For a long time, the conclusion of transactions was based on theories that were used as early as the 1920s. Nobody knew the secrets of training successful sales managers in their field. But in the mid-70s, the Hatveyt group conducted a study for Xerox. It analyzed the behavior of people in interacting with each other and in the process of concluding mutually beneficial transactions. The Hatwait study was dedicated to finding answers to questions about what information a person is looking for, how exactly he asks questions and what kind of reaction he receives.
How the Hatwayt 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. It is on this study that the popular books on Spin Sales of Neil Rackham are based. The first of them contains a theory and a detailed story about effective sales technology. The second book, “A Practical Guide to Spin Sales,” describes the application of this method. Hatwait specialists were present at 600 transactions, studying the relationship between the behavior of a sales manager and the success of his work. They searched for new, previously unknown facts, and eventually found that successful sellers behave in a special way. When the time came for the group of specialists to report to customers, all the managers whose work was studied were invited. Specialists were asked to write 10 questions that they ask their customers.
Features of the behavior of successful managers
In 100 transactions out of 600, more successful sales managers thought over their behavior several steps ahead and focused not on their needs, but on what the client wants. In their work, such people do not use tricks, but their talent and special strategy. As a result, this strategy served as the basis for the creation of the SPIN technique, and their sales techniques as examples of the SPIN method for trained specialists. The study description in Neil Rackham’s book consists of a rationale for the method and an illustration of the customer’s purchasing decision.
The emergence of spin sales technology
Questions written by unlucky Xerox representatives related to general customer situations, not problem areas. When working with clients, it turned out that they were also perplexed why, after ordinary questions, sellers abruptly switched to the presentation of the goods. As a result, they refused the deal, and the company was losing profits. The main problem for the majority of Xerox employees turned out to be that they asked only questions about general situations that did not concern problem areas. Of course, this type of question was necessary, but they could not be limited only to it.
SPIN Efficiency
The technique of successful conclusion of transactions, created on the basis of these studies, is called Spin-sales. This system is designed to help the sales manager to focus on his client, and the client, in turn, to realize their problems and feel the need to buy a product or service offered by the manager. SPIN sales are the identification of customer needs using a properly structured question structure. Why does it work that way? In the process of preparing for the meeting, the sales manager may assume that his client has a certain 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 offer depending on them, which allows for a high-quality presentation of the product and a deal that is beneficial for both parties. Spin sales management has been successfully applied in large companies. The method has proved its effectiveness by the example of more than 30 thousand transactions in 23 countries. Equally successful Spin-sales are used in banking, insurance, pharmaceuticals, IT consulting. The Hatveyt group continued research for 13 years. Specialists came to the conclusion that the use of technology in training sales managers increases their work efficiency by about 40%.
The basics of working in the SPIN technique
SPIN sales are an activity based on a kind of dialogue. 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 independently see what he needs. Customers of those managers whose sales management is based on the SPIN technique see them as their assistants, who can be contacted at any time, not sellers. The method of work is based on the mechanism of negation. By asking the right questions, the sales manager manages the customer’s opinion and leads him to an independent purchasing decision. So the buyer does not feel pressure from the outside and does not believe that he is forced to buy something.
Types of questions in SPIN sales
Spin sales are a few blocks of questions, it reveals as many needs of the buyer as it forms them. The abbreviation itself is decrypted as follows:
- situational issues (situation);
- problematic issues
- indirect questions (implication);
- direct questions (need-payoff).
Situational issues are common questions for starting a conversation about the general situation of a client. They are needed to bring him to a conversation about existing problems. Distressed are aimed at identifying customer needs. But these needs should be precisely in his understanding, and not in the understanding of the sales manager. This is the pain of the buyer, which can be cured with the help of 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 issues.
They should help to think about the consequences for the client in case he does not purchase the product. This is the main type of issues in SPIN sales due to which a deal is made. At this point, the client must understand that he needs the product to grow his business. Direct or directing questions are asked at the final stage, after finding out what the client is dissatisfied with. They should help the client more clearly realize 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.
Customer Situation Questions
The situational type of questions is not used to sell the product. He is needed to prepare the soil in order to continue the conversation with the client and arouse his trust. Situational issues help to find out what will force the client in the future to make a decision on the conclusion of the transaction. The number of these questions should not be too large, otherwise the client may get bored. At the same time, it is important to arouse a person’s trust and clarify for himself some general questions about his business and possible impact options through a presentation.
How many situational issues should be
This type of question is necessary for full contact with the client and clarification of his primary interests. The purpose of their use is to find out what the client has experience using the product, especially its preferences, purpose of use, etc. Most often, you need to ask about 5 open questions that require a detailed answer, and 2-3 to clarify details. It is important to use the technique of open listening.
As a result, the client is liberated and tuned 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 issues.
The importance of problematic issues
Problematic questions relate to customer problems and are asked after situational ones. They should help to 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 moments. 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 to build a presentation of the product. During the conversation, questions need to be adjusted depending on needs and values. It is advisable to have at hand several pre-prepared questions that describe the possible problems of the client. The main thing is to identify his problem. If everything is correct, then the manager can proceed to the next stage of work on the technology of SPIN sales.
How to ask indirect questions
By asking indirect or situational questions, the sales manager collects information about difficulties and the degree of dissatisfaction, which helps to determine his “hidden need”. These are the motives of the second level. The more they can be figured out, the better - then in the presentation you can highlight more benefits. An indirect type of question is aimed at determining the importance of the problem and what will happen if it is not resolved. 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. In the presence of experience, the manager forms a kind of framework, which he uses, depending on the situation. Beginners may have difficulty.
The essence of indirect questions is to establish a causal relationship between a problem and its solution for a client. It is important to note that the client must do this himself. He will not say directly about hidden necessity, but he will feel it. Moreover, the manager does not need to look at the problems of the client from his point of view. The main thing is to help him to see his own problems. Next, several indirect questions should be asked, highlighting additional motives. They help the client realize that he needs to change the situation and find a solution.
Direct questions and completion of the transaction
After clarifying all the problems, direct questions are asked that will help to identify the obvious need of the client. Then it’s important for the manager to show that they can be eliminated if you make a deal. In this case, the client must make their own decisions. The presentation of the goods begins only at this stage, not earlier. Direct questions - this is the simplest type, as it is associated with a description of the benefits of the product. Upon successful completion of the presentation, the client and manager make a deal.