{"id":10172,"date":"2020-06-29T19:07:00","date_gmt":"2020-06-29T23:07:00","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=10172"},"modified":"2020-07-10T20:48:14","modified_gmt":"2020-07-11T00:48:14","slug":"buying-signals-spin-selling","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/buying-signals-spin-selling\/","title":{"rendered":"Buying Signals in Sales: Know Your Customer&#8217;s Needs"},"content":{"rendered":"\n<p>Can a buying signal tell you if the customer is ready to commit? What kind of buying signals in sales should you look out for?<\/p>\n\n\n\n<p>Buying signals in sales can take a lot of forms. The <a href=\"https:\/\/www.shortform.com\/blog\/spin-sales-model\/\">SPIN selling method<\/a> argues that customer buying signals are based on needs, and learning about customers&#8217; needs can help you identify buying signals in sales. Read more below. <\/p>\n\n\n\n<!--more-->\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Buying Signals in Sales<\/strong><\/h2>\n\n\n\n<p>As previously noted, <strong>in small sales, <a href=\"https:\/\/www.shortform.com\/blog\/implied-needs-spin-selling\/\">implied needs<\/a> are reliable buying signals<\/strong> <strong>in sales<\/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 <a href=\"https:\/\/www.shortform.com\/blog\/major-sales-spin-selling\/\">major sales<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Buying Signals and Customer Needs<\/strong><\/h2>\n\n\n\n<p>Needs develop through a series of stages. Here\u2019s how they evolve.&nbsp;<\/p>\n\n\n\n<p>When you\u2019re 100% satisfied with something\u2014for instance, your laptop computer\u2014you don\u2019t feel a need for change. But when your satisfaction begins to erode, even to 99.9%, you have the beginning of a need.<\/p>\n\n\n\n<p>When updating your software slows your computer down, you experience a glimmer of dissatisfaction that begins to grow. The limitations of your laptop start becoming apparent; in your mind, they develop into problems. You notice that the laptop loses its charge more quickly, and it definitely seems to be losing speed. But your belief that you have a problem doesn\u2019t mean you\u2019re ready to buy a replacement quite yet. Your problem has to evolve into a want and a drive to act. When you decide you want something\u2014a faster, sleeker computer\u2014you\u2019re ready to buy.&nbsp;Since buying stages are different depending on needs, the buying signals in sales will also be different. <\/p>\n\n\n\n<p>So the stages of need development are:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>The item you have is no longer 100% perfect.<\/li><li>You feel a hint of dissatisfaction.<\/li><li>You start noticing flaws.<\/li><li>You realize you have problems with it.<\/li><li>You want to change it\u2014now.<\/li><\/ul>\n\n\n\n<p>In small sales, your mind can run through these stages quickly, or even instantaneously. In major sales, the process of developing a need that becomes a want can take months or years.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Implied and Explicit Needs<\/strong><\/h3>\n\n\n\n<p>There are two types of needs: implied and explicit. In small versus large sales, they play out differently, and will have different customer buying signals. <\/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 implied needs you uncover has no bearing on sales call results.<\/p>\n\n\n\n<p><strong>In a large sale, implied 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 them.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>The Value Equation<\/strong><\/h3>\n\n\n\n<p>Implied needs don\u2019t predict success in major sales 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;Understanding implied needs can help you identify buying signals in sales. <\/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 implied 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 and explicit needs predict sales success. A questioning approach that uncovers problems (implied needs) and provides an answer makes the sale. Knowing that the buying signals in sales vary makes <a href=\"https:\/\/www.shortform.com\/blog\/closing-the-deal-in-sales\/\">closing the sale<\/a> easier. <\/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<p>Experienced sales people can recognize buying signals in sales based on many factors, including their <a href=\"https:\/\/www.shortform.com\/blog\/sales-relationships-spin-selling\/\">sales relationship<\/a>. You can use SPIN selling to help you identify more customer buying signals. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Can a buying signal tell you if the customer is ready to commit? What kind of buying signals in sales should you look out for? Buying signals in sales can take a lot of forms. The SPIN selling method argues that customer buying signals are based on needs, and learning about customers&#8217; needs can help you identify buying signals in sales. Read more below.<\/p>\n","protected":false},"author":5,"featured_media":10182,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[45,29],"tags":[91],"class_list":["post-10172","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-career","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>Buying Signals in Sales: Know Your Customer&#039;s Needs - Shortform Books<\/title>\n<meta name=\"description\" content=\"What are buying signals in sales, and how can they help you close a sale? 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