SPIN SELLING
SPIN SELLING
The name SPIN Selling comes from a highly influential book with that same title by Neil Rackham,
originally published in 2000. It is a selling methodology that is now taught globally and has been
echoed and forwarded in many publications since.
SPIN Selling was developed following the careful observation, by sales experts, of 35,000 sales
calls. Through this observation, it became clear that the quality of questions asked by a salesperson
were key to the success of a sale. The right questions could speed up the process, whereas the wrong
questions could stall it or even halt it completely.
The first students trained in the "SPIN" model
showed an average of 17% improvement in sales
results.
SPIN SELLING
SPIN selling is a four-step model that relies on the theory that successful selling is customer
centered and offers customized solutions to your prospect’s problems.
• There are four steps to a SPIN sales call: opening, investigation, demonstrating capability,
and obtaining commitment.
• The opening stage builds rapport and establishes a buyer centered purpose for your call.
• The investigation stage is at the heart of the SPIN model. The goal of this stage is to ask
questions that will uncover your buyer’s needs.
• There are four types of investigation questions: Situation, Problem, Implication, and Need-
payoff (SPIN).
• In demonstrating capability, you explain the benefits of your solution by showing your
prospect how your product or service meets his explicit needs.
• In obtaining commitment, you get your prospect to agree to advance the sale, continue the
sale without advancing, or make a purchase.
Situation Questions
The answers to Situation questions form the foundation of a sales cycle. The purpose of these questions is
to develop an understanding of the prospect and their precise situation (hence the name) as regards an
offering such as yours.
Examples of Situation questions If someone selling a CRM (Customer Relationship Management)
software:
•How do you currently manage your customer’s contact details?
•How do you keep track of what’s happening in your sales pipeline?
•How do you maintain an overview of how your individual sales reps are performing?
The information obtained from these questions is used throughout the remainder of the sales cycle. The
more situation questions in a call, the less likely that call was to succeed
Of course the more research you do prior to the initial conversation, the more intelligent and precise your
questions will be—and the more useful data you will gather.
Problem Questions
The idea behind Problem questions is to bring the prospect into an awareness that there is a problem or
problems that need to be solved. These problems and issues are what you will gently but firmly use to drive
the sale forward.
Problem questions are also effective at causing a prospect to identify issues that might have been otherwise
overlooked.
Examples of Problem questions:
•Was the amount of training you needed to get up and running with your CRM ever a problem?
•Do you find it’s expensive adding new users to your CRM?
•What’s the biggest problem you’re facing so far when managing your sales pipeline?
Implication Questions
Implication questions are designed to shine a light on the potential impact of the problems and issues named in
the Problem questions.
Correctly phrased and asked, Implication questions clearly demonstrate to the prospect in their own mind that the
problems really need to be solved, sooner rather than later.
Examples of Implication questions:
•If leads don’t get input into your CRM system, what’s the impact on your sales outlook?
•If training on your CRM is costly and time-consuming, what does that mean for new reps when they start?
•If you can’t accurately see your performance to date, how much response time do you have to implement a fix if
you anticipate your sales are falling short of a target?
Need-payoff Questions
Now that you’ve brought your prospect to the realization of how the situation will only deteriorate if it isn’t
solved, you then want to get them considering how valuable a real solution to the problem or problems would
be. That is the point of the Need-payoff questions.
Examples of Need-payoff questions:
•Why is being able to have a big picture overview of your sales pipeline important to you?
•If you could cut the amount of time spent training new staff on your CRM, what impact would that have?
•If you could see the opportunities in your pipeline at a glance, how would that help you achieve your sales
targets?
The secret to getting results with need-payoff questions is to ensure the buyer specifies the benefits
themselves. Encourage them to visualize, and imagine the difference with that problem solved.
The beauty of these questions is that if you get them right, your customer will tell you how your product will
help.
Need-payoff questions need to evoke positive emotions. After all, it feels good to know that a pressing problem
can finally be solved.
Selling marketing services to a small business. You're offering digital marketing services to a local
café.
Situation: You start by asking, "Can you tell me about your current marketing strategies? How are you
attracting customers to your café?"
Problem:., "What specific challenges do you face in reaching out to potential customers?
They mention they're struggling to increase foot traffic and online visibility.
Implication: Delving deeper, you ask, "How does the decrease in foot traffic affect your revenue and overall
business growth? What long-term impact does it have on your brand's presence in the local community?"
Need-Payoff: To highlight the benefits of your services, you propose, "If we could implement a targeted digital
marketing strategy to increase your online visibility and foot traffic, how would that impact your sales and
community engagement? What would it mean for your business's growth and customer loyalty?"
Class Assignment
Execution of SPIN SELLING Approach for following Products/Services:
• You are selling an “Inventory Management Software” to a Milk and Beverages Company.
• You are offering “Courier Services” to Office of a large MNC.
• You sell “Broadband Internet services” and for that you are meeting a brokerage house.
• You are offering “Online Matrimonial Services” to a group of Parents.
• You are selling Event management services to a MNC .
• You are offering Attendance management equipment (machines, devices etc.) to a
large Retail stores chain.
• You are selling personal protection equipment and items ( PPE’s including safety dresses,
Face shields, Masks, Sanitizers etc.) to a Factory for their workers.
• You are offering professional CV writing services to a large group of recent university
graduates.
