What is an ROI Tool and How Will it Support Your Sales Efforts?
A return on investment (ROI) tool is a customizable financial model that’s designed to calculate the unique multi-year benefits and costs of your technology in your customer’s environment. It’s a critical part of your sales enablement toolkit that makes it easier for your sales reps to demonstrate the ROI and TCO of your software, technology, or cloud-based solutions over a period of time.
Your technology is complex. It requires a significant investment and your customers expect you to help them build a business case that supports their recommended purchase decision. The simple ROI calculators you find online weren’t designed for the sales and marketing of complex solutions. Your sales organization deserves easy-to-use, world-class ROI sales tools, that deliver the professional, transparent output they need to win.
What is TFP’s Process for ROI Tool Development?
Our ROI tool developers have built hundreds of spreadsheet-based and online tools for technology companies that serve a wide array of industries. We’ve found that the following process results in comprehensive, but user-friendly, models that encourage adoption:
During this phase, we work together to identify the benefits, benchmark data, and pricing models to include in your tool. With most clients, we kick off this process with a value inventory workshop to ensure that we showcase the benefits your customers find most valuable and where you outperform the competition.
Using what we learned in the discovery phase, we prepare a design plan. This includes the data we will collect, the benefits and costs we’ll highlight, as well as the customized look, feel, and presentation format that aligns with your brand identity. We’ll also clarify which financial metrics you’d like to include in the analysis such as NPV and payback period.
Upon your approval, we establish an agreed-upon timeline and complete the build. This is an iterative process, with checkpoints along the way, so the entire team is aware of our progress.
When the ROI tool is complete, we launch our training and support program. Some clients ask us to train an internal trainer, while others prefer we stay engaged and bring new hires up to speed. We also provide ongoing support for the tool itself. This includes periodic updates to address feedback from the field, incorporating customer success metrics to support benefit “claims,” tool efficacy improvements, and adjustments to adhere to product or value messaging changes.
What Format is the Tool Delivered In?
We’ve used and experimented with a variety of formats and have found the common spreadsheet to be most effective for our clients. Why?
- Transparency – both TFP clients and their customers can see and confirm the math
- Flexibility – A spreadsheet tool can be easily modified to meet your evolving needs
- Speed – Spreadsheet-based tools typically take less time to build and keep current
- Customization – Spreadsheet programs allow us to accommodate requests to build custom ROI tools that match your corporate look and language
While many clients request an Excel-based model, we can also deliver the tool using an alternative spreadsheet platform, like Google Sheets. And, if a client ultimately decides that online is better for their sales environment, TFP can convert the spreadsheet tool to that format.
What Results Can Your Sales Team Expect when Using an ROI Selling Tool?
Helping your customers quantify the value of your solutions in their environment creates a more powerful, collaborative sales cycle that supports the win-win. Clients report better, long-term relationships with their customers and the ability to close more, bigger, and faster deals.
Although large, strategic customer engagements may still require the support of an expert ROI Analyst, a custom-designed ROI tool will support many deals and your efforts to scale.
Ready to build a comprehensive ROI tool for your team? Contact us today to learn more.
“In the last 3 years I’ve used the BIM 360 ROI tool on every opportunity and have driven millions in sales. It is an integral part of my sales process and a required gate to pricing. The output report continues to sell for you long after you have completed the ROI.”
David Blanchette, BIM 360 Product Specialist, Autodesk.