spin selling

Day 1

Who sells to whom?

Are you selling to the prospect?

Is the prospect selling to you?

The prospect sells to you that he can’t or won’t buy

Or…

You sell to him that he can and should buy

This is your Customer …

This is you …

You deal with a customer

&

This is what can happen…

He can make you …

… feel like this !

Or this !

But …

We all want to …

… and eat it too !

Have our cheese …

How can you sell to the Customer And…

Well …

Still feel happy about it ?

“What is the discount you are offering ?”

“A very special discount for you Sir”

customer !

You !

“Oh Come on ! Your competitor is giving…”

“Really? Sir that is out of question”

customer !

You !

“I can buy it right now but I won’t accept anything less

than …”

“You drive a hard bargain Sir. 50% is too high. I can offer you 25%

discount ”

customer !

You !

“40% discount and nothing less”

“Have you noticed our new memory dialing system Sir. I can

offer you a maximum of 30% discount. That’s the best I can do”

customer !

You !

Do you feel like this ?

So why then at the end of it all …

It gets hurt !

Our ego …

You took a position

Hurt because…

He took a position

Hurt because…

Where to hide your face

Furthermore you didn’t know …

Where to hide his face

And he didn’t know …

Saving face!

It bruises the ego !

People lock themselves in!

They defend against attack!

They get committed!

Attention is paid to...

Saving position & saving face

Concerns …

Get thrown out of the window

…a contest of will

It become …

This is called …

Haggling leads to …

…a broken relationship

Haggling is not …

…selling

Haggling is not …

…Negotiating

If you haggle …

…This is what you will look like !

If you don’t want to haggle …

You must …

If you don’t want to get hurt …

Satisfy the need of your organisation !

&

Satisfy the need of the Customer !

Sales Troika Balance

Concern for the customer

Concern for the company

Concern for the sale

Strategic advantage threshold

Minimum acceptable threshold

Professional selling skills

You can do this with the …

Programme

Are there special skills that makes someone successful in large

sales?

Or is selling just selling whether the sale is small or large?

ADVANCED SKILLS

THE MOST IMPORTANT SET OF SKILLS THAT THESE PEOPLE

HAVE IN COMMON ARE

‘S P I N’ SKILLS

NOW WRITE DOWN FIVE TYPICAL QUESTIONS YOU MIGHT ASK ON A SALES

CALL

HOW MANY WERE FACTUAL? e.g. How many calls do you get

per day?

HOW MANY ABOUT PROBLEMS DESIRES

e.g. What effect might that have on your customer response time?

Write 5 typical “Situational Questions”

• How many people work here?

SUCCESSFUL SALESPEOPLE ASK THEM ECONOMICALLY.

THEY DO THEIR HOMEWORKTHE MORE SENIOR THE BUYER THE

LESS THEY LIKE ANSWERING FACTUAL QUESTIONS

• IMPACT: Least powerful of the SPIN questions. Can be negative. Most people ask too many.

SOELIMINATE UNNECESSARY

QUESTIONSDO YOU HOMEWORK THOROUGHLY

Write 5 typical “Problem Questions”

• What prevents you from achieving that objective?

A PRODUCT IS SOMETHING WHICH SOLVES A PROBLEM

A TRANSPORT PROBLEM OR AN EGO PROBLEM

THINK OF FIVE PROBLEMS THAT YOUR PRODUCT SOLVES

• IMPACT: More powerful than Situation Questions. People ask more as they become more experienced.

THINK OF YOUR PRODUCTS IN TERMS OF THE THE PROBLEMS THEY SOLVE FOR BUYERS- NOT THEIR FEATURES.

Write 5 typical “Implication Questions”

• PROBLEMS

• PROBLEMS

• PROBLEMS

• PROBLEMS

• PROBLEMS

BUYER

. . . but what are the implications?

???

INEXPERIENCEDSELLER

Solution

Solution

SolutionSolution

Many experienced sellers link solutionsto problems too soon

Implied needs are a statement of wants and desires?

No???

A customer with a large problem is ready to accept a

solution?

No???

One may have a …

Problem. Difficulty. Dissatisfaction

But the buyer must be ready to perceive that he has the a need and that his problem is serious enough to justify the cost and hassle of finding a solution.

So the seller must establish and build the pain by Implication Questions

YOU HAVE BUYER THINKSSOLUTION NOT WORTH COST

• Our design software allows you make design revisions much faster

• IMPLICATIONS• New products slow to

market• Higher design costs• Lose best designers

POSSIBLE IMPLICATION QUESTIONS

o What will you do if your telephone lines are down for 72 hours?

o If you receive a long distance call and cannot hear clearly then how do you feel?

o How do you feel if you have to make ten complaints to rectify your phone and after that to bribe the linesmen to make it happen?

• IMPACT: Most powerful of all SPIN questions. Top salespeople ask lots of them..

THESE ARE THE HARDEST TO ASK AND MUST BE PLANNED CAREFULLY BEFORE KEY CALLS

Write 5 typical “Need pay-off Questions”

• How much business would you loose if your phone did not work for 24 hours?

UNLIKE THE OTHER 3 THEY FOCUS ON SOLUTIONS.

THEY GET THE BUYER TO TELL YOU ABOUT THE BENEFIT YOUR SOLUTION OFFERS

YOUR FINAL PRESENTATION CAN BE FOCUSSED ON ACKNOWLEDGED NEEDS

• IMPACT: Constructive questions always used by top sales people and have positive affect on buyer.

BUYER SHOULD DO THE TALKING AND BE ALLOWED TO CONVINCE HIMSELVE

THE SPIN PROCESS

WHAT IS YOUR

G:S

RATIO?

SEEKING IS MORE PERSUASIVE THAN GIVING.

SEEKING MEANS

ASKING QUESTIONS

GETTING TO KNOW YOUR CUSTOMER “NEEDS”

UNDERSTANDING CUSTOMER “PROBLEMS”

UNDERSTANDING HOW YOU CAN SOLVE HIS PROBLEMS”

UNDERSTAND HOW YOU CAN “BENEFIT HIS NEEDS”

Preliminaries

?

Demonstrating Capability

Obtaining Commitment

Which stage is missing?

Preliminaries

INVESTIGATING

Demonstrating Capability

Obtaining Commitment

INVESTIGATING!!

• Has direct influence on your success

• This stage will most impact your success

• The key purpose is to uncover implied needs

• Investigating is done through questions

The objective is to Move…

Implied Needs

into

Explicit Needs

HOW?

…Grow that need!

Problems

Difficulties

Dissatisfactions

A solution here has little impact.

A strong need, your solution will have impact!

It begins in the form of Problems, difficulties or dissatisfactions.

These are Implied Needs.

Clear, Strong

Wants and Desires

When needs have developed into

Wants or Desires

we call them Explicit Needs.

Needs Need to…

Outweigh c o s t s!

BuyDon’t Buy

Explicit Need

Explicit Need

Explicit Need

Perceived value Buyer

Hassle

Risks

Hidden Extras

Cost

The cost of the solution

CONTINUATION & ADVANCE

S IM P L E V S C O M P L E X S A L E S

S A L EO R

R E F U S A LTO B U Y

C O N TIN U A TIO ND iscu ss ioncon tin u esn o ac tion

A D V A N C EA g reem en t

on ac tion w h ichm oves sa le fo rw ard

S A L E SC A L L

P oss ib leO u tcom es

CONTINUATION OR ADVANCE?

o I liked your presentation. Let’s meet again sometime and discuss further.

o I cannot make this decision, but I’ll arrange for you to meet our Operations Manager.

o We would have to see the system in action. Can you arrange a demonstration?

A customer states a problem

You can solve it!

Should you… immediately offer your solution?

No !

Implied needs!

Implication questions demonstrates

Concern on the effect that the problem is having

Understanding of the issues and their consequences

The timing…

Situation Qs. first

… Establish the key facts

Problem Qs. next

… Uncover the implied needs

Implied Qs. last

… Develop and extend implied needs

Ensure your solution has maximum impact !

Implication Qs. They...

Build credibility and demonstrate concern !

Hold back !

When you uncover an implied need…

Develop it !

… Offer your solution only at the very last !

Need payoff Qs.

Qs. which probe for Explicit Needs

… shifts attentions from

Problems to Solutions

It tells you the value of the benefit

PUTTING SPIN INTO PRACTICE

• TWO KEY FACTORS

• PLANNING – Thinking through your SPIN questions and advances and putting them into a call plan

• PARADIGM SHIFT- Shifting your perspective away from product and towards problem solving e.g. Xerox Corp.

Situation Questions

Problem Questions

Implication Questions

Need-payoff Questions

BENEFITS

Implied Needs

Explicit Needs

The roadmap …

IMPLIED OR EXPLICIT NEEDS ?

• I need help in forecasting sales better• I’m worried about increasing

competition• Our customers are having to wait too

long- we’ve lost some!• We need to be able to send messages

automatically to our sales team• Our communications systems aren’t as

flexible as they should be

• Explicit• Implied

• Implied

• Explicit• Implied

NEEDS ACROSS FUNCTIONS

• You can increase the strength of the need by looking at the clients entire business process to link different functions.

• Link the needs you uncover and help buyers to understand how needs are connected.

• Look for ways to link individual problems into an overriding one which affect whole organization.

PROBLEM OR IMPLICATION QUESTIONS?

• Are you concerned about increased workload?

• How has the increased workload affected staff turnover?

• Have these staff problem led you to lose clients?

• How have you been handling the staff shortage?

• Problem

• Implication

• Problem

• Implication

WHAT GOES INTO GOOD IMPLICATION QUESTIONS?

• Planning- they do not flow automatically so don’t ‘wing’ it!• Business knowledge- You have understand why a problem

might be important to the buyer and what the business issue are

• Application knowledge- You must able to make the link between your product and their problems to be able to select the right Implied Needs

• Divert the buyers attention from problems you can solve from problems you can’t solve

• Timing. Always before introducing solution to Explicit Need.

NEED- PAYOFF QUESTIONS

• They probe the Explicit Needs

• Reduce objections because cause buyer to explain solution

• Move discussion forward towards action and commitment

NEED-PAYOFF QUESTIONS?

• How much would you save annually if we could eliminate your seasonal overtime costs?

• Are you worries about the unreliability or your current system?

• Has staff shortage caused you to miss important calls?

• How important is it to double your response time?

• Need-payoff

• Problem

• Implication

• Need-payoff

BE AN I.C.E. MAN (OR MAIDEN)!

D eve lop m en t o f N eed -p ayo ff Q u es tion s

IDENT IFYHow useful w ould it be

to have afaster system ?

CLARIFYIs speed im portant to

be able to handlem ore clients?

EXT ENDCould a faster

system free your peopleup to do other things?

ST RENGT H OF YOUR PRODUCTe.g. faster

Ask these questions after developing the seriousness of problem through Implication Questions but before describing your solution.

Roleplay, videotaping & feedback

Understand the value of closing the sale

Learn it !

“Close”

It starts with a “C”

C stands for conviction

Take C out and you have Lose

The heart of your sales career

Selling is a transference of feeling

In order to transfer feeling

You got to have the feeling

Believers are closers !

The “believer’s” close

… we believe so deeply. So completely. So fervently in what we are selling that we can’t understand why

other people don’t buy

A belief base needs to be…

Tied directly to the heart

The shortest route is from the heart into the customer’s pocket

Closers own what they sell

The critical step is the step of honesty

Your total conviction, your belief that it is truly the best buy

Can’t afford it

Unless you own it you can’t sell it

Own a 747? Well not exactly !

Be loyal to the product. Be loyal to the company

Encouraging closure

Put yourself in the other party’s shoes Understand what might be preventing him

Encouraging closure

Emphasise benefits … show advantages not previously considered

Encouraging closure

Avoid a win lose situation

…look for acceptable outcomes

Split the difference!

… partly yours & partly mine

Closure

Closure

Or Or

Suggest acceptable alternatives

Closure

Be assertive not aggressive!

Closure

If not satisfied do not sign!

Closure

Does he have full authority?

??

Closure

If...If we came up…

If I reduce the…

If I give you…

First make a hypothetical proposal

Hypothetical proposals are not commitments

Test the issues important to the opposition

Some closing techniques…

The picture close…

Been to a 5 star Hotel recently ?

Asked for a …Green salad ?

No ! We don’t have that on the menu !

You can however order …

“A sensuous salad. A painter’s palate. A colourful array of fresh spinach leaves mingled with ripe red tomatoes. Shredded cucumber topped with onion rings and tossed with their superb white sauce dressing !”

Yes Sir ! Hotels are word merchants

They know how to throw their words around to describe their food

The picture close… Roleplay

Situation

In colouful words describe how you would sell the

benefit of a trouble free telephone connection to the

customer

The fear close…

You walk into a petrol station

The attendant lifts the hood of the car. He checks the oil

“My G-o-d ! You need 3 litres of oil”

“ 3 litres?”

“Is there no oil in the engine at all ?”

The attendant turns around and tells you …

“The oil in the car is awfully dirty. It will damage your engine. It won’t take 5 minutes I can change it for you.”

The attendant has put the fear into the mind of the car owner. The car owner can ignore the attendant but damage the car engine.

What do you recommend he does?

The fear close… Roleplay

Situation

You only have a limited number of connections to offer in this territory

Use the fear closing technique to sell him the scheme

The post selling close… I recently purchased a car. Less than 72 hours of bringing the car home. This is the letter I received.

Dear Mr. Khetarpal,

This is just to thank you for your courtesy and the trust and confidence that you placed in buying the car from Vivek automobiles yesterday. I very much enjoyed talking to you. I am proud that you are now the owner of a car from our showroom. I am sure that you will be pleased with the performance of the vehicle. I shall be in touch with you in the future to see if I can be of any service to you. If you should need any assistance of any kind please feel free to contact me.

Yours truly,

This letter gives assurance to me that I purchased the right car. It also told me that the dealership appreciates my needs and will

look after my interests.

The post selling close… Activity

You have just made your first sale to your customer …

What letter post sale would you write to him so that you create a long term relationship.

Other closing techniques …

The “building trust” close

The “Challenge” close

The “Special occasion” close

The “emotional” close

The “opportunity” close

Roleplay, videotaping & feedback

Look for similarities

Wait for the other party to finish

“However”

Every concession you make is a major loss to you

Seek clarification. Paraphrase before your respond

Keep the other party guessing

Ask questions. Lots of them

Volunteer information sparingly

Make counter offers immediately

Counter offer with priorities of least importance

Your response !

Table the issues

Bargain the substance

Tabling the issues

We tell you…

What are we thinking?

You tell us…

What are you thinking?

Our thinking!

Your thinking!

Questions. Ask many many questions

Qs

Uncovering needs

Turn Implicit needs

Into

Explicit needs

Uncover needs. Ask why?

Clarify !

Clarify

Recap

… it maintains momentum

… it ensures that you understand

… it ensures agreement

Clarifying behaviour. Use it again and again

Restate!

Summarise!

Check it out!

Trade concessions

Offer the smallest concession first

Judge how much you need to yield

You may not need to go so far

Concede ground only if you receive something in return

I give you...

And you give me...

Each concession is a serious loss to you

Make major concessions on

minor issues

Make minor concessions on major issues

Take a long term view

Cast doubt on the validity of opponents information Test the validity of the opponents claim

Power is in the head

Strengthen your position

Strengthen your position

Cast doubt on validity of opponents information

Strengthen your position

Look for errors of logic. Omissions of fact.

Strengthen your position

Don’t attack individual personalities

… specially competitors

Strengthen your position

Show emotions. Convey feelings!

Strengthen your position

Test the validity of the opponents claim

“The price is too high? ” Prospect forgets price but

remembers quality

Good things are not cheap !

Cheap things are seldom good !

But…You must still close

There is a fear factor

Fear of making a mistake

Are you the right kind of person

Is it the right product?

Using the right technique

With the right motive

Well… you have a good chance!

Closing is a learned skill

Not a natural one

Skill can be acquired

Are you willing to make the effort?

Implementation

On reaching the agreementPut it into your report

Draw up an action planPut the plan into effect

Schedule the implementation

Monday Tuesday

WEDNESDAY

Thursday FridaySATurda

y

Breakdown

The longer the breakdown The more bitter it becomesThe harder it is to restore it

Reestablish communication If all else fails. Use a mediatorSomeone who can think laterally

Action is vital to prevent a situation becoming irretrievable

The value adders !

Show him sales turnover

Talk about inventory holdings

Talk about working capital

Show him the customer pull

Tell him about customer loyalty

Are you able to raise the value of the product In the prospects mind?

The minute...

Value equals the price

Value exceed the price

You now have...

“A hot prospect”

Or

The more the features describe

The more likely the sale ?

No!

Features!

They are the characteristics of your product

They are neutral

Not very persuasive

They create low impact

…to be used restrictively!

Advantages!

Show how your product or service can help the customer

Are more persuasive than features

Can have high impact early in the cycle

Impact dilutes with the sale progress

…to be used with caution!

Benefits!

Show how the product meets an explicit need

It is the final step in the need development process

The most powerful of sales behavior

… To be used only after need has been expressed

FEATURES. ADVANTAGES. BENEFITS.

Hi

Impact on Customer

(high impact always)

(initially high but quickly falls off)

(low impact always)

Benefits

Advantages

Features

Contact Contact Hi

Lo

Features lead to price concerns

Advantages result in objections

Benefits receive…

Support & Agreement

Commitment !

More often you use the closing technique

The more likely customer will buy?

No!

Commitment !

Ask for the commitment … but only after you have built the value

Roleplay, videotaping & feedback