AEO and demand generation glossary

Every term below is defined in one self contained sentence, the way an answer engine needs to read it. Where a definition rests on published research, the study is linked.

Demand generation

Demand generation
Demand generation is the practice of creating and capturing buyer interest in a category and a product, measured in pipeline rather than form fills.
Lead generation
Lead generation is the subset of demand generation focused on collecting contact details from people who are already in market.
Dark social
Dark social is buyer research and discussion that happens in places analytics cannot attribute, such as private communities, group chats, and AI assistants.
Ideal customer profile (ICP)
An ideal customer profile is the firmographic and behavioural definition of the accounts a company can win and retain profitably.

Measurement

Prompt set
A prompt set is a fixed list of buyer questions run repeatedly across AI engines to measure whether and how often a brand is cited.
Citation share
Citation share is the percentage of tracked prompts in which a brand appears as a cited source, and it is the closest AI search equivalent of share of voice.
Share of model
Share of model is how often a brand is named in generated answers for a category, whether or not a clickable citation is attached.
Pipeline coverage
Pipeline coverage is open pipeline divided by the bookings target for the same period, with three to four times treated as healthy in 2026 B2B SaaS.Causo, June 2026
CAC payback
CAC payback is the number of months of gross profit required to recover the cost of acquiring a customer, and it is the controlling efficiency metric for most 2026 boards.Causo, June 2026
Magic number
Magic number is net new ARR divided by prior period sales and marketing spend, used as a quick read on go to market efficiency.Causo, June 2026
Win rate
Win rate is closed won opportunities divided by all closed opportunities, and it compressed to roughly 19 percent on average across a 655,000 opportunity dataset.Ebsta and Pavilion, via PipelineGrader, July 2026
Pipeline velocity
Pipeline velocity is the rate at which pipeline converts to revenue, combining opportunity count, average deal size, win rate, and cycle length.
Marketing sourced pipeline
Marketing sourced pipeline is the value of opportunities whose first recorded touch belongs to marketing, and it systematically undercounts channels that create demand without a click.
Incrementality
Incrementality is the pipeline a channel creates that would not have happened otherwise, measured with holdouts or geo tests rather than attribution reports.
Blended CAC
Blended CAC is total sales and marketing spend divided by all new customers, including those attributed to organic and word of mouth.Benchmarkit, June 2026

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