What are leads in the context of sales prospecting?

Leads in the context of sales prospecting refer to potential customers who may be interested in a product or service. These individuals or entities represent the initial stage of the sales process, where the goal is to identify and qualify prospects who have shown some level of interest or fit within the target market. By generating leads, sales teams can focus their efforts on nurturing these relationships, ultimately aiming to convert leads into paying customers.

In sales and marketing, leads are crucial because they provide a foundation for outreach efforts. Sales teams typically use various strategies and tools to obtain leads, such as networking, online marketing, content marketing, and referrals. Understanding the difference between leads and other roles within a company—such as marketing personnel or after-sales service employees—highlights the specific focus of leads as potential buyers rather than individuals already involved in facilitating sales or handling customer service.