Fetching Returns on Investments

PRESS RELEASE

Catterton Printing

Fetching Returns on Investments

The Power of ROI Selling, Most people know that ROI stands for "return on investment." When used intelligently, the principles of ROI can also be used as a powerful sales tool. In any economy, customers want to feel good about their buying decisions. ROI focuses on results, allowing you to build a business case for purchasing. Technically speaking, ROI is the financial benefit you realize from a purchase, divided by the cost, expressed as a percentage over a period of time. If you see a flyer that says a prduct "pays for itself: in just 3 months, that's the power of ROI selling at work.


With ROI, instead of just talking about the benefits and features of a product, you focus on the actual financial impact of making a purchasing decision. Every person who has ever been to the grocery store knows that buying the "bulk" economy size bottle of laundry detergent can save you money in the long run. By buying the larger size, you save a few pennies per ounce. Over time, your laundry costs are actually lower than they would have been had you purchased the same amount of detergent in the smaller size. Warehouse stores have taken advantage of this concept to the point that you can now buy items in quantities that you won't ever realistically use. The warehouse store is an example of why you need to calculate ROI carefully. You never want to make a purchase decision without considering all the variables. For example, if you are having brochures printed, your unit cost might be lower if you buy in larger quantities. But if you know the brochure will need to be updated at some point, you might not be able to use up all the brochures before you need to print the new version. In calculating ROI, be sure to take this concept of "perishability" into account.	To Calculate ROI, you need to consider the savings or added revenue that will result from your purchasing decision. Armed with this information,, you can calculate how long it will take to pay back your investment either as a time frame (it pays for itself in two months) or as a percentage or absolute cost reduction (such as saving 30% or $1,000 each month). The key to calculating ROI is to be extremely specific with the numbers. Some benefits are somewhat intangible and don't really make sense in ROI calculations. For example, a car salesman trying to sell a car with air conditioning versus one without can focus on the enjoyment the customer will receive from not roasting during the commute. But the customer might not receive an tangible financial payback from purchasing air conditioning. However, the customer can receive payback over time by purchasing a car with higher gas mileage. In this case ROI can me used as a great sales tool. A recent IDC study showed that ROI-based selling can reduce the sales cycle by 30% to 40%, so start looking for ways you can use ROI to quantify the benefits of your product.

We are experts at helping our customers succeed with their marketing projects. So talk to us about how we can help you meet your goals.