{"id":10079,"date":"2020-07-10T18:14:00","date_gmt":"2020-07-10T22:14:00","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=10079"},"modified":"2020-07-10T20:45:42","modified_gmt":"2020-07-11T00:45:42","slug":"implied-needs-spin-selling","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/implied-needs-spin-selling\/","title":{"rendered":"Implied Needs: How to Know What a Customer Wants"},"content":{"rendered":"\n<p>What are implied needs in a sales interaction? Why do you need to be able to understand them? <\/p>\n\n\n\n<p>Implied needs are one type of <a href=\"https:\/\/www.shortform.com\/blog\/buying-motivation\/\">customer motivation<\/a> in sales. Customers will enter into a sales interaction for many reasons, some more complex than others. As the salesperson, you need to understand the implied needs and explicit needs.<\/p>\n\n\n\n<!--more-->\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Implied and Explicit Needs<\/strong><\/h2>\n\n\n\n<p>There are two types of needs: implied needs (or implicit needs of customers) and explicit needs. In small versus large sales, they play out differently.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Implied needs are problems and frustrations expressed by the customer<\/strong>\u2014for instance, \u201cI\u2019m not happy with the quality our press is producing,\u201d or \u201cOur system creates too much waste.\u201d<\/li><li><strong>Explicit needs are <\/strong><strong><em>strong<\/em><\/strong><strong> wants or desires expressed by the customer<\/strong>\u2014for example, \u201cWe need a more efficient system,\u201d or \u201cWe have to cut our procurement costs.\u201d<\/li><\/ul>\n\n\n\n<p>In small sales, implied needs can result in <a href=\"https:\/\/www.shortform.com\/blog\/sales-success\/\">sales success<\/a> without further development into explicit needs. In fact, the more implied needs a rep can uncover, the greater the chances of making a sale. In these sales, implied needs are \u201cbuying signals,\u201d or behavioral cues that the customer wants to buy; however, in large sales, this isn\u2019t the case.<\/p>\n\n\n\n<p>In large sales, the relationship between implied needs (customer problems) and making a sale is weaker. The <em>number<\/em> of needs you uncover has no bearing on sales call results.<strong>In a large sale, these needs are a starting point requiring further development into explicit needs<\/strong>. The quantity of needs you uncover isn\u2019t important; it\u2019s how you develop the<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>The Value Equation<\/strong><\/h2>\n\n\n\n<p>Implied needs don\u2019t predict success in <a href=\"https:\/\/www.shortform.com\/blog\/major-sales-spin-selling\/\">major sales<\/a> because customers make <a href=\"https:\/\/www.shortform.com\/blog\/buying-decision\/\">buying decisions<\/a> based on a <strong>value equation, in which they weigh the seriousness of their problem against the cost of the solution<\/strong>.&nbsp;<\/p>\n\n\n\n<p>When the solution doesn\u2019t cost much, weaker needs can tip the scale toward buying. But when the solution is expensive, the buyer must feel a much stronger need in order to be motivated to buy. She asks herself: is the problem big enough to warrant paying this much?<\/p>\n\n\n\n<p>Here\u2019s an example of how the value equation works. When pocket calculators were first introduced at a trade show, the manufacturer sold out in just a few hours. The manufacturer created an immediate implied need by generating dissatisfaction with large, clunky adding machines. Further, the calculator was a fifth of the cost of the desktop machine. The implied need or problem\u2014a cumbersome machine\u2014was bigger than the cost of fixing it by buying a pocket calculator. But if the pocket calculator had cost <em>more<\/em> than an adding machine, the need would have to be perceived as bigger to justify spending more money on it.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>If the cost is high, but the need\/problem is perceived to be small, there won\u2019t be a sale.&nbsp;<\/li><li>If the cost of the solution is low for the size of the problem, you\u2019ll <a href=\"https:\/\/www.shortform.com\/blog\/how-to-make-a-sale-2\/\">make a sale<\/a>.<\/li><\/ul>\n\n\n\n<p>Thus in small sales where the price is lower (as with the first pocket calculator), implied needs are often enough to nudge the customer to buy\u2014and the more of these needs you can uncover, the better your chances of selling.<\/p>\n\n\n\n<p>But <strong>in a major sale, you have to build the implied need into something bigger and more urgent\u2014an explicit need\u2014so that the size of the problem, as well as the risk the customer is taking, justifies the cost of your solution<\/strong>.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Explicit Needs and Success<\/strong><\/h3>\n\n\n\n<p>In small sales, both implicit needs of customers and explicit needs predict sales success. A questioning approach that uncovers problems (implied needs) and provides an answer makes the sale.<\/p>\n\n\n\n<p>However, in large sales, only explicit needs predict success. Reps need to use a more advanced questioning strategy to both uncover implied needs and convert them to explicit needs.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Implied Needs and <strong>Buying Signals in the Major Sale<\/strong><\/h2>\n\n\n\n<p>As previously noted, <strong>in small sales, implicit needs of customers are reliable buying signals<\/strong> (indications the customer wants to buy or advance the sale). The more often a customer agrees that he has a need\/problem, the greater the probability of a sale.<\/p>\n\n\n\n<p><strong>But in large sales, explicit needs are the buying signals<\/strong>. In assessing whether a call has been successful, experienced sales reps want to see explicit needs, while less experienced reps may count implied needs as indicating success.&nbsp;<\/p>\n\n\n\n<p>Needs development\u2014making the customer\u2019s problem so big that he has to act on it\u2014is the critical selling skill in major sales.<\/p>\n\n\n\n<p>Implied needs can be tricky. As you practice SPIN selling, work on recognizing implied needs, and acting on them. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>What are implied needs in a sales interaction? Why do you need to be able to understand them? Implied needs are one type of customer motivation in sales. Customers will enter into a sales interaction for many reasons, some more complex than others. As the salesperson, you need to understand the implied needs and explicit needs.<\/p>\n","protected":false},"author":5,"featured_media":10100,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[103,30],"tags":[91],"class_list":["post-10079","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-sales","category-work","tag-spin-selling","","tg-column-two"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.3 (Yoast SEO v24.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Implied Needs: How to Know What a Customer Wants - Shortform Books<\/title>\n<meta name=\"description\" content=\"What are implied needs? How can they help you succeed in sales? 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