Glossary

Plain-English definitions of the terms that come up when a small business modernizes its technology: software and integrations, AI agents and automation, lead response, messaging compliance, and the partner models agencies use to deliver it all. Regulatory entries are general information drawn from official sources, not legal advice; check the current rules or a qualified attorney before acting on them.

10DLC: Short for 10-digit long code: a standard local-style phone number used by businesses for A2P texting in the US. Carriers require the business (the brand) and each messaging campaign to be registered and verified through an industry registry before messages are sent, and unregistered traffic can be filtered or blocked.; Related:Application-to-person messaging (A2P)Opt-in Number porting
Action: A step an automation performs after it is triggered, such as sending a text, creating a task, updating a CRM field or notifying a team member. Workflows chain several actions together, often with conditions and waits in between.; Related:Trigger Workflow automation
AI agent: Software that uses an AI model to work toward a goal by deciding on and carrying out steps, such as looking up information, updating a record or sending a message, rather than only answering a single question. Agents act within limits set by people, and well-designed ones hand off to a human when a situation falls outside those limits.; Related:Voice agent Large language model (LLM)Human in the loop
Application programming interface (API): A defined set of rules that lets one piece of software request data or actions from another. NIST describes it as an access point with "well-defined syntax" that provides "well-defined functionality" to other programs. APIs are what make most integrations between business tools possible.; Related:Integration Webhook Software as a service (SaaS)
Application-to-person messaging (A2P): Text messages sent by or on behalf of a business or organization to people, such as appointment reminders, alerts and marketing, as opposed to person-to-person texts between individuals. The wireless industry's current guidelines call this "non-consumer" messaging and expect these senders to get consent first.; Related:10DLC Opt-in STOP keyword
CAN-SPAM Act: The US federal law governing commercial email, enforced by the FTC. It requires accurate headers, non-deceptive subject lines, a valid physical postal address, and a clear way to opt out that is honored within 10 business days; the FTC notes it "makes no exception for business-to-business email."; Related:Opt-out Opt-in
Chatbot: Software that carries on a text conversation with people, on a website, in a messaging app or by SMS. Older chatbots follow fixed scripts and menus; newer ones use a large language model to understand free-form questions and write their own replies.; Related:Large language model (LLM)AI agent Intent
Churn: The rate at which customers stop doing business with you over a period, usually shown as a percentage of the customers you had at the start. Lowering churn raises lifetime value and makes growth cheaper.; Related:Customer lifetime value (LTV)Net Promoter Score (NPS)Database reactivation
Conversion rate: The percentage of people who take a desired next step, such as leads who book an appointment or quotes that become sales. It is calculated by dividing the number who converted by the number who had the chance, then multiplying by 100.; Related:Pipeline Speed to lead Customer acquisition cost (CAC)
Customer acquisition cost (CAC): The average cost of winning one new customer, calculated by dividing total sales and marketing spend for a period by the number of new customers gained in that period. It is most useful when compared with customer lifetime value.; Related:Customer lifetime value (LTV)Conversion rate
Customer lifetime value (LTV): An estimate of the total revenue, or better, gross profit, a typical customer brings in over the whole relationship. Comparing LTV with CAC shows whether you can afford what you spend to win customers.; Related:Customer acquisition cost (CAC)Churn
Customer relationship management (CRM): Software that keeps a shared record of every contact, conversation, deal and task with leads and customers. A CRM gives a team one place to see who someone is, what has been said to them and what should happen next.; Related:Pipeline Lead Enterprise resource planning (ERP)
Data portability: The ability to get your data out of a software system in a complete, commonly used format so you can move it to another tool. Good portability covers not just contacts but history such as notes, messages, deals and files, and it reduces the cost of ever switching vendors.; Related:Migration Software as a service (SaaS)
Database reactivation: A campaign aimed at past leads or former customers already in your records, inviting them to re-engage with an offer, check-in or reminder. It works only with contacts you still have permission to message, so consent records matter.; Related:Lead nurturing Opt-in Churn
Deal stage: A defined step in your sales process, such as new inquiry, quote sent, negotiating, won or lost, that a deal moves through in the pipeline. Clear stage definitions make forecasts and handoffs more reliable.; Related:Pipeline Customer relationship management (CRM)
Double opt-in: A two-step signup in which a person first subscribes and then confirms, for example by clicking a link in an email or replying YES to a text, before regular messages begin. It weeds out typos and fake signups and leaves a clearer record of consent.; Related:Opt-in Prior express written consent
Drip sequence: A prewritten series of emails or texts sent automatically on a schedule, such as day 1, day 3 and day 7 after someone signs up. Sequences typically stop when the person replies, books, buys or opts out.; Related:Lead nurturing Workflow automation Opt-out
Enterprise resource planning (ERP): Software that ties together a company's core operational records, such as accounting, inventory, purchasing, orders and sometimes payroll, in one system. Where a CRM focuses on customers and sales, an ERP focuses on running and accounting for the business behind them.; Related:Customer relationship management (CRM)Integration
Hallucination: When an AI model produces information that sounds confident and plausible but is false or unsupported, such as an invented price, policy or citation. Limiting a model to approved business information and keeping a human in the loop for consequential answers are common ways to reduce the risk.; Related:Large language model (LLM)Human in the loop
Human in the loop: A design in which a person reviews, approves or can override an automated or AI-driven decision at defined points. It is common for actions with real consequences, such as quoting prices, issuing refunds or handling complaints.; Related:AI agent Workflow automation Hallucination
Integration: A connection that lets two software tools share data or trigger actions in each other, so information entered once shows up wherever it is needed. Integrations are usually built on APIs or webhooks and can be native (built by the vendor) or added through a third-party connector.; Related:Application programming interface (API)Webhook Workflow automation
Intent: What a person is trying to accomplish in a message or call, such as booking an appointment, asking about pricing or canceling a service. Identifying intent lets a chatbot, voice agent or routing rule send the conversation to the right answer or person.; Related:Chatbot Voice agent Lead scoring
Large language model (LLM): A type of AI model trained on very large amounts of text to understand and generate language. LLMs power most modern chatbots and AI agents; they produce fluent answers but can be wrong, so their output needs guardrails and checking.; Related:Hallucination AI agent Chatbot
Lead: A person or business that has shown interest in what you sell, for example by calling, filling out a form or requesting a quote, but has not yet bought. Leads are typically tracked in a CRM until they become customers or are ruled out.; Related:Customer relationship management (CRM)Speed to lead Lead scoring
Lead nurturing: Staying in useful, relevant contact with leads who are not ready to buy yet, so your business is the one they think of when they are. It usually mixes automated messages with personal follow-up.; Related:Drip sequence Lead Database reactivation
Lead scoring: A method of ranking leads by how likely they are to buy, using points for traits (such as location or company size) and behavior (such as opening emails or requesting pricing). Scores help a small team spend its time on the most promising leads first.; Related:Lead Pipeline Intent
Managed service provider (MSP): A company that runs and maintains part of a client's technology on an ongoing basis, such as IT, phones or marketing systems, usually for a recurring fee. The client gets the outcome without having to staff the expertise in-house.; Related:Retainer Reseller Productized service
Migration: Moving data, settings and workflows from one system to another, for example from spreadsheets or an old CRM to a new platform. Good migrations are planned, tested on a sample first and verified afterward so contacts, history and automations arrive intact.; Related:Data portability Onboarding Number porting
Missed-call text-back: An automation that sends a text message to a caller shortly after an unanswered call, acknowledging the call and inviting them to reply. It keeps a conversation going with callers who might otherwise phone the next business on their list.; Related:Speed to lead Trigger Opt-out
Multi-factor authentication (MFA): A login method that requires more than one type of proof of identity: something you know (like a password), something you have (like a phone or security key) or something you are (like a fingerprint). Because a stolen password alone is not enough, MFA makes account takeover considerably harder.; Related:Single sign-on (SSO)
Multi-tenant: A software architecture in which one running system serves many separate customers, called tenants, while keeping each customer's data and settings separate. Most SaaS products are multi-tenant, which lets the provider update everyone at once and spread infrastructure costs.; Related:Tenant isolation Software as a service (SaaS)White label
Net Promoter Score (NPS): A customer loyalty measure based on one question: how likely are you to recommend us to a friend or colleague, on a 0 to 10 scale. The score is the percentage of promoters (9 or 10) minus the percentage of detractors (0 to 6), so it ranges from -100 to 100.; Related:Churn Review generation
Number porting: Moving an existing phone number from one provider to another so customers can keep calling and texting the same number. FCC rules define number portability as keeping existing numbers "without impairment of quality, reliability, or convenience" when switching carriers; the port is usually requested through the new provider.; Related:Migration 10DLC
Onboarding: The process of getting a new client or user set up and successful with a product or service: accounts, data import, configuration, training and first wins. A structured onboarding shortens the time to value and is closely tied to whether customers stay.; Related:Migration Churn
Opt-in: A person's permission to receive messages from you, such as texts or marketing emails. Industry messaging guidelines call for collecting consent before texting and for keeping records of when, where and how it was given; an opt-in applies only to the sender and program it was given for.; Related:Double opt-in Prior express written consent Opt-out
Opt-out: A person's request to stop receiving messages. Federal rules require businesses to honor opt-outs from covered texts and calls, and from commercial email under CAN-SPAM, within 10 business days, and CAN-SPAM bars charging a fee or demanding extra personal information to opt out of email.; Related:STOP keyword CAN-SPAM Act Telephone Consumer Protection Act (TCPA)
Pipeline: A visual view of all open deals organized by stage, from first contact to closed. A pipeline shows how much potential business is in progress and where deals tend to stall.; Related:Deal stage Customer relationship management (CRM)Conversion rate
Prior express written consent: The strongest form of consent under FCC rules, required for telemarketing calls and texts sent with an autodialer or artificial or prerecorded voice. It is a signed written agreement (electronic signatures can qualify) that names the phone number and clearly discloses that the person is authorizing these messages and is not required to agree as a condition of purchase.; Related:Telephone Consumer Protection Act (TCPA)Opt-in Double opt-in
Private label: Goods or services made by one company and sold exclusively under another company's brand, a term that comes from retail store brands. In software it is often used interchangeably with white label, though private label sometimes implies more exclusivity or customization.; Related:White label Reseller
Productized service: A service packaged like a product, with a defined scope, deliverables, timeline and fixed price, such as "website plus review automation, set up in two weeks." Packaging makes a service easier to sell, deliver consistently and repeat.; Related:Retainer Managed service provider (MSP)Onboarding
Reseller: A business that buys or licenses a product from its maker and sells it to its own customers, often bundled with setup, training or support. Resellers typically own the customer relationship and billing.; Related:White label Managed service provider (MSP)
Retainer: An agreement in which a client pays a recurring fee, usually monthly, for ongoing access to a provider's services or a set amount of work. Retainers give the client predictable support and the provider predictable revenue.; Related:Managed service provider (MSP)Productized service Service level agreement (SLA)
Review generation: A deliberate, often automated, process for asking customers to leave online reviews after a purchase or service. Under the FTC's Consumer Reviews and Testimonials Rule, businesses may not buy fake reviews or offer incentives that require a review to express a particular sentiment, and the FTC warns that asking only happy customers could be deceptive.; Related:Net Promoter Score (NPS)Workflow automation
Service level agreement (SLA): A written commitment from a provider that defines the level of service a customer can expect, such as uptime or support response times, and what happens if the provider falls short, often a service credit. Read the definitions and exclusions, since they determine what actually counts as an outage.; Related:Uptime Software as a service (SaaS)Retainer
Single sign-on (SSO): A setup that lets a person use one account and login to reach multiple applications. NIST defines it as an authentication process in which one account and its authenticators are used "to access multiple applications in a seamless manner." SSO reduces password sprawl and lets an administrator remove someone's access from one place.; Related:Multi-factor authentication (MFA)
Software as a service (SaaS): Software you use over the internet on a subscription instead of installing and running it yourself. In NIST's cloud definition, the customer uses the provider's applications but "does not manage or control the underlying cloud infrastructure," which the provider maintains and updates.; Related:Multi-tenant Service level agreement (SLA)Uptime
Speed to lead: The time between a lead reaching out and your business making first contact. Interest fades and competitors call back, so many businesses measure and work to shorten this gap, often with instant automated replies followed by a person.; Related:Lead Missed-call text-back Conversion rate
STOP keyword: The standard reply word for opting out of text messages. Industry guidelines call for "STOP" wording in opt-out instructions, and FCC rules treat replies of "stop," "quit," "end," "revoke," "opt out," "cancel" or "unsubscribe" as valid revocations of consent; other wording also counts if a reasonable person would understand it as a request to stop.; Related:Opt-out Telephone Consumer Protection Act (TCPA)Application-to-person messaging (A2P)
Telephone Consumer Protection Act (TCPA): The US federal law, enforced with FCC rules, that restricts telemarketing and calls or texts made with autodialers or artificial or prerecorded voices without the required consent. Individuals can sue for $500 per violation, up to three times that for willful or knowing violations, so consent and opt-out records matter.; Related:Prior express written consent Opt-out STOP keyword
Tenant isolation: The safeguards in a multi-tenant system that keep each customer's data, users and configuration separate, so one tenant cannot see or affect another's. It matters most for agencies and resellers that manage many client accounts on one platform.; Related:Multi-tenant Software as a service (SaaS)
Transcript: A written record of a phone call, voicemail or chat, often produced automatically by speech-to-text software. Transcripts make conversations searchable and easier to review, but automated ones can contain errors, especially with names, numbers and background noise.; Related:Voice agent Intent
Trigger: The event that starts an automation, such as a new form submission, a missed call, a tag being added to a contact or a date arriving. Each automated workflow begins with at least one trigger.; Related:Action Workflow automation Webhook
Uptime: The share of time a service is available and working, usually expressed as a percentage over a month or year. The math is less forgiving than it looks: 99.9% uptime still allows roughly 43 minutes of downtime in a 30-day month.; Related:Service level agreement (SLA)Software as a service (SaaS)
Voice agent: An AI agent that holds spoken conversations, typically over the phone, to answer questions, qualify callers or book appointments. It combines speech recognition, a language model and synthetic speech, and can usually transfer the call to a person.; Related:AI agent Transcript Intent
Webhook: An automatic message one application sends to another the moment a specific event happens, such as a form being submitted or a payment clearing. Instead of the receiving system repeatedly asking "anything new?", the sending system pushes the update to a URL the receiver provides.; Related:Application programming interface (API)Trigger Integration
White label: A product or service built by one company and rebranded by another, which sells it under its own name, logo and domain. In software, the reseller's clients typically see only the reseller's brand.; Related:Private label Reseller Multi-tenant
Workflow automation: Using software to run a repeatable business process automatically, step by step, once a trigger occurs. For example, imagine a dental office where a new web inquiry automatically creates a contact, texts a booking link and alerts the front desk if no appointment is booked within a day.; Related:Trigger Action Drip sequence