RevOps Jargon Decoded: What the Buzzwords Really Mean

Cut through the noise. What do the most common RevOps Buzzwords really mean? 

The world of Revenue Operations (RevOps) is full of acronyms and phrases that can look a bit like alphabet soup: ICP, MQL, GTM, SQL, TAM, TOFU, LTV, CAC, ARR… 

You’ve likely nodded through meetings pretending to understand them all. Maybe you understand some of them on a surface level, but you don’t quite know how they impact or affect your business.   

It’s time to cut through the noise and break down the most common RevOps buzzwords in plain English and discuss why they matter for your business.  

ICP = Ideal Customer Profile 

Your ICP defines the type of company that’s the best fit for what you sell. It’s based on firmographics (industry, size, revenue), technographics (tools they use), geography, and other traits. 

Example: "Our ICP is a 50–500 employee B2B SaaS company in North America that uses Salesforce." 

Why they matter: ICPs guide who you target in outbound, inbound, product, and success strategies. 

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MQL = Marketing Qualified Lead 

An MQL is a lead who’s shown enough engagement (downloads, clicks, visits) to be considered ready for outreach. This level of engagement is measured based on your own lead-scoring model.  

Why they matter: MQLs signal the handoff from marketing to sales, and they help measure campaign effectiveness. 

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SQL = Sales Qualified Lead 

An SQL is a lead that has been vetted by the sales team (typically an SDR or AE) and meets key qualification criteria. 

Why they matter: SQLs indicate actual pipeline potential and are crucial for forecasting. 

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GTM = Go-To-Market 

Your Go-To-Market strategy is how you bring your product or service to your ideal audience. It includes your sales motion (inbound, outbound, PLG, etc.), marketing channels, pricing, territories, and RevOps infrastructure. 

Why it matters: Your GTM strategy shapes your org structure, tech stack, and revenue model. 

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TAM = Total Addressable Market 

TAM represents the full revenue opportunity available if you captured 100% of your target market. 

Example: If you sell HR software to U.S.-based businesses with 100–1,000 employees, your TAM is the combined revenue from all those companies.  

Why it matters: Helps guide expansion strategy, investor pitches, and product roadmap. 

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TOFU / MOFU / BOFU 

These acronyms refer to the buyer’s journey through the funnel: 

· TOFU = Top of Funnel (awareness)- The customer is introduced to your brand. Maybe they see a post on LinkedIn that leads them to a blog you wrote about a pressing industry issue.  

· MOFU = Middle of Funnel (education/evaluation)- The customer begins to research you and your offerings, possibly by reading a case study on your product and a former client’s experience.  

· BOFU = Bottom of Funnel (purchase decision)-The customer requests pricing information, an RFP, or a proposal and begins the process of making a purchasing decision.  

Why they matter: Breaking the funnel up into these segments aligns content and sales activities to the buyer's stage. 

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CAC = Customer Acquisition Cost 

CAC measures how much you spend to acquire a new customer. Add up your marketing + sales costs and divide by the number of new customers to get your CAC.  

Example: If you spent $100,000 in a quarter and acquired 50 new customers, your CAC = $2,000. 

Why it matters: Tells you how efficient your GTM motion is and what you can afford to spend to grow. 

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LTV = Lifetime Value 

LTV is how much revenue a customer will generate over their lifecycle with you. Multiply the average revenue per customer by average customer lifespan. 

Example: If a customer pays $500/month and stays for 36 months, the LTV is $18,000. 

Why it matters: Helps evaluate payback period and how much you can afford to spend on CAC. 

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ARR = Annual Recurring Revenue 

ARR is the total amount of revenue your customers generate for you in a year (for subscription businesses). 

Example: 100 customers paying $1,000/month = $1.2M ARR 

Why it matters: This is the most important metric for subscription business valuation and growth tracking. 

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To put it simply, these aren’t just acronyms for your RevOps playbook. They’re foundational to your GTM strategy. Understanding and aligning on these terms helps: 

· Reduce miscommunication between teams 

· Improve forecasting and reporting accuracy 

· Clarify handoffs and accountability 

· Optimize your funnel and reduce lead leakage 

Want to ensure your team is speaking the same language across departments? Let’s talk about how a RevOps Audit can reveal a clear path forward for your business.