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Based on extensive research, analyzing
more than 35,000 sales calls in more than 23 countries and 24 industries
over a period of 12 years, Neil Rackham developed a strategy that has
become the new standard in sales performance in today's competitive and
constantly changing business environment.
Situation, Problem, Implication, Need-payoff: these are the precepts
behind SPIN® Selling. It was built on extensive research, proven over
twenty five years in the marketplace, and achieved acceptance among
large-sales professionals across all industries. SPIN® Selling is what
successful sales people do that their less successful counterparts do
not.
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Founded by SPIN® Selling author, Neil
Rackham, Upjoin is the acknowledged thought leader in the sales
performance improvement industry worldwide. It provides the expertise
and resources to help organizations put SPIN® Selling into practice, and
apply industry leading strategies to all facets of sales performance.
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The 3 C's of
Professional Selling
The extensive research of Huthwaite involved the observation and
analysis of more than 35,000 sales calls in a wide variety of industries
around the world. Both successful and unsuccessful calls were examined
in order to identify the factors that differentiated the two. The 3 C's
of Professional Selling are based on research findings which show that
the most successful sellers consistently demonstrate the following
principles during the selling process: ¡¤Candor ¡ª being honest and straightforward; never bending the truth; never pretending to know what they don't know; not exaggerating
or practicing any form of deception, thus earning a high level of trust
and credibility with their buyers.
¡¤Concern ¡ª being more interested in their buyers' needs than
in just "pushing" a particular product/service; making a sincere effort
to understand buyer problems and why they matter, thus being able to
recommend highly effective solutions.
¡¤Competence ¡ª knowing their products/services; understanding
their applications, the buyer needs they meet and the business problems
they can solve, thus being able to bring value to the sales interaction
and offer high-value solutions.
Buyer Needs
The single most important factor in the success of any sales call is
that of uncovering Buyer Needs. Buying decisions are driven by needs.
Buyer problems, dissatisfactions or difficulties with the existing
situation provide the reasons why a buyer might feel the need to change.
Your ability to identify and develop buyer needs, and to demonstrate the
capability of your product/service to address those needs, is vital to
your selling success. ¡¤Implied Need ¡ª a buyer problem, difficulty or
dissatisfaction which can be addressed by your product/service.
¡¤Explicit Need ¡ª a clear buyer problem, difficulty or
dissatisfaction which can be addressed by your product/service, plus a
clear buyer statement of their desire for a solution.
Demonstrating Capabilities
There are three different ways to describe the capabilities of a
product/service in SPIN selling: ¡¤Feature¡ªfacts or characteristics of a product/service
( "Our system has a high speed processor ¡")
¡¤Advantages¡ªhow a feature can be used or can help the buyer (
" That will give you fast performance and virtually instant response ¡"
)
¡¤Benefits¡ªHow a feature or advantage meets an Explicit Need
( " This will provide the efficiency you said you're looking for..." )
The least successful sellers tend to focus on product Features. The most
successful sellers used significantly more Benefits when describing
their capabilities. Of course, the only way to describe a Benefit is to
first uncover an Explicit Need.
Investigating in SPIN Selling
The term "Investigating" refers to the stage of a sales call devoted to
asking questions. These questions are used to uncover background facts
and needs.
Investigating is the single most critical skill area impacting the
outcome of sales calls. This means that your sales success (or lack
thereof) is directly related to how effectively you investigate, using
the SPIN process to gather information and develop Explicit Needs.
The SPIN process is composed of four types of questions, each of which
has a different purpose: ¡¤Situation Questions ¡ª uncover relevant background facts
about the buyer, the buyer's organization, and the buyer's current
situation.
¡¤Problem Questions ¡ª uncover and understand buyer problems,
difficulties or dissatisfactions which can be addressed by your
product/service.
¡¤Implication Questions ¡ª uncover the consequences, effects,
or implications to a buyer of not solving a problem which can be
addressed by your product/service.
¡¤Need-Payoff Questions ¡ª get the buyer's perception of the
payoff, usefulness, value or desirability of solving a problem.
Taken together, these four types of questions provide a powerful and
flexible process for effective selling
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Best known as the creators of SPIN Selling®, Huthwaite
is the acknowledged thought leader in the sales performance improvement
industry worldwide.
Over 25 years ago, Huthwaite founder Neil Rackham began a 12-year,
groundbreaking research study that analyzed over 35,000 sales calls
conducted in 20 of the world's leading selling organizations in 23
countries, and evaluated 116 factors that may impact selling behaviors.
The study's objective was to determine the distinct behaviors of
successful sales people. The results identified key behavioral
differentiators and challenged the view that good closing techniques are
the key to successful sales. These findings gave rise to a revolutionary
and now famous selling model SPIN®. The research, considered the most
important study ever conducted in the sales field, is summarized by Mr. Rackham in SPIN Selling, McGraw Hill's all-time #1 bestselling business
title.
Huthwaite has worked with hundreds of world class sales organizations,
helping them meet their business objectives, dramatically improve sales
effectiveness and productivity, and ultimately increase profits.
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Since the 1970's, sales models have been pursued mostly
in accordance with the principles laid down in Sales Psychology written
by U.S. sales psychologist E. K. Strong in the 1920's. This book served
as a basis for sales learning programs in the 50 years later on, whose
core constitutes what is known today as Professional Sales Skills. Xerox
developed and introduced the training program in the most systematic and
integrated way
With More complex purchasing process, multiple layers of
decision-making, longer time and higher risk to make the decision, and
tougher technical issues, the Professional Sales Skills focused on
external sales technique become insufficient to ensure sales success. A
good number of companies have begun to introduce the modern behavioral
science and psychology to optimize sales models and drive up sales
performance so as to deal with the increasing number of large sales and
major accounts.
Neil Rackham has brought about a revolution in the sales history with
his book SPIN Selling, which fundamentally transformed conventional
sales concepts and methods. Rackham renovated the traditional sales
theory in both sales technique and concept, and proved with hard
research data that the traditional theory is deficient and outmoded,
laying a foundation for the advisory sales theory. Neil Rackham has
therefore been recognized as authority in the study of sales worldwide.
Neil Rackham is president and founder of Huthwaite, Inc. His
organization researches, consults, and gives seminars for over 200
leading sales organizations around the world, including Xerox, IBM,
AT&T, Kodak, and Citicorp. His academic background is in research
psychology. It was at the University of Sheffield, England, that he
began his research into sales effectiveness that resulted in SPIN. He is
the author of over 50 articles and several books which have been
translated into a total of 11 languages.
The SPIN selling strategy is not product-dependent. It applies smoothly
so long as the potential customer h as
a long decision-making time or a large number of decision makers, the
salespeople concerned are absent when a decision is made, and a product
or service involves great purchasing risks.
There are plenty of opinions on how to sell, but a real shortage of
well-researched facts. Neil Rackham and his team carried out a 12-year
research to make his findings based on facts. Just as he said:
"Because I wasn't satisfied with opinions. I wanted proof."
They kept quiet about our findings for 7 years, testing out the
practical value of the ideas before ready to publish them. During that
time Huthwaite trained several thousand salespeople with SPIN Selling,
continuously experimenting to find the best way to turn the theoretical
knowledge of sales success into simple and practical methods that could
help anyone become more effective in major sales. They measured the
productivity gains of the first thousand people they trained, comparing
them with control groups from the same companies. The people we'd
trained showed an average increase in sales volume of 17 percent more
than the control groups. Consequently, Neil Rackham was confident that
SPIN Selling would give well-tested methods for increasing sales
results. It's already helped thousands of people be more successful in
larger sales.¡¡ |
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