using roi-focused selling to help close more deals, faster presented by - - - the deciding factor...

Using ROI-focused Selling Using ROI-focused Selling to Help Close More Deals, to Help Close More Deals,

FasterFaster

Using ROI-focused Selling Using ROI-focused Selling to Help Close More Deals, to Help Close More Deals,

FasterFaster

Presented by - - -

The Deciding Factor

Jack KeenPresident

986 South Shore DriveBasking Ridge, NJ 07920 USA

USA Phone: 908-658-4444 USA Fax: 908-658-5510Email: [email protected]

Web Site: www.decidingfactor.com

mailto:[email protected]

Copyright 2001, The Deciding Factor, All Rights Reserved The Deciding FactorBasking Ridge, New Jersey 07920 www.decidingfactor.comUSA Phone: 908-658-4444

The Deciding Factor

• Introduction: who we are• Why ROI-focused selling methods, now?• Elements of a true ROI-focused approach• Example of ROI-focused selling in action• Summary and Conclusions• Discussion

Using ROI-focused Selling to Help Close More Deals, Faster

Agenda


The Deciding Factor

Introduction – Who We AreIntroduction – Who We Are• Our background in ROI-focused selling:

• 30 years in IT industry sales, management and consulting• 11 years full-time involvement in ROI applications, including over

200 ROI projects in 15 countries, worldwide• Author of over 40 articles on ROI methods• Mentions in major business media

• The Deciding Factor (TDF) offers:• Over 6,000 people trained worldwide in TDF’s methods• VALUE-on-Demand™ line of uniquely customizable ROI model

software for discovering and communicating true IT Value.• Value Data Repository of over 400 pre-defined profiles for

computing intangible-to-tangible conversion formulas and related justification factors for common business issues.

• Firms served include: Oracle, PeopleSoft, and Deloitte & Touche Consulting, SAP.


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The Deciding Factor

hy ROI-focused Selling Methods, Now?

WW


The Deciding Factor

Why Mgt. Doesn’t Want to Say “YES”Why Mgt. Doesn’t Want to Say “YES”

Management is Scared “IT is a High Risk, Hidden Cost Process”*

31% of Projects Never Finish** 58% Have Less Functionality Than Promised** Over 50% Cost More Than 180% of Original Estimate**

** Standish Group International Survey, Large Users

* Wilcocks and Lester, UNICOM Conference, Uxbridge, UK


The Deciding Factor

Why Management Said NOWhy Management Said NO (When They Should Have Said YES)(When They Should Have Said YES)

Management Found That - - - Key Costs Missed Savings Overlooked Benefits Disputed Explanations Confusing Key BUSINESS Benefits Overlooked


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The Deciding Factor

lements of a True ROI-focused Approach

EE


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The Deciding Factor

Focus Our Sales/Marketing Conversations On True BUSINESS VALUE

(Not Systems and Data Issues)

Focus of Conversations That Win

Focus of Conversations That Lose

Business Results

(CEOs, BOD)

Objectives/Tactics (VPs, Directors)

Systems/Data

(Managers)


The Deciding Factor

Communicate Our Value to ALL Stakeholders

Dir.-Dir.-LogisticsLogistics

Mgr. Mgr. CustomerCustomer SupportSupport

VP-VP-Marketing Marketing

CEO, BoardCEO, Board

CIO

Improved Market Share

Improved Delivery

Increase Revenue, Profits

On Budget, On Time Project

Increase Customer Satisfaction

CIOCIO


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The Deciding Factor

Show the Cause and Effect Linkage Show the Cause and Effect Linkage of Your Value from Bottom to Top of Your Value from Bottom to Top

ENABLERS(functionality)

BUSINESSVALUE

Level 1 (Top Execs.)

Level 2 (VPs)

Level 3 (Directors)

Level 4 (Managers)

OPNS. HR F&A IS

Reduce Emp. Costs Close Books

Faster

Better Schedule

Emp.

Reduce F&A Labor Costs

Faster Data Entry, Reduce Error Correction

$ 1.1 M$ 1.1 M

More Strategically

Flexible Organization


The Deciding Factor

Establish an ROI Value Repository to Establish an ROI Value Repository to Accumulate and Communicate Accumulate and Communicate

Key ROI-Selling MessagesKey ROI-Selling MessagesProcedures• Step Descriptions• Process Tips• Examples

Management Issues• Decision Criteria• Business Visions and Goals• Operations Issues

ROI Payoff Formulas• Tangible Payoff Formulas• Benefits Driving Forces• Payoff Examples • Reasons Guidelines

• Interview Suggestions• Examples• Research Sources• Definitions

ROI Value RepositoryROI Value Repository


The Deciding Factor

Use Value Images the Audience UnderstandsUse Value Images the Audience Understands

ProgramCRM ProgramRoll-Out CostsRoll-Out Costs

Intangible Benefits••

••

••

Tangible Benefits••

••

••

•• Other Cost Reduction

Tangible Benefits

Reduced Support Costs

Increased Sales

Other Cost Reduction

Total Annual Realized Benefits = $xx.x M

People CostsPeople Costs

Technology CostsTechnology Costs

Annual Realized Cost = $xx.x M

IRR = 52% Based on Cash Flow

NPV= $31 Million(2 Year Payback Period)

Improve Production

Intangible Benefits

Improved customer loyalty

Improved market penetration

Reduced service costs

Improved Production


The Deciding Factor

Make the Benefits Tracking Method Real


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The Deciding Factor

xample of ROI-Focused Selling in Action

EE


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The Deciding Factor

Featuring Excerpts from TDF’s Featuring Excerpts from TDF’s VALUE-on-Demand™ ROI Model GeneratorVALUE-on-Demand™ ROI Model Generator


The Deciding FactorScenario #1:Scenario #1:Ten Minute ROITen Minute ROI

• SITUATION• ABC Corp. CEO, KATE, is very

unhappy with their market penetration, wants better results, now.

• ABC Corp. CFO, FRED, believes ABC’s main problem is under-investing in training of their key personnel.

• ACME Consulting Group has set up a presentation to explain how their solution can help Fred and Kate.


The Deciding Factor

Check VALUEBOARD to assure Payoff link to exec. concerns

Scenario #1:Scenario #1:

Ten Minute ROITen Minute ROI


The Deciding Factor

E,g, QUICK-Calc

Use QUICK-Calc wizard for easy data entry




The Deciding Factor

Review “General Information” portion of FlashCard Profile

Scenario #2:Scenario #2:Instant MetricsInstant Metrics


The Deciding FactorScenario #2:Scenario #2:Instant MetricsInstant Metrics

Review “Calculation” portion of FlashCard Profile


The Deciding FactorScenario #2:Scenario #2:Instant MetricsInstant Metrics

Review “Evidence & Support” portion of FlashCard Profile


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The Deciding Factor

Calculations are Summarized Calculations are Summarized in Executive Reportsin Executive Reports


The Deciding Factor

Financial Results Key Tangible/Intangible Payoffs

Request Executive Report package




The Deciding FactorScenario #1:Scenario #1:Ten Minute ROITen Minute ROI

OUTCOME:

CFO Fred takes his “personal” Ten Minute ROI example to the CEO, who is very enthusiastic about the training. Requests Acme to present their solution to the Executive Committee next Friday.

Feeling great, Fred heads off to a much deserved

week-end in the wine country.


The Deciding Factor

90% less PERSON-TIME to find ROI info, do analysis 95% less ELASPED TIME to complete ROI reports 90% less OVERALL ROI DEVELOPMENT COST 10 times more COMPELLING communications More favorable buy decisions, faster

Payoffs from Using ROI-focused Selling Payoffs from Using ROI-focused Selling Methods and ToolsMethods and Tools


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The Deciding Factor

Construct Market-Specific and Client-Specific ROI Models with TDF’s Construct Market-Specific and Client-Specific ROI Models with TDF’s Master Repository of over 400 PayoffCards™. Each PayoffCard Master Repository of over 400 PayoffCards™. Each PayoffCard

succinctly profiles exactly how to quantify & justify a single benefit area. succinctly profiles exactly how to quantify & justify a single benefit area.


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The Deciding Factor

ummary and Conclusions

SS


The Deciding Factor

Summary

• ROI selling is no longer optional

• Effective ROI selling involves - - -• Communicating with believable value

messages• Tailoring ROI messages to each client• Quantifying your own value vividly

• An ROI Value Repository leverages your firm’s value knowledge

• VALUE-on-Demand)™ strengthens and simplifies ROI-focused selling


The Deciding Factor

For More Information on ROI-focused Selling Techniques

• Visit our Web Site www.decidingfactor.com for more ideas and suggestions.

• Request our white paper:

“20 Ways to Find Tangible Savings that Others Miss”

• Review 40 Short Articles on ROI-focused techniques at www.datamation.com (search using keywords: “Jack AND Keen”).

• Call us at TDF:

Ron Barbaree (609-443-0477)

Jack Keen (908-658-4444)


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The Deciding Factor

ROI-focused Selling: Make Your Superior Value

Visible and Irresistible


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The Deciding Factor

iscussionDD


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The Deciding Factor

using roi-focused selling to help close more deals, faster presented by - - - the deciding factor...

Documents

key roi

roi projects

roi value repository

roi applications

roi methodsmentions

true roifocused approachethe

true business value

value data repository