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SPIN Selling: The Ultimate Guide

Written by Aja Frost | Jun 9, 2021 6:15:00 PM

If you鈥檙e a B2B salesperson, you鈥檝e probably heard about SPIN Sales. It鈥檚 one of the oldest, most prominent sales methodologies businesses have at their disposal. The system gives reps a research-backed framework for working and closing complex deals with extended sales processes.

SPIN principles are versatile and worth understanding. In many cases, they actually fit seamlessly with other sales methodologies. The strategy focuses on asking good questions in the right order, using active listening, and translating the prospect鈥檚 needs into your product鈥檚 features 鈥 principles that align particularly well with inbound sales.

To help you implement the most useful tips, aspects, and templates from SPIN Selling, we鈥檝e put together the following guide:

SPIN Selling Summary

To get the full impact of Rackham鈥檚 advice, we recommend reading the entire book. Here鈥檚 the link to .

Here鈥檚 a handy overview of the contents:

Section 1. Sales Behavior and Sales Success

  • Closing is less important than most salespeople and managers think
  • Questioning is more important than most salespeople and managers think
  • The ratio of close-ended to open-ended questions doesn鈥檛 predict selling success
  • Great reps focus on preventing, not handling, objections

Section 2. Obtaining Commitment: Closing the Sale

  • Successful closing depends on getting the right commitment
  • Reps must determine their call objectives in advance
  • There are four potential outcomes to every sales call: order, advance, continuation, no-sales

Section 3. Customer Needs in the Major Sale

  • Implicit needs are statements about problems, issues, and areas of dissatisfaction
  • Explicit needs are specific features or functions
  • In larger sales, explicit needs are strong buying signals

Section 4. The SPIN Strategy

  • Salespeople who close at high rates tend to ask the same types of questions in the same order
  • There are four main question types: Situation, Problem, Implication, Need-Payoff
  • Each question type plays a different role in moving the buyer toward the sale

Section 5. Giving Benefits in Major Sales

  • Features and benefits are the most common ways to pitch a product to the buyer
  • Advantages are less effective later in the sales process
  • Features are more important to users than decision makers
  • Benefits have the highest influence over the purchasing decision, but only when presented near the end of the sales conversation

Section 6. Preventing Objections

  • Objections are usually created by the salesperson, not the buyer
  • The more advantages you present, the more objections you鈥檒l receive
  • Develop needs before you offer benefits to avoid unnecessary objections

Section 7. Preliminaries: Opening the Call

  • Don鈥檛 use conventional openings, i.e. providing benefits or relating to the prospect's personal interests
  • Get down to business quickly and establish your purpose

Section 8. Turning Theory Into Practice

  • Adopt one principle of SPIN Selling at a time to avoid getting overwhelmed
  • Practice them with smaller accounts or existing customers first

 

 

SPIN Selling Methodology

Questions are the foundation of SPIN Selling. Rackham and his team found top-performing salespeople rarely, if ever, pose random, low-value questions. Not only does every question have a clear purpose, but the order in which they ask their questions is strategic, too.

SPIN stands for the four stages of the questioning sequence:

  1. S: Situation
  2. P: Problem
  3. I: Implication
  4. N: Need Payoff

Situation

Situation questions such as "Which tools do you currently use?" function as a way to gather information.

Problem

Problem questions such as "Does this process ever fail?" function as a way to identify the pains and problems prospects experience.

Implication

Implication questions such as "What's the productivity cost when it does?" help the sales rep underscore why those pains need to be solved.

Need Payoff

Need Payoff questions such as "Wouldn't it be simpler if...?" lead the prospect to draw conclusions on their own rather than leading into a pitch right away.

Here are more examples:

Now that we know the function of each line of questioning, let's dive deeper into SPIN questions for each step in the questioning sequence.

SPIN Situation Questions

Use Situation questions to learn where your prospects stand 鈥 from their processes and pain points to competitive plans and results. The specific questions will depend on your product.

For example, if you offer leadership training for mid-level managers, you might ask, 鈥淗ow do you currently teach first-time managers best practices and strategies?鈥

If you sell office supplies, on the other hand, you might ask, 鈥淗ow do you purchase office supplies right now?鈥

Here are some sample questions you can customize for your own use:

Examples
  • What is your role at [company]?
  • How do you do X?
  • What鈥檚 your process for X?
  • Walk me through your day.
  • Do you have a strategy in place for X?
  • Who鈥檚 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?

Note the lack of fact-gathering questions like, 鈥淗ow big is your company?鈥, 鈥淗ow many locations do you have?鈥, 鈥淲hich products do you sell?鈥, and so on.

When Rackham published "SPIN Selling," there wasn鈥檛 anywhere near as much information available to sellers. Now that you can discover a long list of key details about your prospect with a quick online search, many situational questions are no longer effective.

Not only do they make buyers impatient, these questions also leave less time for the most important ones. Ask as few of the questions in this category as you can 鈥 and make sure you鈥檝e done research before the call.

SPIN Problem Questions

In this stage, reps identify potential areas of opportunity. In other words, what gap isn鈥檛 being filled? Where is the prospect dissatisfied? They may be unaware they have a problem, so delve into the common places your solution adds value.

Examples
  • 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鈥檙e 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?

SPIN Implication Questions

Once you鈥檝e identified an issue, figure out how serious it is. Implication questions reveal the depth and magnitude of your prospect鈥檚 pain point -- simultaneously giving you valuable information for customizing your message and instilling urgency in the buyer.

According to Rackham, they should have a new appreciation for the problem by the time you鈥檝e finished this part of the conversation.

Rackham also says top-performing salespeople ask than their average peers.

Examples
  • What鈥檚 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鈥檛 experience [problem related to X]?
  • If you didn鈥檛 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鈥檛 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?

SPIN Need Payoff Questions

Need Payoff questions encourage the prospect to explain your product鈥檚 benefits in their own words, which is far more persuasive than listening to you describe those benefits.

You鈥檙e essentially asking questions that surface your offering鈥檚 potential to help with their core needs or problems. These questions focus on the value, importance, or utility of the solution.

Make sure your Need-Payoff questions don鈥檛 highlight issues your product can鈥檛 solve. For instance, if you help corporate recruiting teams identify potential engineering candidates, you shouldn鈥檛 ask about the impact of hiring better marketers.

Fortunately, it鈥檚 relatively simple to develop Need-Payoff questions 鈥 they should come directly from your Implication questions.

Sample Implication question: 鈥淗as a problem with X ever prevented you from meeting a deadline?鈥

Sample Need Payoff question: 鈥淚f you could do X in half the time, would that make it easier to meet your deadlines?鈥

Examples
  • Would it help if 鈥 ?
  • Would X make it simpler to achieve [positive event]?
  • Would your team find value in 鈥 ?
  • 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?

Be careful 鈥 Need Payoff questions can backfire. If they鈥檙e too obvious, you might come across as condescending. Try to reframe the solution in a way the buyer hasn鈥檛 previously considered.

For example, rather than asking, 鈥淲ould your company benefit in saving money?鈥, you could ask, 鈥淲ould redirecting $1,000 per week from your content creation budget and putting it into Facebook advertising drive significant traffic toward your blog?鈥

The 4 Stages of a SPIN Sale

As you begin to implement SPIN questions when talking to prospects, consider the lifecycle of your conversation. Rackham says there are four basic stages of every sale:

  1. Opening (also called 鈥減reliminaries鈥)
  2. Investigating
  3. Demonstrating capability
  4. Obtaining commitment

Opening

SPIN Selling and inbound sales take the same approach to the first, or connect, call. Reps shouldn鈥檛 immediately jump into their product鈥檚 features and benefits 鈥 not only will this overly aggressive strategy turn prospects off, but salespeople will lose the opportunity to learn valuable information.

The purpose of the connect call is to get the buyer鈥檚 attention and start to earn their trust. Lead with a compelling insight or thought-provoking question.

Investigating

Investigation is the most important phase of SPIN Selling. It鈥檚 equivalent to the discovery call: You鈥檙e figuring out how your product can help the buyer, identifying their priorities and buying criteria, and gaining credibility by asking relevant, targeted, strategic questions.

According to Rackham, a strong question strategy can improve your close rate by 20%.

Demonstrating Capability

Once you鈥檝e connected the dots between your solution and the prospect鈥檚 needs, you need to prove that connection exists.

There are three basic ways to describe your product鈥檚 capabilities, Rackham says:

  1. Features
  2. Advantages
  3. Benefits

Features

Features are most useful when selling low-cost, simple products. A feature for a cup might be, 鈥淚t can hold 10 ounces of liquid.鈥 End-users tend to find features more compelling than decision-makers, who care about the bottom-line results.

Advantages

Advantages describe how a product鈥檚 features are actually used. Like benefits, they鈥檙e useful for smaller purchases but less persuasive with larger ones. The advantage of a cup might be, 鈥淵ou can use it to drink both hot and cold beverages.鈥

Benefits

Benefits go one step further and show how a feature can help the prospect. They typically have a financial component and meet your customer鈥檚 need(s). A well-crafted benefit gives the buyer a reason to buy your product.

The benefit of your cup might be, 鈥淪ince you drink coffee in the morning and iced coffee in the afternoon, you鈥檒l appreciate this mug鈥檚 versatility. Now you can enjoy both beverages with one cup.鈥

The FAB formula gives you another way to think about features, advantages, and benefits.

Because [product] has [feature]

[user] will be able to [advantage]

which means [prospect] will experience [benefit].

Let鈥檚 fill in this formula for a salesperson offering employee gamification software.

鈥淏ecause our platform lets you set up leaderboards for your service teams, customer support reps will get a real-time overview of their performance compared to their peers. That means they鈥檒l be motivated to raise their average satisfaction rating and respond to tickets more quickly.鈥

Objections

In every deal, objections are inevitable. In fact, you should worry more if you鈥檙e not getting them 鈥 that means your prospect has reservations they鈥檙e not sharing with you. Your goal is to discover why the buyer hasn鈥檛 already pulled the trigger on this purchase, then help them understand why their concerns aren鈥檛 true blockers.

(Of course, if there鈥檚 a valid reason your product isn鈥檛 a good fit, you shouldn鈥檛 persuade them otherwise.)

Rackham states there are two types of objections:

  1. Value: Your prospect isn鈥檛 convinced about your product鈥檚 ROI. They might say, 鈥淚 like its features, but the cost is too high.鈥
  2. Capability: Your prospect doubts that your product can meet their specific needs. That translates to comments like, 鈥淚鈥檓 not sure it鈥檒l be able to do X for us,鈥 鈥淭hat process seems like it would take more time than you say,鈥 and 鈥淚 think we need a more robust solution.鈥

Capability objections can be further broken down:

  1. 颁补苍鈥檛: Your solution cannot solve one of the buyer鈥檚 main priorities
  2. Can: Your solution can solve one of their main priorities, but they don鈥檛 perceive that

It鈥檚 important to prevent as many objections as possible. The majority of objections are actually avoidable if you avoid selling too soon.

Rackham鈥檚 research revealed that reps can cut the number of objections in half by using implication and need-payoff questions to build value before presenting a solution.

In the traditional sequence, the salesperson asks a Problem question. Then they use the prospect鈥檚 answer to offer the corresponding product feature.

However, the rep usually doesn鈥檛 have enough context to truly understand what the prospect is trying to accomplish or what鈥檚 blocking them. Their generic, one-size-fits-all answer prompts the buyer to push back 鈥 and they're probably not going to listen to any of their future suggestions.

Try the SPIN sequence instead. Ask a Problem question, probe into the consequences with Implication questions, then ask the buyer to recognize the value of a solution with a Need-Payoff question.

SPIN Selling Outcomes for Measuring Progress

Transactional salespeople often move through all four of these stages in a single sales call. However, reps working on larger, more complex deals might take two months to two years to complete them. In cases like these, there are four possible outcomes for each sales call in the SPIN selling methodology:

  1. Advance
  2. Continuation
  3. Order
  4. No-Sale

Advance

To help mid-market and enterprise salespeople measure their progress, Rackham uses the concept of 鈥渁dvances.鈥 An advance is an action the buyer commits to that brings you closer to a purchase.

The operative word is action. It鈥檚 tempting to interpret your prospect鈥檚 request for more information or a proposal as a buying signal, but that puts the ball entirely in your court. If the buyer is actually interested, they鈥檒l agree to do some work as well.

Continuation

A continuation is a sales conversation that ends with an undesirable outcome. In other words, when you finish the call or meeting the buyer hasn鈥檛 agreed to any next steps that will advance the deal.

Example advances include the prospect reviewing your pricing page and sending you their questions, signing up for a free trial and exploring the tool, or introducing you to a key stakeholder.

Come up with as many valuable advances as possible. The more paths to the sale you have, the likelier you are to get there. When your prospect turns down one of your advances 鈥 for example, an introduction to Procurement 鈥 you can calmly accept the rejection and then propose something else.

Order

An order is the third potential outcome of a sales call. The buyer agrees to purchase your product and shows their strong desire by signing paperwork. For large deals, this is usually the last outcome in a series of progressively larger closes.

No-Sale

A no-sale is the fourth (and least desirable) outcome. Your prospect rejects your request 鈥 you can鈥檛 meet with the decision-maker, they won鈥檛 schedule another meeting, or at the most extreme, they say there鈥檚 no possibility you鈥檒l work together.

Tips for Modern-Day SPIN Selling

鈥淪PIN Selling鈥 was published more than 30 years ago. Although its core techniques and principles hold true, the typical buying journey has evolved. If you鈥檙e going to use the SPIN model, you should update it.

1. Ask as few Situation and Problem questions as possible.

Prospects simply don鈥檛 have the patience to do your homework for you. They don鈥檛 want you to identify the pain points they already know about 鈥 if that was the case, they鈥檇 simply buy the solution by themselves. You鈥檙e valuable because you can find opportunities or pain points your buyers don鈥檛 yet know about.

With that in mind, use thought-provoking questions such as, "Has your organization ever considered [new strategy]?", "Do you know [surprising statistic]?", and "Would you like some recommendations for preparing for [impending industry event]?"

Rackham didn't give these questions their own category, but they're definitely useful in modern sales.

2. Incorporate social selling into your strategy.

When Rackham came out with "Social Selling," LinkedIn didn't exist. Now you have far more insight into your buyers' perspectives, priorities, and personalities than salespeople in the late '80s could ever have dreamed of. Don't let this valuable resource go to waste.

Read your prospect's profile(s), browse their group comments and any articles they've written or shared, check out their Recommendations section to get a feel for their work ethic, and so on. Become as familiar with each individual as you can before your kick-off sales call so you can engage them like it's the fifth meeting, not the first.

3. Guide their buying process.

As the average number of stakeholders involved in every B2B deal , and internal buying processes become more complex, your expertise gets more valuable.

Prospects need you to help them purchase your product like they never have before. Come prepared with the job titles 鈥 and potentially names, if you can find them 鈥 of their coworkers who need to be informed or consulted.

Tell your point of contact what their manager is going to want to know before they approve the decision, and send them materials to make their presentation more compelling.

Work with your contact to anticipate and avoid roadblocks. Liaise with Procurement and/or Legal when necessary to get the deal over the finish line as quickly and easily as possible. Although Rackham didn't give these recommendations in "SPIN Selling," they're one of the most effective ways to differentiate yourself in modern sales.

SPIN Sales Training

What does SPIN sales training cover?

As you might expect, SPIN sales training covers the fundamental skills salespeople need to master to have a firm grasp of the SPIN selling process. Here's what that can include.

Uncovering Pain Points

Successful SPIN selling rests on a salesperson's ability to uncover prospect's pain points organically and effectively. That requires knowing how to identify and express certain conversational patterns 鈥 letting reps demonstrate value and make high-impact benefit statements. SPIN Training provides the insight that can inform that kind of dialogue.

Personalizing Sales Conversations

SPIN Sales is a brand of consultative selling 鈥 a method that requires a personal touch. If you're going to have a one-on-one, advisory conversation with a prospect, you need to be able to tailor your approach to suit them as individuals. SPIN sales training gives you the right questions to ask and tactics to leverage that will help you get there.

Moving Away From Product Driven Sales Pitches

SPIN selling is about taking a more human approach to sales. That's why many SPIN training programs include time dedicated to finding and understanding alternatives to product-driven sales pitches in favor of efforts driven by articulating value.

Incorporating SPIN Tactics Into Proposals and Presentations

SPIN tactics aren't reserved solely for immediate conversations with prospects 鈥 they can also have a place in broader communications like proposals and presentations. Many SPIN Training programs offer guidance about how to incorporate those strategies into those kinds of efforts.

SPIN Sales Training Vendors

There are a few different outlets that provide SPIN training to salespeople 鈥 two of the most prominent being The Miller Heiman Group and Huthwaite International

The Miller Heiman Group offers both virtual and in-person SPIN sales training. Its program focuses primarily on elements of the methodology like uncovering buyer urgency, increasing the value of the sale, tackling buyer skepticism, and accelerating the sales cycle. They provide in-person training at your location, and pricing information is available upon request.

 

Huthwaite International is another SPIN training option that has both virtual and in-person courses available. It boasts an impressive list of clients served and offers a robust suite of classes related to different applications of the methodology 鈥 including SPIN coaching, marketing, and account strategy. Like Miller Heiman, Huthwaite International's prices are available upon request.

Paying for Training vs. Reading the Book

There are a few factors that dictate whether you're better off paying for a full-scale training program or just reading Rackham's book 鈥 namely, your team's size, your familiarity with the methodology, and the degree to which you're interested in incorporating the strategy into your operations.

Team Size

If you're looking to incorporate the SPIN methodology into a bigger team's operations, you're probably better off paying for a full-on training program. It's tough to rely on everyone in a large organization to read a book on their own time.

An actual course makes it easier to hold your team members accountable and on the right track. If your team is smaller 鈥 or you, personally, are interested in learning about the methodology on your own time 鈥 it will probably serve you to go with Rackham's book, itself.

Familiarity With the Methodology

If you and your team are starting from scratch when it comes to understanding SPIN selling, you'll likely want to invest in a full course to better understand the ins and outs of the methodology. If you've incorporated these kinds of tactics into your sales efforts and are interested in a refresher, reading the book is probably more appropriate.

The Degree to Which You're Interested in Incorporating SPIN Selling Into Your Broader Strategy

Are you trying to make SPIN Sales your primary sales methodology? Or are you thinking about giving your team a bit more perspective on the tactics that comprise it? If you're more interested in the latter, you'll probably need to invest in a course. If the former suits you better, you should probably just have your team read the book.

SPIN Selling is a methodology that reconciles empathy with effectiveness. If you're interested in incorporating a thoughtful, consultative approach that delivers results into your broader sales efforts, consider looking into the strategy.

 

Editor's note: This post was originally published in August 2020 and has been updated for comprehensiveness.