Question

Explain the difference between a lead and a prospect. Then explain where salespeople find prospects and what methods could be used.

Answer 1

Prospect: A prospect is a person whom we are enquiring and contacting to check if he/she has the need for our services. A prospect has to be contacted and questioned for whether he really requires our product or services. While questioning a prospect, the right set of responses and timing reveals whether he will buy our product. On an average, out of 100 people prospected, 20 show interest for further discussion.

Lead: A lead is a person who shows interest to be contacted further for the discussion regarding the product or service. Out of the 100 people prospected, if 20 people show interest for further discussion, then these are called as leads. A lead is further contacted by salespeople and entered in a discussion to make sure the person buys our product and a sale is recorded. Out of 20 leads, generally speaking, 5 people confirm to buy and 2 people really buy a product or service.

Where salespeople find prospects?

Salespeople can find prospects as per their target audience. Some common places are Shopping malls, open areas, through specific institutions like corporate offices or channels like telephonic prospecting.

What methods can be used to prospect?

Salespeople can use various methods to prospecting such as:

1. In-person: This type of prospecting is done through the open market like shopping malls, public areas etc. This is a very time-consuming process and often the conversion rate is low.

2. Telephonic: Through this method, we can contact various prospects through telephonic means and convert them into leads. This takes less tie and energy as compared with the in-person prospecting and results are low conversion.

3. Specific channels: Through specific channels, we can target various prospects like corporate HR, school teachers, and online media. Since this method is targeted to a specific audience, the conversion ratio is higher and the efforts required are low.