SPIN (sales)
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SPIN® is a questioning technique and is an acronym for Situation, Problem, Implication, Need-payoff Questions. It is intended for large product or service sales and is developed by Neil Rackham and popularized in his 1988 book.
For nearly thirty years Huthwaite has analysed over 40,000 sales interviews in 27 countries and studied 116 factors which might play some part in improving sales performance. Conclusion was that exceptional sales performers discover prospect or customer needs by the use four types of questions, which are categorised by their purpose (function)
- Situation Questions – to gather background information and understand the context of the sale.
- Problem Questions – to explore the customer’s dissatisfactions and concerns.
- Implication Questions – that develop and link apparently isolated problems by examining their ‘knock-on’ effect on the areas of the customer’s business.
- Need-payoff Questions – that invite the customer to consider the benefits of solving his or her problems and, having done so, to express an Explicit Need for a solution ("if I can show you a proven way to find a permanent solution to this adverse situation, would you be willing to hear my brief presentation?").
A key factor in SPIN® is that it encourages the customer to define the problem and desire for a solution. Hence, the salesperson is viewed by the customer as a "consultant" rather than someone simply attempting to gain a sale. The SPIN® questioning/persuasive model has also been used by Huthwaite in a number of related models, including ones that cover Proposal writing, Presentations, SPIN for Marketers and the Huthwaite Major Sales Process.
Much of SPIN® selling focuses on the types of questions used to probe a potential buyer. The SPIN® question types must be understood as must the different types of needs that the questions are designed to uncover. These needs fall into two groups, Implied Needs (problems, concerns or worries about the current situation) and Explicit Needs (statements of a desire to act accompanied by an exploration of the value of acting).
Some of the following issues are discussed in SPIN® selling:
- statistical analysis of successful sellers
- why closing techniques are less relevant in large sales
- questioning skills
- dealing with price concerns and objections
- objection prevention
- selling new products
- working with professional buyers
