SPANCO: 6 key phases for successful sales negotiations

From very small businesses to SMEs and even large groups, the sales process is a key element in a company's commercial strategy. To optimise this process, it is essential to break it down into different 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? Find out 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. This method, created by Xerox, 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 stages:

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

The principle is simple: by default, each prospect is a "suspect", so their status evolves progressively through the various stages until they reach the purchase order stage, when they become a customer. The SPANCO method enables you to track the progress of your customers throughout their sales cycle and optimise your sales processes.

The 6 stages of the SPANCO method

1 - Suspect

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

Without knowing 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 at 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 been able to draw up a contact list, you need to segment all the prospects you've identified to keep only those 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 initial contact with your prospect using different tools:

• telephone calls
• sending a personalised prospecting email,
• social selling,
• third-party introductions, etc.

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

3 - Analysis

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

• better qualify them
• identify any obstacles to dealing with objections,
• propose a relevant and appropriate solution,
• optimise sales management,
• improve the 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 person you are talking to is saying as well as possible.
• SPIN Selling, a highly effective sales technique for discovering your prospect's expectations and needs.
• 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, their disincentives and their reasons for buying, it will be easier for you to make a suitable offer and deal with their 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 do this, you can use the CAB method, which will make your negotiation easier 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 encourage 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 will 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 set out the details that form part of your commercial contract and that you need to agree:

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

6 - Purchase order

The last phase of your sales process, and the final stage in the SPANCO method, is designed 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 monitor your customer's satisfaction and the progress of the project using business performance indicators (KPIs) tailored to the offer and the customer in question.

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The benefits of the SPANCO method

An optimised sales force
Thanks to the various stages in the SPANCO method, sales staff don't need to skip any steps and risk upsetting the prospect. On the contrary, they can be more effective 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. It also speeds up the closing process .

A more reliable sales forecast
The SPANCO method, with its clear, distinct stages, enables you torefine your sales projections. This much finer, more explicit vision allows you to commit to sales forecasts with greater peace of mind, while visualising your prospects over several months.