SPIN for products with a long transaction cycle
Listen, hear, think and then talk. SPIN Selling has changed the approach to sales in its time. The method developed by Neil Rackham and described in his book ‘SPIN Selling’ is particularly effective for sales with long transaction cycles and is especially effective for complex, high-value sales.
What is SPIN Selling? Betonlogos s.r.o. can explain in a nutshell: instead of relying on pushy sales pressure tactics or waiting for results from traditional advertising promotion, SPIN selling focuses on understanding the customer's needs.
SPIN is an acronym for Situation, Problem, Implications and Need-Payoff - four types of questions that help guide the conversation, identify customer needs and position your product or service as the ideal solution. The salesperson helps the customer recognise the problem, its implications and the benefits of the solution, rather than simply offering a product.
- Technics and electronics - laptops, smartphones, professional cameras, servers, video surveillance systems.
- Automobiles and transport - cars, motorbikes, yachts, special equipment.
- Real estate - flats, houses, commercial premises.
- Furniture and interior - expensive kitchens, built-in wardrobes, designer furniture.
- Industrial and construction equipment - machine tools, generators, ventilation systems, materials for construction.
- Educational programmes - long term courses, MBAs, high value training.
- Medical goods and services - expensive procedures, prosthetics, treatment devices.
- B2B services and IT solutions - CRM systems, SaaS platforms, consulting, marketing services.
SPIN sales are especially useful for such products, because customers (ordinary buyers and managers of different levels) need not just to show the characteristics, but to convince them that the purchase solves their problems and brings tangible benefits.
It is important to realise that the SPIN Selling method is not manipulation. The goal is not to ‘force’ to buy something, but to understand the problem and jointly find a solution; not to impose, but to show the value. Betonlogos company specialists have broken down the SPIN method in detail, showing how to use it at each stage with real examples.
Goods with a long transaction cycle
Expensive, complex or specific products that require the customer to give serious thought before purchasing are categorised as long transaction cycle goods. These are most often B2B products. The decision-making process in small and medium-sized companies is usually simpler than in large companies. However, in large organisations, approval can be delayed. The inhibition can occur in the approval stages between multiple decision makers or entities. According to CSO Insights research, 74.6% of B2B deals take at least 4 months to complete, and 46.4% of deals take 7 months or more.
SPIN and products with a long transaction cycle
Situation questions help you to gather facts and general information about the client's situation; they are the basis for further conversation. At this stage you should listen more and talk less. Situation questions are necessary to establish rapport with the interlocutor and determine the current state of affairs.
- How is the procurement process organised in your company?
- How do you currently deal with this task?
- What equipment do you have in place?
- What systems are you currently using?
- Can you tell me about your current process?
Situation questions
Problem questions (Problem)
Questions that identify the customer's difficulties and pain points. The goal is to clearly identify the problem and, of course, to position your product or service. These questions are more difficult to ask, so it's best to prepare them in advance.
Sometimes people don't realise how much the problem affects their work. For example, they may say, ‘We are doing fine,’ but a detailed conversation reveals that a lot of time is wasted on routine operations every day.
- Are you satisfied with the speed of work?
- Are there any difficulties in maintaining the equipment?
- What difficulties do you encounter?
- What prevents you from cutting costs?
- Are there ever any failures?
The purpose of elicitation questions is to help the customer realise the problem. With these questions, the customer is shown the situation from the side of the situation. They are difficult to prepare, so often the salesperson has to act spontaneously, to show not only the problem, but also how it affects the customer's business.
At this stage it is important not only to identify the consequences, but also to show how significant these problems are. For example, missed deadlines could be related to customer dissatisfaction, reduced profits or loss of reputation.
- How does the problem identified affect profits?
- How much is the downtime costing you?
- What happens when deadlines are missed?
- What happens when deadlines are missed?
Implication questions
Guiding questions about the value of the solution (Need-Payoff)
Questions that ideally conclude the sales process. They should be phrased in such a way that the customer comes to the right conclusion on their own. Having realised and talked through the benefits they will get from the solution offered to them:
- If we could speed up the system by 30 per cent, how much would that increase productivity?
- If equipment failed less often, how much would you save?
- If we reduced costs by 20%, how would that affect your business?
When does SPIN work best?
In large sales, objection handling skills are most often ineffective, according to Betonlogos managers. Objections should be prevented and their number reduced by preparing scripts and questions.
Of course, those who have been in sales for a long time always have a list of questions prepared in advance. Everything will depend on the course of the conversation. Questions should be changed, replaced by other questions or formulated new ones taking into account the situation.
- Selling expensive or complex products where the decision is made by several people and require a significant amount of time to make a purchase decision. For example, equipment for factories or software for companies.
- Services or products that require implementation or training. Customers need to see a real benefit to agree.
- Situations where the customer needs time to make a decision because the risk of error is high.
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