What does prequalification refer to in the sales process?

Prequalification in the sales process refers to the step where potential leads are evaluated to determine whether they meet specific criteria that indicate they are likely to become customers. This involves assessing factors such as their budget, need for the product or service, authority to make purchase decisions, and the timing of their potential purchase. By prequalifying leads, sales teams can ensure that they focus their efforts on those prospects who have a higher likelihood of conversion, thus improving efficiency and effectiveness in the sales process.

The act of determining if leads are qualified before passing them to sales helps in streamlining the sales funnel. It saves time for sales representatives, allowing them to dedicate their resources to leads that are more likely to result in successful sales. This step is essential in building a sales pipeline that is both productive and manageable.