Quantifying the Business Problem

Quantifying the Business Problem

Consultative salespeople are experts at diagnosing customers’ business problems and working with them to develop solutions. Part of the diagnosis process is quantifying the financial impact of the customer’s inefficiencies and performance gaps. When the “cost” of the related issues are determined, the seller puts a price tag on the business problem. Experienced consultative sellers know to only use numbers that the customer has provided, confirmed and agreed to when qualifying financial impact. Otherwise, they may not buy into the results.

Once the inefficiencies and performance gaps of the business problem have been quantified, the customer has two choices: 1) continue to incur the cost or 2) invest in a solution. When the cost is high, consultative sellers should help customers make time the enemy. For example, based on improved performance, what is the customer’s opportunity cost of not increasing revenue right now? Or, for every day a decision is not made to address an inefficiency, what will the actual cost be? The higher the cost or opportunity cost, the faster a decision should be made to address it.

If not having the right project management solution is causing a company to incur $5K per month in missed deadlines, there is a $5K per month business problem. Every day the inefficiency is not addressed, the company is “bleeding” $167 ($5K/30 days). If buying the seller’s project management solution for $6K annually would address the issue, the customer’s payback period would be 1.2 months ($6K/$5K) and they would see savings of $54K over the subsequent 10.8 months. Help customer’s use their gain as a decision driver and the cost of their pain as an decision accelerator.

All contents copyright © 2015, Josh Lowry. All rights reserved.

Leadership Quotes – April, 2015

Leadership Quotes – April, 2015

A summary of leadership quotes and other tweets during the month.

  • A business that makes nothing but money is a poor business. – Henry Ford
  • A good mentor will teach you how to think, not what to think. @ValaAfshar
  • A leader takes people where they would never go on their own. – Hans Finzel
  • Any time you ask for less than 30 minutes, you are doing yourself a disservice. @FrontlineMike
  • Businesses that are purpose-driven come out on top. @Inc
  • Citrix VP of CX encourages women to bring their daughters to work to inspire them. Bravo! @LizPrc
  • Everything is driven by the customer. – Andy Markowitz
  • I would rather choke on greatness than nibble on mediocrity. @MichaelBurt
  • Leadership is the ability to hide your panic from others. – Lao Tzu
  • Marketing is the matchmaker, but sales needs to do the dating. @HubSpot
  • Marketing is the right message to the right person at the right time. – Rishad Tobaccowala
  • Normal is average and average is failing. @GrantCardone
  • Openness happens after people feel heard. @LeadershipFreak
  • Right people, right process, right tools. @SolutionSelling
  • SDRs should think like educators, connecting and sharing. @SalesLoft
  • The ABC’s of Sales Leadership: Always Be Coaching. @LeaderChat
  • The best email open and reply rates are at the edges of the day. @BridgetGleason
  • The leaders surround themselves with good people who become good leaders. @SteveGutzler
  • Think differently in everything you do. @Benioff
  • What gets inspected gets done. Your best weapons are the questions you ask. – Lauren Bailey,
  • Without deviation from the norm, progress is not possible. – Frank Zappa
  • You will do more good if you aim to serve more than you aim to please. @ExpertLeaders
  • Your real strengths are what you do well, not what you think you do well. @LeadershipFreak
  • Your success is entirely driven by your culture. @SteveSSingh

All contents copyright © 2015, Josh Lowry. All rights reserved.

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