This is not going to be a normal review, these will be more of my notes to remember what I just read and become increasingly familiar with a new lexicon / jargon that is business speak.
One quick annoyance, one quick whoa cool moment, then bullet points. This book costs $30 and you are done reading it in an hour. Why are business books so expensive and yet written at about a 3rd grade reading level?
First though one thing I found rather interesting in reading this book is that it emphasizes the right way to ask questions and bring someone along an emotional sequence that is optimal for getting someone to do something you want. Basically, it teaches you to lead people along a certain emotional rollercoaster, to buy something at the end. Oddly, this is something that I’ve studied on my own, especially through reading Speeches that Changed the World. I noticed reading that book that there is a certain emotional trajectory that is best for getting people motivated. A careful mix of information, motivation, letting them talk, letting them listen, a careful emotional arch that when done correctly, is best suited for getting someone to do something at the end.
I saw that throughout history, the circumstances changed but that emotional arch didn’t really change. The greatest orators and leaders pretty much followed it. So, I’m not shocked to see that it works in business either. It’s a different hustle, I’ve been told, but I think I’ll do all right in this game.
OK, now the bullet point collection of facts.
This book distinguishes between techniques that work best in small sales and larger sales, addressing mainly larger sales and pointing out that techniques which work in small scales are in fact detrimental in larger scale selling.
There are four basic stages in a sales call – preliminaries, investigating, demonstrating capability, obtaining commitment
Preliminaries - the hello how are you. Doesn’t have to be super slick, a first impression isn’t everything, in fact get down to business before you bore them
Investigating – the real meat of the call, investigating means uncovering customer needs AND THEN using questions to build up the needs so much that they are ready and eager to buy. That’s where SPIN questioning comes in:
A useful tip is preparing some of these questions before it’s go time.
Situation Questions – facts about background, the customer’s specific role in the company. Don’t spend too much time here (maybe 5%)
Problem Questions – about the difficulties, dissatisfactions with the current situation. Again, not as important, but more important than situation (10%)
Implication Questions – about the consequences or effects of a the problems. The “sad” questions, basically meant to drop their tail between their legs and make them feel bad. Magnifies a problem and increases their perception of the value of your product. I think this and Need-Payoff are the two areas you spend the most time on (40%)
Need-Payoff Question – the happy cousin of implication questions. After you get them to hang their head and go “oh wow, it is really bad” you quickly build them back up by asking questions that lead them to tell you that “yeah, it would be a great fix. I then could do other important stuff!” Essentially it’s about the value, usefulness or utility that the customer perceives that your product can alleviate their problem.
Demonstrating Capability – how your product works. Instead of explaining its features and benefits, a more effective technique is to address it through what problems it addresses. So you have to put yourself in the customer’s shoes and get a sense of their needs.
Obtaining Commitment – at the last phase you should check you’ve covered their needs, summarize the benefits of your product, and propose an appropriate level of commitment. That last part is key, a call can be successful even if they don’t buy at that precise moment, so long as you get a bit further down the line through a concrete action (such as setting up a meeting or getting access to the next level of decision makers). Larger sales involve a series of meetings anyway, so they don’t have to buy for it to be a success.
Other facts
The best way to practice is on page 94-95, page 98 also useful
Don’t focus so much on objection handling, if you do it right you are focusing on objection prevention. Objections show you jumped too quickly into features and benefits and didn’t adequately understand the customer needs
Think – could the customer repeat the presentation smoothly to his boss?
With a larger value sale, you must build up the value of the product much more because customers become more cautious as decision size increases. Pressuring works in small sale, not larger sales.
Obtaining commitment is best measured by actions at the end of an exchange
Investigating is about uncovering, understanding, and developing needs of the customer, at its final step you flat out ask if there is any further point or concerns that need to be addressed
Summarize key points, especially benefits
Don’t close the sale, open the relationship
Someone making a decision is balancing the seriousness of the problem with the cost of the solution, asking implication questions builds up the cost side of the scale
Implicit vs explicit needs (62)
Implication questions have a weakness. They make customers more uncomfortable with their problems…Need Payoff questions focus the attention back on a positive solution and gets them telling you the benefits
Implication questions are specific to a particular customer problem, Need-payoff have wide generality – why is this important, how would that be helpful, would it be useful if, is there any other way this could help you? Etc
Explaining benefits – if you are overly enthusiastic about the product you are more likely to share its features and benefits (product-centered) rather than what problems of the customer it can address
Listing features is less effective for a luxury product (think about the advertisements)