Episode #330: SPIN Selling's Implication Genius

If you are a student of sales, then you will know all about SPIN Selling developed by Neil Rackham, based on his 1970s and 1980s research involving 30 researchers who studied 35,000 sales calls in 12 countries. The acronym stands for S- Situation, P- Problem, I-Implication and N-Need Payoff. The concept was not to be just packaging up the details of the solution and then jamming it down the throat of the buyer- the preferred method of most salespeople at that time - but to become a trusted advisor, someone who would act as a consultant to the firm to help them improve their performance.

The consultancy part required an analysis of the client’s current situation and gaining clarity around what was the problem inhibiting their growth. Rackham’s insight was that this wasn’t enough to be successful in sales. We know that the human condition leans in favour of pain avoidance more than gain. For example, if I wrote two articles, one titled “How I Made $20 million” and another titled “How I Lost $20 million”, the latter is bound to get more attention than the former. This is where the Implication component of the formula comes in – what will be the downside, if the firm doesn’t solve this problem.

Drawing out the implication is key, because the easiest decision for any buyer is to do nothing. Keeping the same supplier is easy, making no changes inside the firm is easy, trying to incrementally improve what is already being done is easy. The key to success with the implication question is in how we ask it. It is also the most complex part of the formula. Asking about the client’s current situation and what are their problems are relatively straightforward questions.

If the implication question is done too aggressively then it will fail. For example, “Aren’t you concerned about going bankrupt (or losing market share or running out of cash) if you don’t fix this problem, which you told me was holding the firm back?”. Another too strong question would be, “Aren’t you worried about your own job security if you cannot overcome this problem?”. Buyers will not react well to what sounds to them like a sad attempt at blackmail. They don’t like the hard sell approach in Japan and this will backfire if attempted here.

The implication question has to be subtle and considered. For example, “I am sure that over time, you can solve this problem you have outlined for me. I guess the question then is can the organisation afford to wait for that long or is there a greater benefit to making some changes now, to reap more immediate rewards?”. This is a good question because it doesn’t say the buyer’s company is stupid or that the buyer is stupid or that they are not capable to fixing their own problems. It just raises the issue of time and of course in business time is of the essence, so it is easier to conclude that taking action now is the wiser course.

We are still faced with the problem though that although the buyer knows they should act, the inertia drag is so strong they still don’t do anything about it and just procrastinate on taking any steps to fix the issue. When we see that this is what is going on in the mind of the buyer, we have to join them there and push them to take a more urgent approach, without tipping the scales too far toward panic. We can now say, “Change is always hard, however we know that progress requires change and there is always a big advantage to be gained over competitors who cannot make any changes. Rivals however may stir and steal a march on us and we don’t want that do we? Increasing market share because of internal agility translates into better financial outcomes and quickly justify the changes needed to reap the greater rewards. When we think of it, on balance, doesn’t it make sense to take the opportunity presented now, to gain the tangible benefits available?”. We have to drive in a sense of urgency around the decision to buy from us, otherwise they just never get around to making it happen. Japanese buyers in particular are very sensitive to what their competitors are doing and do worry about being outfoxed by their rivals.

Certainly questioning skills are an important tool in the salesperson’s toolbox, but the implication tool in particular, is one which must be fully mastered. The delivery is key and this requires practice and always remember never practice on the buyer! Clients vary in personality style, so we have to be sensitive to how we communicate with the buyer. Some prefer a more direct approach and others want to have a cup of tea and get to know each other first. Very detailed buyers enjoy data, proof, testimonials, evidence while others find all that boring and prefer the think in big picture terms. The important point is to know who we are talking to and then adjust our delivery to suit the way they prefer to communicate.