ROI-Selling Assessment Financial Justification

Prepared For :
President
bscheer@gofuturesight.com
2066865800
Bruce Scheer
ROI-Selling
Assessment & Financial Justification
TM
FutureSight Inc. | 206-686-5800 | 1-888-517-5338 | www.gofuturesight.com

INTRODUCTION
ROI-Selling can increase demand and move prospects through their
buying process faster and thus accelerate your sales pipeline. With
the right tools, your organization can uncover more leads and close
more deals. This assessment identifies what tools fit your situation
and quantifies how they can impact your bottom line.
Introduction ............................................................................................................... 2
Key Financial Metrics ................................................................................................ 3
Best Case – Worst Case Scenarios .......................................................................... 4
Benefits & Investment Explanation ............................................................................ 5
Benefits Overview ...................................................................................................... 6
Strategic Benefits ....................................................................................................... 8
Glossary of Financial Terms ...................................................................................... 9
Inputs ......................................................................................................................... 10
Benefit Claims ............................................................................................................ 10
About Futuresight ....................................................................................................... 10
CONTENTS
2
206-686-5800 | 1-888-517-5338 | www.gofuturesight.com

KEY FINANCIAL METRICS
This analysis covers a 1 year period. The estimated financial results are:
The chart shows that the cumulative net benefit is $302,520
CUMULATIVE BENEFIT
Cost to Delay per
Month
Payback PeriodReturn on
Investment (ROI)
Net Present
Value (NPV)
1,776,532 776 2 29,609
3

BEST CASE – WORST CASE SCENARIOS
The best case and worst case scenarios provide a range of possible outcomes. Although actual
results may fall outside this range, these scenarios help better define the probable results.
Metric Best Expected Worst
Net Present
Value (NPV)
$375,177 $282,128 $189,079
Return on
Investment (ROI)
417% 313% 210%
Payback Period
(months)
2 2 3
Cost to Delay per
Month
$31,265 $23,511 $15,757
BEST/WORST CASE
4

BENEFITS & INVESTMENT EXPLANATION
Sales Increases
Additional
Qualified
Leads
Increase in your qualified leads attributable to prospects using assessment surveys,
value calculators and TCO calculators to assess the cost of their problem and estimate
the value they could receive from deploying your product/solution
Higher
Sales Close
Ratio
Increase in your sales close ratio attributable to your sales representatives using sales
tools such as value calculators, TCO calculators and ROI calculators to focus the sales
dialog with buyers on the value they could receive from your product/solution and from
prospects using similar tools and assessments to self qualify themselves before they
enter your sales pipeline
Higher
Average
Selling
Price
Increase in your average selling price attributable to your sales representatives using
sales tools such as value calculators, TCO calculators and ROI calculators to estimate
your product/solution's value to a prospect and selling based upon that value and not on
features/functions and from prospects using similar tools and assessments to understand
the value or your solution before they enter your sales pipeline
Cost Savings
Selling Cost
Savings
Decrease in selling cost (e.g., travel, campaign material and telecommunications
expenses) due to a shorter sales cycle attributable to your sales representatives using
sales tools such as valuecalculators, TCO calculators and ROI calculators to present
buyers with a quantified business case early in the sales process and from prospects
using similar tools and assessments to self qualify themselves before they enter your
sales pipeline
Sales/Mark
eting Labor
Savings
Decrease in time spent preparing a business case attributable to using value calculators,
TCO calculators and ROI calculators to produce the business case
Investment
Tool
deployment
One time tool development cost; this cost will vary depending upon the combination of
assessment tools, value calculators, TCO calculators and ROI calculators that are
deployed.
Tool
subscription
Recurring annual tool subscription cost; this cost will vary depending upon the
combination of assessment tools, value calculators, TCO calculators and ROI calculators
that are deployed.
Demand
generation
campaign
One time and recurring costs to launch and manage a demand generation campaign;
costs will vary depending upon the nature of the campaign elements
Internal
time
One time and recurring cost of time spent to launch and manage a value-based sales
and marketing program
Other One time and recurring costs miscellaneous costs (e.g., sales rep training)
5

BENEFITS OVERVIEW
Sales Increases YEAR 1
Additional Qualified Leads $46,313
Higher Sales Close Ratio $182,813
Higher Average Selling Price $56,400
Total Sales Increases $285,525
Cost Savings YEAR 1
Selling Cost Savings $42,210
Sales/Marketing Labor
Savings
$60,785
Total Cost Savings $102,995
Investment YEAR 1
Tool deployment $30,000
Tool subscription $36,000
Demand generation campaign $0
Internal time $10,000
Other $10,000
Total Investment $86,000
Benefits YEAR 1
Total Gross Benefits $388,520
Cost of Capital 8%
Confidence Adjustment 100%
Total Benefits $388,520
Net Confidence-Adjusted Benefits YEAR 1
Net Confidence Adjusted
Benefits
$302,520
Total Net Confidence-Adjusted
Benefits
$302,520
6

ANNUAL BENEFIT
BENEFIT BREAKDOWN
7

STRATEGIC BENEFITS
Aside from the tangible benefits that can be quantified, clients can expect to receive several strategic benefits as well. These
intangible benefits can be just as important to a client but are more challenging to quantify. In fact, these strategic benefits are often
aligned to some of our client’s corporate goals and objectives. Our demand generation and sales enablement tools contribute to the
following strategic benefits:
1. Higher Customer Satisfaction
Sales team can more legitimately point out the value-enhancing benefits to customers and increase the
customer's confidence that they are receiving great value from your offer, and hence grow their satisfaction
and loyalty towards your company.
2. Increased Competitive Advantage
A value-based marketing and sales program can be a key differentiator in the sales process and create
barriers to entry for your competitors.
3. Better Sales Force Morale & Confidence
Sales representatives become excited about a new tool in the toolbox and that enthusiasm and confidence
propels them to open more doors with more senior economic buyers.
4. Enhanced Online Experience
Attract new Web site visitors, engage them with an interactive business value proposition and convert them to
a qualified lead once they understand the value of your offering.
5. Improved Employee Staff Utilization & Faster Time-to-Benefit
Our consultants are experienced and highly skilled in developing and implementing marketing and sales tools
and programs, which accelerates your results and frees up marketing and IT resources for other initiatives.
8

GLOSSARY OF FINANCIAL TERMS
Net Present Value (NPV)
The value in today's dollars of all cash benefits received at a future date given a discount
rate (cost of capital), less the present value of any expenses. CFOs want to see all of the
future net cash flows associated with the investment, discounted by an appropriate interest
rate, in order to determine the present value of future cash flows, and compare this with
other potential investments.
Return on Investment (ROI)
The net present value derived from an investment, divided by the present value of the
investment (i.e., associated startup and ongoing costs). ROI is a metric CFOs use in
evaluating decisions; enabling them to determine the true economic worth of the
investment.
Payback Period
The point in time (sometimes referred to as breakeven point) where a company recoups its
costs for a particular investment. It is a good measure of risk, letting the company know how
long it is going to take to recoup an investment outlay.
Cost to Delay per Month
The net present value divided by the number of months in the analysis. This shows the
opportunity cost (amount forfeited) of waiting to make an investment decision.
Cost of Capital
The rate of return that could be earned at the same risk level as the investment that has
been selected. It is used as the interest (discount) rate to determine the present value of
future cash flows. The default value used in this analysis is eight percent.
9

INPUTS
BENEFIT CLAIMS
INPUT YEAR 1
Sales revenue $7,500,000
Sales close ratio 20%
Gross margin 65%
Average selling price $40,000
Variable monthly selling cost per sales opportunity $100
Months in sales cycle 6
Sales opportunities requiring a business case 70%
Hours spent preparing one business case 4
Average fully loaded hourly sales/marketing compensation rate $65
Productivity capture 75%
BENEFIT CLAIM YEAR 1
Decrease in the length of the sales cycle 10.0%
Decrease in time spent preparing a business case 50.0%
Increase in average selling price 1.0%
Increase in qualified leads 1.0%
Increase in sales close ratio 5.0%
FutureSight infuses fresh, insightful thinking into your market message
and sales strategy that speeds the buying process and helps close
more deals. We help you establish a compelling positioning and
messaging strategy that connects with your customers and inspires
action, and then translate it into sales messaging, content marketing
and sales enablement tools that “hit it out of the park” in terms of
relevance and messaging.
ABOUT FUTURESIGHT
10

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