There is a very slight difference between leads and prospect. Leads are the promising sales contact whereas prospects are more closely linked to an outcome. Lead can be a prospect but prospect can not be a lead.
What is Lead?
A lead is a prospect that needs to be qualified as a real sales opportunity. Once qualified, you convert the lead and the lead becomes an account, contact, and opportunity. (Account record – Company Details, Contact record – Person Details and Opportunity – Sales Details)
Leads can be of two types:
- Offline Leads: generates by the sales executive physically, not from any source of the internet.
- Online Leads:generates by the website or any other internet-based source through the contact us forms, social media, sign-ups etc.
What is Prospect?
Once qualification criteria are met, the lead is then converted into a “prospect”. These criteria may be buying authority, financial capacity and willingness to buy. Prospect is a potential customer who has indicated interest in your goods or services, being offered is not always necessary.
What is the difference?
I hope, now you are able to describe lead and prospect but after reading the below-mentioned points you will also be able to differentiate in both:
Lead is a one-way communication because visitors provide their information through a form or sign up.
The prospect is a two-way communication because it created after contacting by the sales representative. In order to convert lead into the prospect, the lead has to engage in dialog with the representative. This can be in form of emails, phone calls or a meeting.
Leads are typically contacted in large groups or as part of an automated program.
Prospects are generally contacted on an individual or small groups basis and the processes are defined by the company’s marketing department.
Actualization(means conversion of goods or services in cash or receivables through sales.)
Leads take several steps to actualization such as emails, phone calls, customer satisfaction.
Prospects take one step to actualization and the step is the payment process.
Many people use the terms prospect and lead alike. Whereas they both come after the suspect phase, they have different meanings. An individual who can be benefited from your product or services from your target audience known as the suspect.