M330 - SPIN - Chapter 2 Notes
M330 - SPIN - Chapter 2 Notes BUS-M330
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This 3 page Class Notes was uploaded by Lauren Detweiler on Monday January 26, 2015. The Class Notes belongs to BUS-M330 at Indiana University taught by Dick Canada in Spring2015. Since its upload, it has received 78 views. For similar materials see Consultative Selling in Business at Indiana University.
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Date Created: 01/26/15
M330 Week 3 SPIN Selling Neil Rackham Chap 2 Obtaining Commitment Closing the Sale I Old standard techniques that every seller knows a Assumptive closes Alternative closes Standingroom only closes Lastchance closes Orderblank closes Many more i Questions raised 1 How many of these closing techniques actually work 2 In larger sales how do such factors as price and buyer sophistication in uence the success of closing rmpoo II What is closing a A behavior used by the seller which implies or invites a commitment so that the buyer s next statement accepts or denies commitment III The consensus on closing a Old thought magic number 5 i You haven t done your job if you quit before asking for the order at least ve times b Most writers say i Closing techniques are strongly related to success ii You should use many types of closes iii You should close frequently during the call IV Initial research a Unexpected results i Only 11 High Close Calls average of 58 closing behaviors per call resulted in a sale while 21 of the Low Close Calls did so b Uneasy feelings i Experiences where salespeople were thrown out of buyers of ces for using closing behaviors c Attitude problems i Some businesses thought that their employees could close ie they ve had training they just had an attitude problem d The effect of training i Did intensive closing training for one business ii After the sellers used more closing techniques but the overall effect was a decrease in sales e Conclusions after more research i By forcing the customer into a decision closing techniques speed the sales transaction 1 For small sales this is desirable Keeps transaction time short 2 For larger sales shorter transaction time has very few pros and many cons ii Closing techniques may increase the chances of making a sale with lowpriced products With expensive products or services they reduce the chances of making a sale V Closing and client sophistication a Sophisticated buyers may interpret closing behaviors as arrogance or attempted manipulation can even be demeaning i Less likely to buy if closing techniques are used VI Closing and postsale satisfaction a 35 days after purchase customers rated 1 their satisfaction w the goods they had purchased and 2 the probability if they were to make similar purchases in the future that they would buy from the same store i Sellers trained in closing had lower satisfaction ratings on both VII Why is the rest of the army out of step a Why do people put so much time into a set of techniques that not only don t work but in larger sales are actively counterproductive i In Rackham s case because his first close was rewarded with an order he d somehow assumed that using the close had caused the order b But you must close i Discussed how techniques are ineffective so should you wait for the sale to close itself No ii Despite the disadvantages calls with no closing whatsoever are unlikely to be effective VIII Summary closing techniques ineffective when a The sale is large involving highvalue goods b The customer is sophisticated ie a professional buyer c There s a continuing postsale relationship w the customer IX Obtaining the right commitment a Set the right objectives i Closing in a simple sale has one of two outcomes order or nosale ii More major sales are more complicated 1 Four possible outcomes Success Order Advance Failure Continuation NoSale b Orders customer makes a firm commitment to buy c Advances an event takes place either in the call or after it that moves the sale forward toward a decision d Continuations the sale will continue but the customer didn t agree on a specific action to move it forward e Customer actively refuses a commitment f Teach your people the difference between Continuations and Advances and help them become dissatisfied with setting call objectives that result only in a Continuation X Setting call objectives a Always include objectives that result in speci c action from the customer b You ll be looking for Advances not Continuations XI Obtaining commitment Four successful actions a Giving attention to Investigating and Demonstrating Capability b Checking that key concerns are covered c Summarizing the key points especially bene ts just before decision time d Proposing a commitment XII Two characteristics of commitments proposed by successful salespeople a The commitment advances the sale Result the sale will move forward in some way b The commitment proposed is the highest realistic commitment that the customer is able to give Successful sellers don t push the customer past achievable limits X111 Final word on closing from Hans Stennek a I ve never been a believer in closing because my objective is not to close the sale but to open a relationship