M330 - SPIN - Chapter 1 Notes
M330 - SPIN - Chapter 1 Notes BUS-M330
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This 3 page Class Notes was uploaded by Lauren Detweiler on Friday January 23, 2015. The Class Notes belongs to BUS-M330 at Indiana University taught by Dick Canada in Spring2015. Since its upload, it has received 192 views. For similar materials see Consultative Selling in Business at Indiana University.
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Date Created: 01/23/15
M330 Week 2 SPIN Selling Neil Rackham Chap 1 Sales Behavior and Sales Success I Rackham s early days a In the beginning Rackham was a littleknown researcher i Little to no credibility in the industry b Now spent 10 years analyzing over 35000 sales transactions c Studied 116 factors relating to sales performance d Researched selling in 27 countries 11 Success in the Larger Sale a Traditional view on steps of a sales call i Opening the call ii Investigating needs iii Giving bene ts iv Objection handling v Closing techniques b Many techniques that are successful in smaller sales can normally be completed in one call and involve a low dollar amount can fail with larger sales 111 Characteristics of major sales in terms of customer psychology a Length of selling cycle i Maj or sale may involve many calls spread over a period of months or even years ii Often customers forget key points from the seller s presentation after about a week iii Lose most enthusiasm for the product within a week iv Closing hard being pushy is OK in sales when you can take the order right then otherwise pushiness reduces chance of final success b Size of customer s commitment i Small sale customer less conscious of value ii One of the most important selling skills in larger sales building up of perceived value iii Memorizing product knowledge doesn t change whether or not the customer perceives value c The ongoing relationship i Maj or purchases involve ongoing relationship 1 Postsale support 2 Most business comes from developing their existing customers ii Buyer is not just buying a product also entering a relationship 1 Seller and product become inseparable in the customer s mind in large sale d The risk of mistakes i In small sales customer can afford to take risks 1 Consequences of mistake are small ii Larger decisions more public 1 Bad decision more visible higher consequences IV The four stages of a sales call a Preliminaries i Warmup events that happen before real selling begins ii In larger sales have less in uence on success than we d first thought I Investigating i Finding something out by asking questions ii The most important of all selling skills 0 Demonstrating capability i Demonstrate to customers you have a solution that makes a worthwhile contribution to helping solve their problems a Obtaining commitment i A successful sales call ends with some type of commitment from the customer 1 Smaller sales usually in the form of a purchase 2 Larger sales could be other commitments seller has to obtain before a purchase commitment a Intermediate steps in large sales are called advances e Length of four stages can vary i Depending on location culture etc ii Most calls do include all four even if some are very short f Which stage is most important i In smaller sales strong closers those who are skilled in the obtaining commitment stage are very successful ii In larger sales success depends more than anything else on how the seller handles the investigating stage 1 Almost every call involves investigating 2 Many more questions asked in successful calls those leading to Orders and Advances than in calls resulting in Continuations and Nosales classified as unsuccessful V Questions and success a Questions persuade more powerfully than any other form of verbal behavior i Some types are more powerful than others b Standard practice in selling two types of questions i Closed questions can be answered with a single word ie yes or no 1 Sometimes called directive probes ii Open questions require a longer answer 1 Sometimes called nondirective probes iii During the last 60 years most writers have generally said VI SPIN 0 1 Open questions are more powerful than closed questions overall 2 A general goal of sales training should be to help sellers ask more open questions Rackham carried out several studies on closed vs open i Found no measurable relationship between use of open questions and success Found that questions in successful calls usually fall into this sequence i Situation questions datagathering facts and background ii Problem questions explore problems difficulties and dissatisfactions in areas where the seller s product can help iii Implication questions take a customer problem and explore its effects or consequences iv Needpayo questions get the customer to tell you the benefits your solution could offer Takes place during investigating stage of the call Not a rigid sequence SPIN questions work because they come from watching successful sellers in action
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