There are many definitions of large sales. I'm confident that no matter what term you use—whether it's about selling to large customers, selling high-value items, system selling, wholesale selling, or just "big sales"—you'll know what a big sale is when you encounter it.
I would like to briefly describe some of the characteristics of large sales from the perspective of buyer psychology. Such sales are distinguished by the specific perception and behavior of the buyer. Let's take a look at these differences and determine how they can impact your sales.
Life cycle duration
A simple, low-cost sale can often be accomplished in one meeting, while a large transaction may require several meetings and many months of collaboration (one of my former classmates, who worked in aircraft sales, did not have a single sales contract for three years). You may think that I am stating the obvious - it takes more time to close a large deal. But another thing is important: the psychology of sales that require multiple meetings is fundamentally different from sales from a single meeting. For example, in one-meet sales, the purchasing decision is usually made during the meeting in the presence of the seller. In a sale that requires multiple meetings, the most important discussions and deliberations continue in the absence of the salesperson between meetings. Let's say I'm a great speaker and can describe a product in a really compelling way. I'm good at one-meet sales because my client, captivated by what he hears, says "yes" on the spot and places an order with me.
What happens if the sales life cycle is longer than one meeting and I don’t receive an order immediately after introducing the product? What piece of information will the customer remember in the morning, the day after I leave? Can he replicate my polished presentation to his boss? Questions like these led us to do some research at a company that sells office products. The company has prepared a "fixed" scenario demonstrating the eight most compelling benefits of their new word processor. The script was written by professionals - employees of an advertising agency and fully met all the requirements. The initial inspection delighted the entire company. The pilot buyer groups rated the demo scenario very highly. The company's marketing executives anticipated a boom in relationships with customers who attended these demonstrations.
Unfortunately, only a small part of the expectations were met. We were invited to find out the reasons. We asked a group of potential buyers to watch a demo and answer a few questions right away. The scenario seemed very successful - on average, buyers remembered 5-7 key points out of a possible 8. A week later we visited each of them, and it turned out that more than half of the information was lost (see Fig. 2.1).
Worst of all, immediately after the presentation, buyers rated their likelihood of purchasing the product highly, but a week later, the average rating of the same buyers clearly showed that they were unlikely to buy the product (Figure 2.2).
What does this mean and what to do with sales from one meeting? After researching the issue, I came to the conclusion that excellent product presentation can have a temporary effect on the buyer, usually lasting a week. If it's possible to convince a prospect to make a decision on the spot—and in one-sales sales often is—there's no reason not to take advantage of the short-term impact of a product presentation to whet the buyer's enthusiasm and promote your business. But woe to you if there is no instant solution. After a week, your customers will have forgotten almost everything you said, and their enthusiasm for the product will sharply decline.
Rice. 2.1. How much information from a presentation is remembered?
Rice. 2.2. Changes in buyer enthusiasm for the product
Our other finding, which we'll look at in more detail a little later, is that in one-meeting sales, the salesperson has the opportunity to make the sale by demonstrating all the benefits of the product, overcoming all objections, and closing the deal without damaging the business relationship. For sales with multiple meetings, this style is unacceptable, and its use will usually lead to the failure of the deal. Why? Perhaps your personal experience as a buyer will help answer this question. For example, I remember visiting a car dealership a few months ago. The salesman turned out to be one of those pushy types that dominate the car trade. After a couple of superficial questions, he showed me a really hard sell using all the classic techniques in the book. I wasn't ready to make a decision, so his pressure seemed aggressive and annoying. In the end I ran away, vowing never to return to this hall. I'm sure each of you has had a similar experience. Few buyers will want to come back and experience pressure from the seller again. The rule is this: you can be assertive if you have the opportunity to accept the order here and now; but if you leave a customer without receiving an order from him, being assertive will reduce your chances of eventual success. And because the buyer won't contact you again, you may never know where you went wrong. So, a pushy, tough style works for small sales with one-time contacts, but it usually works against you if it takes multiple meetings to close the deal.
Scope of buyer's obligations
Large purchases, by definition, require big decisions from the buyer, and this affects the psychology of the sale. With a small sale, the buyer thinks less about value. As sales increase in size, sellers must build a perception of the value of their products and services. Creating a perception of value is perhaps the single most important skill for making big sales. We've covered it in detail, and the next few chapters of this book focus on how to increase the value of your offering to customers.
Several years ago we began a study that was never completed due to a restructuring of our clients' sales force. It's a shame, because the study dealt with the problem of how the size of the sales increases versus the need to sell the value of the product. A client who sold high-end products asked us for advice on hiring new salespeople with experience selling only low-end products. By the time the project was suspended, we had prepared some interesting answers. We found that salespeople who were unable to successfully transition to large sales had difficulty increasing buyer perceptions of value.
I remember meeting one of these workers at the Buffalo airport (we subsequently held several meetings together with his customers). He sat on a bench with his briefcase open and covered in enough literature about the product to keep a paper mill running for months. He sadly explained that he was studying the features of the product because he believed that this would help sales success. “At my last job,” he said, “I sold consumer goods; product knowledge played an important role.” Maybe the man was right; but an hour later, as he unsuccessfully tried to convince the office manager to buy a larger copier system, it was product knowledge that blocked his path to success. The buyer was justifiably nervous at the thought of spending tens of thousands of dollars. The salesman tried to overcome his resistance by describing the product in detail and demonstrating his newly acquired knowledge about the product. But nothing helped. The buyer was reluctant to purchase the product because they did not see enough value to justify making such a big decision. After all, the copier you already have works well too. Of course, it is not completely reliable and the quality of the copies leaves much to be desired, but does this justify spending a five-figure sum on a new copier? Not in this life. And all the knowledge about the product, carefully stored in the memory of the seller, was powerless to influence the basic fact that the buyer does not perceive the value of the product. How should this meeting be conducted? A little later, in the chapters on the SPIN method, I will show in detail how to increase the value of the product in such cases. For now, I will note that the meeting in Buffalo only confirms the validity of my theory that the methods that work for a small sale can work against you in a large transaction.
Long-term relationship
Large sales generally involve a long-term relationship with the buyer. To some extent, this is because large transactions usually require some after-sales support, meaning that the buyer and seller meet one or more times after the actual sale has taken place. People who sell high-value products or services typically complete transactions by developing relationships with existing customers. In contrast, a small sale often occurs as a result of one meeting, and the buyer never meets with the seller again.
How does this affect the buyer's decision-making psychology? I will illustrate the answer to this question with my own example. Today, as the head of a company, I buy more often than I sell. A few weeks ago, as a buyer, I observed an excellent example of how a long-term relationship associated with a major sale can influence decision making. I became a participant in two sales in one day. The first sale was small: we needed a new projector, and I asked the local supplier to send a sales representative to my office. The unpleasant guy who showed up to me could have made a brilliant career for himself in the pornography trade on the outskirts of Rio. “You’re lucky,” he began, “I’m sure you can’t wait to find out what kind of thing I’m going to offer you now!” In fact, I couldn't wait to get rid of it as soon as possible. But he offered a good price, I needed a projector, and the prospect of never seeing this man again pleased me. So I interrupted his eulogies mid-sentence, ordered a projector and sent the guy on his way exactly five minutes later. The deal was a good one for him. In every sense, it was successful for me, the buyer. I got a new projector for good money - and for only the cost of five disgusting minutes.
That same day I became part of a much larger sale. We were thinking about changing the software and hardware of our accounting system, which would involve getting a couple of new computers, an integrated accounting software package, and spending six months to implement it. I estimated the possible costs at least 70 thousand dollars. The salesman turned out to be quite a reasonable person, a little superficial and too eager to make a deal, but overall an order of magnitude better than the projector sales representative with whom I had to deal a little earlier. However, during the meeting, doubts began to overcome me. The price, as in the first case, was right; I needed a new system, but I felt an increasing reluctance to continue the meeting. “We’ll think it over and let you know,” I answered the seller. Subsequently, after analyzing what happened, I realized that the doubts that arose in me during the meeting related not so much to the purchase itself, but to the need to enter into a relationship with this person. Unlike with the projector, where I didn't face another meeting with the salesperson, this one required me to make a decision that would require me to work with the salesperson for several months, which I wasn't sure I wanted.
What is the conclusion? Once again, we see that small sales methods are not suitable for larger deals and decisions. In a small sale, it is quite easy to separate the seller and the product. I hated the seller of the projector, but I liked his product so much that I bought it. In the case of a large transaction, the seller and the product become almost inseparable. I liked the computer system, but it was impossible to buy it without establishing a relationship with the seller. Because big decisions usually involve developing a long-term relationship with the buyer, they require a different selling style. In subsequent chapters, we will analyze the differences between operating styles and determine how to use these styles to build long-term relationships with the buyer.
If you are a salesperson who works with large clients (and I work with just such people), then at some point you will feel like a tiny cog in a huge and impersonal sales machine. It's often difficult to see that your work has any measurable impact on the overall cause, so it must be nice to know that as sales grow, the buyer places more emphasis on the seller's personality when making a decision. In a large sale, the product and the seller are often perceived by the buyer as one.
Risk of making mistakes
When does emotional selling occur?
I saw a great example of this type of sale a few years ago in San Francisco. The salesman is a charming individual with an extraordinary ability to forge strong interpersonal connections with prospective buyers. People were really drawn to him and were willing to do business with him, without even realizing the reason for this desire. The seller, for his part, knew how to penetrate the rational human principle and accurately find levers to control the behavior of his interlocutor. He would say something like this: “I know, the main thing is that your boss likes this decision, and I’m here to help you with that” or “Let’s try, John, you want to do business with me, because I don’t care about you.” don't care." And one day I heard him speak about a competitor: “They have an excellent product, but the seller is a bore - but it’s interesting to work with me.”
In small sales, when his interlocutor could make a decision on his own, the deal was concluded successfully. This man knew how to get people to do business with him, and it worked. However, in large sales, if the prospect had to consult someone, the result was mediocre. The employees involved in the decision did not believe that the deal should be done precisely because the salesman was an interesting guy or would present their colleague in a favorable light.
The story has a happy ending. The seller turned out to be smart enough to understand that with a large sale the buyer is forced to justify his decision to his colleagues, and therefore changed his working style. If several people made a decision, he built a suitable chain of rational explanations. “At heart,” he said, “I’m still the same old sensitive babble, but now I understand that a potential client who is convinced only on an emotional level is just an obstacle to convincing others. If I see that the decision is risky enough that the buyer will involve others in making it, I focus on presenting strong, business-like reasons for making the purchase. As a result, I was more successful in larger sales.”
You may find this advice helpful. If a decision clearly requires consultation, you should focus on the rational, business side of the issue. This does not mean that the emotional side is absent or should be ignored. But a salesperson who successfully completes a major transaction is usually the one who is best equipped to provide the buyer with a rational business case for the deal. As the size of the sale increases, the importance of rational elements increases.
Are these differences important??
We've discussed some options for changing buyer behavior—and therefore sales skills—as deal size increases. I've given you some preliminary arguments suggesting that you need a completely different sales style to succeed in big deals. But are these differences really important? Can you be sure that reading the remaining chapters of this book will be a worthwhile investment of time?
In response, I might point out that some leading trade organizations pay millions of dollars to have access to the materials published here. I could tell you the success stories of thousands of people who have taken our SPIN Method training course. I might even show you some rave reviews from sales experts about our performance. I will do this later, but for now I will give you convincing evidence that this book is worth not just reading, but reading extremely carefully, as a useful guide to action.
Newcastle study
The evidence I want to present comes from early work we did in Newcastle, England, for a branch of a major multinational company. This study, and not one of the more complex ones that I will discuss a little later, was chosen because we conducted it when our methods were still new and we ourselves sometimes doubted their value. The rigorous testing of this research has convinced companies such as IBM, Honeywell, Exxon, and Motorola to choose Huthwaite's methods to train their salespeople to handle large accounts.
Let's take a quick look at the background to our study. We believed that major sales required a completely different set of skills than those taught in a traditional sales training program. As you'll see in subsequent chapters, our research found that many standard sales techniques—such as closing, handling objections, and using open- and closed-ended questions—did not work for large sales. We had done some preliminary research that suggested there might be new, more effective ways to handle a big sale, but when we began our research, we had no practical evidence of the effectiveness of our new method. Our client suggested taking a trial - an experimental sales branch and using it to test our theories. Now, several years later, I can admit that I didn't like the idea of a reality check. I was a competent enough consultant to convince people that what they were doing was wrong. Another thing is to teach them to act correctly. I was terribly nervous, although at the same time I knew that I would probably never again have a better opportunity to test the theories we were developing.
I will not describe the Newcastle test in my own words, as I want to offer you a more objective assessment of our find. British Marketing magazine has published a full-length report on Huthwaite's work in Newcastle. Let me give you a short excerpt from this report.
“Confirmation that Huthwaite was moving in the right direction came when Xerox decided to test new theories. Recalls Barry Payne, sponsor of Xerox's Huthwaite: “The early studies were controversial. They crossed out a huge number of existing ideas about sales and, naturally, caused skepticism and opposition within the company, so we decided to test the viability of the new theory. If it turns out to be correct, people trained according to this theory will sell better. We selected a pilot sales division and trained its employees using Huthwaite's methods and findings."
The essence of the experiment. To conduct the test, Xerox chose the city of Newcastle in England, where the company had a rather weak branch of 35 employees. “We decided to evaluate the results of our training two ways,” says Barry Payne. “Firstly, we first took summary tables of the branch’s productivity, so that it could be compared with other divisions that did not undergo training” (Figure 2.3).
Rice. 2.3. Newcastle branch productivity changes
“Secondly,” explains Payne, “we took into account the number of meetings required to obtain each order, which became a way of assessing the quality of meetings.” The results were impressive (Figure 2.4).
Rice. 2.4. Newcastle. Changes in the appointment/order ratio
Newcastle rose to become the best branch in the country, a position it held until other branches of the company were trained in the same methods. “I remember our excitement when the ratio of appointments to bookings changed,” says a Huthwaite spokesperson. – It is easy to increase sales effectiveness in a short period of time by increasing activity, motivating people to do more of the same work - the so-called Hawthorne effect. But the problem is that this effect, unfortunately, is short-term. We wanted to improve skills, which meant getting more business from the same number of meetings.”
In fact, the number of appointments required to receive an order was cut in half, from 48 to 24.
However, such striking results should be treated with caution. Barry Payne warns: “At Xerox, we conducted independent research which showed that while changes in sales skills did occur, Newcastle's improvement in 5 of the 16 areas could be attributed to other marketing factors.”
Hello! In this article we will talk about SPIN sales.
Today you will learn:
- What is the SPIN sales method?
- How to work correctly with SPIN sales;
- Who is suitable for SPIN sales?
The concept of “SPIN sales”
Anyone who is in any way connected with is familiar with the process of selling goods.
It consists of five stages:
- Product demonstration;
- Answers to consumer objections and questions;
- Making a purchase.
This is a well-known technique, most companies work this way. But it happens that a product appears on the market before there is a need for it.
Also, the above process is not suitable for products that are not consumer products and are in daily demand. The need for such products is formed only after first-order needs have been satisfied.
Let's remember Maslow's pyramid; it perfectly reflects those groups of goods for which the need needs to be further developed.
According to this model, needs are met in stages in the following order:
- Physical needs- food, water and everything without which a person cannot continue his life. They are satisfied first;
- Need for safety and protection– everything that makes a person’s life safer;
- The need to belong to a social group. Products that satisfy this need include all branded products. For example, the latest brand of iPhone automatically ranks its user among the group of wealthy people who adhere to the latest trends;
- Need for respect and recognition. This also includes various brands, as well as all those products that are presented to the public during consumption. For example, a Parker pen immediately gives its user a certain status in the eyes of others;
- Need for self-expression. Products that satisfy this category of needs include everything that allows a person to stand out and reveal his or her personal potential. These include a variety of creative products, extraordinary accessories, clothing, interior design items and much more.
As a rule, the needs of the first three levels are sufficiently formed. Therefore, if you sell products that satisfy these needs, then all you need to do is train your managers in the classic sales process.
But in the case of selling goods of the last two levels, you will have to resort to the use of SPIN sales.
SPIN selling is a term that first appeared in a book by Neil Rackham.
SPIN sales – a technology for selling goods that involves the formation of needs, rather than their identification.
SPIN sales technique
Let's imagine that we are unusual things. And it contains stale goods that need to be sold in a short time. Let this product be a ring that changes color depending on the mood of its owner.
According to Maslow’s pyramid, this product will satisfy a fifth-order need, which means that a sufficient number of buyers are unlikely to come to us. This means we need to create a need.
Let's consider two cases.
First case. A potential consumer comes to us. The manager approaches him and begins his presentation with the following phrase: “...You need this ring because...”. What will he face? That's right, with the client's objections, which the seller will not be able to suppress, because the visitor has no need for this product.
Second case. The same visitor comes to see us. The manager greets the visitor and asks him a series of questions that, to one degree or another, characterize the product (we'll talk about them a little later).
After which the client says the phrase: “You know, I would buy my girlfriend something that would determine her mood. At least I’ll know when she’s not in a good mood.” Thus, the manager practically turned the ring into a product that satisfies the need for security. Just a joke, of course. But the seller really created a need.
Thus, the SPIN sales technique is to form the consumer’s conviction that he needs this or that product. At the same time, the need itself should be voiced by the consumer, not the manager.
The manager’s task is to make the consumer realize that he has a certain need and it urgently needs to be satisfied.
Where can you use SPIN sales?
We have already indicated that SPIN sales are suitable for products that satisfy the last two levels of needs according to Maslow’s pyramid, as well as for products that are new to the market.
But it is worth noting the fact that SPIN sales are a fairly expensive technique: they require large amounts of money and time. Therefore, its use is advisable when making large transactions or when selling expensive goods.
Thus, SPIN sales are suitable for:
- Sales of goods in wholesale quantities;
- Sales of expensive goods;
- In the event that you have a good sales person in your team, who will not need to be trained for a long time in the specifics of SPIN sales.
In fact, SPIN selling can be used in all markets and even in solving personal issues. For example, if you have an argument with your girlfriend about your fishing trip, simply ask her a few questions that will lead her to the right decision for you and eliminate all objections.
The only obstacle to using SPIN sales is the difficulty of mastering the technique.
Types of SPIN sales questions
Now we have come to the most difficult stage of SPIN sales - drawing up questions. They are the ones who formulate the need.
Questions should be formulated in such a way that they indicate the reason why the consumer needs a particular product. The consumer, in turn, in each of his answers recognizes his need for your product.
The need is formed using four types of questions. Each question is a stage of need formation, so the manager must learn each of them.
Let’s formulate a practical guide to writing questions for SPIN sales:
- Situational questions– are needed in order to assess the situation, get to know the consumer, and determine his interests. The purpose of this type of question is to determine the client’s preferences and purchase goals. At the same time, the client must tell you about all this himself, that is, at this stage he must admit his interest in your product.
Example.“Do you use a printer?”, “Do you often run out of printer cartridges?”, “How many printers do you have in your office?”
- Problematic issues– allow you to get the client to recognize the problem that your product can solve. The problem should be identified by the consumer, not the manager.
Example.“Does it ever happen that you don’t have time to replace a cartridge on time?”, “Are you satisfied with the price of cartridges?”, “Who buys cartridges in your organization?”
- Probing Questions- we develop the problem. With this type of question we have to develop the problem, explain what might happen if the problem is not fixed. The client must understand that by solving it, he will receive a certain benefit. At the same time, the manager should not say that the product will solve the consumer’s problem. The consumer must say it himself.
Example.“If you had cartridges delivered directly to your office, would you not have to take your assistant away from work?”
- Guiding Questions– the final stage of SPIN sales. They should help the manager complete the deal. At this stage, the consumer should talk about all the benefits that he will receive from your product.
Example.“Would it be beneficial for you to have the cartridge delivered directly to your office?” “What exactly did you like most?”
The order of questions cannot be disturbed, and any type of questions cannot be skipped. The name of the technique we are studying will help you avoid getting confused in the order of questions.
SPIN is an abbreviation for:
WITH – situational, P – problematic, AND – extractive, N – guiding questions.
Disadvantages of the SPIN selling technique
As we have already said, the main disadvantage of SPIN sales is the high costs of staff training. Not everyone is able to master the SPIN selling technique, so you will have to spend not only money, but also time.
Another specific feature of SPIN sales in Russia is the unwillingness of consumers to answer questions and conduct lengthy dialogues.
Spin sales are not always suitable for selling goods at retail. When a product already has good sales figures, it is better not to resort to SPIN sales.
In Russia, the SPIN sales technique is sold by a very small number of companies, so it is very difficult to find managers who master this technology.
If you are still interested in the technique of SPIN selling, then we advise you to read the book by its founder, Neil Rackham, “Spin Selling”.
Also worth reading is Tom Snyder’s book “To Hell with Prices!”
Who hasn’t heard about Neil Rackham’s famous SPIN sales technique? 30 years ago, he was able to combine the experience of many successful sellers from different countries into one clear and simple structure. In this publication, we will look at what the SPIN method is in sales and how to apply it correctly in practice.
Every company that cares about the professional training of its salespeople must include the SPIN sales system in its training plan. This is like the basics that any sales manager should know. And this is not without reason! Convincing a client to make a purchase is far from easy, but when the client himself realizes the importance of the purchase, the sale itself goes in the right direction.
SPIN method in sales
The well-known SPIN technique is based on the technique of four types of questions, which not only help, but lead him to the shortest path to a sale. Everyone knows the fact that successful salespeople listen to the client more and talk less themselves. This is because they need to identify both obvious surface needs and hidden ones. This is not so easy to do with the help of improvisation, but knowing the SPIN sales technique, absolutely every salesperson can do this, regardless of his experience in sales.
If we use a dictionary, we get the abbreviation SPIN deciphered as: situational, problematic, extractive and guiding questions. Following the SPIN method, you can ask the client the right and effective questions in a structured manner, knowing what follows what, smoothly leading to the natural need to make a purchase and satisfy the need.
Don’t think that knowing how the SPIN method works in sales, you can turn off your brain and, like a robot, throw questions at the buyer in the hope that a miracle will happen and he will scream: “ Yes, I want to buy. Sell it to me quickly...” Each question has its own time, when it is more correct to ask it, be sure to read about it. For the technique to work, you need to understand the essence of the wording of the questions, and there are four types of them. Let's talk about each in detail.
SPIN questions in sales. Examples
So, as the acronym shows, this technique consists of four types of questions that you need to understand and learn to apply when working with a client.
Situational questions
For a situational question, the seller should hear the situation, which brought the client to your store. The situation, in our case, the need for something, must be disclosed and understandable to the seller. To find out, you need to ask a series of questions, for example:
- “Is it time to upgrade your phone/car/TV/furniture?”
- “How will you use...?”
- “Tell me, for what tasks do you need...?”
- “When are you planning to buy...?”
The situational question should be open and in every possible way provoke the client into dialogue, a story about what he wants, what is stopping him, at what stage of readiness to buy he is. This should be done non-intrusively, so that the client does not feel an attempt to control the dialogue.
Very often, clients behave reserved and uncommunicative, so do not stop at one question. Perseverance in sales is an essential quality of a successful salesperson. Can't generate situational SPIN questions on the go? No problem! Just make yourself a list of 5-6 open-ended questions and believe me, in a week you will memorize them and use them in a timely manner and without hesitation. In sales practice, 1-2 is enough for the client to tell his purchase story.
Examples of problematic questions
For a problematic question, you should hear from the client a description of the problem that made him think about buying or is preventing him from making a purchase. The needs identification stage is ideal for asking SPIN this type of question. Sample questions:
- “What didn’t you like about your previous…”
- “What do you want to change or improve in the new... »
- “What effect do you want to achieve from... »
- “What problem is the purchase supposed to solve?”
- “What are your main requirements for your phone/car/TV/furniture?”
- “What function can you not imagine without…. ?
These problematic issues relate only to the product, but problems may be related to finances and the terms of purchase. The basis of the SPIN technique is:
Selling is through solving the client's problem, so by understanding the main pressing problem, you will open all the doors to the sale and trust of the client.
When asking a problematic question, don’t think about how to ask another question, you don’t have much chance or time. Listen to the client and build the next problematic issue based on what you hear. The client will not tolerate interrogation consisting of a chain of incoherent dry questions, so natural dialogue is a prerequisite for negotiations! Don't forget about the structure of the questions; they should be open-ended.
Probing Questions
Extractive questions should aggravate the problem and lead to the fact that if the problem is not corrected, there may be consequences. This is not a horror story, but just common sense - if you don’t solve the problem, then solving it will be even more expensive and troublesome, so you need to solve the problem here and now. This kind of SPIN questions must also be presented unobtrusively and without sarcasm. For example:
- “You say the connection on the phone can disappear suddenly and anywhere? ….. Yes, an unpleasant surprise, especially when you urgently need to call...”
- “How much do you spend on repairing your car now? It won’t get any cheaper, do you realize that?”
- “How fast is your laptop? Is this affecting your work productivity? How much more efficiently could you work if you had a fast computer?
- “How old is your TV? The repair will cost as much as half a TV, does it make sense?”
Pressing on the problem and leading to possible consequences is the basis of the extractive question. Be careful with the wording of the question; it should not sound like ridicule or mockery, but should push the client to make a decision to make a purchase. Useful information about .
Guiding Questions
The completion of the transaction is carried out by guiding questions. The purpose of these questions is to lead the client to the need to purchase a specific product or service. Nicely hinting to the buyer about the right moment to make a choice and solve the problem is a delicate matter. The wrong intonation of the seller or a rudely formulated question can be perceived by the client as an attempt to put pressure on him, and this is a loss of contact and trust of the client. You will learn how to properly establish the first contact with a client from.
If you are imbued with the buyer’s problem and are having a simple programmed conversation with him, then such questions will not arouse any suspicion:
- “Do you think it makes sense to put off buying a new phone?”
- “Are you willing to continue to invest such costs to repair your car?”
- “Do you want your work to go faster and have more free time? Will a new laptop solve your problems?
- “You can forget about the problem in an hour and enjoy the excellent picture of the new TV. What do you say?
Summarizing the benefits that will solve the problem and encourage the client to purchase is the main task of guiding questions. After answering these questions, the client’s behavior is obvious - he will already be hot, all that remains is to pause and be ready to work with objections. .
Conclusion
The SPIN method in sales seems complicated to many, but once you put it into practice a couple of times, you will understand its simplicity and effectiveness. Examples will help you understand the structure of SPIN questions and how to apply them in working with clients, however, there is a group of products, for example, that do not need to use this sales technique, since the low cost sells them itself, without the participation of the seller.
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The SPIN method is the most popular sales technology in Western countries today. The method has already proven its effectiveness and continues its “victorious march” around the world. More and more Russian entrepreneurs are beginning to actively implement sales technology using the SPIN method into their companies’ work and admit that the effect exceeds all their expectations. Read about what kind of equipment this is and what advantages it gives to the sales department employees in the material of the online magazine “Business.ru”
Neil Rackham and his SPIN sales method
British research psychologist Neil Rackham went down in the history of world marketing as the author and developer of the famous sales technique using the “SPIN” method.
The name of this technology is an abbreviation, the first letters of the names of four types of questions that underlie the SPIN methodology - situational, problem, implication, and need-payoff.
Spin Selling technology was developed as a result of extensive research conceived and conducted by Neil Rackham and supported by the world's largest corporations.
As part of the project, three dozen specialists spent more than ten years studying 35 thousand transactions for the sale of goods and services in companies in 23 countries.
After analyzing all the results obtained from a large-scale study, Neil Rackham developed his new sales technique called the “SPIN Sales Method,” which brought him worldwide fame and success.
Today, the Spin Selling technique is used by sales managers, account managers, salespeople and agents of the largest companies around the world.
According to experts, mastery of this technique indicates a high-class specialist and his professionalism. The Spin Selling technique has replaced classical sales methods, which researchers have recognized as ineffective for selling expensive goods or concluding large transactions.
That is, researchers have proven the fact that if according to the classical model of constructing a sales process (talking about a product, presenting a product or service, working with objections, answering questions, persuasion, closing a deal), you can sell inexpensive goods, but when it comes to more global transactions and contracts, such methods simply do not work and are ineffective.
It is for such serious transactions that the SPIN sales technology was developed.
The method is based on the correct combination of questions, the “competent” use of which in the right sequence allows you to direct any negotiations with any person in the direction required by the seller and ultimately achieve a successful outcome of the negotiations.
Also, the basis of the spin selling method is not the “offer” and “presentation” of goods and services to customers, but the identification of customer needs using four main types of questions.
Using this technique, the agent tries to maximally reveal the client’s needs, both obvious and potential, and then, based on the data received, satisfy all the buyer’s requests as much as possible.
Experts say that any seller who masters the spin-selling technique stands head and shoulders above any other, and can easily sell goods or services even to those people to whom it seemed impossible to sell anything.
And the main secret here is to “transform” a person’s simple idle interest into the need to buy this or that product or service, directing his aspirations and desires in the right direction.
Secrets of the SPIN sales technique
The main goal of a seller who uses the spin selling technique in his work is to understand his client, to identify his needs, which is why the main emphasis when building a dialogue here is on asking questions, consulting, “unobtrusive” communication, and not “product presentation” and "working with objections"
According to a major study conducted by Neil Rackham and supported by the world's largest corporations, the "success" of negotiations is directly related to the number of questions asked of the client: successful salespeople ask their clients 60% more questions than their less successful colleagues.
But these should not just be questions taken out of thin air, but arranged in a clear sequence. Within the spin selling technique, they are divided into four main categories:
- “Situational Issues” - Situation;
- “Problematic issues” - Problem;
- “Extractive questions” - Implication;
- “Guiding questions” - Need-payoff.
The very first group of questions that are asked to the client in order to find out “basic information” about his business is with situational issues.
They help establish contact at the beginning of the conversation and collect the basic information the seller needs within the current situation.
Questions should not be too complex (many novice sellers make this mistake) - they should not “load” or “scare off” the client, the main goal of situational questions within the spin selling technique is to understand the current “situation” in the client’s business and find out the main problems that concern him.
The second group of questions within the spin selling technique is "problematic issues". With their help, the seller tries to “identify” the client’s needs and problems.
You should not be afraid of problematic questions, since the problems that the buyer mentions in the process of answering these questions can become a “starting point” for an experienced seller to attract buyers’ attention to a product or service.
All entrepreneurs have some tasks, goals in business, and everyone also has some problems or situations that will lead to problems “tomorrow”.
It is this aspect that the seller must clarify during negotiations with his client.
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"Extractive Questions" much more difficult to ask than the questions of the first two groups. To do this, the seller must try to “understand” as much as possible into the problems and difficulties of the client’s business and in advance “Identify” the steps that the buyer needs to take to correct the problems, and then offer his goods or services.
It is “extractive” questions that allow you to “extract” all the client’s problems (those that have already appeared or those that will appear in the future) and help the buyer voice them.
SPIN sales: SPIN sales technique with examples
The fourth, no less important group of questions helps to “focus” the client’s attention on solving the problem - "Guiding Questions".
The most effective way would be to ask them to the company’s top managers, since it is the company’s management that must make the “profitable” and correct decision.
In general, marketers say that the spin selling technique is best suited for those who sell in B2B - that is, for the interaction of legal entities and companies whose work is aimed at solving the problems of another business.
That is, the spin selling technique is used in big business, when multiple negotiations involve concluding large deals and making large deliveries.
But in small businesses, the spin sales method is also actively used today, and the sales cycle when using this method goes much faster.
In general, the SPIN sales technique is a set of simple and understandable tools for “sales people” that have already proven their effectiveness during numerous meetings with clients and thousands of concluded transactions in the work of the largest firms and corporations.
In recent years, retail experts and marketers have said that the SPIN sales technique is now gaining popularity not only in the West, but also in our country.
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Examples of questions in spin-selling technology
Let's look at an example of using the spin selling technique, where a seller asks questions to his client as part of negotiations on the sale of a large batch of medical equipment for a specialized clinic.
For ease of understanding, in parentheses we will indicate the type of questions asked, where “P” is “Seller” and “K” is “Client”.
At the beginning of a conversation, experts advise sellers to use the so-called “preamble”, that is, do not immediately ask all the questions “head-on”, but start with a short introduction.
This is necessary so that the client does not have questions: “Why is he asking me this?”
Seller: I have heard many positive reviews about your private clinic “ViroMed”, that the institution employs only highly qualified specialists and uses only the latest medical equipment . (Preamble) Do you now specialize only in the treatment of diseases of the gastrointestinal tract? ( Situational question)
Client: Yes, for now we specialize in the treatment of diseases of the gastrointestinal tract without surgical intervention.
Seller: Today, many medical institutions work only with expensive foreign-made equipment. ( Preamble) Please tell me, what medical equipment do you use today to treat your patients? ( Situational question)
Client: We mainly purchased German-made devices from the Assot company for our clinic. These are computer tomographs, micro cameras, equipment for diagnosing diseases.
SPIN selling is a sales method developed by Neil Rackham and described in his book of the same name. The SPIN method has become one of the most widely used. Using this method you can achieve very high results in personal sales, Neil Rackham was able to prove this by conducting extensive research. And despite the fact that recently many have begun to believe that this sales method is becoming irrelevant, almost all large companies use the SPIN sales technique when training salespeople.
What is SPIN sales
In short, SPIN selling is a way of leading a client to a purchase by asking certain questions one by one; you are not presenting the product openly, but rather pushing the client to independently come to a decision to make a purchase. The SPIN method is best suited for so-called “long sales”, often these include sales of expensive or complex goods. That is, SPIN should be used when it is not easy for the client to make a choice. The need for this sales methodology arose primarily due to increased competition and market saturation. The client has become more discerning and experienced and this has required more flexibility from sellers.
The SPIN sales technique is divided into the following blocks of questions:
- WITH situational questions (Situation)
- P problematic issues (Problem)
- AND compelling questions (Implication)
- N guiding questions (Need-payoff)
It’s worth noting right away that SPIN sales are quite labor-intensive. The point is that in order to put this technique into practice, you need to know the product very well, have good experience in selling this product, such a sale itself takes a lot of time from the seller. Therefore, SPIN sales should not be used in the mass segment, for example in, because if the purchase price is low and the demand for the product is already high, then there is no point in spending a lot of time on long communication with the client, it is better to spend time on advertising and.
SPIN sales are based on the fact that the client, when directly offering a product by the seller, often includes a defense mechanism of denial. Buyers are pretty tired of being constantly being sold something and reacting negatively to the very fact of the offer. Although the product itself may be needed, it’s just that at the time of presentation the client thinks not that he needs the product, but that why is it being offered to him? The use of the SPIN sales technique forces the client to make an independent purchasing decision, that is, the client does not even understand that his opinion is being controlled by asking the right questions.
SPIN sales technique
The SPIN sales technique is a sales model based not only on, but on theirs. In other words, to successfully use this sales technique, the seller must be able to ask the right questions. To begin with, let’s look at each group of SPIN sales technique questions separately:
Situational questions
This type of question is needed to fully identify his primary interests. The purpose of situational questions is to find out the client’s experience of using the product you are going to sell, his preferences, and for what purposes it will be used. As a rule, about 5 open questions and several clarifying questions are required. Based on the results of this block of questions, you should liberate the client and set him up for communication, which is why it is worth paying attention to open questions, as well as using. In addition, you must collect all the necessary information to pose problematic questions in order to effectively identify key needs worth using. As a rule, the block of situational questions takes the longest time. When you have received the necessary information from the client, you need to move on to problematic issues.
Problematic issues
By asking problematic questions, you must draw the client's attention to the problem. It is important at the stage of situational questions to understand what is important to the client. For example, if the client is always talking about money, then it would be logical to ask problematic questions regarding money: “Are you satisfied with the price you are paying now?”
If you haven't decided on your needs and don't know what problematic questions to ask. You need to have a number of prepared, standard questions that address various difficulties that the client may encounter. Your main goal is to identify the problem and the main thing is that it is important to the client. For example: a client may admit that he is overpaying for the services of the company he is using now, but he does not care about this, since the quality of services is important to him, not the price.
Probing Questions
This type of question is aimed at determining how important this problem is for him, and what will happen if it is not solved now. Extractive questions should make it clear to the client that by solving the current problem, he will benefit.
The difficulty with elicitation questions is that they cannot be thought through in advance, unlike the others. Of course, with experience, you will develop a pool of such questions, and you will learn to use them depending on the situation. But initially, many sellers who are mastering SPIN selling have difficulty asking such questions.
The essence of elicitation questions is to establish for the client the investigative connection between the problem and its solution. Once again, I would like to note that in SPIN sales, you cannot tell the client: “our product will solve your problem.” You must formulate the question so that in response the client himself says that he will be helped to solve the problem.
Guiding Questions
Guiding questions should help you; at this stage, the client should tell you for you all the benefits that he will receive from your product. Guiding questions can be compared to a positive way to close a transaction, only the seller does not summarize all the benefits that the client will receive, but vice versa.
Guiding questions, in my opinion, are some of the simplest, all you need to do is ask what benefits the customer will get from your product and how it will help solve their problem.
