When firms determine whether leads are qualified, what is this process called?

The process by which firms determine whether leads are qualified is referred to as lead qualification. This is a crucial step in the sales process since it helps sales teams focus their efforts on prospects that have a higher likelihood of converting into paying customers. During lead qualification, sales representatives assess various factors such as the lead's needs, budget, authority, timeline, and overall fit with the company's offerings.

By systematically qualifying leads, organizations can prioritize their resources and tailor their sales strategies to align with the specific characteristics of each lead, ultimately improving the efficiency of their sales efforts. This approach ensures that time and effort are not wasted on leads that are unlikely to result in a sale, thus enhancing overall sales productivity and better allocation of sales team resources.