Get a group of business people in a room and ask about leads and you will get varying definitions. That’s fine if you are at a networking event, but if your own business can not agree on definitions you will find your sales process hampered before you even begin.

Branding might define a lead as someone warm towards the brand.

Marketing might define someone as in the target demographic, or perhaps someone who has read the materials.

Sales is only interested in people ready to buy, but even then (often depending on how their targets are determined) might disagree on strict definitions. Is someone in the market a lead, or do they have to have contacted you? Should they be about to buy, or do they have to have expressed an interest in buying from you?

Without getting to the bottom of all this how can you possibly track and tune your sales process? How can your marketing link up to sales? Are you ever going to be able to create a qualification system if nobody can agree on what a qualified lead looks like?

What is the minimum your people should agree on?

1. You have contact information
2. You have permission to contact them
3. They are in the market

On the last I would go even further and say they should be ready to buy.

Personally I prefer to use the following phrases

• Suspect – Someone you have identified to be in your target group.
• Prospect – This person is a suspect who has interacted in some way. A warm prospect will have requested information, opted-in to a list or granted some other permission for follow up.
• Lead – A prospect becomes a lead when the need for your service is expressed. This might be explicit or implied (discussing product in detail).
• Customer – Customers are people who have bought from you in the past. Past customers are often your best prospects for the future.

It doesn’t matter if you agree with me, you just need to be sure within your business of your own definitions.

How do you define leads in your business?