What Is A Prospect?

In this post you’ll learn the answer for the questions: what is a prospect?, what is the difference between a prospect and a costumer? and why does it matter?

In marketing and business in general, there exists a set of terms frequently mentioned, and although they might seem to be intuitive to understand, in our heads, they exist in a Grey area. We kinda know what they mean or what they stand for, but we don’t truly understand them. This set of terms are like the fourth dimension: we know it exists but for some reason we can’t honestly say we know what it is(how it looks like). Luckily, unlike the fourth dimension, this mysterious set of business/marketing terms can be understood if properly explained. One of the most famous is the term “prospect”, which can very easily be confused with “costumer” since they are often used interchangeably.

 

What is a prospect?

A prospect is nothing more and nothing less than a potential costumer. In the world of dating, a prospect would be that person who is at the same time more than a stranger/friend, and less than a lover. The possibility is there but nothing is certain.

What is the difference between a prospect and a costumer?

The difference between a prospect and a costumer is that they represent two different phases of a sales funnel. In the beginning of the sales funnel, the costumer is not a costumer yet, but a potential costumer(a prospect). In the end on the other hand, depending on how the sales funnel is set up, the prospect is not just a prospect anymore, but a costumer. This is assuming that the goal of making a sale was achieved. Using the dating analogy, the moment the prospect becomes a costumer(the moment the sale is made) is the moment the potential partner becomes our partner.

 

Why does it matter to know the difference?

Its important to know the difference between a prospect and a costumer because in order to get the sale, different strategies are applied to each of them. According to the costumer purchase cycle, in the beginning of the cycle we have a prospect. Which is a person who doesn’t know what to buy to fix his/her problem or doesn’t know what to buy. Here, he/she needs to be lectured about the problem and informed about why the product is the ideal solution for his/her problem. In the end of the costumer purchase cycle however, he/she not only knows what product can solve his/her problem but also wants to buy it. Here he/she is only looking for the place to place the order.

 

This is the reason why its very important to know the difference between a prospect and a costumer. The better you understand it as well as the costumer purchase cycle, the better and more appropriate your marketing strategy will be.

 

 

 

 

 

 

It is all about knowledge and experience;)

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