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Transcript of 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
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
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 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.
Copyright 2001, The Deciding Factor, All Rights Reserved The Deciding FactorBasking Ridge, New Jersey 07920 www.decidingfactor.comUSA Phone: 908-658-4444
4
The Deciding Factor
hy ROI-focused Selling Methods, Now?
WW
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
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
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
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
Copyright 2001, The Deciding Factor, All Rights Reserved The Deciding FactorBasking Ridge, New Jersey 07920 www.decidingfactor.comUSA Phone: 908-658-4444
7
The Deciding Factor
lements of a True ROI-focused Approach
EE
Copyright 2001, The Deciding Factor, All Rights Reserved The Deciding FactorBasking Ridge, New Jersey 07920 www.decidingfactor.comUSA Phone: 908-658-4444
8
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)
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
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
Copyright 2001, The Deciding Factor, All Rights Reserved The Deciding FactorBasking Ridge, New Jersey 07920 www.decidingfactor.comUSA Phone: 908-658-4444
10
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
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
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
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
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
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
Make the Benefits Tracking Method Real
Copyright 2001, The Deciding Factor, All Rights Reserved The Deciding FactorBasking Ridge, New Jersey 07920 www.decidingfactor.comUSA Phone: 908-658-4444
14
The Deciding Factor
xample of ROI-Focused Selling in Action
EE
Copyright 2001, The Deciding Factor, All Rights Reserved The Deciding FactorBasking Ridge, New Jersey 07920 www.decidingfactor.comUSA Phone: 908-658-4444
15
The Deciding Factor
Featuring Excerpts from TDF’s Featuring Excerpts from TDF’s VALUE-on-Demand™ ROI Model GeneratorVALUE-on-Demand™ ROI Model Generator
Copyright 2001, The Deciding Factor, All Rights Reserved The Deciding FactorBasking Ridge, New Jersey 07920 www.decidingfactor.comUSA Phone: 908-658-4444
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.
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
Check VALUEBOARD to assure Payoff link to exec. concerns
Scenario #1:Scenario #1:
Ten Minute ROITen Minute ROI
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
E,g, QUICK-Calc
Use QUICK-Calc wizard for easy data entry
Scenario #1:Scenario #1:
Ten Minute ROITen Minute ROI
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
Review “General Information” portion of FlashCard Profile
Scenario #2:Scenario #2:Instant MetricsInstant Metrics
Copyright 2001, The Deciding Factor, All Rights Reserved The Deciding FactorBasking Ridge, New Jersey 07920 www.decidingfactor.comUSA Phone: 908-658-4444
The Deciding FactorScenario #2:Scenario #2:Instant MetricsInstant Metrics
Review “Calculation” portion of FlashCard Profile
Copyright 2001, The Deciding Factor, All Rights Reserved The Deciding FactorBasking Ridge, New Jersey 07920 www.decidingfactor.comUSA Phone: 908-658-4444
The Deciding FactorScenario #2:Scenario #2:Instant MetricsInstant Metrics
Review “Evidence & Support” portion of FlashCard Profile
Copyright 2001, The Deciding Factor, All Rights Reserved The Deciding FactorBasking Ridge, New Jersey 07920 www.decidingfactor.comUSA Phone: 908-658-4444
22
The Deciding Factor
Calculations are Summarized Calculations are Summarized in Executive Reportsin Executive Reports
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
Financial Results Key Tangible/Intangible Payoffs
Request Executive Report package
Scenario #1:Scenario #1:
Ten Minute ROITen Minute ROI
Copyright 2001, The Deciding Factor, All Rights Reserved The Deciding FactorBasking Ridge, New Jersey 07920 www.decidingfactor.comUSA Phone: 908-658-4444
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.
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
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
Copyright 2001, The Deciding Factor, All Rights Reserved The Deciding FactorBasking Ridge, New Jersey 07920 www.decidingfactor.comUSA Phone: 908-658-4444
26
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.
Copyright 2001, The Deciding Factor, All Rights Reserved The Deciding FactorBasking Ridge, New Jersey 07920 www.decidingfactor.comUSA Phone: 908-658-4444
27
The Deciding Factor
ummary and Conclusions
SS
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
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
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
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)
Copyright 2001, The Deciding Factor, All Rights Reserved The Deciding FactorBasking Ridge, New Jersey 07920 www.decidingfactor.comUSA Phone: 908-658-4444
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The Deciding Factor
ROI-focused Selling: Make Your Superior Value
Visible and Irresistible
Copyright 2001, The Deciding Factor, All Rights Reserved The Deciding FactorBasking Ridge, New Jersey 07920 www.decidingfactor.comUSA Phone: 908-658-4444
31
The Deciding Factor
iscussionDD
Copyright 2001, The Deciding Factor, All Rights Reserved The Deciding FactorBasking Ridge, New Jersey 07920 www.decidingfactor.comUSA Phone: 908-658-4444
32
The Deciding Factor