SPIN selling: A definition, examples, and best practices

SPIN selling is a sales methodology that focuses on uncovering a prospect's main challenges through questions. Once a salesperson fully understands what the prospect is experiencing, they can position their product or service as the solution.

The SPIN selling framework was put together by Neil Rackham in his 1988 book SPIN Selling. The SPIN selling process revolutionized the way many people think about sales. Rather than leading with the product, a sales pitch should be about finding out the pain and problems each prospect faces.

Source

SPIN stands for Situation, Problem, Implication, and Need-payoff.

How does SPIN selling work?

SPIN selling requires salespeople to clearly understand their prospect's background and challenges. This approach is especially effective for building meaningful relationships with prospects because salespeople become trusted resources who help prospects uncover major issues and solve problems together.

Due to the lengthy process of establishing a background, SPIN selling works best in a complex selling environment. This often refers to deals with high dollar amounts, a lengthy sales cycle, and/or a sophisticated product with a high learning curve.

For example, a salesperson selling a cable TV package doesn't need to spend 20 minutes getting to know you. A commercial real estate agent who's helping someone find a 30,000-square-foot office space, however, should learn everything they can about their prospective buyer.

Benefits of SPIN selling

Despite being around for more than 35 years, the SPIN selling method is still popular and effective today. Here are a few reasons why:

• It focuses on the prospect. Top sales performers consistently engage with their prospects more on calls. In fact, there are 54% more "conversation switches" per call between prospects and sellers with top performers than with lower performers. The SPIN selling method relies on this back-and-forth.
  

• It builds genuine relationships. Rather than following a script or rigid set of questions, the SPIN selling methodology allows salespeople the flexibility to ask the questions they feel they need to. This helps prospects feel part of the conversation rather than being backed into a corner.
  

• It works with other sales models. The SPIN model is actually a fairly basic framework, making it easy to build upon. For example, a team could start training their team on SPIN and then graduate to gap selling once they're ready. Gap selling requires sales teams to understand the prospect's current and future states.

The four types of SPIN sales questions

Rackham, the author of SPIN Selling, lays out a sequence of four different types of questions sellers should ask. While flexibility is important in the conversation, he suggests asking questions that fall into these four categories in a specific order.

1. Situation questions

When starting out on a sales call, begin by finding out the hard data about the company's current state. Later, you'll get into specific pain points, but for now, stick to gathering as much useful information as you can.

Also, much of this information can be gathered by a form, a pre-call survey, or even an initial phone call done by a junior sales rep.

Examples include:

• "What does the sales process look like at your company?"
• "What is your marketing budget?"
• "What tools are you currently using for this?"

2. Problem questions

After you've collected the necessary background information, you'll have built some rapport. They'll hopefully feel comfortable enough to share the cracks in the company's foundation.

At this point, you're also still mostly dealing with data and processes (we'll get to emotions in the next step). It's time to find out where things are breaking down, as well as where the company's leadership thinks they should be.

Examples include:

• "How much does it cost to use your current tool?"
• "What is the biggest challenge your organization faces with [XYZ problem that your product solves]?"
• "What isn't working about your current process?"
• "How many leads do you think your company should be generating based on your spend?"

3. Implication questions

This is the step where a skilled salesperson will begin to uncover larger frustrations, perhaps ones the prospect didn't even know they had. These questions are a mix of finding out exactly the toll the issue is taking on the prospect, as well as beginning to place themselves in a frame of mind to imagine what it would be like not to have these problems.

Real rapport must be in place for these questions to work well. It's also a place where a prospect needs to think deeply and be honest, so a preexisting relationship is paramount.

Examples include:

• "How does the organization as a whole feel about the persistent [problem/previously expressed pain point]?"
• "Does the [problem] you're experiencing impact your ability to reach your goals? How?"
• "Tell me more about that." (This is the secret weapon when you think there's more to uncover.)

4. Need-payoff questions

Need-payoff questions are all about getting the prospect to explain the urgency of the issue and the need for a better solution in their own words. This is a powerful closing technique that is set up by the previous three types of questions.

Examples include:

• "How valuable would it be to your company if you had [solution (ex. an extra 100 qualified leads per month)]?"
• "Do you think that streamlining [XYZ] process would help your organization?"
• "What would change if you didn't have to worry about [XYZ]?"

Stages of SPIN selling

As laid out in SPIN Selling, salespeople will generally follow four basic steps to each call. Each step incorporates the SPIN selling questions we laid out above.

1. Opening

SPIN selling incorporates a more casual approach to starting a sales call than other methodologies. Since your main goal is to build rapport, it's okay to start by just getting to know the person. Time is often less of a concern here because most companies using SPIN selling strategies expect a longer sales cycle anyway.

This could be as simple as asking how their week's going or about their family, friends, or weekend plans. From there, keep it feeling like a relaxed conversation as you move into asking your situation questions.

2. Investigating

Once you understand what's currently happening with your prospect and their company, it's time to really dive in. At this point, you'll start asking the problem and implication questions.

Remember, we want the prospect to use their own words to reach the right conclusions. You should be there as a trusted advisor who's simply guiding them to find the right answers. A skilled salesperson won't come across as pushy or as if they're trying to back the prospect into a corner.

3. Demonstrating capability

Now it's time to show that you really do have what they need. You'll begin talking about the product, but in a way that positions the features and benefits as a solution to their problem.

For example, if the prospect is clearly frustrated with their customers leaving, press on that pain point. For example, "You've expressed frustration about your customers leaving, and I get that's a real problem. Our automated customer support software has improved other teams' response times without requiring agent intervention. Can you see how this might help your company retain more customers?"

4. Getting a commitment

Never end the call without having a specific next step. In some cases, it might be the right time to push for the close, perhaps by using need-payoff questions. Maybe it makes more sense at this point to schedule a follow-up call with decision makers. Or, maybe it's not the right fit, and you end the call by agreeing to part ways.

SPIN selling best practices

Because SPIN selling doesn't follow a rigid script, mastering the strategy often takes time, training, and effort. Here are a few best practices and ways to improve:

1. Talk less: One mistake new sales reps make is dominating the conversation by naming every possible benefit. Especially in the beginning, ask questions, and then don't say anything until they're done.
2. Practice one technique at a time: It's too overwhelming to nail each part of the sales call at first. Perhaps work on your situation questions until you've mastered them, and then move on.
3. Roleplay with other team members: While some companies focus on having reps on the phone as many hours as possible, don't overlook the benefits of having specific times set aside for training — even if it's time-intensive.
4. Ask open-ended questions: There are some times during the call when you want a "yes" or a "no," but not during discovery. Avoid questions like "So, you're having a problem with data security?" Rather, ask a question like "Can you tell me more about the issues you're having with data security?"
5. Keep learning and researching: A one-time training isn't going to do it. Perhaps you can purchase copies of SPIN Selling for every member of your team. Or, join virtual SPIN train sessions with the company Neil Rackham founded, Huthwaite International.

Track lead data for SPIN sales teams with Streak

SPIN selling is wholly dependent on the relationships that you're able to build. Sales reps should never go into a sales call without having data to work with — especially if it's a second or third call.

Every sales team (especially ones using SPIN sales techniques) needs a way to keep their leads and contacts organized. Streak can convert any seller's Gmail inbox into a customer relationship management tool that organizes all of your lead data. Each contact has a dedicated page that displays their interaction history with your whole team in one centralized location.

Request a free 14-day trial of Streak and see for yourself how better data organization could make your sales calls so much smoother.

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