The High Cost of Ambiguity

In sales, words matter. Ambiguity can eat you alive.

 Ambiguity impacts your close rates, reputation, and profitability.

 So I’m always surprised when I hear people refer to their Leads or Prospects as a “Client”.

 Here’s some clarity. I hope it helps.

 Opportunities are created in your marketing funnel then move on to your sales pipeline.

 The progression goes like this:

Suspect -> Lead -> Prospect -> Client

Suspects and Leads live in your marketing funnel until they know about you and they’ve been qualified.

Prospects live in your sales pipeline.

Clients live in your book of business.

To put a finer point on it:

Suspect – someone who needs what you offer but is not yet aware of you or your business.

Lead – someone who needs what you offer and has shown interest in your offering, but you haven’t qualified them yet.

Prospect – someone who needs what you offer, has shown interest in your offering, and you’ve qualified them.

Client – the Decision Maker’s signature is on a contract and the check has cleared.

I don’t call anyone a Client until they meet those criteria.

There are obviously other ways to define at these terms.

What's important is that you and your team share a sales vocabulary. If you don’t then you're courting ambiguity and are likely creating self-inflicted wounds that can drain your energy and your profits. You’re hurting your sales culture.

To download a copy of SellWell’s glossary of sales terminology follow this link.