T2D3 Glossary
From product-led growth to the rule of 40, this glossary is your guide to B2B marketing, sales, and business terms.
A
ABM (Account-Based Marketing)
A B2B marketing strategy that concentrates sales and marketing resources on a clearly defined set of target accounts within a market and employs personalized campaigns designed to resonate with each account. Source: Terminus ABM Guide
ACV (Annual Contract Value)
The average annual contract value of customer accounts, usually reflecting bookings (sales) per customer in the first year. Can sometimes include one-time revenue in addition to subscription revenues. Source: SaaS Capital Metrics (saas-capital.com/blog-posts/what-is-acv/)
Advocates
Customers who actively promote your product/service to others. Part of the P1-P2-P3 persona model. Source: T2D3 Methodology - specific to this framework.
Angel Investors
Individual investors who provide capital for a business start-up, usually in exchange for convertible debt or ownership equity. Source: Angel Capital Association (angelcapitalassociation.org)
Ansoff Matrix
A strategic planning tool that provides a framework to help executives devise strategies for future growth through market penetration, market development, product development, or diversification. Source: Harvard Business Review (hbr.org/2020/12/use-the-ansoff-matrix-to-identify-growth-opportunities)
ARPU (Average Revenue Per Unit)
The average revenue generated per user, customer, account, or device. A key metric for measuring revenue growth in SaaS businesses. Source: Investopedia ARPU (investopedia.com/terms/a/arpu.asp)
ARR (Annual Recurring Revenue)
The value of recurring revenue normalized to a one-year period. A key metric for SaaS companies. Source: OpenView SaaS Metrics (openviewpartners.com/blog/annual-recurring-revenue-arr/)
ARR / Employee
Measures revenue efficiency per headcount. Highlights lean, high-output teams in an era of AI-driven productivity.
ASP (Average Sales Price)
The average price at which a product or service is sold. Source:T2D3 book definition
B
B2B (Business to Business)
Commerce transactions between businesses, such as between a manufacturer and wholesaler, or between a wholesaler and retailer.
Gartner B2B Definition (gartner.com/en/sales/glossary/b2b-sales)
B2C (Business to Consumer)
Commerce transactions between a business and individual consumers. Source: T2D3 book definition
BANT (Budget Authority, Need, Timeline)
A sales qualification methodology checking for Budget, Authority, Need, and Timeline. Source: IBM's Original BANT Framework (ibm.com/topics/bant)
BDR (Business Development Representative)
Sales team members who qualify leads and set appointments for sales executives. Also known as SDRs (Sales Development Representatives). Source: Salesforce Sales Roles (salesforce.com/resources/articles/sales-development-representative/)
Beachhead
A specific market segment where a company can establish a strong position and use as a base for further expansion. Source: T2D3 book definition
Blue Ocean Strategy
A marketing theory about creating uncontested market space rather than competing in existing markets. Source: Blue Ocean Strategy Official Site (blueoceanstrategy.com)
Bounce Rate
The percentage of visitors who leave a website after viewing only one page. Source: T2D3 book definition
Brand Voice
The consistent personality and tone used in all company communications. Source: T2D3 book definition
Burn Multiple
Ratio of net burn to net new ARR. More actionable than Rule of 40, focusing on capital efficiency.
C
CAC (Customer Acquisition Cost)
The cost associated with acquiring a new customer, including marketing and sales expenses. Source: HubSpot CAC Calculator (blog.hubspot.com/service/what-does-it-cost-to-acquire-a-customer)
CAC Payback Period
How fast customer acquisition costs are recovered. 12 months is the new benchmark of healthy capital efficiency.
CAGR (Compound Annual Growth Rate)
The rate of return required for an investment to grow from its beginning balance to its ending balance over a period of time. Source: Investopedia CAGR (investopedia.com/terms/c/cagr.asp)
Call to Action (CTA)
A marketing term for any design element that prompts an immediate response or encourages an immediate sale. Source: T2D3 book definition
Carrying Capacity
In the context of market growth, the maximum market share or number of customers a market can sustain. Source: T2D3 book definition
CDP (Customer Data Platform)
Software that creates a unified customer database accessible to other systems. Source:T2D3 book definition
Channel Marketing
Marketing efforts through third-party partners or resellers rather than direct to customers. Source: T2D3 book definition
Churn
The rate at which customers stop doing business with a company, typically measured monthly or annually. Source: Recurly Churn Guide (recurly.com/research/churn-rate-benchmarks/)
CLV/CLTV/LTV (Customer Lifetime Value)
A prediction of the net profit attributed to the entire future relationship with a customer. Source: Harvard Business Review CLV (hbr.org/2014/07/the-value-of-keeping-the-right-customers)
CMO (Chief Marketing Officer)
The executive responsible for marketing activities in an organization. Source: Forrester CMO Resources (forrester.com/cmo)
CMS (Content Management System)
Software used to manage the creation and modification of digital content. Source: T2D3 book definition
Composable Business
An organization built from interchangeable building blocks that can be quickly reconfigured. Source:T2D3 book definition
Conversion Rate
The percentage of users who take a desired action (e.g., signing up, form fills) divided by number of sessions. Source: T2D3 book definition
Cost to Service (CTS)
The ongoing cost of servicing customers, including support, infrastructure, and success teams. Source: T2D3 book definition
CRM (Customer Relationship Management)
Technology for managing all company relationships and interactions with customers and potential customers. Source: Salesforce CRM Guide (salesforce.com/crm/what-is-crm/)
Crossing the Chasm
Geoffrey Moore's concept about the gap between early adopters and the early majority in technology adoption. Source: Geoffrey Moore Official (geoffreyamoore.com)
CRO (Chief Revenue Officer)
Executive responsible for all revenue-generating processes in an organization. Source: T2D3 book definition
CTR (Click-Through Rate)
The ratio of users who click on a specific link to the number of total users who view the page. Source: T2D3 book definition
Customer Journey
The complete experience customers go through when interacting with a company and brand. Source: McKinsey Customer Journey (mckinsey.com/capabilities/growth-marketing-and-sales/our-insights/the-consumer-decision-journey)
Customer Success
The function responsible for helping customers achieve their desired outcomes while using a product or service. Source: T2D3 book definition
D
Demand Generation
The focus of targeted marketing programs to drive awareness and interest in a company's products and/or services. Source: Marketo Demand Gen Guide (business.adobe.com/blog/basics/demand-generation)
Demographics
Statistical data relating to the population and particular groups within it. Source: T2D3 book definition
Discretionary CAC
Customer acquisition cost excluding people/staff costs, focusing on variable marketing spend. Source: T2D3 book definition
Domain Authority
A search engine ranking score that estimates how likely a website is to rank on search engine result pages. Source:T2D3 book definition
E
Early Adopters
The second group to adopt an innovation, following innovators in the technology adoption lifecycle. Source: T2D3 book definition
Early Majority
The third group in the technology adoption lifecycle, representing pragmatists who adopt after proven success.
T2D3 book definition
EBITDA
Earnings Before Interest, Taxes, Depreciation, and Amortization - A measure of a company's overall financial performance. Source: T2D3 book definition
Engaged Advocates
Customers who use a product, like using it, and tell others about it. Source: T2D3 book definition
Engagement
The level of interaction and involvement customers have with a brand or product. Source: T2D3 book definition
ERP (Enterprise Resource Planning)
Business process management software that integrates various functions. Source: T2D3 book definition
F
Feature Matrix
A tool for organizing product features by differentiation and relevance to optimize pricing and positioning. Source:T2D3 book definition
Firmographics
Descriptive attributes of firms used to segment organizations for marketing. Source: T2D3 book definition
Flywheel
A business model where customer success drives referrals and growth, creating momentum. Source: T2D3 book definition
Freemium
A pricing strategy where basic features are free, but premium features require payment. Source: Harvard Business Review Freemium (hbr.org/2014/05/making-freemium-work)
Funnel
The stages prospects go through from awareness to purchase (and beyond for SaaS). Source: T2D3 book definition
G
Go-to-Market (GTM)
The plan for delivering a product or service to customers. Source: Sequoia Capital GTM Guide (sequoiacap.com/article/go-to-market-tactics/)
Gross Margin
The difference between revenue and cost of goods sold, divided by revenue. Source: T2D3 book definition
Growth Hacking
Rapid experimentation across marketing channels and product development to identify efficient growth methods. Source: T2D3 book definition
I
ICP (Ideal Customer Profile)
A detailed description of the perfect customer for a company's solution. Source: HubSpot ICP Guide (blog.hubspot.com/marketing/ideal-customer-profile)
Inbound Marketing
Marketing methodology that attracts customers through relevant and helpful content. Source: HubSpot Inbound Methodology (hubspot.com/inbound-marketing)
Innovators
The first group to adopt new technology, typically tech enthusiasts and visionaries. Source: T2D3 book definition
IPO (Initial Public Offering)
The process of offering shares of a private corporation to the public. Source: NYSE IPO Guide (nyse.com/ipo-guide)
IRR (Internal Rate of Return)
A metric used to estimate the profitability of potential investments. Source: T2D3 book definition
J
Job to be Done (JTBD)
A framework that identifies the goals or "jobs" customers aim to accomplish when using a product or service. Source: Clayton Christensen Institute (christenseninstitute.org/jobs-to-be-done/)
K
Kalungi ABM 5 Cs
A methodology for account-based marketing: Companies, Contacts, Content, Channels, Cultivate. Source: T2D3/Kalungi proprietary methodology
KPI (Key Performance Indicator)
A measurable value demonstrating how effectively a company achieves objectives. Source: KPI.org
L
Laggards
The last group to adopt an innovation in the technology adoption lifecycle. Source: T2D3 book definition
Landing Page
A standalone web page created for a marketing or advertising campaign. Source: T2D3 book definition
Late Majority
The fourth group in technology adoption, representing conservatives who adopt after the average member of society. Source: T2D3 book definition
Lead
A person or company that has shown interest in a product or service. Source:T2D3 book definition
Lead Magnet
An incentive offered to potential buyers in exchange for their contact information. Source:T2D3 book definition
Lead Nurturing
The process of developing relationships with buyers at every stage of the sales funnel. Source: T2D3 book definition
Lead Scoring
A methodology for ranking leads to determine their sales-readiness. Source: Marketo Lead Scoring (business.adobe.com/blog/basics/lead-scoring)
Lead Status
The current state of engagement with a lead (e.g., contacted, qualified, nurturing). Source: T2D3 book definition
Lead Velocity Rate (LVR)
The growth rate of qualified leads month over month. Source: T2D3 book definition
Lifecycle Stage
Where a contact sits in the customer journey (visitor, lead, MQL, SQL, customer). Source: T2D3 book definition
Logo Churn
The loss of customer accounts/companies (as opposed to revenue churn). Source:T2D3 book definition
Logistic Growth Model
A growth model showing initial exponential growth that slows as it approaches market saturation. Source: T2D3 book definition
LTV (Lifetime Value) See CLV.
Bessemer Venture Partners LTV (bvp.com/atlas/ltv-to-cac-ratio-saas)
M
M&A (Mergers and Acquisitions)
Consolidation of companies or assets through various financial transactions. Source: T2D3 book definition
Market-Based Pricing
Setting prices based on competitor prices and market conditions. Source:T2D3 book definition
Market Development
Growth strategy of selling existing products to new markets. Source:T2D3 book definition
Market Penetration
Growth strategy of selling more existing products to existing markets. Source: T2D3 book definition
Market Segmentation
Dividing a market into distinct groups with different needs or behaviors. Source: Philip Kotler Marketing Management (kotlermarketing.com)
Marketing Automation
Software platforms designed to help marketing departments automate repetitive tasks. Source: T2D3 book definition
Marketing Qualified Lead (MQL)
A lead judged more likely to become a customer based on marketing analytics. Source: SiriusDecisions (forrester.com/report/SiriusDecisions-Demand-Waterfall/RES155091)
MAU (Monthly Active Users)
The number of unique users who engage with a product in a month. Source: T2D3 book definition
Messaging Framework
A structured approach to communicating value propositions to different audiences. Source: T2D3 book definition
Minimum Viable Product (MVP)
A product with just enough features to be usable by early customers. Source: Eric Ries Lean Startup (theleanstartup.com/principles)
MOM (Month over Month)
Comparing metrics from one month to the previous month. Source: T2D3 book definition
MRR (Monthly Recurring Revenue)
Predictable revenue that a company can expect every month. Source: ChartMogul MRR Guide (chartmogul.com/resources/mrr/)
N
Net Dollar Retention (NDR)
Net Dollar Retention measures the percentage of revenue retained from existing customers relative to the start of a period. Formula: Expansion MRR - Churn MRR - Downgrade MRR / Starting MRR.
Net Promoter Score (NPS)
A metric measuring customer loyalty and likelihood to recommend. Source: Bain & Company NPS (bain.com/consulting-services/customer-strategy-and-marketing/customer-loyalty/)
O
OEM (Original Equipment Manufacturer)
A company that produces parts or equipment marketed by another manufacturer. Source: T2D3 book definition
OKR (Objectives and Key Results)
A goal-setting framework using objectives and measurable key results. Source: What Matters - John Doerr (whatmatters.com)
Outbound Marketing
Traditional marketing where a company initiates conversation with prospects. Source: T2D3 book definition
P
P1, P2, P3 Personas
A B2B persona model: P1 (User), P2 (Decision Maker), P3 (Executive/Sponsor). Source: T2D3 Methodology - proprietary framework
Pain-Claim-Gain
A messaging framework addressing customer pain points, company claims, and customer gains. Source: T2D3/Kalungi methodology
Pareto Chart
A graph showing the frequency of occurrences and their cumulative impact. Source: T2D3 book definition
Pareto Principle
The 80/20 rule suggesting 80% of effects come from 20% of causes. Source: Investopedia (investopedia.com/terms/p/paretoprinciple.asp)
Payback Period
Time required to recover the cost of an investment (e.g., CAC payback). Source: T2D3 book definition
Persona
A semi-fictional representation of an ideal customer based on research and data. Source: T2D3 book definition
PLG (Product-Led Growth)
A go-to-market strategy relying on product features to drive acquisition and expansion. Source: OpenView PLG Guide (openviewpartners.com/product-led-growth/)
PMF (Product-Market Fit)
The degree to which a product satisfies strong market demand. Source: Marc Andreessen on PMF (a16z.com/2017/02/18/12-things-about-product-market-fit/)
Positioning
How a brand is differentiated in the mind of the customer. Source: T2D3 book definition
PPC/PPL (Pay Per Click/Pay Per Lead)
Advertising models where advertisers pay per click or lead. Source: T2D3 book definition
Product Development
Growth strategy of creating new products for existing markets. Source: T2D3 book definition
Psychographics
Classification of people according to psychological criteria (attitudes, interests, values). Source: T2D3 book definition
Q
QOQ (Quarter over Quarter)
Comparing metrics from one quarter to the previous quarter. Source: T2D3 book definition
Quick Ratio (QR)
For SaaS: (New MRR + Expansion MRR) / (Churned MRR + Contraction MRR). Source: T2D3 book definition
R
Referral Program
A system incentivizing existing customers to recommend new customers. Source: T2D3 book definition
Retargeting
Online advertising targeting users who have previously visited your website. Source: T2D3 book definition
Revenue Churn
The amount of revenue lost from existing customers in a period. Source: T2D3 book definition
Revenue Acquisition Cost (RAC)
An evolution of CAC, factoring in expansion and upsell costs, not just new sales.
ROI (Return on Investment)
A performance measure evaluating the efficiency of an investment. Source: T2D3 book definition
ROMI (Return on Marketing Investment)
The revenue generated for every dollar spent on marketing. Source: T2D3 book definition
Rule of 40
Growth rate + profit margin should equal at least 40% for healthy SaaS companies. Source: SaaS Capital Rule of 40 (saas-capital.com/blog-posts/rule-of-40/)
Rule of X
Alternative to the Rule of 40 metric. The multiplier weighs growth more than profit margin particularly for later-stage companies.
S
SaaS (Software as a Service)
Software licensed on a subscription basis and centrally hosted. Source: Gartner SaaS Definition (gartner.com/en/information-technology/glossary/software-as-a-service-saas)
Sales Qualified Lead (SQL)
An MQL that sales has accepted and confirmed as worth pursuing. Source: HubSpot SQL Definition (blog.hubspot.com/marketing/sql-sales-qualified-lead)
SAM (Serviceable Addressable Market)
The portion of TAM targeted by your products/services. Source: Sequoia Capital Market Sizing (sequoiacap.com/article/market-sizing/)
SDR (Sales Development Representative)
See BDR. Source: Salesforce Sales Roles (salesforce.com/resources/articles/sales-development-representative/)
SEM (Search Engine Marketing)
Promoting websites by increasing visibility in search results through paid advertising. Source: T2D3 book definition
SEO (Search Engine Optimization)
The practice of optimizing websites so they are discoverable by search engines organically. Source: Google SEO Guide (developers.google.com/search/docs/beginner/seo-starter-guide)
Series A, B, C
Rounds of venture capital funding, typically increasing in size. Source: T2D3 book definition
Situational Leadership
Adapting leadership style based on team member competence and confidence. Source: T2D3 book definition
SKU (Stock Keeping Unit)
A distinct type of item for sale. Source: T2D3 book definition
SLA (Service Level Agreement)
A commitment between a service provider and client. Source: T2D3 book definition
SMB (Small and Medium Business)
Companies that fall below certain thresholds of employees or revenue. Source: T2D3 book definition
SOM (Serviceable Obtainable Market)
The portion of SAM that can realistically be captured. Source: T2D3 book definition
SQL (Structured Query Language)
Programming language for managing relational databases. Source: T2D3 book definition
Subscriber
A contact who has opted in to receive communications. Source: T2D3 book definition
Suspect
A potential prospect who matches ICP criteria but hasn't engaged yet. Source: T2D3 book definition
T
T-Shaped Marketer
A marketer with broad knowledge across disciplines and deep expertise in specific areas. Source: Buffer on T-Shaped Marketers (buffer.com/resources/t-shaped-marketer/)
T2D3
Triple revenue for 2 years, then double for 3 years. A growth formula for SaaS companies. Source: Battery Ventures - Neeraj Agrawal (battery.com)
TAM (Total Addressable Market)
The total market demand for a product or service. Source: Y Combinator TAM Guide (ycombinator.com/library/5H-how-to-calculate-your-tam)
Technographics
Technology-based segmentation analyzing what technologies companies use. Source: T2D3 book definition
Try-Buy
A model where customers can try the full product before purchasing. Source: T2D3 book definition
U
Unique Value Proposition (UVP)
A clear statement of the tangible benefits customers get. Source: T2D3 book definition
Unicorn
A privately held startup company valued at over $1 billion. Source: CB Insights Unicorn Tracker (cbinsights.com/research-unicorn-companies)
Unique Visitors
Individual people visiting a website, counted only once in a period. Source: T2D3 book definition
Upsell
Encouraging customers to purchase a more expensive version or add features. Source: T2D3 book definition
User Adoption
The process by which users begin using a product regularly. Source: T2D3 book definition
V
Value-Based Pricing
Setting prices based on perceived customer value rather than costs. Source: Harvard Business Review Value Pricing (hbr.org/2016/08/a-quick-guide-to-value-based-pricing)
VAR (Value Added Reseller)
A company that adds features or services to an existing product. Source: T2D3 book definition
VC (Venture Capital)
Financing provided to startups and small businesses with growth potential. Source: National Venture Capital Association (nvca.org)
Viral Growth
Growth driven by users sharing or inviting other users. Source: T2D3 book definition
W
WOM (Word of Mouth)
Unpaid promotion where satisfied customers tell others. Source: Word of Mouth Marketing Association (womma.org)
Wow-How-Now
A content framework: Wow (grab attention), How (show expertise), Now (drive action). Source: T2D3/Kalungi proprietary framework
WOW (Week over Week)
Comparing metrics from one week to the previous week. Source: T2D3 book definition
Y
YOY (Year over Year)
Comparing metrics from one year to the previous year. Source: T2D3 book definition.