{"id":125,"date":"2015-07-29T23:42:40","date_gmt":"2015-07-29T23:42:40","guid":{"rendered":"https:\/\/courses.candelalearning.com\/salesx17xmaster\/?post_type=chapter&p=125"},"modified":"2015-07-29T23:42:40","modified_gmt":"2015-07-29T23:42:40","slug":"how-to-use-spin-selling-in-your-sales-call","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/cerritos-sales-1\/chapter\/how-to-use-spin-selling-in-your-sales-call\/","title":{"raw":"How to Use SPIN Selling in Your Sales Call","rendered":"How to Use SPIN Selling in Your Sales Call"},"content":{"raw":"
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Learning Objective<\/h3>\r\n
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  1. Understand SPIN and how to use it during the sales presentation.<\/li>\r\n<\/ol>\r\n<\/div>\r\nIn 1988, Neil Rackham and his company Huthwaite, Inc., researched more than 35,000 sales calls, observing successful and experienced sales professionals doing what they do best. In the process they disproved a number of popular myths about the selling process, and they developed a sales model of their own, which they called SPIN selling.[footnote]Neil Rackham, The SPIN Selling Fieldbook<\/em> (New York: McGraw-Hill, 1996), 8; Greg Woodley, \u201cSPIN Selling Is Good,\u201d SellingandPersuasionTechniques.com, http:\/\/www.sellingandpersuasiontechniques.com\/SPIN-selling.html<\/a> (accessed May 16, 2010).[\/footnote]<\/span> Today sales professionals around the world incorporate the SPIN selling model into their sales process with great success\u2014and if you learn a few simple principles, you can too. The following section describes SPIN selling in a nutshell.\r\n
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    What Is SPIN Selling?<\/h2>\r\nSPIN<\/span><\/span> works from the theory that relationship selling is customer-centric. It requires you to adapt your selling process to your customer, and it delivers personal solutions. To make this work, you have to ask your buyer a lot of questions, let him do most of the talking, and give his responses your full attention.\r\n\r\nIn the SPIN model, there are four components of a sales call: opening, investigating, demonstrating capability, and obtaining commitment. SPIN gets its name from the four kinds of questions that take place during the investigation stage: S<\/strong>ituation, P<\/strong>roblem, I<\/strong>mplication, and N<\/strong>eed-payoff.\r\n\r\nWith smaller sales, these four components of the sale (opening, investigating, demonstrating capability, and obtaining commitment) often happen sequentially and in a short period of time; a customer might walk onto your car lot and commit to buying a car from you an hour later. But often in business-to-business (B2B) sales, especially complex ones, you will incorporate SPIN components into a number of the steps in your selling process. For instance, you will do some investigation during your preapproach, and you might make an early presentation in which you open, investigate, and demonstrate capability. Because larger sales take more time, you won\u2019t close the sale at the end of your first presentation, but you might get a commitment from your customer to move the sale forward. SPIN selling is not a rigid, step-by-step model; rather it provides an effective, flexible framework for customer centered selling.[footnote]Neil Rackham, SPIN Selling Fieldbook<\/em> (New York: McGraw-Hill, 1996), 38.[\/footnote]<\/span>\r\n
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    Opening<\/h2>\r\nAccording to Rackham, the opening<\/span><\/span> of the sales call is not the most important part, but it does pave the way for the important steps that come after.[footnote]Neil Rackham, SPIN Selling Fieldbook<\/em> (New York: McGraw-Hill, 1996), 139.[\/footnote]<\/span> At the beginning of every call, you want to set the preliminaries and make any necessary introductions. (In larger B2B sales, you usually won\u2019t spend very long on introductions because 95 percent of the time you will be meeting with an existing customer or a prospect you have already met.)[footnote]Neil Rackham, SPIN Selling Fieldbook<\/em> (New York: McGraw-Hill, 1996), 40.[\/footnote]<\/span> If you are following up on an earlier sales call, it\u2019s important to recap the conclusions of your last discussion: \u201cThe last time we spoke, we talked about pricing and setting a timeline, and you agreed that you would like to move the sale forward if we could put together a proposal that matched your budget and would meet your deadlines.\u201d Then, most important, you want to begin the conversation by getting your customer\u2019s agreement to let you ask him some questions.[footnote]Neil Rackham, SPIN Selling Fieldbook<\/em> (New York: McGraw-Hill, 1996), 144.[\/footnote]<\/span> This builds rapport and establishes a buyer centered purpose for your call.[footnote]\u201cSPIN Selling,\u201d review of SPIN Selling<\/em>, ChangingMinds.org, http:\/\/changingminds.org\/books\/book_reviews\/spin.htm<\/a> (accessed May 16, 2010).[\/footnote]<\/span>\r\n\r\n<\/div>\r\n
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    Investigation<\/h2>\r\nInvestigation<\/span><\/span>\u2014asking questions to uncover your buyer\u2019s needs\u2014is at the heart of SPIN selling. This is the stage during which you ask the types of questions that give SPIN its name: situation, problem, implication, and need-payoff. Here\u2019s how each of these types of questions works during the sales presentation.\r\n
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    Situation Questions<\/h2>\r\nSituation questions<\/span><\/span> deal with the straightforward facts about the buyer\u2019s existing situation and provide a starting place for understanding your buyer\u2019s needs.[footnote]Greg Woodley, \u201cSPIN Selling Is Good,\u201d SellingandPersuasionTechniques.com, http:\/\/www.sellingandpersuasiontechniques.com\/SPIN-selling.html<\/a> (accessed May 16, 2010).[\/footnote]<\/span> If you ask too many situation questions, you risk boring your prospect and damaging your credibility, so ask situation questions sparingly. If you do careful research before your sales call, you should find out most of the basic information about your customer\u2019s current situation before your meeting so that the situation questions you ask are only the ones that will provide information you aren\u2019t able to track down elsewhere.[footnote]Neil Rackham, SPIN Selling Fieldbook<\/em> (New York: McGraw-Hill, 1996), 76; Eric Wolfram, \u201cHow to Sell\u2014SPIN Selling,\u201d Wolfram, http:\/\/wolfram.org\/writing\/howto\/sell\/spin_selling.html<\/a> (accessed May 16, 2010).[\/footnote]<\/span> For instance, if you are selling Internet connectivity, you might ask your buyer, \u201cWhich of your offices are currently using DSL?\u201d\r\n\r\n \r\n

    Customer<\/strong>:\r\nOur four branch campuses use DSL, but our main offices downtown use a cable service.<\/p>\r\n

    You<\/strong>:\r\nOh, they use cable? Who is their provider?<\/p>\r\n

    Customer<\/strong>:\r\nAjax Communications. We\u2019ve been with them for about two years.<\/p>\r\n

    You<\/strong>:\r\nI understand Ajax sometimes offers their service on a contract basis. Do you currently have a contract with Ajax?<\/p>\r\n

    Customer<\/strong>:\r\nWe had a contract, but that ended a couple of months ago.<\/p>\r\n \r\n\r\n<\/div>\r\n<\/div>\r\n

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    Problem Questions<\/h2>\r\nYou already know that your prospect will only be motivated to buy if she recognizes she has a need. Asking problem questions<\/span><\/span> helps customers understand their needs, and ultimately it paves the way for you to propose a solution that seems beneficial to your customer.[footnote]Neil Rackham, SPIN Selling Fieldbook<\/em> (New York: McGraw-Hill, 1996), 90.[\/footnote]<\/span> Problem questions are the most effective in small sales: \u201cWas limited storage space ever an issue with your last computer? How much has the size and weight of your current laptop affected your ability to carry it with you?\u201d But in B2B sales it is still important to ask a few problem questions so that you and your buyer share an understanding of the problem or need.[footnote]Neil Rackham, SPIN Selling Fieldbook<\/em> (New York: McGraw-Hill, 1996), 93.[\/footnote]<\/span> Sometimes it is tempting to jump right into presenting the benefits of your solution, but keep in mind that your prospect might not always see his problem right away, even if it is already evident to you.[footnote]\u201cSPIN Selling,\u201d review of SPIN Selling<\/em>, Changing Minds Book Reviews, http:\/\/changingminds.org\/books\/book_reviews\/spin.htm<\/a> (accessed May 16, 2010).[\/footnote]<\/span> Imagine you sell tractors. To understand the difficulties your prospect faces with his current machines, you could ask problem questions like \u201cHow much does it cost to maintain your current farm machinery?\u201d \u201cHow often do your tractors break down?\u201d and \u201cWho is usually responsible for doing the maintenance work?\u201d\r\n\r\n<\/div>\r\n
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    Implication Questions<\/h2>\r\nIn larger sales, implication questions<\/span><\/span> are closely linked to success because they increase a prospect\u2019s motivation to seek change. Implication questions uncover the effects or consequences of a prospect\u2019s problems. These questions are especially effective when your prospect is a decision maker whose success depends on understanding the underlying causes of a problem and its potential long-term consequences.[footnote]Neil Rackham, SPIN Selling Fieldbook<\/em> (New York: McGraw-Hill, 1996), 108.[\/footnote]<\/span> Say, for instance, your prospect has offices in five locations, but he only has IT staff at two of the locations. To help him understand the implications of this problem, you might ask questions like this:\r\n\r\n \r\n

    You<\/strong>:\r\nIf a computer crashes at one of your branch offices, who takes care of the problem?<\/p>\r\n

    Prospect<\/strong>:\r\nThat depends. Our Bellevue and Redmond offices have their own IT people, but when we have a problem downtown or in North Seattle, we call someone from the east side offices to come fix it.<\/p>\r\n

    You<\/strong>:\r\nWow, that must be a hassle for the IT people! How often do they have to drive out to another location for computer trouble?<\/p>\r\n

    Prospect<\/strong>:\r\nUsually not more than three or four times each week. If the problem isn\u2019t an urgent one, the IT guys usually make a record of it so that they can fix it during their regular visits.<\/p>\r\n

    You<\/strong>:\r\nSo your IT people have regularly scheduled maintenance visits that they make in addition to the occasional \u201cemergency\u201d trips?<\/p>\r\n

    Prospect<\/strong>:\r\nYes. Someone from IT visits each of the three locations once a week to run maintenance and fix any issues that have come up since the last visit.<\/p>\r\n

    You<\/strong>:\r\nThe travel time from Redmond to downtown is about half an hour each way, and it can take an hour during rush hour! Isn\u2019t the commute from Redmond to your other locations even longer? In total, how much time and money would you guess your company invests in these maintenance trips each week?<\/p>\r\n \r\n\r\n<\/div>\r\nYour buyer might have told you up front that the shortage of IT staff is a problem, but he might not yet realize all the implications of this problem (like higher costs, wasted time, and inefficiency). By asking this set of implication questions you have just asked, you are helping your prospect explicitly state a need (or needs) that you can solve for him.[footnote]\u201cSPIN Selling,\u201d review of SPIN Selling<\/em>, Changing Minds Book Reviews, http:\/\/changingminds.org\/books\/book_reviews\/spin.htm<\/a> (accessed May 16, 2010).[\/footnote]<\/span>\r\n\r\n<\/div>\r\n

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    Need-Payoff Questions<\/h2>\r\nOnce you help your prospect uncover his specific needs, you can help him to discover a way out by asking how his problem could be resolved. These questions are called need-payoff questions<\/span><\/span>. If you ask your prospect the right need-payoff questions, he will tell you<\/em> how your solutions can help him; you won\u2019t even need to spend much time talking about your product\u2019s benefits because your prospect will have already convinced himself that your solution will be valuable to him.[footnote]Neil Rackham, SPIN Selling Fieldbook<\/em> (New York: McGraw-Hill, 1996), 128.[\/footnote]<\/span> For example, following the previous conversation about your customer\u2019s IT problem you could ask \u201cHow would it help if the IT staff could fix at least half of your computer problems remotely?\u201d or \u201cHow much time would you save if I could help you find a way to cut down on your IT support calls from the branch offices?\u201d\r\n\r\n<\/div>\r\n<\/div>\r\n
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    Demonstrating Capability<\/h2>\r\nWhen you present your solution, you can tell your customer about FAB, as discussed in Chapter 6 \"Why and How People Buy: The Power of Understanding the Customer\".\r\n