Post on 20-Jan-2015
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Confidential © 2013 Busbud Inc.Confidential © 2014 Busbud Inc.
Confidential © 2013 Busbud Inc.
Confidential © 2013 Busbud Inc.
Agenda…
•The Sale and Buying Cycles •The Implied and Explicit Needs •The SPIN™ Questions•Demonstrating Capability•The Obtaining Commitment Stage•Preventing Objections•Developing New Skills
Tous droits réservés - Marc Lamarre
Confidential © 2013 Busbud Inc. Tous droits réservés - Marc Lamarre
Planning
Prospecting
Opening
Investigating
Demonstrating
ObtainingCommitment
Following-up
Confidential © 2013 Busbud Inc.
Changes over time
Recognition of Needs
Evaluation of Options
Resolution of Concerns
Decision
Implementation
Tous droits réservés - Marc Lamarre
Major Account Sales Strategy -McGraw – Hill
......as it links to the seller’s sales activities
Planning Prospecting
Opening
Investigating
Demonstrating
Obtaining Commitment
Following-up
Demonstrating
Demonstrating
The Buying Cycle...
Confidential © 2013 Busbud Inc.
The 4 Stages of a Sales Call - SPIN™
Opening InvestigatingDemonstrating
CapabilityObtaining
Commitment
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The Investigating is the most important stage of a sales call –This is where successful sellers invest most of their efforts
A poor Investigating stage will greatly compromise the call’s outcome
Confidential © 2013 Busbud Inc.
Opening
Investigating
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• Effective deployment of the SPIN™ Model• The development of Implied Needs to Explicit
Needs
• Preliminaries• Purpose of the call• Permission to continue
The 4 Stages of a Sales Call - SPIN™
Confidential © 2013 Busbud Inc.
Demonstrating Capability
Obtaining Commitment
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• Presentation and/or Demonstration of the solution by describing Features, Advantages and Benefits
• Main source of objections in complex sales
A poor Investigating stage will greatly compromise the call’s outcome
• Obtaining Commitment requires 3 steps :1. Check that key concerns are resolved2. Summarize benefits3. Propose a realistic commitment
The 4 Stages of a Sales Call - SPIN™
Confidential © 2013 Busbud Inc.
The Development of Needs
Problems Difficulties
Dissatisfactions
NeedsDesiresWishes
Unknown
Implied Needs
Explicit Needs
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OK for Simple Sale -Transactional Selling Approach
Required for Complex Sales -Consultative Selling Approach
Confidential © 2013 Busbud Inc.
The SPIN™ Model
Effectively using the SPIN™ Model:
• S Situation questions
• P Problems questions
• I Implications questions
• N Need-Payoff questions
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Confidential © 2013 Busbud Inc.
The Objectives and Value of the SPIN™ Questions
Situation Questions:
• Collect facts and background data about the customer’s existing situation that is relevant to your products and services;
• While these questions are easy to ask, they bring little value to the buyer and can certainly aggravate him if too many of these questions are asked;
• A good knowledge of the customer’s industry and/or the information provided by an internal or external contact can help planning the call in a way to reduce the number of Situation Questions required;
• The most effective Situation Questions are targeted toward customer problems.
Tous droits réservés - Marc Lamarre
Confidential © 2013 Busbud Inc.
The Objectives and Value of the SPIN™ Questions
Problems Questions:
• These questions probe for problems, difficulties or dissatisfactions. They prompt the buyer to state Implied Needs to which we can provide solutions;
• These questions have a lot of value to the customer because of the latter's interest to resolve its problems;
• It is essential to effectively plan these questions ahead of time, otherwise the sales call will most likely remain in the Situation Questions stage;
• The best way to plan problems questions is to previously set a minimum of three potential customer problems on a form and then planning examples of questions that will be used to highlight these issues.
Tous droits réservés - Marc Lamarre
Confidential © 2013 Busbud Inc.
The Objectives and Value of the SPIN™ Questions
Implications Questions:
• Discover the implications of customer problems related to our business solutions;
• These questions are very valuable because they develop the Implied Need toward other potential problems;
• The Implications Questions are particularly efficient in a complex sales approach;
• These questions, much more difficult to ask, requires careful planning because of their importance in the development of Implied Needs to Explicit Needs.
Tous droits réservés - Marc Lamarre
Confidential © 2013 Busbud Inc.
The Objectives and Value of the SPIN™ Questions
Implications Questions:
• As for Problems Questions, Implications Questions must be planned by thinking of the possible impacts associated to the customer’s potential problems.
• To begin your planning on the problems possible impacts, use the following model:
B.O.T.C.H.
B Bottlenecks/ Backlogs
O Other People Affected
T Time Lost/ Wasted/ Needed
C Costs Associated
H HasslesTous droits réservés - Marc Lamarre
Confidential © 2013 Busbud Inc.
The Objectives and Value of the SPIN™ Questions
Need-Payoff Questions:
• Need-Payoff Questions are intended to develop the buyer’s desire for a solution to their problems;
• When the Need-Payoff Questions are asked too early in the sales call, the customer is naturally suspicious;
• Need-Payoff Questions, certainly the most difficult to ask effectively, should start from the Implied Needs to develop toward Explicit Needs;
• Effective Need-Payoff Questions will engage the buyer to openly talk about the benefits of solving their problems.
Tous droits réservés - Marc Lamarre
Confidential © 2013 Busbud Inc.
The Objectives and Value of the SPIN™ Questions
Need-Payoff Questions:
• Only when the buyer recognizes the severity of the problems and the urgency to find a solution to them, it makes sense to ask Need-Payoff Questions.
• To avoid a common discomfort in the deployment of Need-Payoff questions and also to encourage the buyer to elaborate on the expected benefits, it is easier to ask these questions by adopting the ICE method …
I.C.E• Ask closed questions to IDENTIFY the Explicit Need
• Ask open and closed questions to CLARIFY the Explicit Needs and the expected Benefits
• Ask open and closed questions to further EXPAND on the long-term Benefits of a solution for the customer`s business environment
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Confidential © 2013 Busbud Inc.
Demonstrating Capability
The 3 Ways to Demonstrate/Present a Solution
Features• Demo/ Presentation of the features, price, accessories…
• Low impact in the customer’s buying experience
Advantages• Demo / Presentation of the advantages linked to the features
• Sufficient impact in a simple/transactional sales call
Benefits• Demo/ Presentation of the solution in response to the customer’s explicit needs
• High impact in the customer’s buying experience during complex/consultative sales call
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Confidential © 2013 Busbud Inc.
Demonstrating Capability
Buyer’s reactions:
Features
• Objections related to the cost of the product/service;
Advantages
• Objections related to the value of the advantages mentioned;
Benefits
• Buyer’s agreement because it meets with his expectations.
Tous droits réservés - Marc Lamarre
Confidential © 2013 Busbud Inc.
Obtaining Commitment
The Call’s Outcomes in a Simple Sale:
2 Possible Outcomes
• Win the Sale
• Loose the Sale
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The objective is to win the sale
Confidential © 2013 Busbud Inc.
Obtaining Commitment
The Call’s Outcomes in a Complex Sale:
2 other Outcomes:
• AdvanceThe buyer accepts to move to the next step
• ContinuationThe discussion continues, but no action is agreed upon
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The objective is to obtain an Advance
Confidential © 2013 Busbud Inc.
Obtaining Commitment
Tous droits réservés - Marc Lamarre
Opening
Investigating
Demonstrating
Obtaining Commitment
1. Obtaining Commitment starts before the call by planning a realistic advance (and a plan “B”)
2. Obtaining Commitment is easier when the explicit needs were discovered at the investigation stage and that benefits were offered during the demonstrating capability stage
3. Obtaining Commitment in 3 steps;
1. Check that key concerns are resolved.2. Summarize the benefits3. Propose a realist commitment (Advance)
Confidential © 2013 Busbud Inc.
Managing vs Preventing Objections
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Situation Questions
Problems Questions
Implied needs
The seller offersadvantages
The buyer objects
The seller manages the objections
Managing Objections Preventing Objections
The seller develops needs with “Implications” and
“Need-Payoff” questions
The buyer express’ “Explicit Needs”
The seller offers benefits
The buyer demonstratesapproval and agrees
Confidential © 2013 Busbud Inc.
How to apply new skills efficiently?
Rule # 1:Practice one skill at a time
Rule # 2:Try a skill at least 3 times
Rule # 3:Concentrate on quantity before quality
Rule # 4:Practice the new skill in “secure” situations
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Confidential © 2013 Busbud Inc.
Advices• Practice, Practice, Practice
- You don’t want to sound like a robot
• Study – Listen Great Interviewers such as:- Charlie Rose- Larry King- Cesar Milan
• Do your homework and gather as much information you can…- Validate this information with your customer without boring him.
• Know every aspect of your industry, company and competition- Prepare a lot of questions… do not underestimate the length of a sales call!- Build upon your company strengths and business opportunities…
Do not ignore your company weakness’ and business threats (S.W.O.T)
• Beware of condescending and hurtful questions…… use open and close ended questions wisely
• Never Assume and Always Confirm
• Commit in developing these new selling skills thoroughly…
Tous droits réservés - Marc Lamarre
Confidential © 2013 Busbud Inc.
Good Selling!
Tous droits réservés - Marc Lamarre