January 21, 2022

The Insider's Guide To Lead Vs Opportunity

If you are looking for a full comparison between lead vs opportunity, then this article is for you.

Contents

Leads are great, and they come in all shapes and sizes. Sometimes you get a lead that is worth talking to. Sometimes you have an opportunity because of a lead.

According to the dictionary, a lead is “a person who follows another person”.

But it has no mention of an opportunity. Do you remember the saying “opportunity knocks only once?” The problem with this saying is that it doesn't have a meaning. 

Opportunity can be defined as "a chance to achieve something". For example, a CEO may see an opportunity and take action on it because he thinks that the chance is significant enough to justify the risks involved. However, it is very much important for every organization to understand the key differences between lead vs opportunity.

Read this article to get a full comparison of lead vs opportunity.

 

What is a Lead?

 

A lead is a representation of a business opportunity or customer that you are trying to persuade into taking action.

 

The sales opportunities are close to deals that guarantee sales. A sales opportunity is an opportune moment when a customer needs our product so much and there is a value exchange between the buyer and you.

In the sales process, lead is a type of early stage buyer.

A sales process begins with the identification of potential customers or clients who are in need and have expressed interest to purchase products or services.

The sales process may also be known as the Selling Funnel, SDR (Sales Development Cycle), SDI (Sales Development Representative), Stage-Gate Approach, Pipeline Management System etc. 

When applied to businesses this concept can help companies increase sales by focusing on where they want leads coming from i.e

A lead must pass some sales qualification criteria to become an opportunity.

A sales qualification criteria is a list of items that are important to the qualification process

It can be either extensive or simple, and should not be entirely rigid for obvious reasons (it will change with time).

A checklist like “Has this person purchased from you before?” 

May seem like the most basic criterion, but if you have a very small business where delivery dates often conflict it might prove insufficient when faced with someone who has had no prior experience.

Low lead generation is not an option, it's one of the most important parts of your marketing strategy. 

So how do you develop good leads? 

I've talked earlier about lead generation best practices like generating qualified leads and making sure that every lead produced gives a high chance to convert.

The lead could be from your website or email marketing campaign, but it's still not considered closing yet because there has not been any dialogue between the two parties (salesperson/customer). 

A lead can be your direct contact, as in an organization where I work with the whole team or someone on Twitter whom I know or follow. 

You’ll search for leads by name and industry just like in any other CRM system.

Emailing out leads to other employees (inviting new customers)

Creating templates and email sequences (notifications). 

This way it’s easier for salespeople to customize their emails accordingly

 

What is an Opportunity?

 

An opportunity is a single-use document used to track and manage the sales cycle of your leads. 

Salesforce opportunities are created with one goal in mind.

To capture qualified prospects and convert them into paying customers.

 

Opportunities can be classified as standard, advanced, or custom types based on their unique information requirements. 

For example, you might create an Opportunity Records step if only basic lead data is required (which enables you to import lead data directly from your source program) 

While creating an Opportunity Type step if additional functionality such as direct downloads must be enabled.

 

When to convert a Lead to an Opportunity?

 

When you have a lead, you can use sales intelligence to predict how likely that lead is to become an opportunity.

If the likelihood of conversion isn’t high, then sell the lead as a regular customer by marketing relevant products or services to them.

 

 

You want the full potential of all your leads and opportunities accounted for in each cycle.

You should always be working on converting prospects into new customers at least once every month or two—even if they haven’t converted yet.

 

Lead vs Opportunity: Explained

 

Leads are composed of people and businesses who have expressed interest in your product or service. 

Opportunities can consist of anyone connected to an existing customer, including references, family and friends, etc. 

The distinction between leads Vs opportunities is subtle—different people may represent the same lead at different times throughout the sales cycle (e.g., a customer meets with one rep while another closes on the deal).

Because leads are numbered and stored as contacts within Salesforce they’re often referred to as "contact records." They're stored in 'Sales' so you'll see them under 'Leads' on your organization's Single Account.

 

Opportunities are all people and businesses who could buy your product or service, regardless of whether they are registered or not.

Keep track of leads and view them through Reports (Data => Opportunities). 

This will give you a better understanding of what types the users will be expecting once CRM is fully deployed to each company employee, departmental team member, manager, etc. 

Opportunity is an advantageous circumstance which deals with the advantages of a situation.

 

Common FAQs

1.What is the difference between lead and opportunity?

Leads are generated by a variety of marketing methods. They are usually referred to as qualified leads.

Opportunities on the other hand are opportunities that have not been yet been converted into an actual sale or lead.

  

2.Which is better: lead or opportunity?

Lead is better than opportunity because there are more ways to generate leads.

For example, you can have an email list and post on social media that offers people free information about your company or blog.

You can also do some marketing research and find out which keywords are the most searched for by your potential customers. You could then create content around those topics in order to generate leads for your business.

 

3.Is a qualified lead an opportunity?

A qualified lead is an opportunity to generate revenue through a sale or partnership.

An opportunity refers to a business, person, product, or event that can help your company increase its revenue.

Opportunities are the key focus of any company's marketing strategy because they represent potential sales.

 

Conclusion

In brief, CRM can be considered as a powerful tool for businesses to manage their business effectively. It helps in managing the data of clients, leads and opportunities and provides an effective way of monitoring customer interactions with the organization.

There are two types of opportunities that the salesperson can face: the opportunity is a business-to-business (B2B) opportunity or the prospect has an existing relationship with your company. 

If you have to deal with B2Bs, then it's called "opportunity as customer" kind. There is no exception in this case also if such people buy into one system and later they change their minds and want to purchase another product again.

A lead can sometimes be defined as a "person who is interested in your product or service," whereas an opportunity includes the people that are actually moving toward purchasing. 

This difference could potentially result in confusion and miscommunication which should always be avoided.

Converting leads into opportunity is an art. Expertising in this can be a huge success.

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