Pitching ROI in sales is dead. According to Gong data, presenting ROI and low close rates go hand in hand. Two things happen when most salespeople sell ROI: - they do it so naively that it backfires - it's a Hail Mary attempt to save a deal When a senior exec hear's a salesperson say "the ROI of our product is..." they write-off that salesperson. They think you’re making too big of a leap between what your product does and the expected financial return you’re waving in front of them. The best salespeople create bullet-proof business cases instead. (Read: ROI is only one element of this!) Here's how they do it, according to one of the top business case experts in the world: 1. State the Situation Define the current state. What are they trying to accomplish? What's standing in their way? Make it relevant to the exec's priorities. Make it urgent with conflicting obstacles standing in the way of their goal. 2. Define the Problem Statement This is what most sellers get wrong: They think buyers buy because of ROI. Nope. They buy to solve problems first. And the financial ramifications of those problems are far more compelling than the ROI of your product. In other words, the 'cost of inaction': - what is the problem costing them? - what the opportunity costs? - what are the indirect costs? - what are the direct costs? Capture the problem as well (or better) than your customer can. 3. Create a Bridge Read: This is not about your product. Read (again): This is not about ROI. The Bridge explains the root cause of the problem. Which then allows you to explain what the customer NEEDS to solve the problem. 4. Define Three Scenarios. This is where you start to hint at ROI. Show three possible scenarios. - no action - best case - base case Executives think in ranges and possibilities. Yet most sellers give a definitive number: "You'll get exactly 22% ROI on our product, just like our other customers!" That's a sure-fire way to lose your credibility. Build three possible scenarios instead. 5. Define the Required Resources. Explain what the customer will need to do to make this projection successful. - dedicating headcount - dedicating time - spend - etc. Most salespeople shy away from this. They want to make it seem (unrealistically) easy to deploy their product. Execs know better. Call out what you need for this to be a success, and you'll earn instant credibility. Plus, you reduce their fear of shelf-ware. Because they know what it takes to avoid that now. That's all for now. If you want to see a real-life example of this (plus steal the bullet proof business case template), grab it here: https://lnkd.in/dycxuMnG P.S. Tag a salesperson in the comments that would find the template useful.
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