The stakes are high in today’s hyper-competitive sales environment. Having a compelling offering remains fundamental, as does the need for a well-structured business case that quantifies ROI. Here’s what your sales team should know about business cases before they submit their next proposal.
The Why and When of a Business Case
Whether the economic tide is high or low, modern B2B buyers demand cost justification and expect to receive a business case. Decision-makers and CFOs alike have increased their scrutiny of purchases for tangible ROI. This trend is not merely a byproduct of an uncertain economy, but a paradigm shift in making buying decisions.
This is especially important if your solution is complex and alters a business’s current operation. A quantifiable, ROI-based business case enables the customer to understand the value your solution offers compared to their current setup and its financial implications. This increases the likelihood that the project will receive funding approval.
The timing of your business case matters too. Buyers typically interact with your sales team in the latter part of their journey, when it is most critical time to reinforce the value of your product. That’s why we recommend presenting your business case before a product demo.
The business case offers context, allowing potential buyers to understand how your solution fits into their operational framework. It helps anchor the demo to their business needs rather than merely showcasing product features.
How a Business Case Benefits Your Sales Process
A solid business case benefits your sales team and internal processes as well your customers. In recent years, multiple research firms have found that:
- The primary reason sales reps don’t achieve their quota is their inability to communicate and quantify the unique business value of their solution.
- 58% of sales opportunities conclude in “no decision” or “do nothing,” pointing to a failure in portraying value.
- 51% of won deals go to companies that can demonstrate excellent business value backed by a quantified business case.
- Discussing business value quantification can trim the sales cycle by 30%.
Companies that employ value selling tools, especially those with ROI tools producing quantified business cases, consistently report higher close rates, shorter sales cycles, and less price discounting. This is because they provide customers with a clear vision of the return on their investment.
Requiring a business case, either before a demo or before a proposal is delivered, ensures that the sales team focuses on prospects with a higher probability to close. This increases the chances of successful conversions and streamlines sales efforts, leading to better resource allocation.
Conclusion
Requiring quantified, ROI-based business cases isn’t just a fancy sales tactic; it’s an imperative for modern sales success. Companies that adapt to this reality and incorporate a business case in their sales process will find themselves consistently ahead of competitors that remain tethered to outdated sales strategies.
How Can ROI Selling Help?
Here’s how ROI Selling can help you thrive in tough times.
- Provide consulting services to help you develop and refine your value proposition
- Build ROI tools to deliver a compelling business case and close more deals
- Deliver value-based sales training and program roll-out support
Resources
Connect with Darrin Fleming on LinkedIn.
Join the Value Selling for B2B Marketing and Sales Leaders LinkedIn Group.
Visit the ROI Selling Resource Center.
