What does the term 'prospect' refer to in business terms?

In business terminology, the term 'prospect' specifically refers to potential customers who have shown interest in a company’s products or services but have not yet made a purchase. This group is important for businesses as they represent opportunities for growth and revenue. Marketing and sales teams often target prospects to convert them into active customers.

Understanding who qualifies as a prospect is crucial for developing effective marketing strategies, as these individuals or organizations may meet certain criteria or display behavior indicating that they are likely to buy in the future. This contrasts with past customers, who have already made purchases, inactive customers, who are no longer actively buying but may have in the past, and suppliers, who provide goods or services to the company rather than being on the receiving end of purchases.