![]() To avoid such erroneous calculations, “bracket” the total cost by the total people whose jobs you are improving. It would be very hard to save $12M in expense for a company with so few employees, since employees typically represent 30% to 70% of total costs (depending on the industry). Some cost models erroneously calculate that $12M in expense can be saved for a company with 10 employees. In many cases, the total costs can be “bracketed” by understanding basic company information, such as total revenue, total employees in each function, and rough costs spent on different categories. Typically the cost can be relatively easily estimated by doing some basic math, using smart assumptions about the buyer or the company. However, a methodical process should be employed. The cost of doing nothing simply means “if I keep doing what I’m doing today, how much unnecessary cost, risk, or lost revenue, am I incurring?”įancy calculations aren’t always required to determine the cost of doing nothing. Step 2: Estimate how much it costs a customer not to have these benefits Suggested Read: To Succeed in Sales, Speak Your Prospect’s Language If the existing sales presentation does mention these benefits, then you’ll be able to proceed to Step 2 to start to add some numbers to these messages. Tying this to your value-based ROI presentation: if your existing sales presentation doesn’t already mention your primary benefits, this is the time and place to introduce these metrics. Make sure your internal team (product, marketing, sales, etc.) are alignedon the benefits you bring to a customer, since you will want to ensure your messaging is consistent across each of these functions. Your solution may have several of these categories, or others. To quantify the value of these savings can be challenging, but simply to mention how many errors or risks are avoided can be a compelling argument. – Risk mitigation – Depending on the business your customer is in, the cost of failure, mistakes, or errors can be very high. If your solution truly impacts the top line, you will have to back it up with substantial evidence, through customer research, testimonials, analyst reports, etc. ![]() – Revenue acceleration – Does your solution shorten sales cycles? Improve conversion rates? Increase average order size? Increase repeat purchases? All of these effects have a top-line impact, which most customers will get in line for…if they believe it. – Productivity gains – How much time do you save people on the activities that they perform? Depending on whom you are selling to, how much time you save, and how expensive your solution is, your customer will value this time either very highly, or not so highly, and will give you financial credit for these savings. For example, a billing automation vendor saves it customers at least 49 cents per invoice, since you don’t have to pay money on stamps. – Hard cost savings – How much money do you actually save your customer from having to pay to other third parties? This is a direct impact on bottom line. First, consider several categories of benefit: It’s key to be thoughtful here in a couple of ways. Step 1: Determine your 3 primary areas of benefit Follow these easy steps and you’ll soon have a presentation that sales reps can consistently use to present the quantitative value of your solution in an engaging, collaborative way. The few times I've run into issues, I've gotten prompt resolutions, and when I have development questions, my CSM consistently gets me back on track.Building a value-based ROI presentation doesn’t have to be hard. I can also update equations in Excel and upload them to Visualize, allowing me to make updates or fix errors quickly and easily.ģ. ![]() With Visualize, I can create really detailed, complex value models (think 36 distinct value calculations and 1400 variables complex) and still show all the math, so prospects can follow the logic and understand all of the benefit calculations. On our previous platform, we had to follow a very simple structure due to technical limitations, so we had to really "dumb down" our benefits to fit that solution. There's no other solution in the market that can handle really detailed value models. New account managers pick up the tool really quickly.Ģ. I've gotten much better uptake with Visualize, and the sellers can use it themselves to support early We used to use a competing solution to develop business cases and the account managers didn't use it because they thought it was hard to use and they didn't like the outputs.
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