1. sagecrm.com Financial Sales Tools for Partners David Riordan Commercial Cross-Sell Manager Sage CRM

2. sagecrm.com Topics 1.0Introduction 2.0Understanding ROI 3.0Calculating ROI 4.0How to use the ROI Tool 5.0Other Tools

3. sagecrm.com –Competing against inaction –Continually ask if you have created the impetus to invest in CRM now –CRM is very unique insofar as it addresses top-line revenue performance and bottom-line cost management in a single technology proposition –Measure / estimate this impact where possible; and frame your conversations around it, not just features –Remember that the finance department is not just there to sign off on the order – sell top-down and leverage the finance department where possible (Sage affords you an advantage in this regard) –Important calculations – ROI, Opportunity Cost (“Customer Lifetime Value”) and TCO Introduction Metrics in the CRM Sale

4. sagecrm.com Measuring Impact sagecrm.com

5. Introduction Sales Impact Increase number of leads managed by the sales department Increase the average value of a lead Reduce the average length of the sales Increase revenues, avoid cost Increase the number of cross-sales and up-sales to existing customers Improve the opportunity close rate Improve Sales Productivity

6. sagecrm.com Introduction Demand Creation Impact Increase number of responses generated by a marketing campaign More campaign responses Improve lead to opp conversion rate Increase revenues, reduce cost Decrease the annual spend on marketing More qualified opps Improve Marketing Productivity

7. sagecrm.com Introduction Service and Support Impact Improve the renewal rate of customer contracts More contract renewals Increase revenues, reduce cost Improve Service Productivity

8. sagecrm.com Understanding Return on Investment

9. sagecrm.com “IT decisions should be less about technology and more about the business capabilities the technology makes possible…for their potential to bring speed, efficiency and innovation. ROI offers a strong way to represent those ideas.”* *Source: CIO Magazine http://bit.ly/1mvoD5uhttp://bit.ly/1mvoD5u Why is ROI Important? Summary

10. sagecrm.com Competing IT objectives Determining impact can be difficult Need to assess value upfront More choice, value less obvious Financial metrics enable value analysis Why is ROI Important? Summary

11. sagecrm.com TCO vs. ROI Focus on ROI Disadvantages of TCO –Cost Focus –Drives down prices –Inflexible, Inaccurate –Liberally Interpreted –Easily manipulated –No such thing as a “standard” edition *Source: CIO Magazine http://bit.ly/1mvoD5uhttp://bit.ly/1mvoD5u Use with CAUTION

12. sagecrm.com The most credible ROI wins, not the highest ROI. Aim for 150% to 400% sagecrm.com

13. Return on Investment What’s a Good ROI? 5% or 500% ? The most credible ROI wins, not the highest ROI. Aim for 150% to 400%

14. sagecrm.com ROI The average total savings over 3 years divided by the cost. (Year 1, Year 2, Year 3) / 3 Initial Cost ROI = Return on Investment Standard Definition

15. sagecrm.com There’s no such thing as an “average” ROI sagecrm.com

16. Payback The time period needed before net savings equal initial cost. Excellent measure of risk Should be the key measurement! Savings Costs Payback Period Time Return on Investment Don’t Forget Payback

17. sagecrm.com Remember: Worse case scenario can be the most effective sales tool in difficult opportunities

18. sagecrm.com Calculating Return on Investment

19. sagecrm.com Use ‘direct’ and ‘indirect’ benefits rather than ‘soft’ or ‘hard’ benefits sagecrm.com

20. Benefits – Direct –Reduced staff costs –Reduced travel and expenses –Reduced finance costs –Reduced operational costs Costs – One Off –Software –Hardware –Networking equipment –Software infrastructure –Implementation services Costs – Recurring –Subscriptions –Maintenance –Support –Upgrades Benefits – Indirect –Productivity improvements –Reduced customer attrition Calculating ROI Costs vs. Benefits

21. sagecrm.com Focus on a small number of clear benefits rather than trying to cover everything

22. sagecrm.com How to use The ROI Calculator Tool

23. sagecrm.com –Click on Quick Start Tab – input headline costs and benefits here –Click on Cost Data Tab – this tab is pre-populated with the information from the Quick Start tab. You can add more detailed cost information in this tab. (90% of the time, your prospect will not ask you to enter extra data in this tab) –Click on Benefit tab– this tab is pre-populated with the information from the Quick Start tab. You can add more detailed benefit information in this tab if you want. (90% of the time, your prospect will not ask you to enter extra data in this tab) –Click on the Summary, Financial Impact and Reports tabs – this provides the outputs from your analysis in different formats. You can print these out for your prospect Using the Nucleus Tool Introduction

24. sagecrm.com Note: For your pitch, normally the quick start page is sufficient to deliver a strong ROI message!

25. sagecrm.com –Best to work through the model with your prospect in person. –Let the prospect suggest the value that they are comfortable with. You can also carry out a ‘worst case’ analysis –If your prospect asks for a copy of the model, don’t be afraid to send it to them –Ideally, you are aiming for an ROI of between 150% and 400% with a payback period of under 12 months. Using the Nucleus Tool Further Tips and Tricks

26. sagecrm.com When to use ROI calculator –If the customer asks –Larger opportunities, particularly on-premises –Process-oriented companies, particularly if a business case or finance committee is involved in decision making / approval –Competing against ‘no decision’ –Negotiating on price –If “value” mentioned during the process When not to use ROI calculator –If sale does not require it –Smaller, transactional opportunities, particularly Cloud –In very complicated deployments –Where the company has its own assessment tools Calculating ROI When to use ROI

27. sagecrm.com Accelerate your business success with Sage CRM sagecrm.com