Here are some of the start-up ecosystem jargon acronyms which you will come across more often than not as someone associated with the entrepreneurship culture.
Customer Relationship Management is all about building, nurturing maintaining and enhancing your company's relationships and interactions with customers and prospects. Its scope may range from nurturing the leads obtained in the sales processes to interacting through various channels with an existing, established customer. There are a set of tools, systems or solutions provided by various vendors like Salesforce, Oracle, SAP, Pega, etc.
Account Based Marketing focuses on employing a personalised approach for highly relevant and valued customers. Quality is given preference over quantity. Research shows ABM generates greater return on investment and a preferred strategy among sales and marketing executives.
Customer Life-time Value is the amount of revenue (or profit) that you expect to generate from a customer during the period over which you provide your services to the customer.
Relationship Intelligence is the understanding of a complete picture of your company's network including your customers, vendors, partners, investors, etc and any other aspects or associates involved in your brand.
Customer Acquisition Cost is a core metric for any business. It is the ratio of the total expenditure on sales/marketing to the number of customers actually acquired. Business plans should involve minimising CAC and/or maximising the difference between the revenue generated per customer and CAC.
Word of Mouth Marketing involves leveraging existing customers and other associations to spread positive sentiments and testimonials about your brand, product, or service. WOMM is the highest-yielding form of marketing. Consumers enjoy discussing their experiences with a brand as well as listening to others' experiences. It has a substantially low execution cost and goes a long way in establishing your company's brand-image overall, in the market.
First Mover Advantage is that, what you gain for a novel idea, solution or being first to introduce it into the market. It is something that needs to be evaluated carefully before declaring to an investor.
Intellectual Property can be a patent or a secret algorithm, formula, execution, etc. Not every start-up has IP, but if your business depends on it, you better protect it!
Business to Business. Your company sells products, services, etc to other companies.
Business to Consumer. Your company sells products, services, etc to the masses.
Minimum Viable Product is The bare-bones version of a product required to achieve proof of concept. It is paramount to convincing yourself and a potential customer or an investor about the products, services or solutions that you are offering. It the first quantifiable step to realise an idea.
Return On Investment. What the investor can expect to get for what they put in. It can also be used to describe the results of a particular marketing campaign’s success.
Venture Capital or Venture Capitalist. They have the cash to lend a business owner in exchange for profit sharing, equity, etc and hence are one of your potential investors.