Learning Objectives
• The Selling Process
• The Art of Cross-Selling & Up-Selling
• Spin-Selling Concept
Selling is a Process
• Selling is a process rather than an action.
• Active Listening.
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• Effective Questioning.
• Differentiating between product Features – Advantage –
Benefits
• Handling customer objections.
• Buying Signals
• Closing the deal
S IM P L E V S C O M P L E X S A L E S
SALES
C ALL
P o s s ib le
O u tc o m e s
SALE C O N T IN U A T IO N AD VAN C E
O R D is c u s s io n A g re e m e n t
R EFU SAL c o n t in u e s o n a c t io n w h ic h
TO BU Y n o a c t io n m o v e s s a le fo r w a r d
Cross-Selling Up-selling
In many markets such as the market for entry-level notebook PCs, the net
margin on the initial deal is often negative. Vendors are willing to accept a
loss on some of their products as long as they attract new customers.
Examples are loss-leaders in a supermarket, i.e. an article that is sold for less
than the supermarket’s purchase price mobile phones: the
telecommunication provider expects to make sufficient profits on the
subscription and will therefore accept a very low price on the device
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The Personal Selling Process
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• cold call
• e-mail
• fax
• mail
• telephone
3. Gather and analyze all relevant information about
the prospect
• Gathering Information About Consumer
Prospects
• Consumer credit bureaus
• Market research
• Library sources
• Gathering Information About Organizational
Prospects
• In-house purchasing agents
• Electronic directories and databases
• Library sources
4. Identify the prospect's problems and needs
• Organizational Problems and Needs
• SPIN approach
– Situation
– Problem
– Implication
– Needs Payoff
5. Choose the Best Sales Presentation Strategy
6. Rehearse Your Approach
SPIN Selling:
• Neil Rackham's book SPIN Selling, is a precisely defined
sequence of four question types that enables
• the salesperson to move the conversation logically from
exploring the customers' needs to designing solutions, or
• Rackham's terms, to uncover Implied Needs and develop them
into Explicit Needs that you, the sales professional , can resolve
• The research firm headed by Neil Rackham, the Behavioural
psychologist, distilled the SPIN personal interview method from
its large empirical study during the 1970's and early 1980's.
• Most effective for complex, large sales processes at key
accounts.
• The method encourages the customer to define the wider,
organizational problem and state a desire for a solution during
the investigation phase of a consultative sales process
Research Shows…
• In the 1970's, Huthwaite Inc. studied the practice of
successful selling and sales effectiveness on behalf of a
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many multinationals, such as IBM and XEROX. Over
twelve years, Neil Rackham led a team of 30 researchers
who studied over 35,000 sales interviews in 20+
countries and assessed 100+ factors that could improve
sales performance.
• They concluded that the “key’ to successful selling was
the behavioral differentiators of top sales people and not
sale closing techniques.
• Revealed that effective sales people discover customer
needs using four types of questions that differ in function
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The roadmap …
Situation
Questions Implied
Needs
Problem
Questions
Implication
Questions
Need-payoff Explicit
Questions Needs
BENEFITS
– Implicit needs
– Explicit needs
– Implicit need – a statement of a buyer’s problem,
dissatisfaction or difficulty with a current situation
– Explicit need – a clear statement of a buyer’s want, desire or
intention to act
In smaller sales, the more implied needs you can uncover, the
better chances you have of closing the sale.
S-Situation questions
• Gather background information and develop understanding of
the context of the sale.
• In big sales, minimize the small talk and focus on finding
background detail that can be used to make sense of the buyer's
business situation.
• Context creates meaning. This is about understanding the wider
context before you zoom into the details.
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• IMPACT: Least powerful of the SPIN questions. Can be negative .
Most people ask too many.
SO
ELIMINATE UNNECESSARY QUESTIONS
DO YOU HOMEWORK THOROUGHLY
Every good seller begins the sales call by assessing the terrain, by
asking questions to clarify the customer's current situation. So
Situation Questions are essential, but here's the surprise. Huthwaite's
research found that, as valuable as they are, Situation Questions also
can be overused, and often are by inexperienced salespeople In fact,
one characteristic of unsuccessful sales calls, they found, is that they
contain a higher than average number of Situation Questions. Their
advice: Do ask Situation Questions, but be sure they're necessary
ones. Don't ask a question to elicit information that you easily could
have obtained before beginning the call . And know that, when
overused, these questions bore the customer.
PROBLEM Questions
Explore customer problems, dissatisfactions, difficulties and concerns
• Ask questions to uncover problems which your product can
address. But the tendency is..
• If you are selling Tractors, ask about maintenance costs,
breakdowns and so on…
• If you are selling Life Insurance, ask about how many dependents
the person has…
• A trap here is to dive straight into presenting the benefits of what
you are selling. You may know the problem, but they do not!
Going straight to the sales pitch will just get you objections
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• “How happy are you with . . . ?”
• “Are you satisfied with the level of . . . ?”
• “Is it hard to cope with . . . ?”
• “How well are you able to cope with . . . ?”
• “What sort of dissatisfaction do you have with . . . ?”
• What prevents you from achieving that objective?
Implication questions
• Instead of telling them the problem they have (which is also
likely to raise objections), the goal is now to get them to see (and
feel!) the problem. By asking questions which draw out the
implications of the problem, they get to feel the pain that will
drive them towards your product.
• Link isolated problems by examining their effect on customer
business and organization
• "if this problem is not solved, what are the undesirable
consequences?".
• The goal of implication questions is to help break down the
problems of specific customers in order to make implied needs
explicit and to analyse the cost effectiveness of solving them.
For Example,
The life insurance salesperson could carefully ask what
would happen to the children if the target person died or
became very ill.
NEED-PAYOFF Questions
Help customers discover the value and benefits of the solution of an
implied need by asking such questions as
"how would e.g. reducing down-time help you?"
Action-oriented, 'explicit needs' trigger purchase
• Having hurt the target person with your implications, you now
give them a straw to grasp at by asking how their pain could be
resolved. With careful questions, you can get them to the state
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where they are asking for your product (Need) even before you
show it to them.
• They probe the Explicit Needs
• Reduce objections because they cause buyer to explain solution
• Move discussion forward towards action and commitment
For example,
The Tractor sales professional can ask how much better the
tractor was like when it was new, or whether any of the
farmer's neighbors have solved problems of old and
problematic tractors.
The Insurance Sales Professional could ask questions that
build pictures of the target person's children being safe and
secure whatever curve-balls the world might throw at the
family
ID E N T IF Y C L A R IF Y EXTEND
H o w u s e fu l w o u ld it b e Is s p e e d im p o r ta n t to C o u ld a fa s te r
to h a v e a b e a b le to h a n d le s y s te m fr e e y o u r p e o p le
fa s te r s y s te m ? m o r e c lie n ts ? u p to d o o th e r th in g s ?
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Identifying
• “Are you saying it would help if we could . . . ?”
• “Am I right that it would help if . . . ?”
• “Are you looking for a way of . . . ?”
• “Would you be interested in X?”
• “If I could show you a better way of dealing with X, would you be
interested?”
• “Would you like to be able to . . . ?”
Clarifying
• “Why is X so important to you?”
• “What sort of savings would X produce?”
• “What do you regard as the main benefits of Y?”
• “Do you think that would produce significant savings?”
• “Would you see Y as a significant improvement?”
• “How important is it for you to improve X?”
Extending
• “How else could Y help you?”
• “Are there any other ways in which Y could help?”
• “Would Y also help you achieve X?”
• How much business would you loose if your phone did not work
for 24 hours?
Pros
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• SPIN's investigation phase helps the sales person and potential
buyer focus on dealing with the customer's wider organizational
problems rather than only on the immediate benefits of a
product or service.
2. Write down some actual Problem Questions that you could ask to
uncover each of the potential problems you’ve identified.
3. Ask yourself what difficulties might arise for each problem. Write
down some actual Implication Questions that might get the prospect to
see the problem as large and urgent to solve.
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