Baselining is the process in which you document the underlying
assumptions, beliefs, and opportunities in your existing sales and
Money Shot by: Jessica Shannon
How do you
by: Material Boy's
DO YOU KNOW
EACH CHANNEL IS ?
CPSPHERE RECESSION ACTION PLAN ROI CALCULATOR
RETURN ON INVESTMENT (ROI) CALCULATOR
SALES & EXPENSES Company
A. 2008 Gross Revenue ($) $1,200,000
B. Current SG&A Expenses (%)
(Selling costs: salaries, commissions, advertising, other marketing expenses, etc)
C. Net Profit Margin / EBITDA (%) 8%
Revenue Sources (%) (Revenue you are generating from each sales F. Difference
Industry Average channel?) (F= D - E)
Field Sales Force (Salary + Commission) 29% 18% 11%
Field Sales Force (Commission only) 11% 31% -20%
Partners 39% 41% -2%
(Distributors, Wholesalers, Independent Reps etc.)
Retailers 2% 2%
Internet 12% 5% 7%
Telesales 5% 1% 4%
Direct Mail Catalogues 2% 1% 1%
Other 3% -3%
G. Money you're leaving on the table (%)
(As a result of insufficient investment in the most productive sales channels) 25%
P = Sum of all Fs, where F > 0
H. Sales Costs Inefficiencies (%)
(As a result of spending more than the industry average) 25%
Q = Sum of all Fs, where F is < 0
X1. Revenue Opportunities (A x G)
X2. Convert revenue into profit by multiplying revenue times net profit margin $24,000
(X1 x C)
Y. Efficiency Opportunities ($) (A x B x H ) $90,000
Z. YOUR TOTAL BENEFIT ($) (Z = X2 + Y) $114,000
I. Channel Building & Marketing Costs (7% - 10 % of AxB) $36,000
U. Consulting Fee ($30,000 + % of increase in sales TBD) $30,000
V. Costs (I + U) $66,000
P R O F I T (Z-V) $48,000
ROI (PROFIT / COSTS) 73%
Markets Channels Brand/Message
Customers • What attributes
•How do you •What kind of
•What sets your are shared by the
product, service • Who pays your connect your image do you
and company bills? products with present and with
apart from your customers? what message?
HOW DIFFERENT ARE
YOUR OFFERINGS &
WHAT VALUE DO
THEY CREATE FOR
THE CUSTOMER IS KING
You may have many customers – buyers, users, influencers– for a complex
You may have different customers for different products.
But your distributors/partners are not your
DESCRIBE YOUR KING
How do you segment markets and why do you
segment the way you do?
What are the market trends , e.g. market size,
product-market growth rates, etc.?
Are you planning to exit some markets?
If so, why?
IT DOESN’T MATTER HOW GOOD PRODUCTS ARE, AND HOW CLEVERLY
THEY ARE PRICED, PACKAGED AND PROMOTED – EVEN IF THEY ARE
SOLD FOR FREE. A COMPANY STILL WON’T SUCCEED UNLESS IT
FOCUSES ITS EFFORTS ON SELLING ITS PRODUCTS INTO THE RIGHT
MARKETS – MARKETS THAT ARE WILLING TO BUY.
CHANNELS / DISTRIBUTION CHANNELS
CHANNELS ARE THE
LIFEBLOOD OF A
CONNECT YOU WITH
What channels are you using?
Are your customers demanding any new channels?
SELLERS AND BUYERS Are your competitors using different channels?
CAN DO BUSINESS.
If so, what they are?
What if we sell it through ___ ? (fill in the blank)
HOW & WHAT PEOPLE SAY ABOUT YOU IS THE
BRAND / MESSAGING
RESULT OF WHAT YOU GIVE THEM TO SAY: THEIR
CUSTOMER EXPERIENCE. THE SECRET OF A GOOD
CUSTOMER EXPERIENCE IS SIMPLICITY,
REPEATABILITY, AND AUTHENTICITY
What is your customer relationship cycle?
What tools are you providing your customers to
spread your message?
Are you using different messages for different
What message seems to work and why?
ULTIMATE DRIVING MACHINE -- OR -- ZOOM ZOOM ZOOM?
START THE CONVERSATION & UNCOVER MANY VALID OPPORTUNITIES
THAT MAY HAVE BEEN PREVIOUSLY HIDDEN IN PLAIN SIGHT.
CPSPHERE IS AN INNOVATIVE MANAGEMENT CONSULTING FIRM, FOCUSED ON STRATEGIC SALES AND
MARKETING AND ITS HANDS-ON EXECUTION. RESULTING IN INCREASED SALES AND IMPROVED PROFITS.
WWW.CPSPHERE.COM | 310.645.0707 | GROWTH@CPSPHERE.COM
5777 W. CENTURY BLVD. SUITE 1250, LOS ANGELES, CA 90045