SPIN selling
What is SPIN selling?
SPIN selling is a sales technique whose main premise is to actively listen to the customer and thus be able to offer relevant and customized solutions to their needs, instead of just listing the advantages of the product or service.
The SPIN selling method says that every customer must feel motivated to make a purchase and to generate that motivation it is necessary to make them aware that they have a need or problem, which will be solved by buying the product or service offered.
The SPIN sales strategy has its origin in Neil Rackham’s 1988 book (Spin Selling). This book proposes a shift away from traditional sales models toward methods of actively listening to customers, in order to build trust and thus address their needs more precisely.
1. Phases of SPIN selling
The Spin selling method defines four phases where the appropriate questions are asked in order to establish a link with the customer and complete the sale. SPIN is an acronym for Situation, Problem, Implication and Need-payoff.
Situation
In this first phase the salesperson generates the contact with the customer and asks the questions to know the customer’s situation, understand their context and identify the possible problems they are facing.
Problem
It is considered the key phase, as the questions are focused on getting the customer to recognize and identify the problems, even discovering some they didn’t realize they had.
Implication
At this point, the questions are aimed at getting the client to identify the negative impact on their life of the problems identified in the previous phase and to create a scenario where they need to be solved.
Need-Payoff
Finally, questions are asked to get the customer to value the product or service being offered, as well as to recognize the benefits it has in solving the problem previously identified.
2. Stages of SPIN selling
Similarly, in his book, Neil Rackham defines 4 basic stages of a sale. Depending on the type of sale, it can be closed in a few minutes, or take months or even years in the case of large sales.
Opening
As this sales method focuses on medium and large sales, it is recommended not to jump straight into showing the product’s features and benefits, as is usual in small sales. The main purpose of this stage is to begin to gain the customer’s trust and make them feel comfortable, and many call it the preliminary stage.
Research
It is the most relevant of all of them, we have to try to find out how the use of our product or service can offer value to the customer. But also to discover their needs, priorities and criteria for purchasing the product. This is the stage where it becomes clear whether the sale can move forward and has a chance of closing, or whether it is necessary to give up.
Demonstration capacity
Once we know the customer’s needs and problems, we must show the solutions we can provide with the products or services we offer, and the customer themselves should be able to recognize them. This is even more valuable because in many medium and large sales, our contact is a person who acts as an intermediary and must pass the information on to someone else, who makes the final purchase decision.
Commitment
The final objective is the sale, but this should not be the explicit objective in each of the previous stages. This is the point where you will try to secure the customer’s commitment to trying or using your product/service, set up a meeting with purchasing managers or even close the sale directly.
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