SPIN selling is a sales methodology that involves gathering information through four stages: Situation, Problem, Implication, and Need Payoff. The Situation stage involves learning about the customer's current processes. The Problem stage identifies pains and issues. Implication helps understand why those issues need resolved. Need Payoff helps customers see how resolving issues achieves their goals. The goal is to advance the sale through actions, obtain an order, or learn why no sale occurred. SPIN selling aims to make the sales process more effective through understanding customer needs.
2. What is SPIN Selling
The acronym SPIN stands for Situation, Problem,
Implication and Need Payoff.
Situation gathers information; Problem
identifies the pains and problems prospects
experience; Implication helps the sales
representatives understand why those pain areas
need to be solved; Need Payoff helps the
prospect to draw conclusions.
The term was coined by Neil Rackham in his book
named SPIN Selling.
4. Questions asked during Situation stage:
What is your role at [company]?
How do you do X?
What’s your process for X?
Walk me through your day.
Do you have a strategy in place for X?
Who’s responsible for X?
How long have you done X this way?
Why do you do X this way?
How much budget do you have assigned to X?
Why do you do X this way?
How important is X to your business?
Who uses X most frequently? What are their objectives?
Which tools do you currently use to do X?
Who is your current vendor for X?
Why did you choose your current vendor for X?
5. Questions asked during Problem stage:
How long does it take to do X?
How expensive is X?
How many people are required to achieve the necessary results?
What happens if you’re not successful with X?
Does this process ever fail?
Are you satisfied with your current process for X? The results?
How reliable is your equipment?
When you have issues, is it typically easy to figure out what went wrong?
How much effort is required to fix your tools or buy new ones?
Are you happy with your current supplier?
6. Questions asked during Implication stage:
What’s the productivity cost of doing X that way?
What could you accomplish with an extra [amount of time] each [week, month]?
Would your customers be [more satisfied, engaged, loyal] if you didn’t experience [problem related
to X]?
If you didn’t experience [issue], would it be easier to achieve [primary objective]?
Does [issue] ever prevent you from hitting your goals in [business area]?
When was the last time X didn’t work?
How is [issue] impacting your team members?
Would you say [issue] is a blocker in terms of your personal career growth?
Would saving [amount of time] make a significant difference to your [team, budget, company]?
How would you use an extra [amount of money] each [week, month, quarter, year]?
Has a problem with X ever negatively impacted your KPIs?
7. Questions asked during Need Payoff stage:
Would it help if … ?
Would X make it simpler to achieve [positive event]?
Would your team find value in … ?
Do you think solving [problem] would significantly impact you in Y way?
Is it important for your team members to see X benefit so they can take Y action?
8. Stages of SPIN Selling:
There are four basic stages of
every sale:
Opening
Investigating
Demonstratin
g Capability
Obtaining
commitment
9. Outcomes of SPIN strategy:
There are 4 outcomes for
any SPIN Selling
strategy: Advances,
Actions, Order and No
Sale.
Outcomes of SPIN
Selling
Advances
They are actions a buyer
takes to bring close the
purchase of the deal
Actions
where the stakeholder
would be interested to
share the workload
Order
outcome where the
buyer closes a deal or
makes the purchase
No Sales
when the prospect is
rejected
10. Outcomes of SPIN
Selling
Advances
They are actions a buyer
takes to bring close the
purchase of the deal
Actions
where the stakeholder
would be interested to
share the workload
Order
outcome where the
buyer closes a deal or
makes the purchase
No Sales
when the prospect is
rejected
11. References:
To understand about SPIN Selling in detail, read our blog What is SPIN selling?
How to use SPIN selling effectively in 2020?