The author of this methodology is Neil Rackham, founder of the consulting company Huthwaite Inc. who systematized intuitive approaches to selling and introduced a new sales model.
The principle of the SPIN sales technique is to turn customer interest into a need and a need into a decision through a chain (funnel) of questions. To fully grasp this approach, it’s important to understand what SPIN is and how it transforms customer interactions. The seller must clearly understand how, in what order, to whom, and what questions to ask.
In this article, we will talk about how to make SPIN-selling work for the benefit of your business.
Influencing techniques in SPIN sales and the transaction stage
SPIN sales are a way to lead a customer to a purchase without an open presentation of the product. The seller just asks questions one by one, the answers to which form a logical chain leading to a single conclusion – the need to purchase the goods.
The SPIN method is ideal for ‘long sales’ in the B2B-segment, as well as in sales of expensive complex products in conditions of market saturation and fierce competition. Understanding what is sold in this context helps sellers focus on building value through questions rather than direct promotion.
The main characteristic feature of SPIN sales and their main advantage is customer focus without focusing on the product itself. The field of persuasion is expanded by studying the hidden needs of a person, identifying his or her individual traits instead of working with the general characteristics of the target audience.
The SPIN-selling technique begins with understanding how and why a customer chooses a product. It is necessary to find out the customer’s dissatisfaction, which he or she does not realize (hidden needs), and make them obvious. This stage requires situational and problematic questions.
The SPIN technology works at three stages of a transaction:
- Awareness of a hidden need.
- Assessment of available options.
- Fighting doubts and overcoming them.
- Concluding the transaction and building further interaction with the client.
Having realized that changes are necessary to solve the problem, the potential buyer evaluates the existing options in terms of their cost, efficiency, and speed of action. The seller needs to focus the client’s attention on the strengths of their company, skillfully avoiding any hints of competitors’ advantages.
As a result, having recognized your offer as the best option, the client falls into a ‘trap’ – a vicious circle of doubts that delays and freezes the deal. At this stage, the salesperson must dispel the client’s fears and concerns and help them make the final decision to conclude the deal.
Types of questions in SPIN sales
In practice, SPIN selling is a rather labor-intensive technique that requires the seller to have not only excellent knowledge of the product but also solid experience in selling it. Since the interaction between the seller and the customer will be lengthy (formulating a long and complex logical chain alone will take a lot of time), it is irrational to use SPIN-selling in the mass segment.
So, what tools should be used to explain to the client that your product is vital for him or her and worth the money you want? There are 4 types of questions used in the SPIN selling technique. Let’s take a closer look at each block with examples of answers.
Situation
Building a logical chain begins with collecting the necessary data and identifying an unobvious customer need. Situational questions that prepare the ground for further stages of the Selling SPIN Cycle are carefully selected to not irritate the interlocutor or cause analogies with interrogation.
Options:
- How many employees does your company have?
- What is the size of your leased warehouses?
- What brand of equipment does your production use?
Problem
The purpose of this set of questions is to make the potential buyer realize that the current state of affairs does not suit them. At this stage, you need to identify the problem, clearly identify it, and remain ready to offer the client a solution at any time.
Options:
- Do you face difficulties due to low staff qualifications?
- Do you have any inconveniences with the size of the premises?
- Does the fact that the equipment wears out quickly and needs to be repaired cause you problems?
Implication
Having understood the situation and identified the problem, it is now necessary, by the Rackham methodology, to expand it and make the client think about its implications for his business. You should not rush through this cycle of questions too quickly, nor should you use template phrases that cause rejection. Eliciting questions (like the previous two types) should be accurate, varied, and natural. Only then will they have an effective impact – leading to the idea that the absence of specific remedial measures will inevitably lead to losses. Options:
- What is the impact on your company’s reputation if the level of service is low compared to your competitors?
- How much of your projected profits are lost due to the constant turnover of staff and the need to train new staff?
- Does the regular failure of inadequate equipment cause large unforeseen expenses?
Need-Payoff
This block is the last link in the logical chain of SPIN sales. By answering them, the client convinces himself that your offer is the best and most profitable solution to his problem situation. Having realized the mechanism of his mistakes, he begins to look for a solution, and your questions dispel doubts and push his thoughts in the right direction.
Options:
- Do you think that larger warehouses will allow you to optimize the process of storing and rotating inventory?
- Will choosing more reliable and high-quality machines minimize equipment maintenance costs?
- Will intensive training courses for employees improve service, outperform competitors, and expand prospects for your company?
All 4 sets of questions do not have to go in a continuous flow. Harmonize the negotiations with the help of small prefaces, facts, stories from the experience of a third party, and links to your own observations and statements of the client.
The solution that will settle him should be the cherry on top of the cake – bright and attractive, which is simply unreasonable to refuse.
How to sell with the help of SPIN technology: key tips
You can make solid trades with the help of SPIN questions, provided that you follow a clear sequence of them. Clarifying recommendations will help you achieve an excellent effect when applying the technique.
- With situational questions that allow you to find out the details that interest you, you should not ‘dig’ too deep and put pressure on the interlocutor. You can collect the necessary information with 3-4 well-formulated phrases.
- Problematic issues should not be detached from the beginning of the conversation. Initially, the client was focused on one point – quality, cost, service – to make pointed ‘blows’ in this area.
- With the help of probing questions, gently convince the interlocutor that his problem is not as simple as it seems from the outside. Allow them to realize the full extent of the risks and threats in the long run.
- When choosing guiding questions, be especially careful and keep the situation under control so that the buyer does not even think that he is making decisions under pressure rather than independently.
- Use the active listening technique. You don’t need to speak for the client and convince them of anything. Let him speak and use everything he says to your advantage.
- Use numbers and facts. At the final stage, when creating a picture of the product’s advantages, give arguments that demonstrate specific benefits for the client and the solution to his or her problems – not ‘our equipment is of high quality and reliable’, but ‘free service for 3 years’ or ‘reduction of repair costs by 60%’.
Like other techniques, SPIN sales methodology involves manipulating the customer. Customers, who have been practicing various manipulation techniques for many years, have become very sensitive to them. When creating a question funnel, use an exclusively individual approach, study your customer, and feel their doubts. No general phrases and platitudes.
The SPIN sales method is effective and promising if used correctly. Although it requires experience and negotiation skills from the manager, the scheme itself is simple, logical, and easy to implement. To put it into practice, you need good product knowledge, ingenuity, and, of course, constant practice.
Do not forget about the importance of preparation – collecting information about competitors’ offers, and making a list of product advantages that you will focus on. Regular training of managers with recordings of conversations and the development of skills in long-term negotiations will inevitably lead your company to sign the desired large deals.
