Are you wondering about the difference between lead vs prospect?
As a sales professional, you know leads and prospects are the backbones of your business. Without leads and prospects, you will not make many sales, which will result in little to no revenue. Ultimately, a lack of sales can result in business failure.
However, you might be wondering about the difference between a lead vs prospect. To many people, lead vs prospect is close enough to seem like the same person.
However, leads are much different than prospects. By knowing the difference, you can improve your sales plan and turn prospects into loyal customers.
If you are wondering what the differences are between sales and prospects, this short and simple guide is for you.
Target Market
One major difference between a lead and a prospect is how well they fit into your target market. For example, if your target market is consumers who love coffee, a lead will maybe drink a cup a day while a prospect will drink coffee, purchase coffee-related items, join coffee groups online, and more.
Place On the Sales Funnel
The most noticeable difference between a lead and a prospect is where they are in your sales funnel. Leads are further up the funnel, they are aware of your company but not yet convinced. As your lead moves down the funnel they become a prospect, someone who is actively engaging with your brand.
Qualifications
Another difference between leads and prospects is their qualifications. You can move a lead to a prospect when they are your target market and have the intent and authority to buy. This is called qualification and itβs a process every lead must go through.
Communication
One clear difference between a lead and a prospect is the type of communication you have. A lead has one-way communication while a prospect has two-way communication.
For example, if you are a moving company and have reached out to a company that provides moving leads 101, you are now a prospect because there is two-way communication.
Intent To Buy
One of the most common differences between leads and prospects is their intent to buy. A lead might be interested in your company with no intent to buy. However, a prospect wants to buy from your company and has every intent to do so.
Authority To Buy
Authority to buy is another difference between leads and prospects. A lead might be interested in your services but doesnβt have the authority to buy them. However, a prospect is someone who has the authority and is usually referred by the lead.
Lead vs Prospect: This Is the Difference
If you have been confused about a lead vs prospect, this guide is for you.
One of the main differences between leads and prospects is how they fit into your target market and where they are in your sales funnel. Other differences include their qualifications, communication, and intent to buy. If you are not sure if someone is a lead or prospect, consider their authority to buy your product or service.
By knowing the differences between leads and prospects, you can make more sales overall.
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