Understanding a few core CRM terms can make it much easier to manage deals, build
forecasts, and use automation tools like ScaleXP. Below are the most important definitions,
with a simple example to tie them all together.

Pipeline

A pipeline is a series of steps that a deal moves through — from initial contact to closing.
Most businesses have separate pipelines for new sales and renewals.

Example: You might have one pipeline for New Business and another for Renewals.

Stage

Each pipeline is divided into stages that represent how close a deal is to being won.
Common stages include: Qualified, Proposal Sent, Verbal Agreement, and Closed Won.
 

Example: A deal in the “Proposal Sent” stage is likely closer to closing than one in “Initial
Contact”.

Total Contract Value (TCV)

TCV is the full value of a deal across the entire contract term — not just the first month or
year.

Example: A 12-month contract at £1,000 per month has a TCV of £12,000.

Contract Start and End Dates

These dates define when the customer begins and finishes their contract. They are essential
for forecasting and renewals.

Example: A deal marked Closed Won today might have a contract start date of next month.

ARR (Annual Recurring Revenue)

ARR represents the recurring revenue generated from a deal on a yearly basis. It’s useful for
SaaS or subscription-based businesses.

Example: A monthly subscription of £500 would have an ARR of £6,000.