What – s a lead vs an opportunity in CRM? Squirrel Business Hub Melbourne #capsul #crm


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What s a lead vs an opportunity in CRM?

I m often asked what s the difference between a lead and an opportunity?

Let s define both first

LEAD = a contact or company that you ve begun a conversation with is essentially an unqualified sales lead. They usually have no current or past relationship with your company.

OPPORTUNITY = Once there is a budget and a timeline. there must be both, a lead becomes an opportunity. It signals the beginning of your sales process with a potential or existing client.

Many CRM systems allow for contacts as well as leads and opportunities. In a nutshell, CRM contacts are the people that your company will have or already has an on-going relationship. CRM contacts typically had been qualified as a potential sales opportunity at one point. Contacts may also have different types of relationships with your company, such as a supplier or colleague.

The thinking behind separating Leads and Contacts in your CRM is to separate the unqualified sales leads from the qualified sales opportunities. The goal is to keep your sales team from spending time on disinterested leads, and focusing on getting real results for your Sales Pipeline report.

Leads must be contacted by your sales team and either qualified or disqualified as an opportunity. Leads will be converted into accounts, contacts, or opportunities if they are qualified. Otherwise they are deleted or archived.

Opportunities are potential revenue-generating events, or sale to an account, that needs to be tracked through a sales process to completion. The different sales stages the opportunity moves through for example, demo, proposal or review indicate the value of your sales pipeline by sales stage.

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About the Author: Kylie Harker

Squirrel Business Hub founder, Kylie Harker, is a Melbourne based consultant who assists business owners find and implement the best fit CRM and other systems for their business. She knows systems and developing mutually beneficial relationships with your customers will grow your business and bottom line.

6 Comments

I always wondered the difference between the two!

It s a bit tricky really! Somehow an opportunity sounds like it should come first. Glad we helped clarify

QUOTE: In a nutshell, CRM contacts are the people that your company will have or already has an on-going relationship. CRM contacts typically had been qualified as a potential sales opportunity at one point.

Our pleasure! Glad to be of help.

Cyril Balungcas August 10, 2016 at 7:28 am – Reply

in our sales process we use these three terms. lead, opportunity and project. with your explanation, now I fully understand the difference between a lead and an opportunity. now my question. when does an opportunity becomes a project? this is very confusing for me

An opportunity becomes a project after it is Won I think there should then be a series of workflow or tasks to guide the team through the delivery process.