Generally, a prospect is someone that you have not worked with before, but you are pursuing an active opportunity with them.
This means there’s potential for business, but they have not actually made a purchase or a commitment yet.
A lead, however, has made a point of engagement prior to your connection with them.
For most companies, a lead is someone that you have identified or they have identified themselves as being a fit for your company’s product or service.
This definition does not apply to all companies, though. You may elaborate, change, or come up completely with your own definition.
Remember, this is okay and even encouraged.
Among differing organizations and companies, you will have different definitions applicable to your processes. That’s what happens!
What works for your organization may not work for another.
An opportunity, on the other hand, generally falls under the definition of being an account or contact that has been qualified.
This person has entered into your buying cycle and is committed to working with you. You have already contacted, called or met them and know their needs or requirements.
If you’re having trouble coming up with your own Opportunity definition to fit your customized needs or this one doesn’t quite fit, ask yourselves the following questions:
- What information do you want to gather for Opportunities?
- Does each opportunity type follow a different sales process?
- Are there multiple stages for the Sales Process?
- What are the key questions and information needed in each stage?
When you answer these questions, you can more clearly and effectively define Opportunities for your organization.
As you start tracking opportunities, you may come up with various types for your company.
Dive deeper into the topic of lead and opportunity definitions with Ledgeview when you download our new eBook, “From Lead to Opportunity: Defining Your Process.”