The endless chain method, also known as sales referrals or referral selling is one of the most effective and successful methods in the prospecting element of the sales process. Regardless of the size of the business or the image of the products, salesmen use this method efficiently to increase the all-important prospect base.
The endless chain process begins when an existing customer provides the contact information of another prospect, usually an acquaintance, to a salesperson. The customary method is to ask for a referral after a sale is closed. However, my personal opinion is that a salesperson can ask for a referral any time during the selling process, after the approach stage.
Referral selling is simply asking current customers to refer your product or service to another company or an individual. The salesman leverages the trust built with the existing customer to obtain the information of the new prospect. In my first-hand experience, I can confidently state that sales referrals not only can be the top source for new hot leads but also it has a higher closing rate than leads generated by other prospecting methods.
Referral leads are considered to be better than other methods due to two key reasons. First and foremost, the customer is most likely to know others who run similar businesses, making the lead automatically pre-qualified. Secondly, the salesman is introduced to a new prospective buyer by a satisfied acquaintance, creating a benefit of trust at the…