Terms

Stakeholder

A stakeholder is any individual, group, or organization with a vested interest in the decisions and outcomes of a business or project. These parties can both affect and be affected by a company's operations and can range from internal members like employees and investors to external groups such as customers, suppliers, and the surrounding community.

Importance of Stakeholders

Stakeholders are crucial because they directly influence a business's trajectory. Their support is often essential for a project's success, as they can be powerful allies or significant obstacles. From investors providing capital to customers driving revenue, each group plays a vital role in a company's ecosystem.

Beyond direct financial impact, stakeholders like communities and governments shape a company's operating environment. Effectively managing their diverse interests is key to long-term success and sustainability. A company that fails to satisfy its stakeholders risks its reputation and overall viability.

Types of Stakeholders

Stakeholders are typically categorized based on their relationship to the company. The main distinction is between internal groups, who are part of the organization, and external groups, who are affected by its actions from the outside.

  • Internal: Individuals inside the company, like employees and owners, whose interest comes from a direct relationship.
  • External: Parties outside the company, such as customers and suppliers, who are indirectly impacted by its actions.
  • Primary: Those with a direct stake, like investors, whose support is essential for the company's survival.
  • Secondary: Groups with an indirect interest, like the community, who can still influence or be influenced by the business.

Stakeholder vs. Shareholder

While all shareholders are stakeholders, the reverse is not true, leading to different business priorities.

  • Stakeholder: This term includes anyone affected by a company, such as employees and customers. Focusing on stakeholders can boost long-term sustainability and reputation but may complicate decision-making with conflicting interests. Enterprises often adopt this view to manage their broad social and regulatory impact.
  • Shareholder: This refers to owners with a financial stake through stock. Prioritizing them provides a clear focus on profit, which is easier to measure, but can lead to short-term thinking. Mid-market companies may favor this approach to attract investment or drive financial performance for a potential sale.

Stakeholder Engagement Strategies

This is how you can effectively engage your stakeholders.

  1. Identify all stakeholders and analyze their interests, influence, and potential impact on your project.
  2. Prioritize them based on their level of influence and interest to focus your engagement efforts.
  3. Develop a communication plan to engage them early and often with regular, transparent updates.
  4. Create channels for feedback, listen actively, and incorporate their input to build trust and adjust plans.

Challenges in Stakeholder Management

Managing stakeholder relationships is a delicate balancing act fraught with complexity. The primary difficulty lies in navigating the diverse and often competing expectations of various groups. Successfully addressing these challenges is crucial for any project or business to thrive.

  • Conflicts: Balancing competing interests, such as maximizing profits while ensuring fair employee compensation.
  • Communication: Keeping everyone informed and preventing the spread of misinformation among diverse groups.
  • Prioritization: Identifying key stakeholders and effectively weighing their influence and needs against project goals.

Frequently Asked Questions about Stakeholder

How do you prioritize stakeholders?

Prioritization is often done using a power/interest grid, mapping stakeholders based on their influence and interest. This helps focus engagement efforts on those who can most significantly impact the project, ensuring resources are used effectively.

Can a stakeholder also be a shareholder?

Yes, a shareholder is always a stakeholder due to their financial interest. However, not all stakeholders, such as employees or customers, are shareholders, as their stake isn't necessarily tied to stock ownership. This is a key distinction in corporate governance.

What's the difference between a primary and secondary stakeholder?

Primary stakeholders, like investors and employees, are directly affected and essential for business survival. Secondary stakeholders, such as the community or media, have an indirect interest but can still influence or be influenced by the company's actions and reputation.

Other terms

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Lead Conversion

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Customer Retention

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Spiff

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Spiff

Sales Partnerships

Sales partnerships are strategic alliances where two companies co-sell products to expand their reach, generate new leads, and increase revenue.

Sales Partnerships

Buying Criteria

Buying criteria are the specific requirements and standards a customer uses to evaluate products or services before making a decision.

Buying Criteria

Intent leads

Intent leads are prospects who show buying signals through their online actions, indicating they're actively looking to make a purchase.

Intent leads

Follow-up

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Follow-up

Lead Scoring Models

Lead scoring models rank prospects by assigning points for their behaviors and demographics, helping sales teams prioritize their outreach.

Lead Scoring Models

Firewall

A firewall is a digital barrier that protects a network by monitoring and controlling traffic, blocking unauthorized access and malicious content.

Firewall

Dialer

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Dialer

Customer Data Analysis

Customer data analysis is the process of examining customer information to uncover insights that drive business decisions and improve experiences.

Customer Data Analysis

Needs Assessment

A needs assessment is the process of identifying the gap between a company's current state and its desired future state.

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Adobe Analytics

Adobe Analytics is a leading web analytics solution for gaining real-time insights into user activity across websites and mobile applications.

Adobe Analytics

Sales Plan Template

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Sales Plan Template

Psychographics

Psychographics categorizes people by their attitudes, interests, and lifestyles, revealing the 'why' behind their purchasing decisions.

Psychographics

Statement of Work

A Statement of Work (SoW) is a document that outlines a project's scope, deliverables, and timeline. It acts as a contract between parties.

Statement of Work

Talk Track

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Talk Track

Sales Prospecting Software

Sales prospecting software automates the process of finding, contacting, and tracking potential customers to help sales teams build their pipeline.

Sales Prospecting Software

Champion/Challenger Test

A Champion/Challenger test pits a new 'challenger' against the current best-performing 'champion' to see which one performs better.

Champion/Challenger Test

Sales Territory

A sales territory is a specific group of customers or a geographic area that a salesperson or sales team is responsible for managing.

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Click-Through Rate

Click-through rate (CTR) is a metric that measures the percentage of people who click on a specific link, ad, or call-to-action.

Click-Through Rate

Value Chain

A value chain is the series of business activities required to create and deliver a product or service, from conception to the final customer.

Value Chain

ABM Orchestration

ABM orchestration aligns marketing and sales actions across channels to deliver seamless, personalized experiences to high-value accounts.

ABM Orchestration

Reverse Logistics

Reverse logistics is the process for goods moving from the customer back to the seller, covering returns, repairs, recycling, and disposal.

Reverse Logistics

Marketing Automation

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Marketing Automation

Dark Social

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Dark Social

SDK

A Software Development Kit (SDK) is a set of tools that allows developers to create applications for a specific software package or platform.

SDK

Customer Retention Cost

Customer Retention Cost (CRC) is the total amount a company spends to keep an existing customer over a certain period of time.

Customer Retention Cost

Social Selling

Social selling is the art of using social media to find, connect with, build relationships with, and nurture sales prospects.

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Lead List

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Lead List

On Target Earnings

On-Target Earnings (OTE) is a salesperson's total potential pay, combining base salary and commission for hitting their sales quota.

On Target Earnings

CRM Integration

CRM integration connects your CRM software with other tools, creating a unified system for all your customer data and business processes.

CRM Integration

Average Selling Price

Average Selling Price (ASP) is the average price at which a particular product or service is sold across different markets and channels.

Average Selling Price

Sales Kickoff

A sales kickoff (SKO) is an annual event for a sales team to celebrate wins, align on goals, and get motivated for the upcoming year.

Sales Kickoff

Sales Engagement

Sales engagement is the sum of all interactions between a seller and a prospect, aimed at building a relationship and moving a deal forward.

Sales Engagement

Data Mining

Data mining is the process of discovering patterns, trends, and useful information from large datasets to make better business decisions.

Data Mining

Contract Management

Contract management is the process of creating, executing, and analyzing contracts to maximize performance and minimize financial risk.

Contract Management

Customer Data Platform (CDP)

A Customer Data Platform (CDP) centralizes customer data from all sources to create a complete, unified profile for each individual customer.

Customer Data Platform (CDP)

Sales Objections

Sales objections are reasons or concerns raised by a potential customer as to why they are hesitant or unwilling to make a purchase.

Sales Objections

Horizontal Market

A horizontal market is one where a product or service is designed to meet a common need for a wide array of customers, regardless of their industry.

Horizontal Market

SQL

SQL (Structured Query Language) is the standard language for managing and querying data within relational databases.

SQL

Custom API integration

A custom API integration is a bespoke connection between software, enabling them to communicate and share data to meet unique business requirements.

Custom API integration

Nurture

Nurture is the process of building relationships with potential customers, guiding them through the sales funnel with personalized communication.

Nurture

Signaling

Signaling is using credible actions to convey information about quality or intent to a less-informed party, effectively building trust.

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Sales Metrics

Sales metrics are quantifiable data points that track and measure a sales team's performance against specific goals and objectives.

Sales Metrics

Sales Operations Analytics

Sales operations analytics is the practice of analyzing sales data to improve the efficiency and effectiveness of the entire sales process.

Sales Operations Analytics

Lead Nurturing

Lead nurturing is the process of developing and reinforcing relationships with buyers at every stage of the sales funnel.

Lead Nurturing

Sales Intelligence Platform

A sales intelligence platform is software that provides sales teams with data and insights about prospects to help them sell more effectively.

Sales Intelligence Platform

B2B Marketing Analytics

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B2B Marketing Analytics

Sales Productivity

Sales productivity is the measure of a sales team's efficiency, focusing on maximizing revenue generation while minimizing the resources spent.

Sales Productivity

Cross-Site Scripting

Cross-Site Scripting (XSS) is a web security vulnerability that allows attackers to inject malicious scripts into trusted websites.

Cross-Site Scripting

Funnel Optimization

Funnel optimization is the process of improving each stage of the customer journey to maximize conversions and drive revenue growth.

Funnel Optimization

Consumer

A consumer is an individual or entity that buys products or services for personal use, not for resale. They are the final user in a supply chain.

Consumer

CCPA Compliance

CCPA compliance is adhering to the California Consumer Privacy Act, a law that grants consumers more control over their personal data.

CCPA Compliance

Sales Calls

A sales call is a real-time conversation between a salesperson and a prospect, aiming to persuade them to purchase a product or service.

Sales Calls

Page Views

Page views count the total number of times a page on your website is loaded. This metric is a key indicator of your site's overall traffic.

Page Views

Customer Success

Customer Success is a business strategy focused on proactively helping customers achieve their goals with your product or service.

Customer Success

Sales Team Management

Sales team management is the process of leading, coaching, and motivating a sales team to achieve its sales goals and drive revenue growth.

Sales Team Management

Content Management System

A Content Management System (CMS) is software for creating, managing, and modifying website content without needing specialized technical skills.

Content Management System

Buyer’s Remorse

Buyer’s remorse is the sense of regret or anxiety that can arise after making a purchase, often questioning if it was the right decision.

Buyer’s Remorse

Audience Targeting

Audience targeting is the process of segmenting consumers into specific groups to deliver more personalized and relevant marketing messages.

Audience Targeting

Warm Email

A warm email is a message sent to a prospect with whom you have a pre-existing connection, like a mutual contact or a prior interaction.

Warm Email

Email Engagement

Email engagement measures how your audience interacts with your emails. It includes key actions like opens, clicks, replies, and forwards.

Email Engagement

Renewal Rate

Renewal rate is the percentage of customers who renew their subscriptions or contracts at the end of their service period.

Renewal Rate

Marketing Operations

Marketing Operations (MOps) is the engine of a marketing team, managing the technology, processes, and people to run campaigns effectively.

Marketing Operations

Customer Journey Mapping

Customer journey mapping is the process of creating a visual story of your customers' interactions with your brand across all touchpoints.

Customer Journey Mapping

Marketing Analytics

Marketing analytics involves measuring and analyzing marketing data to understand campaign performance and improve return on investment (ROI).

Marketing Analytics

Cohort Analysis

Cohort analysis is a behavioral analytics tool that groups users with common traits to track their actions and engagement over time.

Cohort Analysis

Event Marketing

Event marketing is a strategy where brands engage directly with target audiences through live events like trade shows, conferences, or webinars.

Event Marketing

Price Optimization

Price optimization is the process of finding the ideal price for a product or service to maximize profitability or other business objectives.

Price Optimization

Product Champion

A product champion is an internal evangelist who drives a product's adoption and success by ensuring it solves real problems for their team.

Product Champion

Mobile Compatibility

Mobile compatibility ensures your site or app works flawlessly on mobile devices, like smartphones and tablets, for a seamless user experience.

Mobile Compatibility

Tire-Kicker

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Tire-Kicker

Subject Matter Expert

A Subject Matter Expert (SME) is an individual with profound knowledge and authority in a particular area, topic, or industry.

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Business Intelligence

Learn about business intelligence, including key components of business intelligence, the role of BI in decision making, business intelligence tools and techniques.

Business Intelligence

C-Level or C-Suite

The C-suite, or C-level, refers to a company's most senior executives. Their titles usually start with 'Chief,' such as CEO, CFO, or CTO.

C-Level or C-Suite

Consumer Buying Behavior

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Consumer Buying Behavior

Omnichannel Sales

Omnichannel sales is a strategy that integrates all physical and digital sales channels to create a seamless, unified customer experience.

Omnichannel Sales

Feature Flags

Feature flags let you remotely control features in your app without new code. This enables safe testing, gradual rollouts, and quick rollbacks.

Feature Flags

Account Development Representative

An Account Development Representative (ADR) identifies and qualifies new business opportunities, creating a pipeline for account executives.

Account Development Representative

No Forms

No Forms is a method for capturing lead data directly from your website visitors' profiles without requiring them to fill out any forms.

No Forms

Sales Sequence

A sales sequence is a series of automated touchpoints sent to prospects over time to guide them through the sales funnel.

Sales Sequence

Sales Operations Key Performance Indicators

Sales Operations KPIs are measurable metrics that track the efficiency and effectiveness of a sales team's operational processes.

Sales Operations Key Performance Indicators

Cold Emailing

Cold emailing is sending unsolicited emails to potential customers you haven't contacted before, aiming to start a business conversation.

Cold Emailing

Point of Contact

A Point of Contact (POC) is the designated individual or department that serves as the main hub for information and communication on a matter.

Point of Contact

Fault Tolerance

Fault tolerance is a system's ability to continue operating without interruption when one or more of its components fail.

Fault Tolerance

SEM

Search Engine Marketing (SEM) is a digital marketing strategy that uses paid tactics to increase a website's visibility in search engine results.

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Social Proof

Social proof is a psychological phenomenon where people assume the actions of others reflect correct behavior for a given situation.

Social Proof

Ideal Customer Profile

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Ideal Customer Profile

Sales Quota

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Sales Quota

Programmatic Display Campaign

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Triggered Email

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SPIN Selling

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Early Adopter

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Early Adopter

Objection

An objection is an explicit expression by a prospect that presents a barrier to moving forward in the sales process.

Objection

Payment Processors

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Content Rights Management

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Content Rights Management

Sales Pipeline

A sales pipeline is a visual representation of where prospects are in the sales process, from the first contact to the final sale.

Sales Pipeline

Behavioral Analytics

Learn about behavioral analytics, including implementing behavioral analytics successfully, & key metrics in behavioral analytics.

Behavioral Analytics