In sales, what does 'closing' refer to?

Closing in sales specifically refers to the process of finalizing a sale with a customer. It involves the salesperson guiding the customer through the decision-making process and encouraging them to commit to the purchase. This stage is crucial because it often determines whether a prospect becomes a customer. Effective closing techniques can include addressing any final objections, summarizing the benefits of the product or service, and prompting the customer to take action, such as signing a contract or making a payment.

This is distinct from other activities in the sales process, such as establishing rapport with clients, which focuses on building relationships, or generating new leads, which involves attracting potential customers. Conducting follow-up calls, although important for maintaining relationships and ensuring customer satisfaction, occurs after a sale has been made and is not part of the closing process itself. Thus, understanding that closing is specifically about completing the transaction clarifies its significance in achieving sales objectives.