Any successful B2B sales conversation has to communicate the value of a product or service to the prospective customer. But what makes a good value proposition? One thing it doesn’t consist of is jargon or phrases used by everyone else (like “state of the art”, “best of breed”, “next generation”) that don’t get any real meaning across to the prospect.
Your value proposition has to do with the problem you help your B2B customer solve. Not only must you articulate this, you must make clear what impact solving that problem will have. It’s better still if you can quantify the impact in monetary terms for your B2B prospect.
ROI is a Critical Factor in B2B Decisions
Making a B2B buying decision may involve input from several stakeholders, and in most cases your prospect will need to be able to make a financial case justifying that decision. The disconnect is that prospects may know they need to make the financial case for a buying decision, but may not have tools on hand to actually determine return on investment (ROI) so they can do so. The buying process is more straightforward when a stakeholder can say something like, “This product should help us save 21% on our utility costs.”
How ROI Selling Works
ROI selling works across industries because it helps spell out the financial justification for your product or service clearly. It means being able to provide customers not only with historic ROI information from case studies, but also being able to project the ROI that they can expect based on their needs, existing situation, and the cost for them to implement your product or service. ROI selling may also include information about other important financial considerations like savings benefit, revenue increases, total cost of ownership (TCO), payback period and more.
Why ROI Selling Is So Powerful
The main reason ROI selling is so powerful is that it goes right to an extremely important part of the customer relationship: “We will save you $X per year,” or “The payback period should be around nine months.” Your B2B prospects generally already know your product features and how they can expect to benefit from them from having researched your product. Buyers travel much of the buying decision journey before coming into contact with a vendor. With ROI selling you don’t necessarily have to rehash features and benefits, but can do a custom ROI calculation on the spot.
A Powerful Tool for ROI Selling
Implementing a custom ROI calculator (or cost saving or TCO or payback period calculator) on your website can advance the B2B
decision process efficiently. Having such a calculator on your mobile device along with your other marketing materials lets you offer something more than your competitors when you go for in person sales calls. You can discuss specifics of the customer’s situation and even play around with the numbers in real time to make perfectly clear how your product or service will be of financial benefit.
B2B decisions are rarely made by a single person, but by multiple stakeholders. Often the person who discovers a product or service they believe could advance business operations needs to make a powerful financial case for why they should spend money on it. When your B2B business offers a custom ROI calculator specific to your solution, you can help sales prospects make that financial case quickly, based on real- time data and information about their business operation.
Cogent ROI builds custom calculator applications that empower you or your prospective customer to quickly project the financial benefits of your product or service. In addition to the calculator app that presents the numbers conveniently, we also have the technology built into each Calculator to present prospects with personalized reports assembled specifically for them based on their business persona. It’s a terrific way to engage better with sales prospects, and generate valuable leads online. The final result is shorter sales cycles and more informed prospects ready to make purchase decisions.