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SPIN Selling, by Neil Rackham
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Written by Neil Rackham, former president and founder of Huthwaite corporation, SPIN Selling is essential reading for anyone involved in selling or managing a sales force. Unquestionably the best-documented account of sales success ever collected and the result of the Huthwaite corporation's massive 12-year, $1-million dollar research into effective sales performance, this groundbreaking resource details the revolutionary SPIN (Situation, Problem, Implication, Need-payoff) strategy.
In SPIN Selling, Rackham, who has advised leading companies such as IBM and Honeywell delivers the first book to specifically examine selling high-value product and services. By following the simple, practical, and easy-to-apply techniques of SPIN, readers will be able to dramatically increase their sales volume from major accounts. Rackham answers key questions such as “What makes success in major sales” and “Why do techniques like closing work in small sales but fail in larger ones?”
You will learn why traditional sales methods which were developed for small consumer sales, just won't work for large sales and why conventional selling methods are doomed to fail in major sales. Packed with real-world examples, illuminating graphics, and informative case studies - and backed by hard research data - SPIN Selling is the million-dollar key to understanding and producing record-breaking high-end sales performance.
- Sales Rank: #2745 in Books
- Color: White
- Brand: McGraw-Hill
- Published on: 1988-05-01
- Original language: English
- Number of items: 1
- Dimensions: 9.30" h x .68" w x 6.30" l, 1.13 pounds
- Binding: Hardcover
- 197 pages
Features
Review
"Essential for everyone involved in selling or managing the sales function." -- Journal Of Marketing Management
From the Back Cover
"This book should be essential reading for everyone involved in selling or managing the sales function -- a welcome, well-researched treatise on selling"
--Journal of Marketing Management
"The first book to specifically examine the major sale -- the high value product or service -- by researching the successful sales calls as they happen in the field."
--Industry & Commerce
"This book is the result of over $1 million of extensive and painstaking research. It breaks new ground and cannot be ignored by anyone who is committed to selling as a profession."
--Sales Techniques
"The revolutionary findings, published here for the first time, will overturn a whole collection of hitherto accepted assumptions. The book also provides a set of simple and practical techniques (known as SPIN) which have already been tried in many leading companies, resulting in a dramatic increase in sales."
--Business Executive
"This is an interesting, lively, and readable treatment of the process by which major sales are closed. Like In Search of Excellence, the material has a curiously inspirational quality which is particularly compelling."
--Business Graduate
"Almost anyone could learn something from this book. Essentially,it is about success, and without this, no sales organization can survive. Buy a copy. We are sure you will find it invaluable."
--Sales and Marketing Management
About the Author
NEIL RACKHAM is founder and former president of Huthwaite, Inc. Huthwaite researches, consults, and provides seminars for over 200 leading sales organizations around the world, including Xerox, IBM, and Citicorp. His academic background is in research psychology. It was at the University of Sheffield, England, that he began his research into sales effectiveness that resulted in SPIN. Mr. Rackham is the author of more than 50 articles and several books.
Most helpful customer reviews
1 of 1 people found the following review helpful.
Great insight into how people think during conversations
By Dave Voyles
I have more review of books at my blog [...]
"Learn to sell. In business you’re always selling – to your prospects, investors and employees. To be the best salesperson put yourself in the shoes of the person to whom you’re selling. Don’t sell your product. Solve their problems." - Mark Cuban
With this in mind, I wanted to improve my ability to sell. In my role as a Tech Evangelist, I don't actually have anything to sell in exchange for currency, but instead, I am always selling my brand. I came across Neil Rackham's 1988 book, SPIN Selling, which is the end result of 5+ years of research and listening in on thousands of sales calls.
The big isn't about the "hit-and-run" approach, but instead covers how to build genuine relationships and solve the problems your customers or community face. I find that I remember books in great detail if I mark them up as I go. That means I use dozens of stickies, have a highlighter in one hand, and a pen in the other, so that I can mark up the book.What you see below are all of the notes I wrote in the margin, or at the end of each chapter. I've transcribed it to my website so that others could benefit from it too.
I'd love to know if this style of learning works for you as well, and if you have any other recommendations for books that I should read. Enjoy!*Product / Service can be used interchangeably here.
Chapter 1 - Sales Behavior and Sales Success
When a buyer hears a good pitch, they will remember it temporarily. When they hear a great pitch, they'll remember it forever.There are 4 stages of sales:
1. Preliminaries
2. Investigation
a. You should list arguments which show how their problem is big
3. Demonstrate Capability
4. Obtain Commitment
Value
• Small Sales
○ Buyers are less aware of it
• Large sales
○ You must build your perceived value
Small Sales
There are things which may work in small sales, but will not work in large deals. For example:
• Opening
○ Offer product benefits
○ Appeal to the buyer's personal interests
• Give Benefits
• On Dealing with Rejection Handling
○ Clarifying the objection
○ Rewording the objection
Chapter 2 - Obtaining Commitment: Closing the Sale
What is closing?
Putting a person into some kind of commitment.
In small sales:Closing is strongly related to success, you should use many types, and close frequently during a call.
These are ineffective in/when:
• Large sales
• When a customer is sophisticated
• There is a post-sale relationship
There are four types of closing techniques
1) Adaptive
a. "Where would you like it delivered?"
2) Alternative
a. "Prefer Monday or Tuesday for delivery?"
3) Standing Room Only
a. "Buy now or I have to offer it to someone else…."
4) Order-Blank
a. Fill out the order form before the buyer even commits
The bigger the decisions, the more negative a buyer reactors to pressure during a sale. Instead of pushing a closing technique, have a goal to achieve one of these forms of success:
In large sales, there are three (3) forms of success:
1) Order:
a. Commitment to buy
2) Advance:
a. Move forward toward a decision
3) Continuation:
a. The conversation will continue at a later date, but with no specific action taken
Chapter 3 - Customer Needs in the major sale
As a sale becomes larger:
• Needs take longer to develop
• Commitments are likely to involve elements, inputs, and influences from several people.
• Needs are more likely to be expression on a rational basis
• There are more serious consequences for the buyer if things go bad with the purchase
What is a need?
Made by the buyer, which expresses a want or concern that can be satisfied by the seller
What is a want?
Personal emotional appeal
Needs start with minor imperfections. They evolve into clear problems, difficulties, or dissatisfactions.
There are two different kinds of needs:
1) Implied
a. Same definition as above
b. The number of needs are not important, but what you do with them is
2) Explicit
a. Specific customer statements of wants or desires
b. These are most important
The takeawayYour questioning should unveil what the customer's implied needs are, which then lead to explicit needs. Those are what is important.
Chapter 4 - The SPIN strategy
Situation Questions
• Part of most sales cycles
• Not linked to success
• Too many Qs? Buyers get bored
Problem Questions (good)
• Better than situational Qs
• Not linked to success
Some cultures are not comfortable with sellers probing into their problems. Ex: Japan
Implicit Questions (better)
• Build a customer's perception of value
• Are the language of the decision maker
• Weakness:
○ They make customers more uncomfortable with the problem. They feel negative and sad
Need / Payoff Questions (best)
• About the value or usefulness of a solution
• They focus the customer's attention on the solution
• Gets the customer telling you about the benefits
• These create a positive effect
• They also allow someone to become an internal cheerleader for you / your product
How to use SPIN questions
• Come up with potential problems the customer may face before the call
• Come up with questions to uncover those problems
Chapter 5 - Giving Benefits in Major Sales
Features
• Facts, data, or info about the product
• Unpersuasive
• Don't help or harm a sale
• Users respond more positively than buyers
• By listing features, buyers come to expect a higher price!
Benefits
• Show how a feature can help
• Much more powerful than features
There are two types of benefits:Type A:
Can help the customer - useful in small sales
Type B:
Fulfill an explicit need - useful in large sales
Demonstrating capabilities
• Don't demonstrate too early in the call
• Beware of just listing advantages of your product
• Instead, illustrate what problem your solution solves
Chapter 6 - Preventing Objections
Everyone will receive rejections. Skilled sellers receive fewer though, because they know objection prevention, not how to handle rejection.
Most objections are to your solutions that don't fit a need of the customer. If a customer has an objection about the value of your product, that means you are not developing a strong enough understanding of a customer's needs.
Chapter 7 - Preliminaries: Opening the Call
Early stages of a meeting
Ever forget someone's name, immediately after meeting them? That's because we are overwhelmed with information when we meet someone new. Be sure not to overload them with even more info.
Conventional Openings
These are OK in small sales, but will have limited success in larger sales
1) Relate to a buyer's personal interest
a. People become suspicious of you when you do this!
2) Make an opening benefit statement about the product
a. You can get trapped!
i. Don't demonstrate benefits / capabilities too early in the call
ii. You don't get to ask any questions and investigate the customer's problem!
What works?
Focus on the objective, which is to get consent to move on to the investigation stage
• Get down to business quickly
• Avoid offering solutions too soon
• Concentrate on asking questions
After the call
Did you complete your objective?
What would you change?
What did you learn that could benefit future calls w/ the customer?
What did you learn that could benefit future calls w/ other customers?
Chapter 8 - Turning Theory into Practice
Keys to learning
1) Practice 1 behavior at a time
2) Do it 3x
3) Quantity before quality
a. Focus on just doing something, and not on perfecting it
4) Practice in safe / comfortable situations
Creating a needs-payoff question with the customer
You should ask them:
• How do you think our solution could help you?
• What do you see as the plusses of this approach?
This way they feel as though they came up with the solution, and they become internal cheerleaders for you and remember the benefits of your product.
1 of 2 people found the following review helpful.
Not bad for dull subject matter
By Mike Vogelpohl
Personally, I thought this book could have been condensed down quite a bit (I found the graphics to be nearly useless). However, it did help me to recognize, consolidate, and understand much of what I have picked up on my own over the last few years.
In addition, I found myself in agreement with most of what the author had to say which helped to build my confidence level. The book contains many useful examples which highlight the author's methods. The most interesting portions of the book are the author's disproval of the effectiveness of some well-known sales techniques when used in large accounts. Overall, I would recommend this book to anyone who makes his living in sales. You are almost certainly going to pick up something useful.
I also agree with the reviewer below with regard to the title of this book. Perhaps the author should venture into marketing as his next area of research.
23 of 25 people found the following review helpful.
Absolute must read
By Anil Kappa
intially the Name "Spin Selling" came across to be as some cheesy and manipulative model being taught by the author.
after reading various books and attending seminars and workshops i was consistently referred to this book.
also i researched some of the high-performance Sales Professionals and most of them had training on SPIN Selling, so
i finally decided to read Rackham's book "SPIN Selling" and
i'm glad i did and yes this book i feel is the Foundation of all the Modern Sales Training out there.
His Training is backed with extensive proof and facts and every single advice is backed by extensive research conducted by huthwaite. very impressed.
"Situation - Problem - Implication and Need-Payoff", these are the four types of Questioning you will learn and the Value and relative importance of each and in what order to be used effectively.
the biggest lesson for me is the Difference of a "Implied Need" compared to "Explicit Need" and how it all boils down to uncovering "Explicit Needs" and to communicate with customers about "Benefits". this book also clears a very common mistake a lot of us do, to look at a product or solution's advantages and convey that as Benefit to customer. As per the author a "Benefit" is one that solves a Customer's "Explicit Need".
don't be discouraged by any review that writes off the book's style of writing to be research oriented, the book is around 190 Pages and it's worth the weight in gold.
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