SPIN Selling: Situation Problem Implication Need-payoff

Benefits, for the purposes of this book, refer to statements that meet an explicit need of the customer. Benefits have a positive effect on both smaller and larger sales and are significantly tied to orders and advances.

SPIN Selling defines closing as “a behavior used by the seller which implies or invites commitment, so that the buyer’s next statement accepts or denies commitment” (21). These behaviors, called “closes,” can be as simple as asking for the order but often refer to high-pressure sales tactics. Rackham details five of the most common closes:

• An assumptive close is where the seller assumes the client is ready to buy. For example, “Would you like it delivered tomorrow?” or “Whose name should I put this under?”
• An alternative close is a variation on the assumptive close, where the buyer is given options. For example, “Would you prefer orange or red?” or “Do you want it delivered Monday or Wednesday?”
• A standing-room only close is where the seller indicates that supplies are limited to drive the sale. For example, “I only have three left” or “If you don’t purchase it now, I have to free it up for other customers.”
• A last-chance close is where the seller implies that a change may limit availability at this price point. For example, “They’re raising the price in two days” or “This model is being phased out, so you can get a discount if you buy now.”
• An order-blank close is where the seller fills in the order form for the client before the client has committed to the sale.

This is by no means an exhaustive list. There are countless books, seminars, and videos dedicated to closing and different closes.

Features are the characteristics of a product or service. These are fact based and include things such as battery life or processing speed. In large business-to-business transactions, features have little effect on a sale.

These questions make up the third part of the SPIN strategy. Implication questions investigate the “effects, consequences, or implications of the customer’s problems” (79). They include questions such as “How does that affect your costs?” and “Would that effect your staff retention?” Implication questions are problem based and help to build the seriousness of problems for the client.

These questions make up the final part of the SPIN strategy. Need-payoff questions “build up the value or usefulness of the solution” (81). They include questions such as “Why is solving [problem] important to your company?” and “If you could reduce the time spent on this task by 20%, would that help you?” Need-payoff questions are solution based. They allow the client to state the ways the seller’s product could solve problems for them.

SPIN Selling refers to client needs as “any statement made by the buyer which expresses a want or concern that can be satisfied by the seller” (55). Wants and needs are used interchangeably in SPIN Selling. Client needs fall into two separate categories.

• Implied needs are the client’s problems and dissatisfactions. They do not necessarily indicate that the client is ready to change. For example, a buyer may state that they are unhappy with the speed of a certain process.
• Explicit needs are a direct statement of a client’s wants. They indicate the buyer is ready to act. For example, the client may state that they require a faster process.

Understanding a client’s implied needs and developing them into explicit needs is a critical part of the SPIN selling process.

These questions make up the second part of the SPIN strategy. Problem questions “probe for problems, difficulties, and dissatisfactions” (70). They include questions such as “Are you satisfied with your current system?” and “Have you experienced any lags with your current system?” Though problem questions are important, they are not enough to ensure a larger sale.

These questions make up the first part of the SPIN strategy. Situation questions are fact-finding and background questions. These include questions such as “How many people are in your company?” and “What system do you currently use?” Though some situation questions are required, sellers should limit their use. Instead, sellers are advised to research clients before initiating a call.

The SPIN strategy is a method of questioning that helps to develop client needs. It consists of situation questions, problem questions, implication questions, and need-payoff questions. This is not a rigid structure, but sales interactions will generally follow this pattern. The SPIN strategy is not a new sales method. Instead, it is a method that researchers found salespeople used with greatest efficacy.