The Return on Investment (ROI) calculator has long been a staple tool for vendors attempting to demonstrate the value of their products or services.
However, these calculators have increasingly become a source of frustration and skepticism among B2B buyers.
The lack of transparency, context, personalization, and credibility in these tools has led to widespread burnout among decision-makers, rendering them ineffective in modern sales.
The Chronic Problem of Bad ROI Selling
Research consistently highlights the shortcomings of traditional ROI calculators.
A study by Gartner found that 77% of B2B buyers rated their purchase experience as extremely complex or difficult. One of the key factors contributing to this complexity is the use of unreliable ROI projections.
Furthermore, a report by Forrester Research indicates that 65% of B2B buyers find vendor-provided ROI calculations to be overly optimistic and lacking in real-world applicability.
The fundamental issues with these calculators include:
1. Lack of transparency:
Buyers cannot see the underlying assumptions or calculations.
2. Absence of context:
Generic calculations fail to account for specific business environments.
3. No personalization:
One-size-fits-all approaches ignore unique customer needs.
4. Lack of credibility:
Fantastical projections erode trust in the vendor's claims.
These problems have led to a crisis of confidence in ROI calculators, with many B2B buyers dismissing them outright or viewing them with extreme skepticism.
The Shift: Collaborative Value Platforms
To address these challenges, modern sellers are pivoting towards a more collaborative and transparent approach.
According to a study of 2,960 B2B sales opportunities, there is a strong correlation between the level of collaboration and the likelihood of closing deals. The study found that internal collaboration within a sales team increases the odds of winning the deal by 2.4x, while external collaboration with the customer increases the odds of winning the deal by 3.4x.
Combining collaboration with scale, collaborative value platforms allow sellers and buyers to co-create value using a comprehensive framework. This approach, known as the Value Validation Framework, encompasses:
- Customer objectives
- Tactics
- Root Cause Problems
- Metrics
- Targets
- Timelines
By engaging customers in this process, sellers can create personalized, context-rich value that resonates with the specific needs and goals of each buyer.
How Sellers Can Become Elite Value Sellers
To leverage collaborative value platforms effectively, sellers should follow these steps:
1. Engage early:
Initiate value discussions at the beginning of the sales process.
2. Listen actively:
Understand the customer's objectives, challenges, and desired outcomes.
3. Collaborate on problem definition:
Work with the customer to identify root causes and key issues.
4. Co-create metrics:
Jointly determine the most relevant KPIs for measuring success.
5. Set realistic targets:
Collaborate on achievable goals based on the customer's context.
6. Establish timelines:
Agree on reasonable implementation and evaluation periods.
7. Use technology wisely:
Leverage collaborative platforms to document and visualize the value creation process.
8. Iterate and refine:
Continuously update the value proposition as new information emerges.
9. Provide ongoing support:
Offer guidance and resources throughout the implementation process.
10. Measure and report:
Track actual results against projections and share insights transparently.
Conclusion
As B2B buyers grow increasingly skeptical of traditional ROI calculators, sellers must adapt to remain competitive. By embracing collaborative value platforms and the Value Validation Framework, sales professionals can transform themselves into elite value sellers.
