Spin Selling: Rohit Singh Partner - Strategy & Human Capital Stratecent Consulting

SPIN SELLING
Rohit Singh
Partner – Strategy & Human Capital
Stratecent Consulting
SPIN SELLING Copyright © Stratecent Consulting 2006

Learning Objectives
 Review
 Understanding Large Account Selling
 The SPIN Model
 Understanding SPIN
 Conclusion

Review
 Let’s see what you remember from the first part of
this Training Session.
 Sales
 Advantages of Selling
 Basics
 Champions in Sales
 Questioning and Tie Downs

SPIN Model
 Set of ideas how to sell successfully in large sales,
based on the most extensive research ever carried
out.
 More than 90% of Fortune 500 Companies use it to
train their sales force.
 Neil Rackham is the creator of this model, and his
book is called ‘SPIN Selling’.
 All large account selling is done using the SPIN
Method.

Origin of the SPIN Model
 Based on massive research conducted by Huthwaite,
of over 35000 sales calls.
 The research set out to answer a question which was
troubling most sales heads.
 The question was: ‘Are there special skills required to
sell large accounts?’ Or ‘Are selling skills the same in
small and large sales?’
 Initial companies were Xerox and IBM.
 Experiencing problems.
 Based on the findings, a new model was developed,
called SPIN.

Basic Findings
 In successful sales calls, who does most of the
talking?
 Buyer?
 Seller?
 In successful sales, the buyer does most of the
talking.
 You get the buyer to talk by asking questions.
 It wasn’t any questions, but questions asked in a
sequence.

Exercise
 Write 4 examples of questions that you would
typically ask, in a sales call.
 Let’s continue our discussion about selling post paid
mobile connections.
 Categorize questions into 2 types:
 Factual
 Questions about problems, difficulties or
dissatisfaction

Situation Questions
 Questions of this type ask about facts.
 Exploring the buyers present situation.
 You can’t sell without them.
Who benefits most from these questions? –

Buyer or Seller?
 The more SQ in a call, the less likelihood of success.

 Most people ask a lot more SQ than they should.
 Ask SQs economically.

DEFINITION: Finding out facts about the buyer’s
existing situation.
EXAMPLES: How many people do you employ at

this location?
Could you tell me how the system is
configured?
Situation
Questions IMPACT: Least powerful of the SPIN questions.
Negative relationship to success.
Most people ask too many.
ADVICE: Eliminate unnecessary Situation

Questions by doing your homework
in advance.

Problem Questions
 The other 3 types of questions are extremely
powerful, and are the foundation of the SPIN Method.
 These are about the clients present state,
dissatisfaction, difficulties and problems.
 E.g.
 How satisfied are you with the present system?
 What prevents you from achieving that objective?
Etc…
 Most experienced sales people ask more Problem
Questions than inexperienced ones.

Problem Questions
 Why is the level of PQ higher in successful calls?
 Because products and services, from cosmetics to
consumer, all sell because they solve problems for
buyers.
 A product or a service is a solution to a buyers
problems.
 Even if products at first sight don’t look to solve
problems, they always do, if you look closely.
 Let’s look at 3 radical examples.

Problem Questions
Product or Service Problem it Solves
A Rolls Royce
A Video Game
A tie with picture of Elvis
 Think of 5 problems that your product or service can

solve

Finding about problems, difficulties
DEFINITION:
and dissatisfaction.
What makes this operation difficult?

EXAMPLES:
Problem
Questions More powerful than SQs.
IMPACT:
Most people ask more PQs as they
become more experienced.
Think of your products and services

ADVICE:
in terms of problems they solve, not
details or characteristics.

Implication Questions
 These are the most powerful of all the questions.
 SPIN Research pointed out that top sales people
introduced products, services or solutions very late in
the discussion.
 This was true across all industries.
 The question is: Why do you think this is the case?
 Inexperienced people do not link problem and
solution.
 Questions about effects or consequences of a Buyers
problem is called IQ.

Implication Questions
 They are powerful because they help the buyer see
that the problem is big enough to justify the cost.
 E.g.
 Could that lead to an increase in your cost?
 IQs are powerful because they induce and build pain.
 They build the consequences of a buyers problem
and make him more anxious.
 They build pain before any gain, because…

Example:
Problem Where You Have Buyer says “Good, not worth
a Superior Solution the cost and hassle.”
Design revisions are main


Our design software allows cause of slow product

you to make revisions much development.
faster than your existing  A late product is a dead
process. product.
 Longer it takes to revise,
Plan some Implication greater overall cost.

Questions.  Competitors with shorter
design cycles will move faster.

 Your best designers won’t stick
without state of the art tools.

DEFINITION: Asking about the consequences or
effects.
EXAMPLES: Could this leaf to more cost?

Implication
Questions
IMPACT: Most powerful of all.
ADVICE: Hardest to ask. Plan before you ask.

Need Pay Off Questions
 This asks about Value or Usefulness about a
solution.
 E.g.
 What if we could help you save cost by 20%?
 They focus on solutions.

 Mirror images of IQ.
 They get the buyer to list the benefits of your solution.
 E.g.
 Our faster system will help you reduce present
production bottle-necks.
 How would a faster system help you?

Exercise
Potential Benefits of your NP Questions to get buyer

Products and Services to list benefits
 Our system is easy to use.  What advantages would

you see from a system that
could be used by untrained
operators?
 We offer online diagnostics. How would it help to have

online diagnostics?

DEFINITION: Value or usefulness of a solution.
EXAMPLES: How would a quieter printer help?

Need Pay
Off
Questions
IMPACT: Positive impact creates the right
condition for selling.
ADVICE: Use these to get the buyers to tell

you the benefits.

SPIN SELLING
Session II
Rohit Singh
Partner – Strategy & Human Capital
Stratecent Consulting

Learning Objectives
 Stages
 Buyer needs
 SPIN
 Conclusion

Questions to refresh your
learning

Good News
 Has proved a very versatile sales tool.
 Works across cultures.
 Applies across industries.
 Is equally applicable to selling services or products.

Bad News
 It’s harder than it seems.
 Good questioning is a complex skill.
 It has a high percentage of drop outs.
 It’s like exercising. You know you get fit, but the pain
makes you lazy.
 Laziness of telling, rather than asking.
 Some lessons that we can learn…

Lessons
1. To sell well, you must plan well. SPIN model
requires you to invest in planning.
2. Use SPIN as a planning tool, rather than as a magic
pill.
3. Building a problem solving orientation. (Xerox Case
Study)
4. Think of products in terms of problems they solve.
5. Try it out, with the following process.
6. Having the right mindset.

Lessons
7. Telling is quicker.
8. Telling is easier.
9. Telling requires very little planning.
10. Telling is safer.
Remember:
It is more important to understand than to persuade.

4 Stages of a Sales Call
 Opening
 Investigating
 Demonstrating Capability
 Obtaining Commitment

Question
 Which stage is more important and why?

4 Stages of a Sales Call
 In large sales, there might be 2 other outcomes or
results:
 Advance
 Continuation

Advance
 In large sale, if a call results in an action that moves
you closer to a sale, it is called an Advance
 If the call achieves no specific action, that moves the
sale forward, it is called a Continuation
 Top sellers close more calls by converting
Continuations into Advances
 E.g.
 Get a list of selection criteria
 Get a contact to attend the demo
 Get an introduction to other heads

 Questions 1.1

Putting SPIN to Work
Situation
Situation
Problem
Problem
Implication
Implication Implied
ImpliedNeeds
Needs
Need
NeedPay
PayOff
Off
Benefits
Benefits Explicit
Explicit Needs
Needs

Implied Need
 A clear statement of a buyers problem, dissatisfaction

or difficulty with the current situation

Explicit Need
 A clear statement of a buyer’s want, desire or

intention to act

Needs & Sales Success
 A need is any statement a buyer makes that
expresses concern or a want
 There are 2 types:
 Implied
 Explicit
 According to SPIN research, successful sellers

uncovered exactly the same number of implied needs
as unsuccessful sellers
 But, successful sellers uncovered twice as many
explicit needs as unsuccessful sellers

Needs & Sales Success
 In large sales, effectively developing Explicit Needs is
the key to success
 Uncovering, understanding and developing Buyer’s
Implied Needs are the raw materials which can be
converted to Explicit Needs later on
 E.g.
 I am unhappy about service delays
 Breakdowns are a problem
 I want faster response time
 I need 99% reliability

 Questions 1.2

 Reading: How Needs Develop.

The Value Equation in Large Sales
Buy Don’t Buy
Problem $$$$$$
Dissatisfaction Other Costs
Difficulty $$$$$$
Seriousness Cost of
Of Problem Solution

EXPLORING SPIN

Exploring SPIN
SITUATION QUESTIONS:
 One way of using Situation Questions effectively is
identifying high risk and low risk areas
High Risk: Low Risk:

 Late in selling cycle  New customer
 Irrelevant business area  Early in selling cycle
 Excessive use
SQ should help the buyer see you as a Problem Solver

rather than as a Prosecutor

Exploring SPIN
PROBLEM QUESTIONS
 People buy only if they have needs
 Needs start with a problem or a dissatisfaction
 PQs are asked to reveal buyers
 Implied Needs
 Clarify Difficulties
 Gain Understanding of Buyer Problems
 Identify Pain
 E.g.
 Where, when, how often, what happens if, etc.

Exploring SPIN
High Risk: Low Risk:

 Sensitive Area  Early in the selling cycle
 Your own product or  In significant areas
service  Where we can offer a
solution
 A good way to start planning Problem Questions is by

thinking about the problems that our product or
service can solve for the buyer

Exploring SPIN
IMPLICATION QUESTIONS
 Their purpose is to develop clarity and strength of
Buyer’s problem by:

 Focusing on consequences of the problem
 Extending and expanding the effects
 Linking a problem to other problems
Low Risk: High Risk:

 Significant Problems  Too early
 Unclear Problems  Implications you can’t
solve

Exploring SPIN
IMPLICATION QUESTIONS
 The purpose of implication questions is to develop
Implied needs so that they become Explicit.
 Ask Implication Questions as much to
UNDERSTAND as to PERSUADE.

Exploring SPIN
NEED PAY OFF QUESTIONS
 The purpose is to develop buyer’s desire by:
 Focusing on the Pay Off of the Solution
 Probing for Explicit Needs
 Getting the Buyer to tell you the benefits
Low Risk: High Risk:

 When the buyer has to  Too early in the call
justify the decision  When buyer need is

 When the solution has subjective
pay offs elsewhere

Exploring SPIN
NEED PAY OFF QUESTIONS
 The ICE model
 Identify
 Clarify
 Extend

ICE Model
The fastest Strength of
System product or
available service
Couldn’t a faster
How useful would Is speed important
system also free
it be to have a to reduce turn
up your operations
faster system? around time
to do other things
Clarify the importance of

Buyers Need
Question to identify Extend the buyers
whether the strength perception of this
could help the buyer strength

Case study

Finally
 “You never persuade clients of anything. Clients
persuade themselves. You have to feel their
problems just the way they feel them. You have to sit
on their side and look at issues from their point of
view.”
 It would be hard to find a better description of the

SPIN model in action.

Learning Objectives
 Stages
 Buyer needs
 SPIN
 Conclusion

Spin Selling: Rohit Singh Partner - Strategy & Human Capital Stratecent Consulting

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SPIN SELLING

SPIN SELLING Copyright © Stratecent Consulting 2006

 Understanding Large Account Selling

 The SPIN Model

SPIN SELLING Copyright © Stratecent Consulting 2006

SPIN SELLING Copyright © Stratecent Consulting 2006

SPIN SELLING Copyright © Stratecent Consulting 2006

SPIN SELLING Copyright © Stratecent Consulting 2006

SPIN SELLING Copyright © Stratecent Consulting 2006

SPIN SELLING Copyright © Stratecent Consulting 2006

Who benefits most from these questions? –

 The more SQ in a call, the less likelihood of success.

SPIN SELLING Copyright © Stratecent Consulting 2006

EXAMPLES: How many people do you employ at

ADVICE: Eliminate unnecessary Situation

SPIN SELLING Copyright © Stratecent Consulting 2006

SPIN SELLING Copyright © Stratecent Consulting 2006

SPIN SELLING Copyright © Stratecent Consulting 2006

Product or Service Problem it Solves

A tie with picture of Elvis

 Think of 5 problems that your product or service can

SPIN SELLING Copyright © Stratecent Consulting 2006

What makes this operation difficult?

Think of your products and services

SPIN SELLING Copyright © Stratecent Consulting 2006

SPIN SELLING Copyright © Stratecent Consulting 2006

SPIN SELLING Copyright © Stratecent Consulting 2006

Design revisions are main

Our design software allows cause of slow product

Plan some Implication greater overall cost.

design cycles will move faster.

without state of the art tools.

SPIN SELLING Copyright © Stratecent Consulting 2006

EXAMPLES: Could this leaf to more cost?

IMPACT: Most powerful of all.

ADVICE: Hardest to ask. Plan before you ask.

SPIN SELLING Copyright © Stratecent Consulting 2006

 They focus on solutions.

SPIN SELLING Copyright © Stratecent Consulting 2006

Potential Benefits of your NP Questions to get buyer

 Our system is easy to use.  What advantages would

 We offer online diagnostics. How would it help to have

SPIN SELLING Copyright © Stratecent Consulting 2006

EXAMPLES: How would a quieter printer help?

ADVICE: Use these to get the buyers to tell

SPIN SELLING Copyright © Stratecent Consulting 2006

SPIN SELLING Copyright © Stratecent Consulting 2006

SPIN SELLING Copyright © Stratecent Consulting 2006

SPIN SELLING Copyright © Stratecent Consulting 2006

 Has proved a very versatile sales tool.

 Works across cultures.

 Applies across industries.

 Is equally applicable to selling services or products.

SPIN SELLING Copyright © Stratecent Consulting 2006

SPIN SELLING Copyright © Stratecent Consulting 2006

SPIN SELLING Copyright © Stratecent Consulting 2006

It is more important to understand than to persuade.

SPIN SELLING Copyright © Stratecent Consulting 2006

SPIN SELLING Copyright © Stratecent Consulting 2006

 Which stage is more important and why?

SPIN SELLING Copyright © Stratecent Consulting 2006

 In large sales, there might be 2 other outcomes or

SPIN SELLING Copyright © Stratecent Consulting 2006