting prospects into qualified pipeline. Demand gen is a system — not a campaign or a channel.

ABM — Account-Based Marketing

A B2B strategy where marketing and sales coordinate to target specific high-value accounts with personalized campaigns — rather than casting a wide net and filtering.

Lead Velocity Rate (LVR)

The month-over-month growth rate of qualified leads. LVR is a leading indicator of future revenue — often the most predictive metric for long sales-cycle B2B businesses.

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