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SPIN Selling Approach, Exams of Business Ethics

A.T. Still University of Health Sciences (ATSU)Business Ethics

An overview of the SPIN selling approach, which is designed for use in major sales. It explains the differences between simple sales and larger/major account sales, the four stages of SPIN selling, and the characteristics of major sales. It also discusses the importance of building value, establishing an ongoing relationship, and taking a longer-term perspective. guidance on how to conduct successful sales calls, including the use of preliminaries, investigating, demonstrating capability, and obtaining commitment. It also explains the importance of asking the right questions and interweaving the use of various elements. useful for anyone interested in improving their sales skills, particularly in the context of major sales.

Typology: Exams

2021/2022

Available from 04/28/2022

grego4068
grego4068 🇺🇸

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Learning Objectives
1. Learn more about the details underlying the SPIN selling approach.
2. Understand the differences between simple sales and larger/major account sales and how
SPIN selling counts a call as success or failure.
3. Understand what the four stages of SPIN selling (Preliminaries, Investigating, Demonstrating
Capabilities, and Obtaining Commitment)
SPIN Selling Overview
• SPIN Selling is an approach designed for use in major sales (as opposed to ‘simple’ sales
selling).
• There are differences between selling in “simple” sales contexts (a pair of shoes at
Dick’s Sporting Goods) and larger sales contexts (selling shoes by the truckload to Dicks
Sporting Goods for Nike) .
• Simple sales are sold often sold in one sales call.
• Larger sales (major sales / strategic accounts) require many sales calls over a prolonged
cycle.
Characteristics of Major Sales
Longer Selling Cycle
Whereas a simple low-value sale can often be completed in one call, a major sale may require
many calls spread over a period of months.
Building Value is Critical to Sales Success
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Learning Objectives

  1. Learn more about the details underlying the SPIN selling approach.
  2. Understand the differences between simple sales and larger/major account sales and how SPIN selling counts a call as success or failure.
  3. Understand what the four stages of SPIN selling (Preliminaries, Investigating, Demonstrating Capabilities, and Obtaining Commitment) SPIN Selling Overview
  • SPIN Selling is an approach designed for use in major sales (as opposed to ‘simple’ sales selling).
  • There are differences between selling in “simple” sales contexts (a pair of shoes at Dick’s Sporting Goods) and larger sales contexts (selling shoes by the truckload to Dicks Sporting Goods for Nike).
  • Simple sales are sold often sold in one sales call.
  • Larger sales (major sales / strategic accounts) require many sales calls over a prolonged cycle. Characteristics of Major Sales Longer Selling Cycle Whereas a simple low-value sale can often be completed in one call, a major sale may require many calls spread over a period of months. Building Value is Critical to Sales Success

As the size of the sale increases, successful salespeople build up the perceived value of their products or services. The building of perceived value is probably the single most important selling skill in larger sales. On-going Relationship As the sales grows larger, the customer puts more emphasis on the salesperson as a factor in the decision. In a large sale, product and seller may become inseparable in the customer’s mind. The Risk of Mistake Customer’s become more cautious as the decision size increases. Purchase price is one factor, but fear of making a public mistake may be even more important. Longer-term Perspective / Goal The objective of relationship selling is to accomplish longer- term mutually-beneficial outcomes of value to both the buying firm (buyer) and the selling firm (seller).

  • The objective of the call is rarely to get the buyer to “sign on the line that is dotted.”
  • The salesperson’s sales call objective is typically to “advance” the process towards a solution.
  • Eventually, the entire cycle will either validate or disprove the proposed solution (e.g. the market or buyer who commits will ultimately judge whether the proposed solution works or not). Successful Calls
  • Obtaining Commitment – Finally, a successful sales call will end with some sort of commitment from the customer. Larger sales contain a number of intermediate steps that we call Advances. Each step advances the customer’s commitment toward the final decision. Preliminaries
  • These are the warm-ups, including “ice-breaker” events, at the start of the call.
  • There is no one best way to open a sales call.
  • Successful salesperson rarely open two calls in the same way.
  • Be careful of the time-worn practice of commenting on client’s personal interests. Preliminaries Investigating Demonstrating Capability

Obtaining Commitment Preliminaries

  • Since major sales involve multiple sales calls, the importance of preliminaries during the call is minimized.
  • The purpose of preliminaries is build trust with the buyer.
  • In order to do this you must establish you are a credible source for needed solutions. Three criteria for source credibility: Likeable, trustworthy, and relevant expertise. Preliminaries Investigating Demonstrating Capability Obtaining Commitment

Preliminaries Investigating Demonstrating Capability Obtaining Commitment Preliminar Investigating SPIN QUESTIONS: Situation Questions Problem Questions Implication Questions Need-payoff Questions Investigating

Investigating Preliminaries Investigating Demonstrating Capability Obtaining Commitment Investigating

  • Finding out facts, information and needs.
  • Use the SPIN Question sequence:
  • Problem Questions
  • Probes client problems, difficulties or dissatisfactions.
  • Not very powerful in major-sale situations.
  • Should be used sparingly.
  • Implication Questions
  • Probes the consequences or effects of the problems.
  • Major-sale situations contain a high level of these questions.
  • Crucial element of SPIN Selling process.
  • Increases the client’s perception of value in the solution you offer. Preliminaries Investigating Demonstrating Capability Obtaining Commitment

Investigating

  • Need-payoff Questions
  • Probes the value, usefulness or utility that the client perceives in a solution.
  • Strongly linked to success in major-sale situations.
  • The SPIN Selling process is flexible and not rigid.
  • The elements may be used sequentially.
  • Don’t be reluctant to interweave the use of various elements.
  • All elements work toward obtaining of the appropriate level of commitment. Preliminaries Investigating Demonstrating Capability

that the buyer perceives to be small and build it up into a problem large enough to justify action. Preliminaries Investigating Demonstrating Capability Obtaining Commitment Preliminar Investigati Demonstrating Capability Demonstrating Capability

  • Showing that you have something worthwhile to offer.
  • Make Benefits showing how you meet Explicit Needs that have been expressed.
  • A Benefit is a statement that shows how your solution can help the client.
  • Benefits decline in value as the size of the transaction escalates.
  • The most effective Benefit shows your solution meets an Explicit Need. Preliminaries Investigating Demonstrating Capability Obtaining Commitment Demonstrating Capability
  • The cost of the solution must outweigh the seriousness of the problem.
  • this emphasizes the important of questioning in the investigating stage.
  • Make sure that the solutions proposed are in relation to explicit needs so that the solution has greater impact with the client.
  • The cost and hassle to implement the solution must be counter-balanced by the value the seller has created through the use of implication and need payoff questions.
  • If you can build the value of your solutions, then you are much less likely to face objections.
  • The solution lies in better “needs development” rather than in “objection handling.” Preliminaries Investigating Demonstrating Capability Obtaining Commitment Preliminar Investigati Demonstrati Capability Obtaining Commitment Obtaining Commitment
  • Gaining agreement to proceed to further stage of the process.
  • Check that you have covered key concerns.
  • Summarize the Benefits.
  • Propose an appropriate level of client commitment. Preliminaries Investigating Demonstrating Capability Obtaining Commitment
  • As noted earlier, to be successful, each sales call must achieve the objective set by the salesperson before the sales call.
  • The immediate objective will not usually be the signing of a proposal to buy or lease.
  • The objective will be to move one more step closer to long-term goal, to “advance” the process toward the ultimate objective.
  • The salesperson must determine what “advance” she expects to achieve with each sales call.