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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InMail Messages

LinkedIn InMail messages are a premium feature that lets you directly message any LinkedIn member, even if you're not connected to them.

InMail Messages

Open Rate

The open rate is the percentage of recipients who opened an email. It's a primary indicator of a subject line's effectiveness.

Open Rate

Affiliate Networks

Affiliate networks are platforms that act as intermediaries between publishers (affiliates) and merchant affiliate programs.

Affiliate Networks

Weighted Pipeline

A weighted pipeline forecasts sales revenue by assigning a closing probability to each deal based on its stage in the sales funnel.

Weighted Pipeline

SEM

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

SEM

Digital Advertising

Digital advertising is the practice of delivering promotional content to users through various online and digital channels like social media or search engines.

Digital Advertising

Pipeline Coverage

Pipeline coverage is a key sales metric. It's the ratio of your total open pipeline value to your sales quota for a specific period.

Pipeline Coverage

Inventory Management

Inventory management is the process of ordering, storing, and using a company's inventory, from raw materials to finished goods.

Inventory Management

Omnichannel Sales

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

Omnichannel Sales

Performance Plan

A performance plan is a formal document outlining an employee's goals, expectations, and metrics for success over a specific period.

Performance Plan

Email Verification

Email verification is the process of confirming that an email address is valid and deliverable, which helps improve campaign performance.

Email Verification

Proof of Concept

A Proof of Concept (PoC) is a small exercise to test whether a business idea or project is technically feasible and has real-world potential.

Proof of Concept

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)

Marketing Play

A marketing play is a repeatable tactic used to achieve a specific marketing goal, like generating leads or driving engagement.

Marketing Play

Data Enrichment

Data enrichment is the process of enhancing raw data by adding missing information from other sources, making it more complete and actionable.

Data Enrichment

Customer Relationship Marketing

Customer relationship marketing is a strategy for building lasting connections with customers to foster long-term loyalty and engagement.

Customer Relationship Marketing

Firmographic Data

Firmographic data is information used to classify firms. It includes attributes like industry, employee count, location, and annual revenue.

Firmographic Data

Customer Lifecycle

The customer lifecycle is the journey a person takes from first becoming aware of your brand to becoming a loyal, repeat customer.

Customer Lifecycle

Account Match Rate

Account match rate is the percentage of target accounts successfully identified and matched against a specific database or data provider.

Account Match Rate

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

RESTful API

A RESTful API is a web service interface that uses HTTP requests to access and use data, adhering to the constraints of REST architecture.

RESTful API

Phishing Attacks

Phishing attacks are fraudulent attempts to trick you into revealing sensitive data like passwords or financial info by posing as a trusted source.

Phishing Attacks

Ad-hoc Reporting

Ad-hoc reporting is the creation of one-off reports to answer specific business questions as they arise, providing instant, targeted insights.

Ad-hoc Reporting

Omnichannel Marketing

Omnichannel marketing creates a seamless, unified customer experience by integrating a company's various communication and sales channels.

Omnichannel Marketing

Forward Revenue

Forward revenue is the total value of all active, committed contracts that are expected to be recognized as revenue in the future.

Forward Revenue

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

B2B Sales Channels

Learn about B2B sales channels, including types of B2B sales channels, strategies for effective channel selection, & integrating technology in B2B sales.

B2B Sales Channels

Conversion Path

A conversion path is the journey a visitor takes to complete a desired goal, such as making a purchase, filling out a form, or subscribing.

Conversion Path

Sales Pipeline Reporting

Sales pipeline reporting is the process of analyzing sales data to track progress, identify bottlenecks, and forecast future revenue.

Sales Pipeline Reporting

Escalations

Escalations are the process of moving a customer issue or sales opportunity to a more senior or specialized team member for resolution.

Escalations

Employee Advocacy

Employee advocacy is the promotion of an organization by its staff members, who share positive messages and content through their personal networks.

Employee Advocacy

CPM

CPM, or Cost Per Mille, is a key advertising metric. It's the cost an advertiser pays for one thousand views or impressions of a single ad.

CPM

Sales Automation

Sales automation uses software to streamline and automate repetitive, manual sales tasks, freeing up reps to focus on selling.

Sales Automation

Outbound Leads

Outbound leads are potential customers a business proactively contacts through outreach like cold calls, emails, or social media.

Outbound Leads

BAB Formula

Learn about BAB formula, including implementing BAB in sales strategies, crafting an effective BAB pitch, & comparing BAB with other sales frameworks.

BAB Formula

Sales Enablement Platform

A sales enablement platform centralizes content, training, and analytics to help sales teams engage buyers and effectively close deals.

Sales Enablement Platform

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

Scalability

Scalability is a company's ability to handle increased workloads or market demands without a drop in performance or a spike in costs.

Scalability

Account-Based Selling

Account-Based Selling is a B2B strategy where sales and marketing treat high-value accounts as markets of one, using personalized outreach.

Account-Based Selling

Big Data

Learn about big data, including understanding big data characteristics, benefits of leveraging big data, & challenges in managing big data.

Big Data

Payment Gateways

A payment gateway is a service that authorizes and processes payments for businesses, acting as a secure link between the customer and the merchant.

Payment Gateways

Purchase Buying Stage

The purchase stage is when a buyer has decided on a solution and is ready to buy. They're comparing vendors to make a final choice.

Purchase Buying Stage

Lead Enrichment Tools

Lead enrichment tools are platforms that automatically add missing data to your leads, like contact info, firmographics, and buying signals.

Lead Enrichment Tools

Sales Playbook

A sales playbook is a guide that outlines your sales process, best practices, and tools to help reps sell more efficiently and consistently.

Sales Playbook

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

Persona Map

A persona map visually outlines a target customer, detailing their goals, behaviors, and pain points to help your team build genuine empathy.

Persona Map

Content Curation

Content curation involves gathering, organizing, and sharing the most relevant online content on a specific topic for a particular audience.

Content Curation

Net New Business

Net new business is revenue from customers who have never purchased from your company before. It’s a crucial indicator of sustainable growth.

Net New Business

Gone Dark

Going dark is when a once-responsive prospect suddenly stops all communication, leaving you wondering what went wrong.

Gone Dark

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

Cost Per Impression

Cost Per Impression (CPI) is the price an advertiser pays for each time their ad is displayed to a user, irrespective of clicks.

Cost Per Impression

Spiff

A spiff is a short-term sales incentive, often a cash bonus, paid directly to a salesperson for selling a specific product or service.

Spiff

Website Visitor Tracking

Website visitor tracking collects and analyzes data on user behavior to understand their journey and improve the overall user experience.

Website Visitor Tracking

Consumer Relationship Management

Consumer Relationship Management (CRM) is a strategy for managing all of a company's relationships and interactions with its customers.

Consumer Relationship Management

Sales Enablement

Sales enablement provides sales teams with the necessary tools, content, and information to help them sell more effectively and efficiently.

Sales Enablement

Product Qualified Lead

A Product Qualified Lead (PQL) is a user who has experienced a product's value, signaling a strong potential to convert to a paid customer.

Product Qualified Lead

Ramp Up Time

Ramp-up time is the period a new hire takes to get fully up to speed and become a productive member of your go-to-market team.

Ramp Up Time

Pain Point

A pain point is a specific, recurring problem your target customers face, causing them frustration, inefficiency, or added costs.

Pain Point

Sales Pipeline Management

Sales pipeline management is the process of organizing, tracking, and managing potential deals through every stage of your sales funnel.

Sales Pipeline Management

SEO

SEO, or Search Engine Optimization, is increasing the quantity and quality of traffic to your website through organic search results.

SEO

B2B Marketing Attribution

Learn about B2B marketing attribution, including challenges in B2B marketing attribution, & key metrics for effective attribution.

B2B Marketing Attribution

Representational State Transfer Application Programming Interface

A Representational State Transfer (REST) API is a web service that uses a simple, stateless architecture for systems to communicate online.

Representational State Transfer Application Programming Interface

Day Sales Outstanding

Day Sales Outstanding (DSO) is a financial ratio that shows the average number of days it takes for a company to receive payment for a sale.

Day Sales Outstanding

Solution Selling

Solution selling is a sales approach focused on understanding a customer's pain points to offer a comprehensive solution, not just a product.

Solution Selling

Sales Development

Sales development is the process of identifying and qualifying potential customers to create a pipeline of sales-ready leads for closers.

Sales Development

Sales Operations

Sales Operations, or Sales Ops, streamlines sales processes, manages tools, and analyzes data to help sales teams sell more effectively.

Sales Operations

Load Testing

Load testing is a type of performance testing that determines how a system behaves under both normal and anticipated peak load conditions.

Load Testing

Business Process Management

Learn about business process management, including benefits of implementing BPM, steps to effective BPM, common BPM mistakes to avoid, & BPM tools and software.

Business Process Management

Search Engine Results Page

A Search Engine Results Page (SERP) is the page displayed by a search engine after a user enters a query, listing results ranked by relevance.

Search Engine Results Page

Average Revenue per Account

Average Revenue per Account (ARPA) is the average revenue generated from each customer account, usually measured on a monthly or annual basis.

Average Revenue per Account

Cloud-based CRM

A cloud-based CRM is a customer relationship management tool hosted online, letting teams access and manage customer data from anywhere.

Cloud-based CRM

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

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

Freemium

Freemium is a business model offering a product's basic features for free, while charging for advanced or supplemental features.

Freemium

Regression Testing

Regression testing ensures that new code changes don’t negatively impact existing features. It's a key step to maintain software quality after updates.

Regression Testing

Monthly Recurring Revenue (MRR)

Monthly Recurring Revenue (MRR) is the predictable, recurring income a business expects to receive each month from all active subscriptions.

Monthly Recurring Revenue (MRR)

Sentiment Analysis

Sentiment analysis, or opinion mining, automatically determines the emotional tone behind text—whether it's positive, negative, or neutral.

Sentiment Analysis

Intent-Based Leads

Intent-based leads are potential customers whose online actions—like searches or content engagement—signal a clear interest in buying a solution.

Intent-Based Leads

Sales Funnel Metrics

Sales funnel metrics are key data points that track how effectively you're moving potential customers from awareness to a final purchase.

Sales Funnel Metrics

Average Customer Life

Average Customer Life is the average time someone remains a customer. It's a key metric for predicting revenue and measuring customer loyalty.

Average Customer Life

Data Hygiene

Data hygiene is the practice of ensuring your customer data is clean, accurate, and up-to-date by removing duplicates and correcting errors.

Data Hygiene

Marketing Attribution Model

A marketing attribution model is a framework for assigning credit to the marketing touchpoints that lead a customer to convert.

Marketing Attribution Model

Commission

A commission is a service charge paid to an agent for a transaction. It's typically a percentage of the sale, rewarding performance directly.

Commission

Service Level Agreement

A Service Level Agreement (SLA) is a contract defining the level of service between a provider and a client, including metrics and penalties.

Service Level Agreement

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

Workflow Automation

Workflow automation uses rule-based logic to run a sequence of tasks that would otherwise require manual human effort to complete.

Workflow Automation

Consideration Buying Stage

The consideration buying stage is where potential customers have defined their problem and are now actively researching and evaluating solutions.

Consideration Buying Stage

Triggers

Triggers are predefined conditions that, when met, automatically launch a workflow or action, ensuring timely and relevant outreach.

Triggers

Sales Manager

A Sales Manager leads a sales team, setting goals, analyzing performance, and developing strategies to drive revenue and meet targets.

Sales Manager

Data Management Platform

A Data Management Platform (DMP) is a software that collects and organizes audience data from various sources for targeted marketing efforts.

Data Management Platform

Demand Capture

Demand capture is the strategy of engaging potential customers who are already actively looking for a solution that your company provides.

Demand Capture

Sales Director

A Sales Director leads a sales team, develops strategies, and is responsible for meeting a company's revenue targets.

Sales Director

Sales Lead

A sales lead is a potential customer—an individual or organization that has shown interest in your company's products or services.

Sales Lead

Marketing Mix

The marketing mix is the set of marketing tools a company uses to sell products, defined by the 4Ps: Product, Price, Place, and Promotion.

Marketing Mix

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.

Sales Territory

Buying Process

The buying process is the journey a customer takes from first realizing a need to making a final purchase decision and evaluating it afterward.

Buying Process

Fulfillment Logistics

Fulfillment logistics is the entire process of getting an order to a customer, from storing inventory to picking, packing, and final shipment.

Fulfillment Logistics

Sales Champion

A sales champion is your internal advocate at a target company. They believe in your product and help you push the deal forward to close.

Sales Champion

AI-Powered Marketing

AI marketing uses artificial intelligence to analyze data, automate decisions, and deliver personalized customer experiences at scale.

AI-Powered Marketing

Account-Based Sales Development

Account-Based Sales Development (ABSD) is a focused strategy where SDRs target key stakeholders within specific, high-value accounts.

Account-Based Sales Development