How To Calculate The ROI of In-Decision To a Prospect
By now, every sales personnel can relate to this scenario: you have a lead that seems be extremely qualified – the lead has as a pain or a need, the authority to make a purchase, might even have a budget, but decides making a change to a new solution or using a new service is too risky. So guess what? Even though going by the books, you should have closed the sale; you end up losing the sale.
Calculating the ROI of in-decision or the opportunity cost of not solving a problem that a prospect has, can help reduce the risk and make you closer to closing a sale.
Quantitative Situation Analysis
The current situation analysis sets the tone for everything else during the sales cycle. Here the key is capture the prospect’s challenges, objectives in a way that can be quantified. Taking the time to ask very in-depth questions, listening and taking notes is critical to presenting an effective situation analysis. Examples of questions that can be asked during this stage include:
- What are your short-term and long-term goals?
- How much time do you spend doing things the way you are doing them now?
- How does time impact the rest of your productivity?
- If the problem is something that is affecting sales you can ask, how much more sales would you make if this problem didn’t exist?
- If you could create a solution for your problem how would that solution work?
Asking quantifiable questions will help you in presenting a quantitative and qualitative analysis to your client when presenting your solution.
Calculating The Opportunity Cost
Sometimes the ROI of a new solution can look rather far-fetched to a client. For instance, if you tell a client that they would increase sales by let’s say 10% in a year, just like one of your clients did, it might seem a bit out of reach. On the other hand, if you are able to compare their current situation to what life could look like if they implemented your solution, things start to look a little bit more attainable. It’s easier for client to fathom how much time they will be saving with your solution rather than an ROI that is not immediately attainable. Instead of presenting your solution by saying “we have saved many businesses as much as ‘x’ amount of money yearly, you could say we can save you 30 minutes each day using our solution.” This type of opportunity cost analysis presents an immediate ROI, one that can be understood easily by your prospect.
Offer Training Services for Onboarding
Change whether good or bad usually involves a period of adjustment, which sometimes comes with a period of low levels of productivity due to the natural learning curve. Clients looking to move to new solutions may decide not to make the move for fear of the time they might have to invest in getting acclimated to a new solution. Businesses that offer training, personalized support and customer service experience can make the decision to move to a new solution much easier for a prospect.
At the end of the day every solution has to be tailored to fit your client’s unique needs. Finding creative ways to present the unique proposition of your service can go a long way to eliminate the risk associated with a sale and move a potential customer to closer to a sale.