Question

Utilize the SPIN questioning approach and develop two 2 questions for each step in the SPIN (total of 8 questions) approach you would consider asking Mr. Crandall in this sales scenario. In addition to developing the questions articulate why you would be asking these questions and what you your intention/strategy is in asking the question.

Answer 1

The four steps in the SPIN selling approach are as under -

1. Situation (S)

2. Problem (P)

3. Implication (I)

4. Need- Payoff (N)

Let's assume that I want to sell fabric to Mr. Crandall for his merchandising business -

Situation Questions asked to him could be -

1) What is the process you use for acquiring fabric?

2) How do you get most of your customers?

The intention behind asking a Situation question is finding out more about the background of the buyer, understanding his situation (as the name suggests) and how help can be provided to him. Facts can be collected in this manner that can be used in order to devise a competitive plan. This establishes context that leads to a Problem Question.

Problem Questions asked could be -

1) What are the disadvantages of the process you are using?

2) Is it difficult to keep up with the peak demand of customers because of shortage of materials?

3) Are your customers satisfied by what is being provided to them?

The intention behind asking a Problem Question is to understand where the points of dissatisfaction are or the general difficulties faced while running the business. These questions are used to find out whether the current situation of the buyer is placing him in a position of disadvantage and how to resolve it by selling your product. It reveals the implied needs of the buyer and sets the grounds for Implication Questions.

Implication Questions asked could be -

1) Is your manufacturing cost rising because of the current process being utilized by your business?

2) How much time do you spend dealing with complaints lodged by your customers?

3) What is the financial impact on the business when the peak demand can not be met?

The intention behind asking an Implication question is to identify the negative consequences caused by the problem and get a deeper insight into the solution that fits the buyer's situation perfectly. It reveals the seriousness and magnitude of the problem and the impacts in detail. The issue that is now felt more acutely leads us to the last question, i.e. the Need- Payoff question.

Need-Payoff questions asked could be -

1) If you are provided the option of having just-in-time inventory (i.e, having inventory readily available as and when demand arises without having to stockpile when not needed), will it make it easier for you to meet the sudden hikes in demand?

2) If you could reduce your manufacturing costs by changing your current process of acquiring fabric, by what percentage will your profit margins rise?  

The intention behind asking a Need-Payoff question is to finally divert the attention from the problem to the solution. The answers to these questions switches the buyer's focus to the benefits of the seller's solution. Instead of the seller describing the benefits of the idea/product being pitched, the buyer does it himself. The more the benefits, the higher the value of the resolution being provided. This is a way by which the needs are understood explicitly and fulfilled. It gets the buyers thinking about the positive changes after the problems are resolved. Finally. the opportunity arises to move in on the sale of the product or service.