CRM Glossary

This glossary, of both computer terms and sales & marketing concepts, will help you sort through the sometimes complex issues when shopping for CRM software. Note: If you have a question NOT answered by this glossary, just send me an e-mail. Everything on this list was asked by some reader at some time!

A

ActiveX A set of technologies that enables software components to interact with one another in a networked environment, regardless of the language in which the components were created. ActiveX is built on Microsoft's Component Object Model (COM). Currently, ActiveX is used primarily to develop interactive content for the World Wide Web, although it can be used in desktop applications and other programs. ActiveX controls can be embedded in Web pages to produce animation and other multimedia effects, interactive objects, and sophisticated applications
 
AMPS Acronym for Advanced Mobile Phone Service. One of the original cellular phone services, relying on frequency-division multiplexing.
 
ATM Acronym for Asynchronous Transfer Mode. A network technology capable of transmitting data, voice, video, and frame relay traffic in real time.

B

Back-end software In a client/server application, the part of the program that runs on the server.
 
Back Office Solution An application designed to assist corporations with the management of their "back office" tasks, such as financial accounting, human resources and manufacturing.
 
Bandwidth The data transfer capacity of a digital communications system.
 
Barcode The special identification code printed as a set of vertical bars of differing widths on products such as books. Used for rapid, error-free input, the coding can include numbers, letters, or a combination of the two.

C

Call center The location or facility housing a telemarketing operation.
 
Callback A user authentication scheme used by computers running dial-in services. A user dials in to a computer and types a logon ID and password. The computer breaks the connection and automatically calls the user back at a preauthorized number.
 
CDMA Acronym for Code Division Multiple Access, a form of multiplexing in which the transmitter encodes the signal, using a pseudo-random sequence that the receiver also knows and can use to decode the received signal. Each different random sequence corresponds to a different communication channel.
 
Client/server An arrangement used on local area networks that makes use of distributed intelligence to treat both the server and the individual workstations as intelligent, programmable devices, thus exploiting the full computing power of each. This is done by splitting the processing of an application between two distinct components: a "front-end" client and a "back-end" server. The client and server machines work together to accomplish the processing of the application. The client portion of the application is typically optimized for user interaction, whereas the server portion provides the centralized, multi-user functionality.
 
Configuration Tools A software tool that helps sales people sales people configure complex product offerings, assuring all part number dependencies are met.
 
CPG Acronym for Consumer Packaged Goods, a vertical market solution offered by several SFA software developers.
 
CRM Acronym for Customer Relationship Management. Generally refers to a program that provides integrated functionality for marketing, sales, customer support and call center requirements

D

Database A file composed of records, each containing fields together with a set of operations for searching, sorting, recombining, and other functions.
 
Database Marketing The process of building, maintaining and using customer databases for the purpose of contacting and transacting business.
 
Data Warehouse A database, frequently very large, that can access all of a company's information. While the warehouse can be distributed over several computers and may contain several databases and information from numerous sources in a variety of formats, it should be accessible through a server. Thus, access to the warehouse is transparent to the user, who can use simple commands to retrieve and analyze all the information. The data warehouse also contains data about how the warehouse is organized, where the information can be found, and any connections between data. Frequently used for decision support within an organization, the data warehouse also allows the organization to organize its data, coordinate updates, and see relationships between information gathered from different parts of the organization.
 
Direct Marketing An interactive marketing system that uses one or more advertising media to effect a measurable response or transaction at any location.

E

EDI Acronym for electronic data interchange. A set of standards for controlling the transfer of business documents, such as purchase orders and invoices, between computers.
 
Electronic Commerce Commercial activity that takes place by means of connected computers. Electronic commerce can occur between a user and a vendor through an online information service or the Internet.
 
Encryption The process of encoding data to prevent unauthorized access.
 
ERP Acronym for Enterprise Resource Planning, a suite of software tools designed to assist corporations with all facets of operational planning.
 
Extranet An extension of a corporate Intranet using World Wide Web technology to facilitate communication with the corporation's suppliers and customers. An extranet allows customers and suppliers to gain limited access to a company's Intranet in order to enhance the speed and efficiency of their business relationship. See also Intranet.

F

Firewall A security system intended to protect an organization's network against external threats, such as hackers, coming from another network, such as the Internet. A firewall prevents computers in the organization's network from communicating directly with computers external to the network and vice versa. Instead, all communication is routed through a proxy server outside of the organization's network, and the proxy server decides whether it is safe to let a particular message or file pass through to the organization's network.
 
Front Office Solution An application designed to assist corporations with the management of their "fron office" tasks, such as sales, marketing and customer support.

G

Geocode The process of adding geographic coordinates to a database file so that data records may be displayed on a map.
 
GPS Acronym for global positioning system, which allows you to calculate a precise position (latitude and longitude) for any location on the Earth's surface.  Originally developed for military purposes, the satellite-based system now helps lost sales people find their way.
 
GroupWare Software intended to enable a group of users on a network to collaborate on a particular project.

H

Handheld Computer A computer small enough to be held in one hand while being operated by the other hand.
 
Help desk A software application for tracking problems with hardware and software and their solutions, usually serving "internal" customers.
 
HPC: handheld PC , see above
 
HTML Acronym for Hypertext Markup Language. The markup language used for documents on the World Wide Web.

I

Intelligent agent software A program that performs a background task for a user and reports to the user when the task is done or some expected event has taken place.
 
Internet The worldwide collection of networks and gateways that use the TCP/IP suite of protocols to communicate with one another.
 
Intranet A network designed for information processing within a company.
 
ISDN Acronym for Integrated Services Digital Network. A worldwide digital communications network evolving from existing telephone services. ISDN is built on two main types of communications channels: a B channel, which carries data at a rate of 64 KBPS (kilobits per second), and a D channel, which carries control information at either 16 or 64 KBPS.
 
ISP Acronym for Internet service provider. A business that supplies Internet connectivity services to individuals, businesses, and other organizations.

J

Java An object-oriented programming language, developed by Sun Microsystems. Similar to C++, Java is smaller, more portable, and easier to use than C++ because it is more robust and it manages memory on its own. Java was also designed to be secure and platform-neutral (meaning that it can be run on any platform) through the fact that Java programs are compiled into bytecodes, which are similar to machine code and are not specific to any platform.

L

LAN Acronym for local area network. A group of computers and other devices dispersed over a relatively limited area and connected by a communications link that enables any device to interact with any other on the network.
 
Lithium Ion Battery An energy storage device based on the conversion of chemical to electrical energy in "dry" chemical cells. The laptop industry is quickly adopting lithium ion batteries because of their increased storage capacity over both nickel cadmium and nickel metal hydride batteries.

M

Marketing Automation An emerging category of software tools that focus on applying software technology to aid in marketing.  Specific tasks tackled by some of these programs include: Lead Management, Campaign Management, Data Mining, Intelligent Marketing Assistance.
 
Marketing Encyclopedia An application that stores, in a conveniently accessible format, any piece of information a sales person might need to help their customers make a purchase decision.
 
Middleware Software that sits between two or more types of software and translates information between them. Middleware can simplify integration of SFA and ERP systems.
 
MPEG Acronym for Moving Pictures Experts Group. A set of standards for audio and video compression established by the Joint ISO/IEC Technical Committee on Information Technology. The MPEG standard has different types that have been designed to work in different situations.
 
Multimedia The combination of sound, graphics, animation, and video.
 
Multitasking A mode of operation offered by an operating system in which a computer works on more than one task at a time.

N

Netcasting To send data or a program from a server to a client at the instigation of the server.

O

Offline In reference to one or more computers, being disconnected from a network.
 
OLAP Database Short for online analytical processing database. A relational database system capable of handling queries more complex than those handled by standard relational databases, through multidimensional access to data (viewing the data by several different criteria), intensive calculation capability, and specialized indexing techniques.
 
OLE Acronym for object linking and embedding. A technology for transferring and sharing information among applications. When an object is embedded in a compound document, the document contains a copy of the object; any changes made to the contents of the original object will not be seen in the compound document unless the embedded object is updated.
 
OMS Acronym for opportunity management system, a software tool to help manage sales opportunities as they flow through your structured selling methodology.  Most often associated with big-ticket, long sales cycle sales processes.
 
Online In reference to one or more computers, connected to a network.

P

Palmtop A portable personal computer whose size enables it to be held in one hand while it is operated with the other hand.
 
PC Card (PCMCIA card) A trademark of the Personal Computer Memory Card International Association (PCMCIA) that is used to describe add-in cards that conform to the PCMCIA specification. A PC Card is a removable device, approximately the same size as a credit card, which is designed to plug into a PCMCIA slot.
 
PDA Acronym for Personal Digital Assistant. A lightweight palmtop computer designed to provide specific functions like personal organization (calendar, note taking, database, calculator, and so on) as well as communications.
 
PIM Acronym for personal information manager. An application that usually includes an address book and organizes unrelated information, such as notes, appointments, and names, in a useful way.
 
POTS Acronym for Plain Old Telephone Service. Basic dial telephone connections to the public switched network, without any added features or functions. A POTS line is nothing but a phone line connected to a simple desktop telephone.
 
Proposal A sales document designed to help a customer make a purchase decision by providing all relevant information, such as a price quotation and terms & conditions.  The sales proposal artfully summarizes your sales message and guides your prospect to a final decision.

Q

Quotation A sales document designed to provide detailed pricing information on an itemized list of products.

R

Relationship Marketing The ongoing process of identifying and creating new value with individual customers over the lifetime of the relationship.
 
Replication In a distributed database management system, the process of copying an object (file, data, doc.  Etc.) to the other parts of the network. Not to be confused with database synchronization.
 
Report Generator An application, commonly part of a database management program, that uses a report "form" created by the user to lay out and print the contents of a database. A report generator is used to select specific record fields or ranges of records, to make the output attractive, and to specify such features as headings, running heads, page numbers, and fonts.
 
Reengineering With regard to corporate management, using information technology principles to address the challenges posed by a global economy and to consolidate management of a rapidly expanding work force.
 
ROI Acronym for return on investment, a method to assist management decision making by evaluating the return on various investment alternatives.

S

Sales Forecasting A measure of the sales volume, both revenue dollars and product unit sales projections, a sales team expects to realize during a designated future time period.
 
Sales Metrics A process to rigorously measure and critically analyze the flow of customers through your structured selling methodology.
 
Sales Impact The ability of a CRM program to automatically take proactive steps, throughout the sales cycle, to help sales people take better care of their customers.
 
Sales Cycle A sequence of steps, from the customer's perspective, that a typical customer follows on their way to a purchase decision.
Seats Industry jargon for the total number of users for your CRM project.
 
SFA Acronym for Sales Force Automation that generally refers to all software solutions that might help sales people take better care of their customers.
 
SOHO Acronym for Small Office/Home Office, referring here to very small sales workgroups.
 
Structured Selling Methodology A sequence of steps, from the sellers perspective, sales people should follow to help their customers reach a purchase decision in a timely manner.  Ideally, these steps should complement the customer's own sales cycle.
 
Synchronization, database Managing changes in multiple database files to assure that changes made in one file are distributed to all files in a structured manner.   The synchronization process must also detect and resolve collisions, multiple changes to the same data field, in a structured manner.

T

T1 A high-bandwidth telephone line that can handle 1.544 MBPS or 24 voice channels.  T1 lines are commonly used by larger organizations for Internet connectivity.
 
TDM Acronym for time-division multiplexing, a form of multiplexing in which transmission time is broken into segments, each of which carries one element of one signal.
 
Telecommuting To work in one location (often at home) and communicate with a main office at a different location through a personal computer equipped with a modem and communications software.
 
Telesales Selling over the telephone, primarily outbound in a business-to-business environment.
 
Telemarketing Selling over the telephone using a scripted sales message, primarily to consumers, both inbound and outbound.
 
Territory Management A methodology for placing sales people in the field to call on customers and prospects that optimizes market coverage while balancing workloads.
 
TES Acronym for Technology Enabled Selling, a concept promoted by east coast, gas bag consulting firms.
 
Throughput A measure of the data transfer rate through a typically complex communications system or of the data-processing rate in a computer system.

U

Uplink The transmission link from an earth station to a communications satellite.
 
Upload In communications, the process of transferring a copy of a file from a local computer to a remote computer by means of a modem or network.

W

WAN Acronym for wide area network, a communications network that connects geographically separated systems.
 
Web Browser A client application that enables a user to view HTML documents on the World Wide Web, another network, or the user's computer; follow the hyperlinks among them; and transfer files.
 
Web server Server software that uses HTTP to serve up HTML documents and any associated files and scripts when requested by a client, such as a Web browser. Web servers are used on Web and Intranet sites.
 
Workflow A set of programs that aids in the tracking and management of all the activities in a project from start to finish.
 
Workgroup A group of users working on a common project and sharing computer files, often over a local area network.
 
World Wide Web The total set of interlinked hypertext documents residing on HTTP servers all around the world. Documents on the World Wide Web, called pages or Web pages, are written in HTML (Hypertext Markup Language), identified by URLs (Uniform Resource Locators) that specify the particular machine and pathname by which a file can be accessed, and transmitted from node to node to the end user under HTTP (Hypertext Transfer Protocol). Codes, called tags, embedded in an HTML document associate particular words and images in the document with URLs so that a user can access another file, which may be halfway around the world, at the press of a key or the click of a mouse. These files may contain text (in a variety of fonts and styles), graphics images, movie files, and sounds as well as Java applets, ActiveX controls, or other small embedded software programs that execute when the user activates them by clicking on a link. The World Wide Web was developed by Timothy Berners-Lee in 1989 for the European Laboratory for Particle Physics (CERN). Acronym: WWW.