Maximizing ROI Performance as Fast as Your Technology Solutions Change
Detailed in Exclusive PreConference Certification at IT/MSP Expo
A Two-minute Read by Thomas B. Cross CEO – TECHtionary.com
ROI-return on investment is a complex process that is not the same for everyone nor every company. ROI is just one of many ways to measure the performance of an organization, team or even individuals. Golf games, bowling, tennis and other kinds of sports give us one kind of benchmark against us and others. In organizations especially sales personal and team performance measurement is critical. However, building an ROI model for performance is more than one customer sale or even group effort. Coupled with marketing messaging often focused on “discount pricing” it is less useful when trying to sell larger businesses and does not help with increasing ROI efforts.
As you are beginning to see is that the entire sales team, marketing, compensation, recurring revenues and other factors makes building a high-performance ROI-driven sales strategy more challenging than ever. Compounding this are reports of technology sales staff quitting in less than a month on the job and overall staff turnover exceeding 100% in less than six months (in separate reports one company reported 144% turnover and another 160%). Competitive inroad is also increasing at an exponential rate. This drives home even more than every company, team and manager(s) needs to have its own ROI and measurement performance efforts. My favorite form of ROI is reducing the sales cycle. Let’s explore for a moment if a company is generating, for example, $6 million a year this means that $500,000 in sales must solve each month.
This also means that every week $125,000 of solutions must be sold. If, however, I can shorten the sales cycle by even one day this means an additional $25,000 of revenue can be added or $100,000 for the month and another $1,200,000 for the year along with a significant increase in ROI. You can adjust this based on your own sales but you can see breaking down sales into days you can see what you need to do to achieve your goals. But how do you reduce the sales by one day or even more? This is rather complex because you can’t eliminate holidays, weekends, staff vacations, limited time of day sales calls and many other things. You can, however, engage with customers in different ways that can reduce the sales cycle.
Digital Business Transformation
Even if you can’t do all of them here are some innovative ways to reduce the sales cycle:
- Offer 7×24 live certified professional sales staff for conversations
- Offer 7×24 live demos
- Offer 7×24 live customer presentations and proposals
- Offer 7×24 live user training
- Offer 7×24 live customer service including onsite repair
You are asking WTH about the costs for doing these things! Actually, the only real cost is not doing it as you want to offer customer engagement in ways your competitors are not. You want to engage with customers on their own terms as they look for providers who work as hard as they do. When you look at what Uber, Airbnb, Amazon especially Amazon Prime and other industry disruptors have done, you can easily understand how these companies are valued by customers, investors and others. In other to help you understand what you need to do, I can put together two slides that will be explained in detailed in my class at ITEXPO / MSP Expo.
Summary – ROI is not easy and likely to get even harder with increasing global competition who can enter your market even an important city without opening an office or hiring local staff. They offer solutions and technology 7×24 beating you to customers faster-easier than you can.
Bottom-line is you cannot predict; you cannot react fast enough to any competitive inroad you can only proactive direct customer to your strategy. If you want to know more, this concept is presented exclusively in TMCnet Selling UP Market UP Margin Technology to SMB & Enterprise Certification class at ITEXPO / MSP Expo part of the #TECHSUPERSHOW. Register for this pre-conference now.