1 Identifying Needs by Questioning and Listening Learning Objectives:  Understand the purpose of asking questions.  Learn how to select questioning tactics appropriate for the sales situation.  Study specific questioning techniques.  Examine SPIN® Selling and its applications.  Understand the functions served by various types of questions.  Appreciate the importance of listening in sales.  Become acquainted with techniques for improving listening skills. CHAPTER 10

2  Provides a roadmap for you to follow  Allows prospects to discover their problems for themselves  Determine prospect’s buying criteria  Salesperson as a diagnostician The Purpose of Asking Questions

3  Need discovery is more important than any other step in the sales cycle  Plan your questions in sequence to gain information in a logical order  Research findings suggest that successful sales interactions:  Contain more requests for information then opinions  Contain fewer statements of disagreement  Closing is directly linked to questions Need Discovery and The Sales Cycle

4  Elements of a good transition:  Provide a logical agenda  Request permission to ask questions  Plan questions in a logical sequence  Predict all possible answers  Prepare a smooth transition from each possible answer Transition From Approach

5  Four Key Objectives: 1.To discover the prospects “hot button” 2.To establish purchase criteria 3.To agree upon a time frame for completion of negotiations 4.To gain agreement on the problem before beginning the actual presentation Specific Planning of Questions

6  Causes prospects to withdraw or to become angry  Do not keep the prospect pinned down with a ceaseless chatter of oral machine-gun fire  Avoid attempting to force or manipulate answers you want to hear Asking Questions Asking questions in rapid-fire machine-gun fashion…

7  Phrase each question so that it has only one clearly focused purpose  Questions are easily misunderstood by most people  Avoid technical language or terms unique to your company or product that might confuse the prospect Strategic Recommendations

8  Ask questions that help reveal the social style of the prospect  Amiables and analyticals take longer to respond. So you must be more patient.  Drivers are task oriented. Show them how they can win.  Expressives show a more personal orientation. Use testimonials and showmanship. Strategic Recommendations

9 SPIN Selling in Action ITUATION QUESTIONS: DATA-GATHERING QUESTIONS. UNCOVER FACTS AND BACKGROUND INFORMATION ROBLEM QUESTIONS: HERE YOU HELP PROSPECTS DEFINE THEIR NEEDS EXPLICITLY MPLICATION QUESTIONS: GET THE PROSPECT TO DISCUSS THE PROBLEM AND HOW IT MIGHT BE IMPROVED EED-PAYOFF QUESTIONS: HELP TO BUILD UP THE VALUE OF YOUR PROPOSED SOLUTION IN THE CUSTOMER’S MIND

10 Closed End Questions: (Structured alternatives, multiple choice type)  Uncover specific facts  Reduce prospect tension because they are easy to answer  Check understanding and receive feedback  Maintain control by directing the flow of conversation  Cement prospect commitment to a specific position Common Questioning Techniques

11 Open End Questions: (Identify a topic but do not provide structured alternatives)  Allows the prospect to move in any direction  Cannot be answered with a yes or no  Ordinarily begins with, “How do you feel?”, or “What do you think?”  Stimulates the prospect’s thinking and increases the dialogue  Helps uncover the dominant buying motive  Uncovers the true personality or behavioral style of the prospect Common Questioning Techniques

12 Amplification Questions : 1.Double-Check Question - restate or rephrase the prospects remarks. Tells prospects:  That you have been listening  That you understand their concerns  That what they say is important to you  That they are making themselves clear 2.Nonverbal Gestures  Use visual cues (nodding head or leaning forward)  A slightly raised eyebrow or inquiring look Classification of Questioning Techniques

13 3.Use of Silence  Indicates to prospect that you do not quite understand  Allows you to relax the pace of the interview  Gives you time to think before answering  Gives prospects a chance to express their feelings 4. Continuation Questions  They simply encourage more communication from the prospect  Use a few words or phrases to keep the prospect talking Amplification Questions (cont.)

14  Checks for mutual understanding  Allows the salesperson to rephrase what the prospect appears to have intended  Invites the prospect to expand or clarify any point of disagreement  Narrows down generalizations and clears ambiguities Advantages of Amplification Questions

15 Internal Summary (Reflective) Questions :  Repeat or rephrase part of the prospect’s last response  Gets the prospect to see things from your perspective  Can underscore an important point Getting Agreement on the Problem:  Formally state the problem  Confirm with the prospect that agreement on problem has been reached Classification of Questioning Techniques

16 Listening Effectively Isn’t Difficult…Just Unusual

17  Avoid prejudgment  Be patient  Take notes  Reinforce  Listen for ideas, do not try to get every fact Improving Listening Skills

18 Capitalize on Speed of Thought:  We speak at 150 words per minute, but we can listen at up to 600 words per minute Use this spare thinking time to:  Anticipate where your prospect is going  Mentally summarize the message  Formulate a response  Listen between the lines  Use silence strategically Improving Listening Skills