7 Ways to Turn a Lead into a Prospect

What is the difference between a lead and a prospect? This is a common question that many marketers and salespeople face when they are trying to generate more business. In this article, we will explain the difference between these two terms, and how you can turn a lead into a prospect with some effective strategies.

Key Takeaways

A lead is someone who has shown some interest in your product or service, but has not yet qualified as a potential customer.

A prospect is someone who has met some criteria that indicate they are likely to buy from you.

The difference between a lead and a prospect determines how you should communicate with them and what kind of content you should provide them.

You can turn a lead into a prospect by segmenting them, scoring them, nurturing them, following up with them, qualifying them, persuading them, and motivating them.

You can use various tools and techniques to turn more leads into prospects and increase your sales.

Lead

A lead is someone who has shown some interest in your product or service, but has not yet qualified as a potential customer. For example, a lead could be someone who visited your website, downloaded your ebook, or signed up for your newsletter. A lead is not ready to buy from you, but they are aware of your brand and what you offer.

Prospect

A prospect is someone who has met some criteria that indicate they are likely to buy from you. For example, a prospect could be someone who has a specific need, a budget, and a decision-making authority. A prospect is ready to engage with you and move forward in the sales process.

The difference between a lead and a prospect is important because it determines how you should communicate with them and what kind of content you should provide them. A lead needs more education and nurturing to become interested in your solution, while a prospect needs more persuasion and proof to become convinced of your value proposition.

So how can you turn a lead into a prospect? Here are some ways to do it:

1. Segment your leads based on their behavior and interests

You can use tools like Google Analytics, HubSpot, or Mailchimp to track how your leads interact with your website, emails, and social media. Based on their actions, you can assign them to different segments and tailor your messages accordingly. For example, if a lead downloaded your ebook on how to improve their SEO, you can send them more content related to SEO best practices and case studies.

2. Score your leads based on their level of engagement and readiness

You can use tools like Leadfeeder, Pardot, or Marketo to assign points to your leads based on their behavior and profile. For example, you can give more points to leads who visited your pricing page, filled out a contact form, or opened your email multiple times. Based on their score, you can prioritize the most qualified leads and focus your efforts on them.

3. Nurture your leads with relevant and valuable content

You can use tools like ActiveCampaign, Constant Contact, or AWeber to create email campaigns that deliver useful information and resources to your leads over time. For example, you can send them blog posts, ebooks, webinars, or podcasts that address their pain points and challenges. The goal is to build trust and credibility with your leads and move them along the buyer’s journey.

4. Follow up with your leads promptly and consistently

You can use tools like Calendly, Acuity Scheduling, or ScheduleOnce to schedule calls or meetings with your leads at their convenience. For example, you can invite them to book a free consultation, a product demo, or a trial offer. The goal is to establish a personal connection with your leads and understand their needs and goals better.

5. Ask qualifying questions to identify the prospects

You can use tools like Typeform, SurveyMonkey, or Qualtrics to create surveys or quizzes that ask your leads some key questions that reveal their qualification status. For example, you can ask them about their budget, timeline, decision-making process, or current situation. The goal is to filter out the leads who are not a good fit for your solution and focus on the ones who are.

6. Provide social proof and testimonials to persuade the prospects

You can use tools like Trustpilot, Yelp, or Google My Business to collect and display reviews and ratings from your existing customers. For example, you can show them how satisfied your customers are with your product or service, how much they improved their results or solved their problems, or how much they recommend you to others. The goal is to overcome any objections or doubts that your prospects may have and convince them of your credibility and authority.

7. Create a sense of urgency and scarcity to motivate the prospects

You can use tools like Deadline Funnel, Thrive Ultimatum, or Evergreen Countdown Timer to create time-limited or quantity-limited offers that entice your prospects to take action sooner rather than later. For example, you can offer them a discount, a bonus, or a guarantee if they buy from you within a certain period of time or before the stock runs out. The goal is to create a fear of missing out (FOMO) and prevent them from procrastinating or delaying their decision.

By following these seven ways, you can turn more leads into prospects and increase your chances of closing more sales.

Tips

To turn a lead into a prospect, you need to provide them with relevant and valuable content that educates them, builds trust with them, and persuades them.

To turn a lead into a prospect, you need to communicate with them promptly and consistently, and establish a personal connection with them.

To turn a lead into a prospect, you need to ask qualifying questions that identify their needs, goals, challenges, and pain points.

To turn a lead into a prospect, you need to provide social proof and testimonials that showcase your credibility and authority.

To turn a lead into a prospect, you need to create a sense of urgency and scarcity that motivates them to take action.

What is the difference between a lead and a prospect?

If you are in the business of sales or marketing, you may have heard the terms lead and prospect used interchangeably. However, these two terms actually refer to different types of potential customers who are at different stages of the sales funnel. Understanding the difference between a lead and a prospect can help you optimize your sales process and increase your conversion rate.

Lead: An unqualified contact

A lead is someone who may fit your target market but is not ready to buy just yet. Through your own research, you’ve handpicked (literally, or through automation) a pool of people who may fit your target market. If the lead is responsive to your offer, there’s a good chance they’ve become a prospect.

Some examples of leads are:

People who subscribe to your email list
New LinkedIn connections
Followers who engage with you on social media
People who visited your website

Leads take action to indicate interest in your brand, but they don’t always indicate interest in buying right away. Most leads are unqualified, which means they haven’t expressed interest in buying anything right now — and you have no proof that they’re a fit for your business. Even so, they’re familiar with your business and its solutions.

Prospect: A qualified lead

A prospect is a qualified lead. To qualify a lead, you engage with them in some way and realize that they’re a match with your ideal customer profile. At this stage, the prospect is interested in your brand, but they might not express interest in buying anything just yet.

Some examples of prospects are:

A lead you spoke with on the phone
Someone who replied to an email
Someone who clicked on a link to visit one of your channels
Someone you spoke to at a trade show

Prospects have likely already engaged with your marketing or sales team and have a high chance of graduating to a qualified sales opportunity. A prospect, by engaging with your company, has indicated a level of interest; therefore, they are considered “qualified” as likely to become a new customer.

Global demand for leads and prospects

The global demand for leads and prospects is driven by the need for businesses to grow their customer base and revenue. According to a report by Grand View Research, the global lead generation market size was valued at USD 3.86 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 8.6% from 2021 to 2028.

The report also identifies some of the key factors that influence the demand for leads and prospects, such as:

The increasing adoption of digital marketing channels and tools
The rising competition among businesses across various industries
The growing need for personalized and targeted communication with potential customers
The emergence of new technologies such as artificial intelligence, machine learning, and big data analytics

The report also segments the global lead generation market by service type, vertical, and region. Some of the major service types include online lead generation, telemarketing services, email marketing services, social media marketing services, and others. Some of the major verticals include IT and telecom, healthcare, education, manufacturing, retail, and others. Some of the major regions include North America, Europe, Asia Pacific, Latin America, and Middle East and Africa.

Frequently Asked Questions:

Q1: What is the difference between inbound and outbound leads?
A: Inbound leads are those who come to you through your own marketing efforts, such as your website, blog, or social media. Outbound leads are those who you reach out to through your own sales efforts, such as cold calling, emailing, or advertising.

Q2: What is the difference between B2B and B2C leads?
A: B2B leads are those who are interested in buying from you as a business, such as another company, organization, or institution. B2C leads are those who are interested in buying from you as a consumer, such as an individual, household, or family.

Q3: What is the difference between cold and warm leads?
A: Cold leads are those who have not shown any interest in your product or service, and have not given you any permission to contact them. Warm leads are those who have shown some interest in your product or service, and have given you some permission to contact them.

Q4: What is the difference between MQL and SQL?
A: MQL stands for marketing qualified lead, which is a lead that has been nurtured and educated by the marketing team and is ready to be handed over to the sales team. SQL stands for sales qualified lead, which is a lead that has been validated and verified by the sales team and is ready to be closed as a customer.

Q5: What is the difference between lead generation and lead conversion?
A: Lead generation is the process of attracting and capturing potential customers for your product or service. Lead conversion is the process of turning those potential customers into actual customers by persuading them to buy from you.

References:

http://neo.sci.gsfc.nasa.gov/view.php?datasetId=SEDAC_POP

http://neo.sci.gsfc.nasa.gov/view.php?datasetId=MCD12C1_T1

https://doi.org/10.5194%2Fhess-11-1633-2007

http://neo.sci.gsfc.nasa.gov/dataset_index.php

http://neo.sci.gsfc.nasa.gov/view.php?datasetId=TRMM_3B43M

https://prospect.org/videos/david-dayen-on-rolling-stone-useful-idiots/

https://about.crunchbase.com/blog/lead-vs-prospect/
https://business.adobe.com/blog/basics/learn-the-difference-between-a-sales-lead-and-prospect
https://www.benchmarkone.com/blog/what-is-the-difference-between-leads-and-prospects/
https://www.grandviewresearch.com/press-release/global-lead-generation-market