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]
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]
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.
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 to begin the sales presentation.
References
- American Marketing Association, AMA Dictionary.
- Sales Prospecting: Definition and 6-Step Guide (2024) – Shopify