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financial metrics. More and more, I am seeing that salespeople run from financial figures,” says the consultant. “They don’t want to read a balance sheet or a financial statement or an annual report. They are afraid of the information that is in there. For lack of a better word, it’s a fear of having to learn how to do that.” That fear, however, is not well founded. “Salespeople think that an ROI or value justification model is all about financial metrics. And it’s not,” he says. “That is the misconception that everyone seems to be under. You don’t have to be a financial analyst to talk about ‘what is your problem’ or ‘what is the cost of that problem.’ That doesn’t take a rocket scientist.”
GET OUT THE CALCULATOR There are calculations involved in value quantification. These days, however, most of the heavy lifting is done with software based on pro- grams created long before the sales engagement. Typically, value quanti- fication software is based on models that align customer issues, pains, and goals with the features and benefits of the seller’s offerings.
In the field, the essence of value quantification lies in the questions salespeople ask their customers. “One of the things you will notice about salespeople is that they ask a lot of questions. That is what we teach them, right?” he asks. “But they never give you anything to do with the answers. And, when you go in asking foolish questions, wasting people’s time, you lose before you begin. Salespeople work like hell to get in to see somebody, and – when they finally get in – they disrespect the person’s time.”
Instead, in ROI selling, sales profes- sionals receive a “quantified” list of questions that show results and prove value. At a banking software com- pany that sells teller automation, for instance, the salesperson would ask such basic questions as, “What do you pay a teller?” “What is the average customer wait time?” “How long does
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it take to process a transaction?” “How many transactions do you process in a day?” “How many days a year are you open?” “How many tellers do you have on staff?” “What is your average number of tellers per bank?” “How many branches do you have?” “We are asking questions to
capture the status quo,” he explains. “Many, many organizations don’t have all these numbers in one place; so, when you capture them, you move from being a salesperson to being a consultant.” The customer’s answers to these questions are plugged into software that calculates such metrics and per- centages as net present value, internal rate of return, payback periods, and ROI. In turn, these measures become a valuable deliverable that salespeople can offer back to their customers. “This is something that every customer gets once they answer the questions,” he says. “So, it’s not like the customer is going to answer your questions and get nothing. Sales is give and take.”
INCREASED AWARENESS Even better, the value quantification process raises customers’ comprehen- sion levels as they become aware of the cost of their pain and the cost of
delay. “Once you have helped them capture those current costs, you apply the estimated value that you could deliver,” explains the consultant. “And that value isn’t just a number you pick out of the air. These are proof points within your ROI model.” With automated value-quantifica- tion tools, customers can participate in the process of determining the value via the salesperson’s laptop. “Have your customer estimate the value you can deliver,” he advises. “Your prospects and your customers can take complete ownership of these models. They are telling you what their pain is; they are helping you help them capture their current cost of that pain; and they are helping you estimate the value you can deliver.” What do value-quantification tools do for the sales professional? “ROI selling gives you the questions to ask, a place to put the answers, and a deliverable to give back to your prospect. No matter what process you are using, you have to ask the right questions, you have to collect the right data, and, then, you have to do something with it,” he says. “If you are a mediocre salesperson, it will make you great. If you are a not- so-good salesperson, it will make you pretty good.”
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