Have you heard of the SPIN sales technique? It's been around since the late 1980s, during which it was published in a book titled "Spin Selling" by Neil Rackham. Since then, it's become a cornerstone method used by B2B sales reps throughout the world. Unless you're familiar with it, though, you might be wondering how the SPIN sales technique works and what, exactly, it entitles.
Overview of SPIN
SPIN is an acronym for "Situation, Problem, Implication and Need-Payoff." It centers around a buyer-based approach that involves evaluating the specific and unique needs of your B2B company's buyers. Sales reps who use the SPIN method identify the prospective buyer's situation, problem, implication and need-payoff.
When performing the SPIN sales technique, sales reps don't use the same approach for all prospective buyers. Rather, they evaluate the four aforementioned criteria for each prospective buyer. Sales reps can then apply this information to create stronger sales messages that ultimately drive more sales.
While the SPIN sales technique can be applied to most if not all sales channels, it was designed specifically for use with calls. Calling prospective buyers is a regular activity for many sales reps. The SPIN sales technique provides sales reps with a set of rules to follow when calling prospective buyers. Sales reps evaluate the prospective buyer's situation, problem, implication and need-payoff to increase their chances of landing a sale.
Benefits of Using SPIN
Using the SPIN sales technique can lead to greater sales success. In his book, Rackham explained that the SPIN sales technique was based over a decade of research spanning some 35,000 calls to prospective buyers. After analyzing the data, he discovered that sales reps who used a personalized approach to address the specific and unique needs of prospective buyers generated more sales than those who used a traditional and non-personalized approach.
Since the inception of the SPIN sales technique, other research has emerged confirming that personalized sales techniques do, in fact, yield better results than generic sales techniques. A study cited by Blue Corona, for instance, found that B2B companies that offer a personalized experience on their website generate 19% more sales than their counterparts. Regarding B2B emails, personalized messages are more likely to be opened by prospective buyers than generic messages.
The SPIN sales technique is a buyer-based approach to selling. It revolves around identifying a prospective buyer's situation, problem, implication and need-payoff. It's effective at generating sales because, unlike traditional methods, it offers a personalized experience that addresses the specific and unique needs of each prospective buyer.