Continuing my quest to read books and get more educated on all things sales, I wrapped up SPIN Selling by Neil Rackham. I went through this book twice. First, to pick up the low-hanging fruit, and then a second go to better absorb.
SPIN is one of the preeminent B2B sales books. In fact, the book broke ground on the factors for successful complex sales vs. transactional. In fact, Rackham identified why many sales training methods at the time were ineffective –methods were well-suited for transactional sales, but fell short for complex sales. The book lay the ground work for other sales studies like The Challenger Sale.
- Transactional vs. complex sales… The book did a great job at identifying why many closing techniques worked for simple sales, but failed for complex sales. Two of the more important points here were how the product/ service held such a primary role in the buying process of transactional sales. However, complex sales were about risk mitigation and addressing specific buying criteria.
- Successful B2B sales persons excelled in the discovery process of sales – identifying pain points, understanding the implications, and illustrating the pay-off of the product/ service they were selling. This can be broken down in to SPIN – situation, problem identification, implication of problems, and needs pay-off.
- Most sales professionals can perform situational and problem identification questions. However, successful sales more closely related to implication question and need pay-off questions. Implication questions can be thought of “sad” questions (lead to some quantitative cost or pain). Need pay-off, however, is all about “happy” questions (lead to some positive outcome, i.e. “what type of lift would this provide your sales team?”).
- Though the preliminaries of a call are important in establishing some baseline of rapport, the goal of the call is to get an advancement of the sale – “a commitment”. Rackham identifies every successful sale can be broken down into four parts – preliminaries, investigation, demonstrating capability, and obtaining commitment.
- There’s a big difference between features, advantages, and benefits. Though, many times, advantages are misconstrued as benefits, they are different in how they address explicit pain points to a prospect. This is the primary difference as Rackham states – benefits address the customer. Advantages can be fact-based – a prospect will be able to do XX. A benefit is what a prospect would experience – YY outcome. It’s important to note that selling by features is a major selling mechanism for low-cost, simple products/ services.
- The best sales professionals address potential objections early so they never become objections. In this way, the best sales professionals experience less sales objections. If there’s an objection, it’s possible there has not been a strong enough understanding of the needs of the customer, or demonstration of how the solution can solve the explicit pain.