Prove the value of your solution when you show the benefits & ROI, Return On Investment.
To win new orders, you want to show how your solution has solved an identified problem for similar client organisations. Then quantify the benefits, ideally by illustrating the Return in Investment (ROI).
People buy in order to either a) feel better or b) solve a problem. For B2B sales, it’s usually the latter. The ‘problem’ usually relates to reducing costs and/ or increasing revenue and profits – or both.
In the Case Studies we develop, there are a number of ROI metrics that can be used.
Savings – both cost and time savings – are often the simplest measure. (The more personalised the service, the more quantified ‘time savings’ features as a compelling metric).
Other ROI metrics include internal rate of return (IRR), net present value (NPV), break-even analysis and total cost of ownership (TCO).
For each application story we generate this information from interview and analysis and use of background industry statistics and additional research.
The goal: to prove your solutions have an ROI. We demonstrate a) how your solution will contribute to producing savings or increasing revenue and b) that the results are measurable.
If you’re selling a service
If so, how do you calculate ROI?
ROI’s main application is in evaluating one-off investments for capital projects. But if you are selling a service – such as marketing – it’s technically an expense, rather than an investment. So it’s a P&L item and not a balance sheet item.
Net cash flows may be what really matters for evaluating services. Performance measures such as net profit are calculated by subtracting relevant costs from revenue.
To gauge the effectiveness of your service for a client, we might also factor in the strategic goal of the total investment the company makes and the impact on intermediate processes.