You probably aren’t in sales or marketing because you were a master of linear systems. Math can be intimidating for many people, so focusing on ROI can seem daunting.
Modern marketing is dominated by ROI. Professionals in sales and marketing are asked to calculate payback periods and current values. However, it is not a big deal for most professionals; slaving over spreadsheets may not be as much fun as playing golf or eating lunch at Upstairs 21. The sales and marketing world has changed. Permanently.
In the math phobia, it is easy to forget that selling ROI requires qualitative, human skills. These skills are more important than financial formulas, which are alien to many of us.
Credibility adds to
Credibility is more important than math when it comes to marketing and sales that leverage ROI. The prospect must still have some faith in the causal relationship between your offer and the results that you claim it produces.
It is not enough to know that your offer pays off; you need to be able to show it. This requires more than just a spreadsheet.
It requires three essential elements:
- Articulating a customer’s real need in a manner that benefits them more than you
- Establishing a causal link between your offer and the positive financial impact on your prospect
- Even if your solution doesn’t meet the needs of the opportunity, you can still help to solve it.
See, no math.
Spend the first few moments learning as much as you can about your current situation.
Document two things.
- What does your customer think about his current situation
- What are the goals of your customers?
Credibility is built when you describe the environment from the prospective client’s perspective. You should ask yourself who you are marketing or selling to.
In an effort to manage objections, many companies try to sell to themselves. They speak to their concerns about their product. Many bad pitches are caused by internal issues which arise from too much intimacy.
Prospects are not always interested in your competitive positioning or your features and advantages. According to research, buyers are usually alienated due to choice.
Needs must be recognized, documented, and then met. You have to resolve critical operational issues for your prospects. Your prospects need to be assured that they aren’t being scammed and are using the correct solution to their problem. They need a solution that will help them to be promoted within the company rather than getting them fired.
ROI-driven business case helps customers make sound decisions. These business cases reduce the fear and risk associated with spending precious corporate and individual resources. Fear is an emotion that must be dealt with using traditional skills.
It’s uncomfortable for everyone, both you and your prospects. People will feel more comfortable about risk when you use your people skills.
Build business cases using relationships, not spreadsheets
You still need to create a business plan, which requires math but also requires…
- You must be able to show that you have helped clients in similar situations.
- You must be able to demonstrate that you have a thorough understanding of your prospects’ business processes.
- You must be able to demonstrate that you have considered the implications of your proposal for business.
Try doing less work if you want to increase your sales. Avoid premature explanations (you know, “show up and vomit”). Postpone your PowerPoint. Postpone the PowerPoint. Keep the collateral in a container.
After you have documented that you know what the prospect wants to achieve, use these important tools. This can be done by getting the chance to agree that your documentation is accurate.
The key to building trust is to have your prospects accept your proposal and open up.
If you cannot get your prospect to agree with it, then the business case is of little value. All your fancy math is useless if the customer doesn’t agree with you on how much money they will save. You need to understand the business of your prospect truly.
You can now get the most accurate information about very sensitive issues, such as…
- What are the revenue drivers of your prospects?
- What are the cost centers?
- What is the prospect’s vision of success?
You can only build credibility by showing that you are sensitive to the business of your prospect. This will allow you to receive meaningful answers to such questions as:
- What would an X% increase in revenue mean for the bottom line of a company?
- What does $X mean in savings?
- What are the prospects doing?
- What are the financial losses if you do nothing?
These are indeed quantitative issues that require a basic understanding of finance. You can get assistance in building models to calculate the business impact easily and accurately. Once the work is completed, you’re done. The calculations can be used again and again.
The relationship is more important than math — only a seller with a legitimate and credible rapport will be able to get the answers that lead to plausible business models. Only by getting precise answers to sensitive financial questions can you build a reasonable business case.
The numbers that matter
It is impossible to create a convincing business case if you don’t use the numbers of your prospects. Many people approach a sales opportunity using and not the candidates. When the prospect’s numbers are not used, failure is guaranteed.
Chances are, even if you have sold or marketed products to hundreds of people, your prospects will see themselves differently. By embracing the uniqueness of your prospect’s business, you can demonstrate credibility and value more effectively.
It’s not that historic performance metrics don’t matter. They’re crucial to creating a credible range of variables and case structure. Tracking all customer performances is essential to demonstrate a historical, real ROI.
Use the client’s financial expectations to guide your sales process. Create a library of case studies to refine your ROI modeling process. Confirming value can help you attract new customers and increase your share of your wallet over time as your offerings mature.