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Research Supporting ROI Based Selling

Written by: Glenn Clowney

Article Overview: Your company’s success could very well be dependent on your sales professionals taking the next step – from simply talking features and benefits, to making a financially viable business proposition to clients. Investing in the sales function with ROI tools and financial insight allows today’s sales professional to properly create a framework for understanding and quantifying the potential benefits your product or service can deliver. Look at the following undeniable proof.

Research Supporting ROI Based Selling

Reduce Discounts:

Early adopters of ROI selling methodology have reduced discounting by 20-30% and realized significant up-sell and cross-sell opportunities by selling on value rather than price.
International Data Corp (IDC)

Optimal pricing is all about delivering maximum value to each customer and capturing an equal value for your company in the form of fair, value based prices.
PricePoint Partners

By making prospects fully aware of all the costs and benefits they become less price sensitive enabling vendors to discount less and achieve list prices more frequently.
CIOview


Reduce “No Decisions”:

81% of buyers expect vendors to quantify their value proposition.
Information Week

Between 60-80% of all losses are due to ‘No Decision.’
Customer Centric Systems

Results from 707 proposals produced 30% wins, 15% losses and 55% no decision/pending. Of the no decisions only 2% became wins (98% became losses).
Thomas & Company Inc.

Executives that believe that shareholder value is a critical component for making corporate decisions, 75% of them said they require ROI analysis before making an investment choice.
Doremus Communications


Reduce Sales Cycles:

“On average the sales cycle is reduced 30-40% with ROI-based selling.”
IDC

A valid ROI sales effort reduces the sales cycle by 30-40%
Gartner Group

Early adopters of ROI selling methodology have increased selling effectiveness by as much as 60%.
IDC

The average sales cycle for a million dollar Lotus Notes deal is 18 months. For companies that first completed an ROI analysis, 65% reported their purchase process to be 6 months or less.
IDC

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Business magazines - Fast Company is pretty good if you're into technology although it can be very on the edge. Entrepreneur has become one giant advertisement and I cancelled my subscription. Selling Power also has some useful content if you're looking at improving your sales skills / presentations.


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