SPIN selling - what is it

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

For a long time, the conclusion of transactions was based on theories that were used back in the 20s. Nobody knew the secrets of training sales managers who succeed in their business. But in the mid-70s, a study was conducted by the Hathwaite group for the Xerox company. It analyzed the behavior of people when interacting with each other and in the process of concluding mutually beneficial deals. The Hatwaite study was dedicated to finding answers to questions about what information a person is looking for, how exactly they ask questions and what kind of reaction they get.

How the Hatwaite study was conducted

The need for such work was caused by the crisis in the market and the importance of finding new points of contact with customers. Neil Rackham's popular SPIN selling books are based on this research. The first of them contains the theory and a detailed story about the technology of effective sales. The second book, The Practical Guide to SPIN Selling, describes the application of this method. Specialists fromHatwaite were present at 600 transactions, studying the relationship between the behavior of a sales manager and the success of his work. They looked for new, previously unknown facts, and eventually discovered that successful salespeople behave in a special way. When it came time for the group of specialists to report to the customers, all the managers whose work had been studied were invited. Professionals were asked to write down 10 questions they ask their clients.

Features of the behavior of successful managers

In 100 out of 600 sales, more successful salespeople thought their behavior a few steps ahead and focused not on their own needs, but on what the client wants. In their work, such people do not use tricks, but their talent and a special strategy. As a result, this strategy served as the basis for the creation of the SPIN technique, and their sales techniques became examples of the SPIN method for trained professionals. The description of research in Neil Rackham's book consists of justifying the method and illustrating the process of making a purchase decision by a customer.

The advent of the SPIN selling technique

The questions recorded by the unfortunate Xerox representatives were about general customer situations, not problem areas. When working with clients, it turned out that they also wondered why, after the usual questions, the sellers abruptly switched to the presentation of the goods. As a result, they abandoned the deal, and the company lost profits. The main problem of most of the Xerox employees turned out to be that they only asked questions aboutgeneral situations that did not concern problem areas. Of course, this kind of questions were necessary, but they weren't limited to them.

Efficiency of the SPIN technique

The technique of successful deal making, created on the basis of these studies, is called Spin-selling. This system is designed to help the sales manager focus on his client, and the client, in turn, realize their problems and feel the need to purchase the product or service offered by the manager. SPIN selling is about identifying customer needs with the help of a well-structured question structure. Why does it work the way it does? In preparing for a meeting, the sales manager may assume that his client has a specific situation that he is able to describe. He also considers possible motives that may lead the client to a decision.

During a meeting with a client, the manager identifies the needs of the buyer and adjusts his proposal depending on them, which allows for a high-quality product presentation and a deal that is beneficial for both parties. Sales management using SPIN is successfully used in large companies. The method has proven its effectiveness on the example of more than 30 thousand transactions in 23 countries of the world. Spin sales are equally successful in banking, insurance, pharmaceuticals, and IT consulting. The Hathwaite group continued research for 13 years. Experts have come to the conclusion that the use of technology in training sales managers increases their efficiency by about 40%.

Basics of working in the SPIN technique

SPIN selling is a dialogue-based activity. Its basis is questions arranged in a certain sequence. The main reason why this method works is that it allows you to focus on the needs of the client and helps him see for himself what he needs. The clients of those managers whose sales management is based on the SPIN technique see them as their assistants, who can be contacted at any time, and not salespeople. The method of work is based on the mechanism of negation. By asking the right questions, the sales manager manages the customer's mind and leads him to an independent purchase decision. So the buyer does not feel pressure from the outside and does not feel that he is being forced to buy something.

Types of questions in SPIN selling

Spin-sells are a few blocks of questions, not as much identifying the needs of the buyer as shaping them. The abbreviation itself stands for:

• situational questions (situation);
• problem;
• indirect questions (implication);
• direct questions (need-payoff).

Situational questions are common questions to start a conversation about a client's general situation. They are needed to bring him to a conversation about existing problems. Problematic are aimed at identifying the needs of the client. But these needs should be precisely in his understanding, and not in the understanding of the sales manager. It is the buyer's pain that can be healed with a product or service. If the client himself does not fully understand his pain and does not see problems in his business, the manager proceeds to indirect questions.

They should help to think about the consequences for the client if he does not purchase the product. This is the main type of questions in SPIN sales, due to which the transaction is completed. At this point, the client must understand that he needs the product to grow his business. Direct or guiding questions are asked at the final stage, after finding out what the client is dissatisfied with. They should help the client more clearly understand the need to purchase what the sales manager offers. The client himself begins to talk about how important the product is for him, and understands how he can help him.

Questions about the client's situation

The situational question type is not used to sell a product. It is needed to prepare the ground in order to continue the conversation with the client and inspire his confidence. Situational questions help to discover what will make the client decide to close the deal in the future. The number of these questions should not be too large, otherwise the client may get bored. At the same time, it is important to inspire the person’s trust and clarify for yourself some general questions about his business and possible options for influencing through a presentation.

How many situational questions should there be

This type of questions is necessary for full contact with the client and clarification of his primary interests. The purpose of their use is to find out what kind of experience the client has with the product, its featurespreferences, purpose of use, etc. Most often, you need to ask about 5 open-ended questions that require a detailed answer, and 2-3 for clarification of details. It is important to use the open listening technique here.

As a result, the client becomes liberated and tunes in to communication. As a rule, this block of situational questions is the longest in time. The main thing for a manager working in Spin Selling is to identify those problems that he can solve by offering his product or service. When asking situational questions, you need to understand that you should not repeat the mistakes of Xerox managers and devote more than 40% of your time to situational questions.

Importance of problematic issues

Problem questions relate to the client's problems and are asked after situational ones. They should help clarify how the model formulated by the sales manager before the meeting matches his real needs. If it does not coincide with reality, at this stage you should linger and clarify the situation for yourself in more detail, and then correct the wrong points. By asking problematic questions, the sales manager draws the attention of the client to the need to solve his problem.

At this stage, you need to find out what is important for the client - this will help build a presentation of the product. During the conversation, questions need to be adjusted depending on needs and values. It is advisable to have several pre-prepared questions on hand that describe possible problems for the client. The main thing is to identify his problem. If everyonecorrectly, the manager can proceed to the next stage of work using the SPIN-selling technology.

How to ask indirect questions

By asking indirect or situational questions, the sales manager collects information about the difficulties and the degree of dissatisfaction, which helps to determine his “hidden need”. These are the motives of the second level. The more you can find out, the better - then more benefits can be highlighted in the presentation. The indirect type of questions is aimed at determining the importance of the problem and what will happen if it is not solved. They allow the client to realize what benefit he will receive in solving his problem. The main difficulty of indirect questions is that they cannot be predicted or thought out in advance. If a manager has experience, a kind of framework is formed, which he uses depending on the situation. Beginners may have difficulty.

The essence of indirect questions is the establishment for the client of a causal relationship between the problem and its solution. It is important to note that the client must do this himself. He will not speak directly about the hidden need, but he will feel it. At the same time, the manager does not need to look at the client's problems from his point of view. The main thing is to help him see his own problems. Next, you should ask a few indirect questions that highlight additional motives. They help the client realize that he needs to change the situation and find a solution.

Direct questions and closing the deal

After clarifyingall problems are asked direct questions that will help to identify the clear need of the client. Then it is important for the manager to show that they can be eliminated if a deal is made. In this case, the client must make his own decision. The presentation of the product begins only at this stage, not earlier. Direct questions are the simplest type, as they involve describing the benefits of a product. Upon successful completion of the presentation, the client and the manager close the deal.