A prospect, often referred to as a lead, is a potential customer that a company has identified as being interested in its products or services. Leads are the first step in the sales process, where the company collects contact details and assesses the likelihood that the prospect will become a paying customer.
In short
Get a quick overview.
A prospect, often referred to as a lead, is a potential customer that a company has identified as being interested in its products or services. Leads are the first step in the sales process, where the company collects contact details and assesses the likelihood that the prospect will become a paying customer.
1Cold leads: People or companies that have not yet shown any concrete interest, but match the target audience.
2Leads can be generated in many ways, including via digital channels such as websites, social media, SEO, paid advertising and email marketing.
3Once a lead has been identified, the company gathers additional information and assesses the lead’s relevance.
The key angles on the term.
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Types of leads
Cold leads: People or companies that haven’t yet shown any concrete interest, but match the target audience.
Warm leads: Prospects that have shown some interest, for example by signing up to a newsletter or attending a webinar.
Hot leads: Leads that have shown clear and current buying intent, for example by requesting a quote or getting in touch directly.
Overview
How are leads generated?
Leads can be generated in many ways, including via digital channels such as websites, social media, SEO, paid advertising and email marketing, or through more traditional methods such as networking events, trade fairs and cold calling.
From prospect to customer
Once a lead has been identified, the company gathers additional information and assesses the lead’s relevance. This is often called lead qualification. After that, the sales team can work in a targeted way to convert the prospect into an actual customer through dialogue, quoting and follow-up.
More details
More detail and examples.
Leads are the foundation of a scalable sales process. Without a steady inflow of relevant leads, it becomes difficult to build pipeline, forecast revenue and ensure ongoing growth. That’s why many companies work systematically with lead generation, lead scoring and qualification, so sales efforts are focused on the most promising contacts.
In B2B sales, prospects are often used as a key control point in CRM systems, where you record contact details, needs, dialogue history and next steps. This provides a better overview of the entire customer journey and increases the likelihood of conversion. When a company works with leads in a structured way, it becomes easier to prioritise resources, improve follow-up and turn interest into concrete customers and sales.
Impact on businesses
Effective handling of prospects is crucial for growth and sales. Companies that work systematically with leads typically use a CRM system to keep track of contact history, follow-up and sales status. This ensures no opportunities are missed, and that the sales process can be optimised.
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