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

Using ROI-focused Selling to Help Close More Deals, Faster. Presented by - - - The Deciding Factor Jack Keen President 986 South Shore Drive Basking Ridge, NJ 07920 USA USA Phone: 908-658-4444 USA Fax: 908-658-5510 Email: jkeen@decidingfactor.com Web Site: www.decidingfactor.com.

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

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  1. Using ROI-focused Selling to Help Close More Deals, Faster Presented by - - - The Deciding Factor Jack Keen President 986 South Shore Drive Basking Ridge, NJ 07920 USA USA Phone: 908-658-4444 USA Fax: 908-658-5510 Email: jkeen@decidingfactor.com Web Site: www.decidingfactor.com

  2. Agenda Using ROI-focused Selling to Help Close More Deals, Faster • 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

  3. Introduction – 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.

  4. W hy ROI-focused Selling Methods, Now?

  5. 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** * Wilcocks and Lester, UNICOM Conference, Uxbridge, UK ** Standish Group International Survey, Large Users

  6. Why Management Said NO (When They Should Have Said YES) • Management Found That - - - • Key Costs Missed • Savings Overlooked • Benefits Disputed • Explanations Confusing • Key BUSINESS Benefits Overlooked

  7. E lements of a True ROI-focused Approach

  8. Focus Our Sales/Marketing Conversations On True BUSINESS VALUE(Not Systems and Data Issues) Focus of Conversations That Win Business Results (CEOs, BOD) Objectives/Tactics (VPs, Directors) Focus of Conversations That Lose Systems/Data (Managers)

  9. Communicate Our Value to ALL Stakeholders Increase Revenue, Profits CEO, Board Increase Customer Satisfaction Improved Market Share Mgr. Customer Support VP- Marketing On Budget, On Time Project Dir.- Logistics Improved Delivery CIO CIO

  10. Show the Cause and Effect Linkage of Your Value from Bottom to Top More Strategically Flexible Organization BUSINESSVALUE Level 1 (Top Execs.) $ 1.1 M Reduce Emp. Costs Level 2 (VPs) Close Books Faster Level 3 (Directors) Better Schedule Emp. Reduce F&A Labor Costs Level 4 (Managers) IS F&A HR OPNS. ENABLERS (functionality) Faster Data Entry, Reduce Error Correction

  11. Establish an ROI Value Repository to Accumulate and Communicate Key ROI-Selling Messages • ROI Payoff Formulas • Tangible Payoff Formulas • Benefits Driving Forces • Payoff Examples • Reasons • Procedures • Step Descriptions • Process Tips • Examples • Management Issues • Decision Criteria • Business Visions and Goals • Operations Issues • Guidelines • Interview Suggestions • Examples • Research Sources • Definitions ROI Value Repository

  12. Tangible Benefits Technology Costs Technology Costs Increased Sales Reduced Support Costs People Costs People Costs CRM Program Program Other Cost Reduction Roll-Out Costs Roll-Out Costs Intangible Benefits Improved customer loyalty Improved market penetration Reduced service costs Use Value Images the Audience Understands Total Annual Realized Benefits = $xx.x M Annual Realized Cost = $xx.x M Intangible Benefits • • IRR = 52% Based on Cash Flow • Improved Production NPV= $31 Million • • (2 Year Payback Period) Tangible Benefits • • • • • Improve Production • • • Other Cost Reduction

  13. Make the Benefits Tracking Method Real

  14. E xample of ROI-Focused Selling in Action

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

  16. Scenario #1:Ten 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.

  17. Scenario #1:Ten Minute ROI Check VALUEBOARD to assure Payoff link to exec. concerns

  18. Scenario #1:Ten Minute ROI Use QUICK-Calc wizard for easy data entry E,g, QUICK-Calc

  19. Scenario #2:Instant Metrics Review “General Information” portion of FlashCard Profile

  20. Scenario #2:Instant Metrics Review “Calculation” portion of FlashCard Profile

  21. Scenario #2:Instant Metrics Review “Evidence & Support” portion of FlashCard Profile

  22. Calculations are Summarized in Executive Reports

  23. Scenario #1:Ten Minute ROI Request Executive Report package Financial Results Key Tangible/Intangible Payoffs

  24. Scenario #1:Ten 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.

  25. Payoffs from Using ROI-focused Selling Methods and Tools • 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

  26. Construct Market-Specific and Client-Specific ROI Models with TDF’s Master Repository of over 400 PayoffCards™. Each PayoffCard succinctly profiles exactly how to quantify & justify a single benefit area.

  27. S ummary and Conclusions

  28. 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

  29. 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)

  30. ROI-focused Selling: Make Your Superior Value Visible and Irresistible

  31. D iscussion

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