7 Sales Methodologies and How to Use Them for Your Small Business
In our ongoing efforts to empower small business owners and entrepreneurs with effective sales strategies, we’ve conducted in-depth research to present to you 7 effective sales methodologies that have the potential not only to foster growth in your business but also possess the sustainability to ensure its prosperity for many more years to come. As you explore these methodologies, you’ll gain insight into their unique properties, as well as the best scenarios for their application. The question that arises now is which of these techniques ideally aligns with your sales team to maximize their potential? Read further to delve into our findings to understand the dynamics of 7 sales methodologies and explore how they can be leveraged for your business’s benefit.
1. The SPIN Method
What is it?
SPIN stands for the four types of strategic questions salespeople can ask their customers: Situation, Problem, Implication, and Need-payoff. This sales technique relies on sellers raising pointed questions early in the deal. Situation questions gather information on a prospective client’s current situation. Problem questions help illustrate different needs that a product or service can solve. Implication questions show a client why their problems need solving, and need-payoff questions lead that customer to their own conclusion: that a certain product or service is the answer.
When is it effective?
The SPIN approach can be effective if your product or service is a clear solution to common difficulties that customers are experiencing, especially when those customers may not have previously identified those difficulties.
2. The MEDDIC Sales Program
What is it?
The MEDDIC Sales Program focuses on the idea that finding the right prospects will lead to a higher closing rate. The acronym MEDDDIC stands for the criteria that make a prospect highly qualified. They are Metrics, Economic buyer, Decision criteria, Decision process, Identify pain, and Champion. In this program, a seller uses those criteria to identify who within an organization to approach about a sale.
When is it effective?
This approach tends to be most effective if your sales team is working in B2B environments where they need to be highly knowledgeable of who will help them drive sales.
3. The Challenger Sale
What is it?
As the name suggests, challenger sellers challenge the status quo by opening prospects’ eyes to possible solutions to a problem that may exist outside of the norm. Rather than offer a solution to a known problem, a challenger seller may alert a prospect to a problem they didn’t even know they had.
When is it effective?
If your product or service is “cutting edge” or has unique selling features, the Challenger Sales Approach may be one that your team wants to consider.
4. Solution Selling
What is it?
Like the SPIN method, Solution Selling is an inquiry-based sales approach. However, it is much more in-depth. Rather than ask guided questions to lead prospects toward a pre-determined solution, this approach seeks to understand the specific problems affecting a client. It then offers a customized solution that solves the client’s problem.
When is it effective?
Because it requires customized solutions, this sales approach is only effective when those customizations are available. It also requires a high level of responsiveness from clients, so is better done in cases where that responsiveness can be ensured.
5. The Sandler Selling System
What is it?
This method emphasizes salespeople acting as consultants to their clients. It requires relationship building and the establishment of mutual trust between sellers and clients.
When is it effective?
Because it requires that building of trust, this method can be time consuming. Therefore, it tends to be most effective if your a company is selling a large-scale product or a product with a high markup percentage.
6. SNAP Selling
What is it?
Yet another acronym-based approach, SNAP stands for 1. keep it Simple 2. be iNvaluable 3. Always align and 4. raise Priorities. This pared-down sales approach requires sellers to communicate a product’s value simply and in a way that shows prospects that a certain product or service will help them achieve their objectives.
When is it effective?
SNAP selling is most effective when your clients are busy and your sales team needs to communicate and close quickly and efficiently.
7. Gap Selling Methodology
What is it?
Like SPIN, Solution Selling, and SNAP selling, the Gap Selling Methodology is a problem-and-solution based sales approach. However, gap selling is unique in its focus on identifying a prospect’s current state and desired future state. Only after identifying those states does a seller using this method present their product or service as the solution to help prospective client bridge that gap.
When is it effective?
Like Solution Selling and The Sandler System, this method requires a good deal of back-and-forth between seller and prospect. Therefore, it is most effective when both your sellers and prospects have time and space to engage in the dialogues necessary to make it work.
Whichever sales approach (or approaches) you choose, having a common language with which to discuss sales will unify your selling team and provide actionable steps to help them become better sellers. And that’s just good business, not matter who you are.