What is a prospect in sales terminology?

In sales terminology, a prospect refers to a lead that is likely to buy what is being sold. This means that a prospect is not just any potential buyer, but rather someone who has been identified through research or qualifying processes as having a higher likelihood of making a purchase. This qualification can be based on various factors such as their needs, interest, timing, financial capability, and fit with the product or service being offered.

Understanding the distinction between a prospect and other entities in the sales process is important. For instance, a random visitor to a store does not necessarily have the intent or potential to purchase anything, which differentiates them from a prospect. Similarly, a customer who has previously purchased might be viewed as a repeat customer rather than a prospect for new sales opportunities. Lastly, a contact within a company may not be a decision-maker or a buyer, so they do not fit the definition of a prospect unless they show potential to convert into a sale. Thus, defining a prospect accurately helps sales professionals focus their efforts on those individuals or organizations that are most likely to result in a sale.