In sales terminology, what is a lead?

A lead is defined as a potential customer who has shown interest in a product or service. This interest can manifest in various ways, such as through inquiries, engagements with marketing content, or sign-ups for newsletters. The identification of leads is a critical step in the sales process because it allows sales professionals to focus their efforts on individuals or entities that have demonstrated some level of awareness or interest in what is being offered.

In contrast, options that describe a current customer making regular purchases, an analysis of competitors, or a marketing strategy focused on existing customers describe different aspects of the sales and marketing process but do not pertain to the concept of a lead. While current customers may provide valuable insights for upselling or referrals, they are not classified as leads, which specifically refer to individuals who have yet to become customers. Understanding this distinction helps clarify the roles of different participants in the sales process and emphasizes the importance of nurturing leads toward conversion.