Saturday 8 March 2008

Spin Selling - what is missing

From so many companies I work with, I'm happy to see that there are still so many SPIN users around (and I can count myself to them as well – even though I have heavily modified it). Having grown up on Rackham's sales models, I have huge respect for him and his work. And as for me, like for so many others in the 80's, has Rackham's book changed my career and sales life.

 

However what many critics are right on, is that SPIN Selling as a sales method is truly dead. You might ask yourself why? It is because SPIN selling is only based on Situational Problems, the Implication of the problems and from that the explicit need (or needs). It hurts to write it, as I'm such a big fan of it, however it doesn't change the fact that this is true and Rackham new book trying to reinvent SPIN was very disappointing (in every way). And what many critics say rightfully is that it takes over 200 pages to say something that deserves one paragraph (not even an article worth): some customers want a low-cost product and a low-end relationship, other customers want a more consultative, deeper relationship, and, pretty much, you have to know which is which to be successful.

 

And even though it has been one of the best sales methods for about 10-15 years, SPIN selling "only" ends up with needs. Things have changed, the decision makers and budget holders have changed (including the market and competition and today it is just not enough to understand our customer needs. Even behavioral science points out that there three main ways to influence human behavior.

1) The most common way is by addressing needs.

2) Is to understand their wants (this is missing in Spin)

3) By far, the most effective way to influence human behavior, is through core values (which is a mix of wants and beliefs, standards etc). This is not enough reflected in SPIN.

 

So here is why SPIN is good to identify the customer needs but not good enough to help you get the competitive edge you need to make the difference:

Prospects don’t always buy what they need – for that does not necessarily provide them value. They always, however, buy what they want, for that is of value to them. And for this, Spin is not tailored, here’s the difference:

Needs are…

• product specific

• rational (based on situational problem)

• above the surface (based on a situation and problem)

• based on facts and often measurable (in terms of implications for the customers)

 

Wants, on the other hand, are…

• product neutral

• emotional (this is where personal byuing reason comes from)

• below the surface

• based on perception and often not measurable

 

As a consequence, here’s the principle that needs to be added to SPIN:

Salespeople who can present their products or service (a need) in the way that their prospect wants to perceive it will be more likely to make the sale. That is Value Based Selling, let’s put it another way:

Prospects are more likely to buy what they need from prospects who understand what they really want, for then they fell you can provide them with value.

 

The thing to remember is that when needs-oriented planning leaves your client occupied, try focusing on your client's wants (which are his or her's values) instead. Needs simply don't have the emotional punch to influence human behavior. Remember, the least effective approach is to try to satisfy client needs (based on problems and pains). A better approach is to help clients get what they want and desire - which is their value expectation. The most effective sales professionals help clients fulfill their values in life. Differentiate yourself! Don’t be a traditional salesperson, become a Trusted Sales Professional - sell with values (with true values).

 

I am not suggesting that you ignore needs; however, we no longer live in a needs-oriented society. Why are needs the least powerful way to influence human behavior? Needs are tied to shoulds. For instance, take statements like "I should save money"; "I should make more investments"; "I should make better decisions"; " I should get a financial plan"; or "I should have more discipline." Tangible wants are a step in the right direction. Therefore SPIN Selling should be re-invented to include wants in a much better way!

 

Tangible wants are a step in the right direction. Tangible wants, such as early retirement, vacation homes, good schools for the kids, new car, estate protection, travel, and other goals are incentives to seek advice. But, in truth, even wants don't have the emotional pull that values do. Values are intangible feelings. Intangible, pure, undiluted feelings like love, pride, security, freedom, making a difference, independence, accomplishment, self worth, and so forth are key factors in influencing behavior. Values illuminate people's emotional motives so clearly, they must take action ... for their own reasons. Needs have the power to illuminate emotional motives as much as the penlight on your key ring, while wants work like your average flashlight. Values, however, illuminate emotional motives like a row of halogen high-beams on the front of a Mercedes on the Autobahn. Your prospects and clients are most likely to take action on your ideas when they feel a strong emotional connection to them. Your job is to illuminate their emotions so they fully understand the relationship between smart decisions and fulfilling their life values. Your job isn’t to be a traditional sales person and sell the ‘old school’ way.

Everyone has a unique 'values hierarchy.' Just like fingerprints, no two values hierarchies are alike. I do understand that on the business as well as the personal level value can be a difficult thing to define and comprehend. May be a simple scenario can help you grasp the idea. Your offering is a nice, cold glass of beer.

 

How valuable will it be regarded by potential buyers?

- to a person who’s religion does not allow him to drink alcohol - the value is absolutely zero

- to a person who’s body is very sensitive to alcohol – the value is next to zero

- to a person who is very drunk already – the value is very limited

- to a person who’s preferred drink is wine – the value is moderate

- to a person who has been on the golf court for hours without anything to drink – the value is high

- to a person who is crawling in the desert with the sun burning his back and his dry tongue hanging out of his mouth – the value is tremendous (he can hardly believe it’s a real beer - he is afraid it’s just a hallucination)

 

Conclusion: different people want something different and appreciate the value of a specific offering differently; the same person appreciates the value of a specific offering differently in different situations and even at different points in time; the more relief you can provide the more valued your offerings tend to be perceived. So, when you stimulate a conversation with current and prospective clients about their values (what is truly important to them), they will become emotionally involved, you can touch on their ranking of values, understand them at a deeper level, and you can dramatically shorten the time it takes to gain their trust. Emotional involvement and trust are two critical elements in creating profitable client relationships.

 

Without realizing it, you project your own values when you promote yourself. How do you feel when people project their values on you? Do you like it? Are you anxious to do business with people who project their values on you? You can't get people emotionally motivated when discussing your values. You do it by talking about their values. The first logical question to ask yourself is, 'How do I get people to talk about what is important to them (their values)?' Then, ask yourself, 'How do I use that information in a positive way? How does this create trust?' Listen for words and phrases like freedom, control, satisfaction, making a difference, independence, feel really good, pride, achievement, contribution, oneness with God, etc. These are indicators that you are on the right track, because they represent values. And values are emotional and they create positive emotional feelings in the person you are speaking with. The thing to remember is that when needs-oriented planning leaves your client flat, try focusing on your client's values instead. Needs simply don't have the emotional punch to influence human behavior. Therefore SPIN Selling should be re-invented to include not only wants, but value based selling methods that provide a way to communicate Personal and Business Buying reasons as well.

 

 

Remember, the least effective approach is to try to satisfy client needs – which SPIN selling does. A better approach is to help clients get what they want and desire. The most important point about value is that value to your customer is not something you define – it’s exclusively defined by the buyer (and based on their wants). The value expectations that make them initially buy from you – as well as the total experience over time. Both the subjective and the more measurable values delivered by your total organization - that makes him buy from you again the next time. The most effective sales professionals help clients fulfill their values in life. Differentiate yourself! Don’t be a traditional salesperson, become a Trusted Sales Professional.

 

Please don't misunderstand me, I believe that SPIN is a great method, however it is just missing something - I hope this has given you a little overview. For anybody interested in modified version of SPIN selling please write to: mark@vonrosing.dk

 

Regards your moderator Mark von Rosing