Glossary
Opportunity
An opportunity is a qualified sales prospect that has a realistic chance of becoming a customer.
Businesses use opportunities to track potential sales, manage follow-up activities, and monitor progress through the sales pipeline.
Quick Reference
Definition
An opportunity is a potential sale that has progressed beyond an initial lead and has been identified as having a reasonable chance of becoming a customer. Opportunities are typically created after a business has determined that a prospect has genuine interest, a need for the product or service, and the ability to move forward with a purchase. Most CRM systems use opportunities to organize and track active sales conversations.
Why This Term Matters
Not every lead becomes an opportunity. By identifying qualified opportunities, businesses can focus their time and resources on prospects that are most likely to result in sales. Tracking opportunities also helps businesses forecast revenue, prioritize follow-up activities, and better understand the health of their sales pipeline.
How It Works
A person typically begins as a lead after expressing interest in a business. As conversations continue and more information is gathered, the business determines whether the lead is a good fit. Once qualified, the lead becomes an opportunity and is moved into the sales pipeline. Throughout the sales process, the opportunity progresses through stages such as proposal, negotiation, and closed, allowing the business to monitor its status until the sale is either won or lost.
Examples
- A business receives a website inquiry and determines the prospect has both the budget and need for its services, creating a new sales opportunity.
- A consultant completes a discovery call and moves the prospect into the proposal stage of the sales pipeline.
- A software company tracks active opportunities as potential customers evaluate different subscription plans.
Related Business Functions
Related Business Models
Related Terms
Frequently Asked Questions
What is an opportunity?
An opportunity is a qualified prospect that has a realistic chance of becoming a customer and is actively being managed through the sales process.
What is the difference between a lead and an opportunity?
A lead is someone who has expressed interest in a business. An opportunity is a lead that has been qualified and is actively being pursued as a potential sale.
Why do businesses track opportunities?
Tracking opportunities helps businesses organize sales activities, prioritize follow-up, forecast revenue, and monitor progress through the sales pipeline.
Can an opportunity become a customer?
Yes. If the opportunity successfully moves through the sales process and completes a purchase, it becomes a customer. If not, the opportunity may be marked as closed without a sale.
Final Thoughts
Understanding opportunities helps explain how businesses manage potential sales from qualification to completion. Opportunities connect leads, CRM systems, sales pipelines, consultations, proposals, and customer relationship management into an organized process that helps businesses focus on prospects with the greatest likelihood of becoming customers.