Business Value Selling
Benefits of ROI and TCO-based selling
Using Return on Investment and Total Cost of Ownership as a basis to sell is powerful. Whether you are selling your idea internally, or establishing a recommendation as a vendor or consultant, the results are difficult to ignore. Once you tie financial returns to technical decisions, the answers appear...opening the doors to additional financial rewards.
Reduced Sales Cycle
- Research by one of the largest IT vendors found that 90% of $1m deals close in 1 year or more, but with financial justification the figure is reduced to an average of 6 months.
- If you consider the time value of money (5%) for one $1m deal, reducing this from 12 months to six months will save you $25,000 alone.
Reduced Business Case Preparation time
- Another IT vendor discovered the fully expensed annual cost of a sales person is $300,000 and the total time taken to build a business case was 4.5 days.
- The same study reported savings in preparation time with CIOview of 4 days, a total saving of $8,000 for each business case produced.
Less Discounting Pressure
- By making the prospect fully aware of all the costs/benefits they become less price sensitive, enabling vendors to discount less and achieve list prices more frequently.
Avoidance of Deal Misconfigurations
- Research shows that 80% IT deals are incorrectly configured because the sales person forgets to add a software or hardware item.
- With the automatic configuration available in CIOview tools, that figure is reduced to 10%.
Sales & Business Partner Training Savings
- CIOview tools educate sales people in the real value of product. Traditional product training involves expensive off-site multi-day sessions.
- Keeping Sales people up-to-date with product & pricing changes is also an overhead that can be avoided by using CIOview tools.