Spin selling strategy

Confidential © 2013 Busbud Inc.Confidential © 2014 Busbud Inc.

Confidential © 2013 Busbud Inc.


Agenda…

•The Sale and Buying Cycles •The Implied and Explicit Needs •The SPIN™ Questions•Demonstrating Capability•The Obtaining Commitment Stage•Preventing Objections•Developing New Skills

Tous droits réservés - Marc Lamarre

Confidential © 2013 Busbud Inc. Tous droits réservés - Marc Lamarre

Planning

Prospecting

Opening

Investigating

Demonstrating

ObtainingCommitment

Following-up


Changes over time

Recognition of Needs

Evaluation of Options

Resolution of Concerns

Decision

Implementation


Major Account Sales Strategy -McGraw – Hill

......as it links to the seller’s sales activities

Planning Prospecting

Opening

Investigating

Demonstrating

Obtaining Commitment

Following-up

Demonstrating

Demonstrating

The Buying Cycle...


The 4 Stages of a Sales Call - SPIN™

Opening InvestigatingDemonstrating

CapabilityObtaining

Commitment


The Investigating is the most important stage of a sales call –This is where successful sellers invest most of their efforts

A poor Investigating stage will greatly compromise the call’s outcome


Opening

Investigating


• Effective deployment of the SPIN™ Model• The development of Implied Needs to Explicit

Needs

• Preliminaries• Purpose of the call• Permission to continue



Demonstrating Capability



• Presentation and/or Demonstration of the solution by describing Features, Advantages and Benefits

• Main source of objections in complex sales

A poor Investigating stage will greatly compromise the call’s outcome

• Obtaining Commitment requires 3 steps :1. Check that key concerns are resolved2. Summarize benefits3. Propose a realistic commitment



The Development of Needs

Problems Difficulties

Dissatisfactions

NeedsDesiresWishes

Unknown

Implied Needs

Explicit Needs


OK for Simple Sale -Transactional Selling Approach

Required for Complex Sales -Consultative Selling Approach


The SPIN™ Model

Effectively using the SPIN™ Model:

• S Situation questions

• P Problems questions

• I Implications questions

• N Need-Payoff questions



The Objectives and Value of the SPIN™ Questions

Situation Questions:

• Collect facts and background data about the customer’s existing situation that is relevant to your products and services;

• While these questions are easy to ask, they bring little value to the buyer and can certainly aggravate him if too many of these questions are asked;

• A good knowledge of the customer’s industry and/or the information provided by an internal or external contact can help planning the call in a way to reduce the number of Situation Questions required;

• The most effective Situation Questions are targeted toward customer problems.




Problems Questions:

• These questions probe for problems, difficulties or dissatisfactions. They prompt the buyer to state Implied Needs to which we can provide solutions;

• These questions have a lot of value to the customer because of the latter's interest to resolve its problems;

• It is essential to effectively plan these questions ahead of time, otherwise the sales call will most likely remain in the Situation Questions stage;

• The best way to plan problems questions is to previously set a minimum of three potential customer problems on a form and then planning examples of questions that will be used to highlight these issues.




Implications Questions:

• Discover the implications of customer problems related to our business solutions;

• These questions are very valuable because they develop the Implied Need toward other potential problems;

• The Implications Questions are particularly efficient in a complex sales approach;

• These questions, much more difficult to ask, requires careful planning because of their importance in the development of Implied Needs to Explicit Needs.




Implications Questions:

• As for Problems Questions, Implications Questions must be planned by thinking of the possible impacts associated to the customer’s potential problems.

• To begin your planning on the problems possible impacts, use the following model:

B.O.T.C.H.

B Bottlenecks/ Backlogs

O Other People Affected

T Time Lost/ Wasted/ Needed

C Costs Associated

H HasslesTous droits réservés - Marc Lamarre



Need-Payoff Questions:

• Need-Payoff Questions are intended to develop the buyer’s desire for a solution to their problems;

• When the Need-Payoff Questions are asked too early in the sales call, the customer is naturally suspicious;

• Need-Payoff Questions, certainly the most difficult to ask effectively, should start from the Implied Needs to develop toward Explicit Needs;

• Effective Need-Payoff Questions will engage the buyer to openly talk about the benefits of solving their problems.




Need-Payoff Questions:

• Only when the buyer recognizes the severity of the problems and the urgency to find a solution to them, it makes sense to ask Need-Payoff Questions.

• To avoid a common discomfort in the deployment of Need-Payoff questions and also to encourage the buyer to elaborate on the expected benefits, it is easier to ask these questions by adopting the ICE method …

I.C.E• Ask closed questions to IDENTIFY the Explicit Need

• Ask open and closed questions to CLARIFY the Explicit Needs and the expected Benefits

• Ask open and closed questions to further EXPAND on the long-term Benefits of a solution for the customer`s business environment




The 3 Ways to Demonstrate/Present a Solution

Features• Demo/ Presentation of the features, price, accessories…

• Low impact in the customer’s buying experience

Advantages• Demo / Presentation of the advantages linked to the features

• Sufficient impact in a simple/transactional sales call

Benefits• Demo/ Presentation of the solution in response to the customer’s explicit needs

• High impact in the customer’s buying experience during complex/consultative sales call




Buyer’s reactions:

Features

• Objections related to the cost of the product/service;

Advantages

• Objections related to the value of the advantages mentioned;

Benefits

• Buyer’s agreement because it meets with his expectations.




The Call’s Outcomes in a Simple Sale:

2 Possible Outcomes

• Win the Sale

• Loose the Sale


The objective is to win the sale



The Call’s Outcomes in a Complex Sale:

2 other Outcomes:

• AdvanceThe buyer accepts to move to the next step

• ContinuationThe discussion continues, but no action is agreed upon


The objective is to obtain an Advance




Opening

Investigating

Demonstrating


1. Obtaining Commitment starts before the call by planning a realistic advance (and a plan “B”)

2. Obtaining Commitment is easier when the explicit needs were discovered at the investigation stage and that benefits were offered during the demonstrating capability stage

3. Obtaining Commitment in 3 steps;

1. Check that key concerns are resolved.2. Summarize the benefits3. Propose a realist commitment (Advance)


Managing vs Preventing Objections


Situation Questions

Problems Questions

Implied needs

The seller offersadvantages

The buyer objects

The seller manages the objections

Managing Objections Preventing Objections

The seller develops needs with “Implications” and

“Need-Payoff” questions

The buyer express’ “Explicit Needs”

The seller offers benefits

The buyer demonstratesapproval and agrees


How to apply new skills efficiently?

Rule # 1:Practice one skill at a time

Rule # 2:Try a skill at least 3 times

Rule # 3:Concentrate on quantity before quality

Rule # 4:Practice the new skill in “secure” situations



Advices• Practice, Practice, Practice

- You don’t want to sound like a robot

• Study – Listen Great Interviewers such as:- Charlie Rose- Larry King- Cesar Milan

• Do your homework and gather as much information you can…- Validate this information with your customer without boring him.

• Know every aspect of your industry, company and competition- Prepare a lot of questions… do not underestimate the length of a sales call!- Build upon your company strengths and business opportunities…

Do not ignore your company weakness’ and business threats (S.W.O.T)

• Beware of condescending and hurtful questions…… use open and close ended questions wisely

• Never Assume and Always Confirm

• Commit in developing these new selling skills thoroughly…



Good Selling!


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Spin selling strategy