Which step in the sales cycle is referred to when establishing initial contact with potential clients?

The step in the sales cycle that refers to establishing initial contact with potential clients is best described by the term "referrals." During this phase, sales professionals often leverage existing relationships or networks to identify new clients. Referrals involve reaching out to individuals who may be interested in the product or service based on a recommendation from a mutual contact, which can significantly enhance credibility and establish a connection.

This aspect of the sales cycle is crucial because initial contact sets the tone for the relationship and engagement that follows. It is often easier to connect with potential clients who have been referred, as they may already have a certain level of trust in the salesperson due to the recommendation.

In contrast, the qualification step involves assessing whether the potential client has a need for the product or service and if they have the budget and authority to make a purchase decision. Closing is the act of finalizing the sale, while negotiation pertains to discussing terms and conditions to reach an agreement. These elements come into play after the initial contact has been successfully made.