So here is a real live situation where a deal was lost because the broker did NOT use SPIN selling techniques to get the client’s head on what they want. You see, the client wants to buy that building or house, or to lower his payments or to consolidate debt. He wants a solution to a problem. He does NOT want a low rate. But when they call in they ask for rate. They focus on rate. And if you stay focused on rate, everyone loses. It is up to you to ask the questions up front. SPIN is an acronym for Situation, Problem, Needs Payoff, Implication and we will be going over it in depth on the conference call THIS Tuesday, March 30th at 1:00 EST.
So here is the situation. Broker got a call from a client who had an adjustable and wanted a fixed rate. The broker quoted him the lowest 30 year fixed he could. He assumed the problem was moving from adjustable to fixed. He got all the info and followed up relentlessly. The client did not return the calls. After about two weeks, the client angrily e-mailed the broker and told him to stop calling him because he had gone with someone else and was already in process. He went with the same rate quoted by this broker but on a 15 year fixed. The broker tried to tell the client that he could get a lower rate then that for him but the client was about to close. The broker asked me “what did I do wrong?”
What he did wrong was he gave the client what the client wanted. No questions asked. The other broker who got the deal most likely used SPIN selling and found out what the client really needed. You see, turns out, this client was 50. He was planning on retiring by 65. The broker who won the deal found that out by asking questions. He found out the clients SITUATION. He analyzed the real PROBLEM, the client wanted to get his house in order by the time he was 65. He was concerned about rates going up, sure. But there was more to his situation than that. The first broker did not go deep, just gave him a fixed rate. But the real problem was retirement. The smart broker than shared his solution or needs payoff- a 15 year fixed that would have his home debt free by 65. He then went one step further and asked the client, “How would that feel to be debt free by 65?” He let the client articulate the IMPLICATION of the solution. If the client can visualize your solution the deal is sold. You’ve seen Realtors use this technique by getting the client to visualize how that room would look with their furniture. If the client sees themselves in the house, they are already sold. The same technique can be powerful in the mortgage sales process. Practice it, and your conversions will soar!
Brian
p.s. Don’t forget to join us for an awesome conference call on the askbrianpeart.com site TOMORROW, TUESDAY, MARCH 30th AT 1:00 EST. It is FREE to all askbrianpeart.com members. If you are not a member-join today by clicking on the link below. For $34.95 a month, you can not beat the price. Special guest coach Nick Van Nice will be sharing ALL the ins and outs of Spin Selling. He is typically $500 an hour. But it is FREE to members. Definitely one you want to listen in on!
