Friday 14 March 2008

Spin Selling - what is missing - part 2

I have received a lots of mails, based on my last article about SPIN Selling and what is missing. Mainly I can split the comments in 2 big groups:

The first group, writing me how interesting the thoughts where and that they wanted to talk about how to add on SPIN. And the second group telling me how great SPIN is and which books I read –maybe I wasn’t up to date, since SPIN is great……………..which I believe myself as well, so they didn’t really get the point.

 

However for all the different readers who are interested in it, here are the basic books I build my SPIN Selling comments on:

 

1) SPIN Selling

This book is still today one of the top all time best written sales books ever. Neils approach was for this time ground breaking and unique and as we see in this discussion it stands the test of time. It has so many Fans and followers, as he was the first to go beyond product selling and talked about the buyers cycle as it relates to the sellers process. They need to be in alignment...if not, you will not get the sale. In my personal opinion this book is a must read for anyone selling.  As mentioned before and as you can read from my feedback, I have huge respect for Neil Rackham’s and his work.

 

And as for me, like for so many others in the 80's, has Rackham's book changed my career and sales life.

 

2) The SPIN Selling Fieldbook

Many have bought this book together with SPIN Selling or after reading the first book. In any case, the Fieldbook is mostly read after reading SPIN Selling. And both the official critiques as well as the readers point out, that If you've already read SPIN Selling, this book is not going to tell you much new things. If you would read the Fieldbook instead of SPIN Selling, then the Fieldbook is not thorough enough, at least if you compare it to SPIN Selling. It has been argued that the audience of this book perhaps was more college students, but not really experienced salespeople. A big critique was also the many cartoons, which made the book look like it's meant for younger people. What would be expected with a Fieldbook, following the SPIN Selling book, was that the Fieldbook offerd some transcriptions of salescalls, and an explanation of why certain aspects are wrong and how this could be improved using SPIN Selling. This was not really the case, it was more like a simple summary of SPIN Selling. So not really the Fieldbook anyone expected.

 

Having said that, please remember that for the time when SPIN Selling really came out, this was ground breaking, everybody else just made Product selling

 

 

3) Major Account Sales Strategy

In its day this would rate six stars out of five, but it's not much news and even this book has been superseded by "Selling is Dead" authored by Marc Miller and Jason Sinkovitz. In fact, the authors are students of Mr. Rackham and give him ample credit for the ground breaking work of "SPIN Selling and Major Account Sales Strategy. But as mentioned, it is nothing new, besides the fact that he starts to point out that need to tailor your selling strategy to match each step in the client's decision-making process - this however was not new, as this was part of his groundbreaking work in the 80’s. Ensure that you won't lose your customers because you'll know the psychology of the buyer and how to respond to their pains and doubts - and this is the heart of his old theory. Building on a customer situational pains, doubts and fears. Basically said - "customer needs and the possible doubts they might have with whatever you might try to position". Furthermore this book points out how you can handle negotiations, concessions on price, and term agreements skillfully and effectively - knowing the pain, problems and thereby needs of your customer. But many critics have already pointed out that Negotiating based on needs only is not a good enough negotiation strategy! In this theory is not used in any known sales negotiation  method known.

 

4) Rethinking the Sales Force: Redefining Selling to Create and Capture Customer Value

Neil Rackham shows in this work, how the successful sales force breaks away from traditional thinking and transforms themselves into complex business processes with multiple sales approaches and selling models that meet the demands of today's sophisticated customers by understanding there situation, problems, implications and from that the explicit need they have. In this book Value is argued that if you fulfill a customer need you go beyond communicating the value of products or services (which is right) and you start with the crucial ability to create value for customers.

 

 

However what many critics are right on, that this proved that SPIN Selling is truly dead. Rackham attempt to reinvent SPIN was very disappointing (in every way). This book was more about customer segmentation and how sales force alignment can be done successful. And what many critics say rightfully is that it takes over 200 pages to say something that deserves one paragraph (not even an article worth): some customers want a low-cost product and a low-end relationship, other customers want a more consultative, deeper relationship, and, pretty much, you have to know which is which to be successful.

 

And even though SPIN Selling has been one of the best sales methods for about 10-15 years, and Neil Rackham has tried to reinvent SPIN selling with some value based selling aspects, the conclusions "only" ends up with needs based value argumentations. This was great, when everybody just did product based selling, even when solution selling came around. Unlike practically every other segment of the modern business world, the corporate-sales department has changed very little from the rigid organizational framework it first attained back in the gray-flannel '70s. Only the sales methods have changed for many companies from Product to Solution selling. But even that bastion of traditional business structure is starting to evolve, as customers at all levels begin to reconsider their expectations, purchasing patterns, and criteria for establishing and maintaining relationships with sales professionals. So yes, the sales world and reality has truly changed, even the decision makers and budget holders have changed. Including the market and competition and today it is just not enough to understand our customer needs and NO, communicating Values based on the need of the customers is just not enough anymore. As mentioned before even psychology and behavioral science points out that the three main ways to influence human behavior is:

 

1) The most common way is by addressing needs.

 

2) Is to understand their wants (this is missing in SPIN)

 

3) By far, the most effective way to influence human behavior, is through core values (which is a mix of wants and beliefs, standards etc). This is not enough reflected in SPIN.

 

 

As mentioned so often in this article I’m a big SPIN selling fan and I am not suggesting that you ignore needs, for that is the first step and I don’tknow of a better method to identify the explicit need of a customer then SPIN. However, we no longer live in a needs-oriented society. Why are needs the least powerful way to influence human behavior? Needs are tied to shoulds. For instance, take statements like "I should save money"; "I should make more investments"; "I should make better decisions"; " I should get a financial plan"; or "I should have more discipline." Tangible wants are a step in the right direction. Therefore SPIN Selling should be re-invented to include wants in a much better way!

 

Remember, the least effective approach is to try to satisfy client needs – which SPIN selling does. A better approach is to help clients get what they want and desire. The thing to remember is that when needs-oriented planning leaves your client flat, try focusing on your client's wants and values instead. OBS, please note that needs and partly wants as well, don't have the emotional punch to influence human behavior. Therefore SPIN Selling should be both re-invented to include not only needs and wants, but value based selling methods that provide a way to communicate Personal and Business Buying reasons as well.

 

Remember, the least effective approach is to try to satisfy client needs – which SPIN selling, Major Account Selling and the Capture Customer Value method from Neil Rackham does. A better approach is to help clients get what they want and desire. The most important point about value is that value to your customer is not something you define – it’s exclusively defined by the buyer (and based on their wants). The value expectations that make them initially buy from you – as well as the total experience over time. Both the subjective and the more measurable values delivered by your total organization - that makes him buy from you again the next time. The most effective sales professionals help clients fulfill their values in life.

 

Again to point it out to all the different writing to me and tell me how great SPIN still is. You have misunderstood me, I believe that SPIN is a great method, I am a BIG fan of it, however it is just missing something - I hope this has given you a little overview. For anybody interested in modified version of SPIN selling please write to: mark@vonrosing.dk

 

Regards Mark von Rosing