A lead is an individual who’s at the top of the funnel and hasn’t yet been qualified. For example, they might have downloaded a piece of content like a white paper or an eBook or they were contacted by a sales rep via a cold call. An opportunity is a
with a high chance of closing.
The Difference Between Leads, Prospects, And Opportunities
What is a sales prospect?
A potential client who satisfies the sales criteria is known as a sales prospect. When a salesperson determines that a lead meets their ideal criteria, they add them to their contact list. Sales representatives then call these prospects to conduct a discovery call to find out more about their preferences, hesitations, and spending power.
What is a sales lead?
A person who expresses interest in a good or service and has the potential to become a customer or client of the company providing it is known as a sales lead. The term “sales leads” can also be used to describe the details that companies discover about a potential customer. In order to find sales leads that match customer information, businesses typically create advertising campaigns and use tools like emails and third-party assistance. Contractual individuals or businesses that specialize in lead generation are examples of third-party aid experts. Lead generation is the first step in the sales process, and leads may develop into prospects.
What is a sales opportunity?
A sales prospect who is highly likely to buy a good or service is considered to be a sales opportunity. This indicates that the good or service can meet the expectations and needs of the client. Typically, sales opportunities come before a salesperson closes a deal. Salespeople can concentrate their efforts on customers who are more likely to make a purchase by moving from a lead to a prospect to an opportunity.
Lead vs prospect vs opportunity
Salespeople have the chance to build relationships with each type of potential customer, but in order to do so effectively, it’s crucial to understand their characteristics. These include:
1. Conducting research
A salesperson may use research to gather details about clients at various stages so they can choose the best course of action. Conducting sales research can be done in a variety of ways, such as through surveys, emails, and data analysis. For instance, surveys are a crucial first step in identifying sales leads because they give information about the target audience’s personality. This may enable a salesperson to establish a stronger connection with a client and encourage them to purchase from the next category or item.
2. Making calls
At every stage, salespeople can speak with customers on the phone. For instance, a discovery call is typically the second contact made with a prospect after sending them an initial email to build a connection with them. During prospect calls, salespeople have the opportunity to ask the prospect vital questions about their needs, challenges, and goals and relate the inquiries to the goods or services they provide. By building a relationship with the potential client, these calls also have the potential to establish the tone for pre- and post-sale relationships.
A call can also serve as the initial sales qualification step to see if a lead or prospect has the potential to develop into an opportunity. It’s crucial to have a constructive, two-way conversation and ask the right number of questions during these calls.
3. Converting clients
At each stage, a salesperson’s objective is to advance a client to the next level. For example, when a salesperson uses the knowledge from research to transform a sales prospect into an opportunity, they may employ different strategies for each category. It’s critical to determine whether the lead has the authority to make the final purchase decision or if another stakeholder has that authority.
4. Gaining benefits
Sales professionals can benefit from pursuing customers at each stage. Depending on the potential client’s interests and budget, these advantages vary. The following are some of the various advantages salespeople may receive:
5. Using BANT
Professionals use the mnemonic BANT to streamline the sales qualification process. It stands for budget, authority, need and time. In each stage of the potential client process, use the following strategy:
FAQ
What is the difference between a lead and an opportunity?
A Lead is a person who is a sales prospect. An opportunity is a particular sales deal that is being pursued, along with an estimated financial amount. The Lead or Contact record of the person you want to do business with will be connected to the Opportunity record.
How does a lead qualify as a prospect?
Asking the right questions will help you determine whether a lead is qualified. Check to see if the client fits the profile for your product and if the lead is a decision-maker. A sales presentation, an initial cold call, or both can qualify prospects.
What is prospect opportunity?
Sales prospecting is the process of locating potential customers as well as all the mechanisms for nurturing them, whereas lead generation is all about how a lead is made. Sales prospecting is largely a manual process in which a salesperson looks for potential new clients on their own.
