engineers

SPIN Selling for Engineers: How to teach Engineers to Sell!

“Wow, that was so cool, it really works!” – University of Texas Engineering Undergraduate

This was the general sentiment this week when I demonstrated the SPIN Selling technique to a group of undergraduates (mostly engineering-types) who are studying entrepreneurship at The University of Texas in the 1 Semester Startup Class (now called Longhorn Startup).  I volunteered to demonstrate the approach on their very first sales call (yes they are really that far along, and I’m so proud of them!  They have overcome the first and second hurdle of entrepreneurship: 1. Selecting a Target Market.  2. Getting over their Fear.).

So what is SPIN Selling?  And why is it a great technique for Engineers?  Read on My Friends!

First, SPIN Selling is a technique originally developed by Neil Rackham.. in his book SPIN Selling.

If you don’t like reading, this site has a nice summary of the book on 1 page: http://wolfram.org/writing/howto/sell/spin_selling.html
However, I’ll also summarize SPIN Selling in my own words below with one major tweak: from the perspective of an Engineer trying to make his/her first sale…
  1. SPIN Selling is great for engineers because it is an easy to understand acronym: S=Situation Questions, P=Problem Questions, I=Implication Questions, N=Need-Payoff Questions
  2. One of the best approaches to sales naturally emerges by “following the process” which, following processes is easy for engineers to do.
    1. This process is one of ‘connecting to the client’, ‘understanding their needs’, and ‘fitting or not fitting your product to satisfy their true needs’….   if you can connect the dots for the prospect: the sale is just a natural thing!
      1. And they’ll want to buy from YOU specifically, not necessarily because your product is superior (a concept Engineers need to not focus on), but because you understand them best, and have built a rapport with them through “the process”.
  3. The Process:
    1. Ask a few “Situation Questions” to get them thinking about their business, not yours: Initially on the call or in the meeting, simply ask how his/her business or life is going and uncover the specifics of their business as it might relate to your product. 
      1. Examples:  How is your business going?  How do you measure success?  What kinds of files do you use?  Who are your clients?  etc.
    2. Ask a few “Problem Questions” until you uncover a problem you might be able to solve: Basically try to uncover what problems they have (not if, we all have problems)..  Focusing on Throughput or Cost (throughput questions are ones of ability to deliver product/service, or inability to get new clients/customers)… cost is cost and headache (mental cost).  Obviously, focus on those areas which your product/service might solve…
      1. Examples: Do you feel you have plenty of clients?  Do you have any major cost problems?  Are you able to fulfill all your orders on time?  What is preventing you from being more successful today?  What gives you the biggest headaches today?
    3. Ask enough “Implication Questions” such that they agree that the problem is serious: Try to get them to see the light that the problem has real consequences.  To understand, for example, that those extra costs are cutting in to margins, which slows growth.  Or that the lack of enough customers means you are wasting resources from under-utilization.
      1. Examples: Do you agree that the lack of customers means you are under-utilizing your fixed resources?  Do you agree that the extra costs you are incurring is hitting your bottom line, and that extra cash you could have had would be useful to help you grow?  Do you agree that your headaches might be making you distracted on other issues?
    4. Ask enough “Need-Payoff Questions” such that they agree a solution has real value.  Need-Payoff sort-of restates the Implication question in such a way that a solution has real value.  Once they agree to real value… then, and ONLY THEN, can you pitch your product/service…. and it will be in their terms…  
      1. Examples: Do you agree that getting rid of that headache would let you be more productive at other more important things?   Do you agree that your increased productivity is worth real value?  In hours per day?  In Dollars per day?  Do you agree that being able to get more customers has real value?  In Dollars per Customer?  Do you agree that reducing costs impacts the bottom line directly?  In real profit dollars?
    5. Now, and only now that they agree there is real value in a potenial solution, are you permitted to pitch your idea… AND ONLY PITCH IT IF YOU CAN GIVE THE PAYOFF (or a part of it) THEY AGREED TO IN STEP 4.  If not, continue with Steps 2-4, until you can or until they hang up!
      1. The pitch should be short, just 3 slides (more on this next time): Benefits, Tech, Price.
      2. Don’t talk to the slides, talk to how YOUR PRODUCT might help solve THEIR PROBLEM… And point back to those NEED-PAYOFF questions you asked.
    6. Finally, Ask a few “Qualifying Questions”, and then “ASK FOR THE SALE”: You need to “flip the conversation” to be more about potentially fitting them to your business….   Now, they need to SELL YOU!
      1. You truly want it to seem like buying your product/service means belonging to an exclusive club.. and only some people are PERMITTED TO BUY!
      2. You questions now are “Qualifying Questions”… here is some good ones:
        1. We want to work with ‘thought leaders’ and ‘early adopters’, how forward-thinking about new stuff is your company?
        2. It is important that we work with companies of just the right size, how big is your business?
        3. We want partners who will become our reference customers, if things we work together to solve your problems, would you be willing to be a reference customer?
        4. Alright… it seems like we might be a good fit… it also seems that OUR PRODUCT/SERVICE will really help SOLVE YOUR PROBLEM and has a REAL DOLLAR IMPACT TO YOUR BUSINESS… 
          1. ASK FOR THE ORDER!!!!
            1. How many units can we sell you today to see how well this works?  or  
            2. What size initial order can you place today to test our ability to deliver?  or
            3. Who in your organization needs to sign off on this deal?
    7. Level Up!
      1. Regardless of the answers to step 6… be sure you try to “level up”.
      2. Often-times in a big sale, it takes many approvals and other folks to help decide.
      3. Leave EACH MEETING with a date/time for the next meeting and try to “level-up” the meeting….  TRY TO ATTEND ANY APPROVAL MEETINGS IN PERSON.
      4. Bring up all you have learned about their problem and the NEED-PAYOFF in REAL DOLLARS! (I hope you took notes).
And that’s it my friends!
Go out and sell!  But remember, only sell IF you can make a real dollar impact… if not, trust me, you don’t want them as a customer…. they won’t be happy, and neither will you.

Engineers hate “Pre-launch” activity.

Never tell an engineer that you are doing “pre-launch” marketing.  You will get anger, pleading, and hatred in ways you cannot imagine.  Why is this?  Why do engineers hate “pre-release” marketing activities?  And why do marketers love it?

Engineers hate it for an obvious reason: “what if that feature doesn’t work or live up to the hype?”  Fear of under-delivering is a healthy fear for your engineers, but it is also irrational.  If the product under-delivers, you’ve got bigger problems, usually, than the fact that you made bigger promises early.  My advice: deliver! Also commonly, engineers can’t understand the need for pre-launch buzz and hype. 
Marketers want pre-launch buzz and hype.  Why?  Three simple (and one sad) reason.
1. Sad reason: because many don’t know how to add much value in “pre-launch” phase.  It’s sad because there is much that can be done: competitive analysis, pricing studies, etc.  Those are not the sexy parts of marketing however, so they get “not done”, and pre-launch becomes the exciting focus.
2. Simple Reason: Economics.  Increase demand!  If you can get an early start on “creating unfulfilled demand” than when the product does launch, there will be a rush to buy and be proud you got one!
3. Simple Reason: Measure Demand.  If you do the buzz marketing, and get no buzz… you may have an issue (or need to tweak your marketing/positioning).
4. Simple Reason: Press.  Getting press involved early means getting 2 stories instead of just 1.  Without a pre-launch story, all you get (often) is the “launch” story.
Now get out there and “pre-launch” something!

Engineers should NOT start a business.

I’ll say it again, Engineers should NOT start a business… unless they are prepared to run a business. So many people I meet are hungry to “have no boss” and “work on what they want”, that they forget that to start a business is to run a business. If you are not willing to “work on stuff that needs doing”, then starting a business is probably a very bad idea.

Consider the ideal case. You are an engineer. You love doing engineering. You start a business that is just consulting your engineering skills.

  1. Do you think you will always be able to pick and choose your contracts? -Wrong. You work on what the client wants… and if jobs are scare, you take work where you can get it.
  2. Do you really think you have no boss?  -Wrong. The client is the boss.
  3. No accounting? -Wrong. You now track hours, expenses, invoices, etc.
  4. No sales? -Wrong. You have to sell yourself for every bid.
  5. No marketing? -Wrong. Every client is a Word-of-mouth marketer for you.
So… by “starting even the simplest business”, you’ve just made a bunch of work that you probably don’t like doing.  You’ve just created a bunch of bosses where you used to have only 1.  And now you are working harder than ever.  So why do it?
1 word: Profit.
The reason you work harder, you do the extra yicky work, etc. is because you can charge WAY MORE than you were before.  As a variable resource, people will pay more for your services. You just have to keep the pipeline of work filled and you will rake in the extra 25-50% due a contractor/consultant.
If you are starting a business for more “freedom”, you might get some… but Profit is a far better reason.

Marketing is WAY harder than Engineering

I’ve written on this topic before, but I just thought it would be worth a mention again.  I do think Marketing is harder/more challenging than Engineering, and I’m starting to think I understand why…

  1. Marketers have to figure out “what” to build… Engineers figure out how to build it.
  2. Marketers have to choose what to say, and when to say it… Engineers get to stay quiet in public.
  3. Marketers have to figure out why something isn’t selling well… Engineers get to work on the next thing.
  4. Marketers stress over business success and deadlines… Engineers fret over deadlines (sometimes).
  5. Marketers micro-optimize the un-measurable… Engineers optimize the measurable.
  6. Marketers have to deal with shifts in culture, business, and fashion… Engineers work with laws of physics.
Having been (and loved being) an Engineer, I can also make 1 more statement that I think perhaps most interesting of all….
Engineers get to see, daily, their progress and fruits of labor… they are appreciated for it.
Marketers often can’t see the effects of their work at all… and many question a Marketers value.
So, pat a Marketing guy on the back next time you see one… believe me, they are likely stressing more than you are!

Video: Engineers Make Better Business People, because they MEASURE!

I have a strong core belief that (if they wanted to) Engineers (and other mathematically trained professionals) would make better business people than “business graduates” or MBAs.  An Engineer-MBA is the best combination, because they learn the MBA lingo, but not the bad habits.

Watch the video to see WHY I think Engineers make better business people, and what you can do about it.

Engineers take jobs they think are cool.


It is true. I’ve hired good engineers and lost good engineers simply because one job was ‘cooler’ than a different one. Engineers think a cool job is one where there is a big challenge that the engineer thinks he can make a big impact by solving. Pay is not nearly the first consideration (of course within reason).

If you break this down into practice, it can yield to some excellent results in hiring the best engineers in the market. Here’s the short answer:
1. Make sure that you clearly state the ‘major problem’ that is needed to be solved in your engineering department (Engineers like problems).
2. Make sure that during the interview, if this is a hot candidate, you mention how the person who solves this problem will be a hero and make a big impact.
3. To keep your engineers, keep giving them problems and letting them solve them! (not as easy as it sounds!).

In practice, I’ve been able to hire 5 or 6 engineers with superior qualifications and credentials (heck even the author of some Linux Books), and all at normal pay rates (maybe even a bit low). Then, to keep them around, I keep letting them solve the tough problems. (even though I want to stick my own engineering head into them sometimes, I try very hard not to!).

I only lost 1 engineer (out of maybe 25 that I’ve hired), to a “cooler job”. My only explanation to myself on that one was: I didn’t give him hard enough problems… in fact, in retrospect, I realize I should have given him “bigger” harder problems… but hey, can’t keep them all.