SPANCO: 6 key phases for successful sales negotiations

From very small businesses to SMEs and large corporations, the sales process is a key element in a company's commercial strategy. To optimize this process, it is essential to break it down into its various stages: SPANCO was born.

The SPANCO method is one of many sales and commercial negotiation techniques. It gives you a clear and precise view of the progress of each of your sales cycles.

What are the different stages of the SPANCO method ? What are its advantages and benefits for your company, and how can you use it to increase your sales? Answers in this article.

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SPANCO: definition

The SPANCO method is a sales technique that involves identifying all the sales stages a prospect goes through before making a purchase. Created by Xerox, this method enables you to manage your sales effectively and convert as many prospects as possible into customers.

This sales technique is applicable in all B2B sectors and can be adapted to the needs of each company and sales team. SPANCO is an acronym made up of 6 key steps:

• Prospect,
• Prospect,
• Analysis,
• Negotiation,
• Conclusion,
• Purchase order

The principle is simple: by default, each prospect is a "suspect", and their status gradually evolves through the various stages until they reach the purchase order stage, when they become customers. As a result, the SPANCO method enables you to track the evolution of your customers throughout their entire sales cycle, and thus optimize your sales processes.

The 6 steps of the SPANCO method

1 - Suspect

The first stage of the SPANCO method is the approach phase. At this stage, every lead is considered a potential "suspect", i.e. you suspect that a particular consumer or company might be interested in your offer, but you' re not sure.

Since you don't know whether your product or service is suitable for them, you can rely on certain indicators that demonstrate your target's interest, without necessarily guaranteeing a purchase decision. This will enable you to create a list of potential customers extracted in different ways:

• e-mails obtained by subscribing to your newsletter;
• contacts made during a professional event;
• A share or "like" on one of your Linkedin publications or a comment on your online site;
• A database purchased or created by your company, etc.

You can also create a buyer persona in order to identify the sensitive points that drive them to buy, as well as their potential motivations.

2 - Prospect

Now that you've established a contact list, you need to segment all the prospects you've identified , to keep only those who are likely to buy your product or service.

To do this, you need to establish an effective initial contact tailored to each prospect.

👉 Example: You can contact the "suspect" who shared your latest Linkedin publication directly via the same social network.

But you can also establish the first contact with your prospect through different tools:

• telephone calls,
• sending personalized prospecting e-mails,
• social selling,
• third-party contact, etc.

Not sure which prospecting method is best suited to your target? Our article dedicated to BtoB sales prospecting will give you some pertinent advice!

3 - Analysis

The Analysis stage represents the first meeting with the prospect. This is where the exchange begins. You need to gather as much information as possible about your prospect. The aim here is to analyze the prospect in order to :

• better qualify them,
• identify their obstacles, so as to better deal with their objections,
• propose a relevant and appropriate solution,
• optimize sales management,
• better prepare your sales pitch, etc.

Three tools are particularly effective and perfectly suited to this "Analysis" stage:

• Active listening, which enables you to use a number of techniques, such as rephrasing or asking open-ended questions, to understand and interpret what the other person has to say.
• SPIN Selling, a highly effective sales technique for discovering your prospect's needs and expectations.
• The SONCAS method, which enables you to determine the needs, character traits and buying motivations of your customers and prospects.

4 - Negotiation

Now that you know your potential customer's needs, disincentives and buying motivations, it will be easier for you to propose a suitable offer and deal with any objections.

The solution you propose to your prospect should really be obvious to him. But how do you achieve this? With a clear, precise, concise and, above all, appropriate sales pitch.

To help you do this, you can use the CAB method, which will facilitate your negotiation by dividing your sales pitch into three key elements: Features, Advantages and Customer Benefit.

5 - Conclusion

Now it's time to close your sale. You need to get your prospect to make a final decision. To do this, and create urgency, you can use phrases such as:

• "Would you like to place an order for **/**, you'll receive a welcome discount".
• "So, what have you decided?"
• "Shall we launch the project? The timing for delivery will be perfect by then."

Now you need to present the details that are part of your business contract and on which you need to agree:

• terms and conditions,
• the obligations of both parties,
• the price,
• detailed presentation of the offer,
• deadline, etc.

6 - Purchase order

The last phase of your sales process, and the ultimate step in the SPANCO method, is to monitor the management and progress of the order. This will enable you to build customer loyalty and reinforce the trust they have placed in you by making the purchase.

You can track your customer's satisfaction and the progress of the project via business performance indicators (KPIs), tailored to the offer and the customer in question.

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The benefits of the SPANCO method

An optimized sales force
Thanks to the various stages of the SPANCO method, sales reps don't need to skip steps and risk upsetting the prospect. On the contrary, they can be more efficient by monitoring the prospect's status in real time.

A clearer sales pipeline
Thanks to the SPANCO method, you can identify potential pipeline anomalies, enabling you to define corrective actions more easily and more quickly. This also speeds up the closing process .

A more reliable sales forecast
The SPANCO method, with its clear, distinct steps, enables you torefine your sales projections. This much finer, more explicit vision enables you to commit more confidently to sales forecasts, while visualizing your prospects over several months.