Demonstrating ROI is Critical
Demonstrating ROI is really that important?
Yes, it really is critical.
If your business, your sales team and their sales pitch can’t demonstrate ROI, then you’re leaving business on the table, and most certainly you’re leaving chunks of cash there too.
Without demonstrating ROI, you can’t demonstrate value, explore risk or maximise margins
And, if you can’t do these three things, then any attempt at a close is likely, at best, a shot in the dark.
(If you’re looking for insights into how you can build a strong relationship between value, risk and price then pop over here, and if you’re looking for insights into creating value hit the link here)
What Happens When ROI is Not Explored?
Yes, you’ll lose business
Yes, you’ll lose margin
But that’s just the tip of the iceberg, because you’ll also see:
- A longer than necessary sales cycle
- Competitor growth
- High sales acquisition costs
- Increase in performance management
- Over staffed, therefore costly, sales units
- A messy, inaccurate and out of control sales pipeline
- Pie in the sky sales forecasts
Nothing fun about that list is there?
Here’s How to Demonstrate ROI
You and the buyer go in deep.
Stop talking about benefits, features, case studies, research, testimonials etc, those things are the bare minimum to be sat at the table, the minimum cost to be in the game…demonstrating ROI is where the magic starts to happen.
Demonstrate ROI in the simplest way brings clarity to your sales pitch, gives the prospect the opportunity to view your product/service in terms of real financial and cost context, and also means that the close is a very natural event, rather than a twisted fumble when the sales person sort of asks and the buyer goes into avoidance mode.
The prospect has to demonstrate, clearly, logically and with the full cooperation the financials and costs involved in making the purchase and the financials involved in NOT buying the service…now, to get to that stage takes skill, tenacity, trust, research, industry knowledge…in a nut shell, hard work.
Most crucially, the figures and the cost assessments have to come from the buyer, else they mean nothing and your sales pitch is built on sand…conduct the Sales ROI with the agreement of the buyer, and you’re home and dry before you ask for the order, because that shows buyer commitment.
Seems too easy, once you know what you’re doing, the stages, how to frame the tough questions, how to deal with the wary buyer…of course it does…it’s so simple and so basic that most sales people can’t, or don’t, do it!
Look, it takes some highly consultative selling, some excellent questions and questioning techniques plus a real insight into the problems that your product/service solves and the cost of the problem in the context of your buyer’s business.
You also need to understand that when I reference ‘cost’ above, this cost is not just the financial cost. There are all kinds of costs to take into consideration.
BUT, the good news is that you really only have to learn to demonstrate ROI once. After that it’s a skill that will repay you many times over. In fact, if you’re anything like me, it’s one of my first go-to’s when I’m in any client sales environment and I want to improve the performance of their sales team.
You can get a great insight into how to demonstrate ROI on any of these courses
Closing is Easy Once You’ve Demonstrated a Robust ROI
Many sales people think closing is the hardest part of the sales process. That’s why most sales people are scared to ask for the order.
But, the truth is, if you can effectively and efficiently demonstrate ROI, then the close looks after itself.
It really is that simple because you create a ‘NO-BRAINER’ situation for the buyer. You prove to the buyer that there is no way he can legitimately say no.
It’s the fastest, easiest, simplest, most effective way to increase sales close rates.
Don’t miss out.
Learn the basics and you’ll never struggle to close quickly and efficiently.
This is one of the key training points we cover on all of our sales training courses. If you’d like to discuss our bespoke sales and business development training solutions call Carol on 0779 002 1885 or email firstname.lastname@example.org
Plus: you can subscribe to our weekly (non-spam) Sales and Business Development insights newsletter. Great for sales team coaching sessions, sales team training and practical sales improvement. Get you email subscription here – The Advanced Business Achiever
Don’t get caught napping. Demonstrating ROI is the easiest way to immediately boosting sales performance, close rates as well as protecting margin.
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