Definition
A prospect is a potential qualified customer (an individual, household or organization) who has the willingness, financial capacity, authority, and eligibility to buy what the salesperson is offering. [1]
Prospecting is the process of identifying and contacting potential customers. [2]
Qualifying is the process of determining whether a person or group has the characteristics needed to be classified as a prospect. [1]
A sales lead is an inquiry or referral about a prospect. Lead generation is the process of collecting contact information and extracting potential sales leads. [1]
Sales Prospecting Methods [1]
Benefit approach – The salesperson states a benefit of the good or service that will satisfy a prospect’s need.
Center of Influence Method – The salesperson cultivates well-known, influential people who are willing to provide sales leads.
Club plan selling is an arrangement in which a consumer is awarded prizes or granted discount buying privileges by getting new customers to join the club. The club is the group of customers served by the selling organization, and one joins by making purchases.
Coercive influence strategy is a means of communication that puts direct pressure on the target to perform a specific behavior or set of behaviors with adverse consequences of noncompliance stressed or implied and mediated by the source.
Cold calling or cold canvassing – The salesperson calls on totally unfamiliar organizations and prospects.
Curiosity approach – The salesperson arouses the prospect’s interest by making a statement that piques the prospect’s curiosity.
Endless Chain Method – The salesperson asks customers to suggest other customers who might be interested in the salesperson’s offerings.
Introduction approach – The salesperson simply states their name and the name of their company.
Product approach – The salesperson demonstrates product features and benefits as they approach the prospects.
Referral approach – The salesperson uses the name of a satisfied customer or friend of the prospect (a referral) to begin the sales presentation.
See Also
Sales
Sales call
Sales engineer
Sales force compensation
Sales force evaluation
Sales management
References
- American Marketing Association, AMA Dictionary.
- Sales Prospecting: Definition and 6-Step Guide (2024) – Shopify