This stage involves identifying opportunities through various sources. For example, a prospective customer may contact your sales or marketing representative with an inquiry. Alternatively, you may conduct a marketing campaign to attract prospective customers, who come forward with inquiries. All opportunities have a source. It may be an advertisement your organization places in a magazine, a marketing campaign, or a recommendation from an existing customer.

To follow up an opportunity, it is important to first record details of the opportunity, which include the prospective customer details, type and source of opportunity, how you position the opportunity, and the probability of the opportunity becoming actual business. Recording such details helps you evaluate the importance of an opportunity and of following it up.