ROI Mentality

In my organization there seems to be 2 competing mindsets regarding ROI presentations for clients. The first is hyper conservative, "these are the typical numbers we see, we divided it in half and still will see a 5x return". The other is aggressive, using every strong number in our database to show much stronger returns in the realm of 15-20x.

What is your mindset when creating an ROI for a prospect?

Attached poll
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👑 Sales Strategy
13
poweredbycaffeine
WR Lieutenant
7
☕️
Honestly, I find ROI calculators and conversations tank more deals at renewal than they help. Why? If you miss, you’re a liar and you’re fucked.

ROI cannot be realized or calculated in year one, and maybe not even till year 2 or 3. Instead, build the conversation around renewal pricing based on achievement of success during the initial contract year. That’s just my opinion.
CadenceCombat
Tycoon
3
Account Executive
This is a good point and I think 12 month payback is really rare, even for solutions that are contracted on 1 year terms.
braintank
Politicker
5
Enterprise Account Executive
No prospect ever believes an ROI presentation made by a sales rep. In my opinion they're a waste of time.
SoccerandSales
Big Shot
0
Account Executive
I disagree with this wholeheartedly. If you utilize numbers that the prospect shares with you and brainstorm together what looks outlandish vs accurate, it not only can be a rapport builder, but help to get larger deals done when presenting to a board
braintank
Politicker
2
Enterprise Account Executive
True, when done well and in collaboration with customer.
Often, too many AEs build them in a vaccum and look foolish
TheColdestColdCall
Executive
0
Enterprise Account Executive
This, I bring up conservative ROI type business cases to be build with input from the prospect team and they basically just ignore the idea altogether.
Kosta_Konfucius
Politicker
3
Sales Rep
Best way to build it out is with the prospect so if the numbers are 15-20x they believe it
CadenceCombat
Tycoon
3
Account Executive
Context is everything here and the approach is going to depend if you’re dealing with a skeptic vs an optimist…

But, I would try to present the potential upside but grounding it by saying something like “We’ve seen similar customers reach these numbers but my conservative estimate looking at our broader customer base would be XYZ” Or something to that effect.
SoccerandSales
Big Shot
3
Account Executive
I think the way you present is key
Diablo
Politicker
3
Sr. AE
It’s better to balance things if you want to see things running smoothly on a longer run. There is a difference between the perceived value and realized value. If you are between, you still have an opportunity in the future to help the client reach there with some additional support/effort/strategy.
HoddyBomb
Opinionated
3
Account Executive
Depends on customer base too. If
you want to turn and burn for a few years then aggressive but if you will be in this market long term find middle ground.
FinanceEngineer
Politicker
3
Sr Director, sales and partnerships
Gotta set expectations. You might go a little aggressive, but be able to back it up with real numbers if called out. I would stay more conservative and protect your ass and even add an upside
Sunbunny31
Politicker
2
Sr Sales Executive 🐰
If these are existing customers, the very best communications are honest ones. We discuss value and what the customer's KPIs were when we first started, and where they are on the path to meeting those KPIs. I find KPIs to be a better indicator than ROI, which always seems to be pretty rigid, and always focused on $, rather than solutions.
SoccerandSales
Big Shot
1
Account Executive
Always net new baby
Revenue_Rambo
Politicker
2
Director, Revenue Enablement
I just sat through an ROI presentation from a potential vendor. Long story short… we’re sold and want to buy. They still started with 15 min ROI presentation and it frustrated the shit out of me because what they presented was superficial.
SoccerandSales
Big Shot
1
Account Executive
Seems a pretty bad case of assuming what the customer needs instead of listening
CuriousFox
WR Officer
2
🦊
Transparency and honesty always. Your name is on the line.
CPTAmerica
Opinionated
1
President/CRO
Depends on who you're selling to sometimes. Seasoned executives in mid/enterprise have been around too long to buy into outlandish ROI projections.
SoccerandSales
Big Shot
0
Account Executive
Agreed, very easy to get away with it in the smb space
Pachacuti
Politicker
0
They call me Daddy, Sales Daddy
You can say it’s 2x or 200x, doesn’t matter. You need to show how you got those numbers and how the client can get them. That’s the most important thing.
Maximas
Tycoon
-1
Senior Sales Executive
Gotta be realistic about it, as if it didn't go as explained or expected, you might lose their biz 4 good!
CadenceCombat
Tycoon
5
Account Executive
Max, it’s great that you’re so active in the community but don’t you sell Sirius XM radio subscriptions?
Not trying to call you out but it feels like you just comment sometimes without really understanding what is being discussed and giving advice on things you have no experience with… Am I wrong here?
Maximas
Tycoon
1
Senior Sales Executive
No worries, unfortunately a bit.
Although I don't sell B2B, but I'm a very good reader to books at all other sales fields and already have tons of friends at so many variant sales roles sharing their experience with me same as I'm sharing mine with em!
CadenceCombat
Tycoon
5
Account Executive
I’m not saying you should stop commenting or sharing your opinions but can you keep it real, please?
It’s obvious when you’re talking about something you have no experience with.
Maximas
Tycoon
-1
Senior Sales Executive
Totally respect your opinion, but just abit don't agree with it.If I feel that I could help someone I wouldn't delay it even for a sec, and it's up to him/her if he would take it or not. Although I believe you're a very valuable player here, I may also still have some notes on your interactions but I just chose to keep em for myself as no one's perfect!
RandyLahey
Politicker
6
Account Executive
Sometimes less is more Max...There are tons of threads that I come across and just sit out, or directly address a comment if and when I have something relevant to say.
Maximas
Tycoon
1
Senior Sales Executive
My one and only,Tip Noted!
CadenceCombat
Tycoon
5
Account Executive
I’m not trying to pick a fight with you, man. But if you want to go there, don’t be shy. Share your “notes” about my interactions.
RandyLahey
Politicker
1
Account Executive
Please share them!
Maximas
Tycoon
-2
Senior Sales Executive
I ain't a fire starter, but a hell responder!
You gave me a tip I didn't ask for and I welcomed it though, not sure why you wanna take things further but still ready for it!
And sorry, if those interaction notes were really that important they would have been there already, it would just take me lots of time I'm not planning to waste, and not trying to pick a fight with you either!
RandyLahey
Politicker
2
Account Executive
So why mention them if they are not important?
It is a public forum, so getting replies you don't ask for is part of the game.
Anyways, no need to pursue further. Good luck.
Maximas
Tycoon
-1
Senior Sales Executive
Meant ain't worth search time, good luck Randy.
CadenceCombat
Tycoon
6
Account Executive
Look man, I was trying to be gentle and sincere with you so that your voice is taken more seriously because it seems like you actually care about this community.
If you’re interested and open to that, we can chat further in the DMs.
If I was really looking to shit on you, I’d be way more direct about it but I think you have good intentions and could minimize the downvotes you get if you followed my advice but that’s up to you.
If I thought you were useless, I wouldn’t be bothering with any of this right now.
Maximas
Tycoon
-1
Senior Sales Executive
Appreciate your words man🙏
Not an Iphone holder though, sorry ✋
RandyLahey
Politicker
2
Account Executive
now let's talk about what's important; how many goals is Salah scoring this year.
Maximas
Tycoon
1
Senior Sales Executive
30 PL&20 CL&10 Others:)
RandyLahey
Politicker
2
Account Executive
As a die hard United fan, I'm supposed to hate him, but I can't resist. What a player. I miss watching him alongside Sadio though...
Maximas
Tycoon
1
Senior Sales Executive
Damn yeah, Sadio was a terrible loss 4 us as a Liverpool fan!
Only reason why I might hate him a bit for though-as an Egyptian Fan-is that he took away our ticket to last WC and kicked us out of the AFCON final😇
6

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