SlideShare a Scribd company logo
 
	
  
	
  
	
  
	
  
	
  
	
  
THOUGHT	
  LEADERSHIP	
  SERIES	
  
©2012	
  The	
  Naro	
  Group	
  
Uncovering the Value of
Financial Benefits
	
  
	
  
	
  
	
  
	
  
	
  
Improve	
  Performance.	
  
Drive	
  Revenue.	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
About	
  The	
  Naro	
  Group	
  
The	
  Naro	
  Group	
  specializes	
  in	
  
helping	
  technology	
  companies	
  
capitalize	
  on	
  their	
  investment	
  
in	
  sales	
  process	
  and	
  sales	
  
training.	
  Contact	
  Jim	
  Naro,	
  
President,	
  by	
  email	
  at:	
  
jnaro@TheNaroGroup.com.	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
By Jim Naro, President of The Naro Group (Originally published in Mass High Tech)
Selling complex or intangible technology requires that a sales
person can fully understand what kind of benefits his or her
offering can bring to a customer.
Financial benefits are important, of course, and there have been tools
developed to measure these, including the Profit Improvement Proposal (PIP)
by Mack Hanan, author of Consultative Selling. This was the precursor to the
return on investment (ROI) calculators and cost/benefit analysis spreadsheets
that are used today.
However, today a link is missing and that is the ability to apply benefits,
particularly financial ones, to specific selling situations. Marketing provides
initial support to sales organizations with pain/solution messaging. However,
the messaging often generically bundles benefits such as “reduces costs” with
other benefits. It then becomes a struggle for a sales person to apply that
messaging to a specific sales situation he or she may be involved in. A sales
person needs to clarify how costs are reduced, for example, and identify what
specific costs are being affected and show what other impacts may occur as a
result of implementing the solution.
For instance, consider this simple example. Say a company is manually
producing invoices and the sales person is positioning an enterprise resource
planning (ERP) system. The benefits are many – productivity, accuracy, and
improved cash flow, to name just a few. What if the sales person had a way to
use weighting for each of these and focus on the real impact or value of the
solution for that specific buyer? After all, not all benefits are equal from
customer to customer. One customer might value productivity while another
may value cash flow more. The ability to add weight to each of these benefits
also provides an opportunity for sales people to capitalize on the highest value
benefits and use them as key differentiators in competitive positioning.
Continued…
For	
  More	
  Sales	
  Insights	
  
Visit	
  the	
  Knowledge	
  Center	
  
at	
  www.TheNaroGroup.com	
  
for	
  more	
  sales	
  and	
  marketing	
  
transformation.	
  
	
  
 
	
  
2	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
Here’s how a system like this would work:
Consider the ERP solution above. Automating invoicing is a primary feature
that has an effect on key measures such as revenue, expense, profit, time, cash
flow and so on. Where there is an effect, there is a potential benefit. As
mentioned above, automating invoices can potentially improve accuracy,
productivity, and cash flow.
• Now, rank the benefits of automating invoices with a score of 1 to 5, with 1
being low and 5 being high. In the example above, improved accuracy may
have a high value (scoring a number 5) on revenue, while productivity scores
low (a number 2) for a particular customer. Another customer may rank both
cash flow and productivity as 5s.
• To see the weighted value, add up the scores. This weighting for each
feature will make it very clear which benefits are most meaningful to a
customer.
• Create an excel spreadsheet or similar document to track the value ratings
for each feature. The value columns are a way for sales people to have a quick
reference of what features to focus on in their conversations with buyers.
When the weighted scores are identified early on, they can help validate
opportunities in the pipeline and assess which deals are really worth moving
through the sales cycle. The scoring system can also help facilitate and enhance
any cost/benefit and ROI conversations as well. This exercise should be
considered dynamic, as the value of a particular feature and, therefore the
weighted score, may change over time.
This system will also help marketing and sales refine and create measurement
questions that can be asked during the discovery phase of a sales cycle and add
value to marketing messages overall. It also helps bring to light the most
competitive advantages of a product or solution.
Once the scoring system is fully developed, it can also be used by product
development teams to enhance potential functionality and prioritizing where
development dollars should be spent.
	
  Contact	
  Us	
  
Tel:	
  603.881.7712	
  	
  
www.TheNaroGroup.com	
  

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Uncovering the Value of Financial Benefits

  • 1.               THOUGHT  LEADERSHIP  SERIES   ©2012  The  Naro  Group   Uncovering the Value of Financial Benefits             Improve  Performance.   Drive  Revenue.                           About  The  Naro  Group   The  Naro  Group  specializes  in   helping  technology  companies   capitalize  on  their  investment   in  sales  process  and  sales   training.  Contact  Jim  Naro,   President,  by  email  at:   jnaro@TheNaroGroup.com.                                                 By Jim Naro, President of The Naro Group (Originally published in Mass High Tech) Selling complex or intangible technology requires that a sales person can fully understand what kind of benefits his or her offering can bring to a customer. Financial benefits are important, of course, and there have been tools developed to measure these, including the Profit Improvement Proposal (PIP) by Mack Hanan, author of Consultative Selling. This was the precursor to the return on investment (ROI) calculators and cost/benefit analysis spreadsheets that are used today. However, today a link is missing and that is the ability to apply benefits, particularly financial ones, to specific selling situations. Marketing provides initial support to sales organizations with pain/solution messaging. However, the messaging often generically bundles benefits such as “reduces costs” with other benefits. It then becomes a struggle for a sales person to apply that messaging to a specific sales situation he or she may be involved in. A sales person needs to clarify how costs are reduced, for example, and identify what specific costs are being affected and show what other impacts may occur as a result of implementing the solution. For instance, consider this simple example. Say a company is manually producing invoices and the sales person is positioning an enterprise resource planning (ERP) system. The benefits are many – productivity, accuracy, and improved cash flow, to name just a few. What if the sales person had a way to use weighting for each of these and focus on the real impact or value of the solution for that specific buyer? After all, not all benefits are equal from customer to customer. One customer might value productivity while another may value cash flow more. The ability to add weight to each of these benefits also provides an opportunity for sales people to capitalize on the highest value benefits and use them as key differentiators in competitive positioning. Continued… For  More  Sales  Insights   Visit  the  Knowledge  Center   at  www.TheNaroGroup.com   for  more  sales  and  marketing   transformation.    
  • 2.     2                                                                                       Here’s how a system like this would work: Consider the ERP solution above. Automating invoicing is a primary feature that has an effect on key measures such as revenue, expense, profit, time, cash flow and so on. Where there is an effect, there is a potential benefit. As mentioned above, automating invoices can potentially improve accuracy, productivity, and cash flow. • Now, rank the benefits of automating invoices with a score of 1 to 5, with 1 being low and 5 being high. In the example above, improved accuracy may have a high value (scoring a number 5) on revenue, while productivity scores low (a number 2) for a particular customer. Another customer may rank both cash flow and productivity as 5s. • To see the weighted value, add up the scores. This weighting for each feature will make it very clear which benefits are most meaningful to a customer. • Create an excel spreadsheet or similar document to track the value ratings for each feature. The value columns are a way for sales people to have a quick reference of what features to focus on in their conversations with buyers. When the weighted scores are identified early on, they can help validate opportunities in the pipeline and assess which deals are really worth moving through the sales cycle. The scoring system can also help facilitate and enhance any cost/benefit and ROI conversations as well. This exercise should be considered dynamic, as the value of a particular feature and, therefore the weighted score, may change over time. This system will also help marketing and sales refine and create measurement questions that can be asked during the discovery phase of a sales cycle and add value to marketing messages overall. It also helps bring to light the most competitive advantages of a product or solution. Once the scoring system is fully developed, it can also be used by product development teams to enhance potential functionality and prioritizing where development dollars should be spent.  Contact  Us   Tel:  603.881.7712     www.TheNaroGroup.com