The sales process

One key aspect of a successful business is the ability to consistently identify new sales opportunities. Proactively generating sales leads increases selling opportunities and helps maintain a steady order book.

Mapping your territory

Before you start sourcing leads, decide which geographic areas and industries you will target. If your product or service could be widely used, start locally and target particular geographical areas. If you have a niche product or service, focus on specific companies.

How to source new sales leads

There are many ways to find new leads, such as:

• initiated leads – prospects who actively contact you, for example by filling out a website form, visiting your stand at a trade show, or responding to an advertisement or mailshot
• profile fitting – using market research tools to identify ideal customers profile who are likely to be a match for your company's products
• market monitoring – monitoring media outlets, such as news articles, internet forums and corporate press releases
• canvassing – cold-calling in-person, by telephone or by email
• data mining – reviewing information your business already holds to identify possible new leads, for example from a corporate database
• personal and professional contacts – asking for or incentivising referrals from existing customers, suppliers or acquaintances and through networking
• promotions – using free gifts to encourage potential leads to provide contact information or attend a sales meeting

Qualifying sales leads

Deciding whether a sales lead has the potential is known as qualifying. There are many reasons why some leads may not be successful, including:

• difficulty meeting a prospect’s needs – where requirements may be too complex or costly to deliver
• needs already being met – where the prospect has already purchased a similar product or service
• lack of available finance – where a prospect needs the product but cannot afford it
• lack of decision‑making authority –where the contact cannot approve the purchase

Using databases to keep track of leads

Using a database allows you to record lead information, track contact history, and identify patterns of success. See benefits of databases.

You can also buy a database of business leads from a variety of suppliers. These can be expensive, and you may need to employ staff to help manage them, depending on the size of the list. Using a CRM system can help you organise leads efficiently, automate follow-ups, and analyse sales performance.