This is “Making Your Presentation Work”, section 10.3 from the book Powerful Selling (v. 1.0).
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When deciding on the structure of your presentation, there are a number of things to consider. Will you present to a group or to an individual? Where will you be giving your presentation? What tools will you use? Sometimes these options are under your control, but often in business-to-business (B2B) sales, you will have to adapt your presentation to your prospect’s needs. In either situation, you can maximize your presentation if you know what to avoid, what to prepare for, and how to make your solution come to life with the tools you have.
Elements of an Effective Presentation(click to see video)
“Effective Presentations,” featuring author Terri Sjodin, highlights how a great sales presentation comes together.
A good salesperson can read group dynamics as skillfully as she can read an individual prospect’s verbal and nonverbal cues and is comfortable in one-on-one and in group presentation situations. This is critical because as a salesperson sometimes you have control over the kind of presentation you will deliver (group versus individual), but in many situations, the size of the audience to which you will present is determined by the needs and structure of your prospect’s organization. In many organizations large purchasing decisions are the responsibility of purchasing committees or of a combination of individual and group decision makers.Gary M. Grikscheit, Harold C. Cash, and Clifford E. Young, The Handbook of Selling: Psychological, Managerial, and Marketing Dynamics, 2nd ed. (Hoboken, NJ: Wiley-Blackwell, 1993), 152. You might find that you begin with several individual presentations to decision makers in an organization and then are asked to give a follow-up group presentation to a purchasing committee.
In one-on-one presentations, of course, you only have one person’s needs, preferences, and background to research and adapt to, so customization is usually an easy task. You can closely observe your prospect’s nonverbal communication and listen to her stated needs and concerns and respond accordingly. Does he look worried when you tell him that your company’s integrated marketing plan usually takes four months to develop? You can explain that for preferred prospects you are sometimes able to turn around a faster solution. Does he seem distracted when you begin discussing product features? You can back off and begin asking more questions.
As you learned in Chapter 3 "The Power of Building Relationships: Putting Adaptive Selling to Work" in the discussion about social styles, you will be in a better position to deliver value during your sales presentation if you know something about your buyer’s personality before going into the meeting: Is your prospect conversational and people oriented, or is he task oriented and businesslike? Does your prospect care about details and thorough descriptions, or does he prefer to see the “big picture”? Is he competitive? How does he feel about change? Understanding these things about your prospect will help you to favorably position your product and plan your presentation so that you can put emphasis on the things that matter most to the individual. If you know your prospect is highly competitive, for instance, he will probably be interested in learning about the features that set your product apart from others on the market and the ways in which your product can give him or his company a competitive edge.
Writing up a customer trait description before your meeting can be very helpful so that you can use the information as a guideline in preparing your presentation.Gary M. Grikscheit, Harold C. Cash, and Clifford E. Young, The Handbook of Selling: Psychological, Managerial, and Marketing Dynamics, 2nd ed. (Hoboken, NJ: Wiley-Blackwell, 1993), 127. If you’re working with an existing customer or if you’ve interacted with your prospect prior to the presentation, you can use your observations to write a trait description. If you haven’t met the prospect before, try asking other salespeople in your organization, noncompetitive salespeople at other companies, or other contacts you have who might have met your prospect and who can tell you something about her personality.Gary M. Grikscheit, Harold C. Cash, and Clifford E. Young, The Handbook of Selling: Psychological, Managerial, and Marketing Dynamics, 2nd ed. (Hoboken, NJ: Wiley-Blackwell, 1993), 136. Also, use the company resources including the CRM system to gather as much information as possible about the company and your contact. In addition, it is also a good idea to send a precall questionnaire to your contact to gather information such as the names and titles of the people who will be attending the presentation, how much time has been allotted for you, objectives for the meeting, and any other information that will help you plan the meeting. This information can provide valuable information and help you create an agenda, which is a good idea to send to the prospect before the meeting.
Learn as much about your prospect as possible before your presentation.
© 2010 Jupiterimages Corporation
In adapting to an individual buyer, it’s also important to consider his motivation.Gary M. Grikscheit, Harold C. Cash, and Clifford E. Young, The Handbook of Selling: Psychological, Managerial, and Marketing Dynamics, 2nd ed. (Hoboken, NJ: Wiley-Blackwell, 1993), 128. What are his responsibilities in the organization? What pressures does he face? Is he on a strict budget? Is he concerned with his status in the company? If you have two buyers who purchase the same product, chances are they’ll be doing it for different reasons:Gary M. Grikscheit, Harold C. Cash, and Clifford E. Young, The Handbook of Selling: Psychological, Managerial, and Marketing Dynamics, 2nd ed. (Hoboken, NJ: Wiley-Blackwell, 1993), 135. one person might buy a car from you because he sees it as a status symbol, while another person might buy the same car because it gets good gas mileage and is well built and reliable. Keep in mind that delivering value isn’t only about meeting a prospect’s needs; it’s also about showing him that you understand his specific motivations and concerns. The best salespeople present themselves as advisors their customers can trust.Ian Brodie, “Becoming a Trusted Advisor,” Ian Brodie: Business Growth for Professional Service Firms, blog post, July 5, 2008, http://www.ianbrodie.com/blog/becoming-trusted-advisor (accessed May 16, 2010). Is a prospect worried about proving herself in a new role in her company? Show him how your product can help him perform her role better, or demonstrate how people in similar positions at other companies have used your product with success.
Sell with Success Stories(click to see video)
Listen to how Rachel Gordon, account manager at WMGK, uses success stories with other customers as a selling tool in her presentations to new prospects.
If customization is that straightforward with an individual buyer, why would you ever choose to sell to a group? Besides the fact that sometimes the nature of the sale demands it, selling to groups is also more efficient than selling to individuals. If you’re selling accounting software to a number of departments in an organization, rather than meeting individually with a decision maker from each department, you can save time by giving your sales presentation to a number of decision makers at once. Group presentations can also help you identify the decision makers in an organization if you aren’t yet sure who they are. By keeping an eye on group dynamics during the presentation you can usually observe the “pecking order” among members and identify the individuals in the group whose opinions hold the most leverage.
Additionally, group presentations can be a way to win greater support for your sale. If you know one or two people in an organization who are excited about your product, you can allow their enthusiasm to influence others in a group setting.Gary M. Grikscheit, Harold C. Cash, and Clifford E. Young, The Handbook of Selling: Psychological, Managerial, and Marketing Dynamics, 2nd ed. (Hoboken, NJ: Wiley-Blackwell, 1993), 165. Recall Selena Lo of Ruckus Wireless, who finds the “fox” within each of her target organizations and leverages his support of her product to sway the group buying decision.
If you know what is at stake for each member of the group, you will be able to facilitate the discussion during your presentation much more effectively. This is why it’s important to gather information about everyone who will attend your sales meeting. Again, think of Lo’s method, where she reads each group member’s bio and googles their names before going into a group meeting. Find out the individual’s needs within the organization. What is her status? How does she perceive the urgency of the problem you want to solve? Does she have any ego involvement in the product or service?Barton A. Weitz, Stephen Byron Castleberry, and John F. Tanner, Selling: Building Partnerships, 5th ed. (New York: McGraw-Hill, 2003), 264. (For instance, an accountant in the organization might feel threatened by new accounting software if it replaces part of her current role.) This will help you understand the most important concerns you will need to address in the presentation, and if certain parts of your presentation apply more directly to certain members of the group, you can direct those parts specifically at those individuals.
Keep in mind that people act differently in group settings than they do when you are interacting with them alone, so finding out about individual members’ personalities is less important in group presentations. Instead, adjust your presentation to the dynamics in the room. Watch the group for nonverbal cues; when one member is talking, observe how others react to see whether or not they support what she’s saying.Barton A. Weitz, Stephen Byron Castleberry, and John F. Tanner, Selling: Building Partnerships, 5th ed. (New York: McGraw-Hill, 2003), 265. If the energy in the room feels low, or if you get the sense that the group is getting restless, consider moving on to the next part of your presentation or changing tactics.
Sometimes you won’t know who or how many people you will be presenting to beforehand, so you won’t be able to research the individuals. However, it’s always a good idea to ask when you call to schedule your meeting. You may be able to find out information that your contact at the organization wouldn’t otherwise volunteer.
Group Presentations(click to see video)
Hear about how to use a group presentation to your “unfair” advantage in this video:
You also might not know where your presentation will happen. If you know you’ll be presenting to your prospect at his office or in a conference room at his company, you won’t have control over the environment. What happens if your prospect has reserved a meeting room and when you arrive there are no empty walls on which you can project the PowerPoint presentation you brought along? When you know you’ll be presenting in an unfamiliar environment, make sure to have a contingency plan in place. If slides or other multimedia equipment are central to your presentation, talk to someone at the company to make sure you’ll be able to use the equipment. And if this fails, be ready to rely on your handouts, product samples, or the good old whiteboard to carry the presentation through.
Of course, in other situations, you will have control over the environment. In real estate, for instance, the presentation takes place inside the product. In retail, the presentation generally happens at your store. And there are other selling situations in which the prospect will come to your office or a conference room at your company or where you will meet at a “neutral” location like a rented meeting space.John Chapin, “Sales Presentations—How Location Can Affect Your Presentation and What to Do,” CompleteSelling.com, blog post, March 14, 2008, http://www.completeselling.com/members/completeselling/blog/VIEW/00000009/00000076/Sales-Presentations---How-Location-can-affect-Your-Sales-Presentation- and-What-to-Do.html (accessed May 16, 2010). Here are a few guidelines to follow, depending on the environment in which you’ll be presenting.
When the prospect comes to you, treat her like you would treat a guest in your home. Make sure you set up any presentation materials well in advance and have refreshments set out in the conference room or your office. Think about ways you can add personal touches—for instance, a sign with the prospect’s name on it (“[Your company name] welcomes [prospect’s company name]”), or, for a group presentation, information packets at each person’s seat with his or her name on the front. Sales professional John Chapin suggests having small items on hand that you can give to your prospect, such as pens or calculators with your company logo on them.John Chapin, “Sales Presentations—How Location Can Affect Your Presentation and What to Do,” CompleteSelling.com, blog post, March 14, 2008, http://www.completeselling.com/members/completeselling/blog/VIEW/00000009/00000076/Sales-Presentations---How-Location-can-affect-Your-Sales-Presentation- and-What-to-Do.html (accessed May 16, 2010). Small, thoughtful details can make an important difference.
If you are giving your presentation in a neutral location like a rented conference room you have the freedom to set up and work out any technical bugs well beforehand. When Keith Waldon of Earth Preserv was preparing for the presentation that secured his biggest customer, JCPenney, he rented a boardroom in a building near JCPenney’s corporate headquarters. He opted for the rented space so that he could pull out all the stops for the presentation. “I wanted to catch JCPenney by surprise,” Waldon says.
When the five executives arrived, Waldon had set up multimedia equipment for video, sound, and slides. He had placed a thick binder of presentation materials (including television storyboards, magazine advertisements, and product comparisons) at each executive’s seat with his name and the JCPenney corporate logo embossed on the front. Besides the conference room, Waldon had also rented an empty storefront in the same building, and halfway through the presentation, he took his customers to see the retail window display he had created there to look like one JCPenney might use to display Earth Preserv products in their stores.Susan Greco, “Anatomy of a Launch: The Five-Hour Multimedia Sales Presentation,” Inc., October 1, 1995, http://www.inc.com/magazine/19951001/2441.html (accessed May 16, 2010).
Since you will have time to set up beforehand at a rented location, you can treat the presentation the way you would treat a presentation at your home office. Bring refreshments, set up any multimedia equipment well in advance, and arrive early to make sure everything is in working order at the facility. Make sure you know the name of the facility’s contact person; you can call her several days ahead of time to find out what equipment she has at on hand and what you will need to bring.John Chapin, “Sales Presentations—How Location Can Affect Your Presentation and What to Do,” CompleteSelling.com, blog post, March 14, 2008, http://www.completeselling.com/members/completeselling/blog/VIEW/00000009/00000076/Sales-Presentations---How-Location-can-affect-Your-Sales-Presentation- and-What-to-Do.html (accessed May 16, 2010).
When you deliver your presentation at your prospect’s location, you won’t have the luxury of extensive setup time, and you may find that you have to adapt to the space and resources on hand. However, there are a few things you can do to make a good impression and ensure that things go as smoothly as possible:
So how do you give a sales presentation if your prospect lives across the country, but you have a limited budget for travel? Unless there is a good chance that a prospect will become a key customer, it usually isn’t practical for a salesperson to travel long distances to make one presentation. However, thanks to improved technology, it’s becoming increasingly common for salespeople to address this problem using Webinars, video conferences, and online meetings. These technologies are allowing companies to reach more prospects in less time and to reach prospects internationally and across long distances.
Learn more about how and why salespeople are now using the Web to make sales presentations.
Of course, there are some drawbacks to giving sales presentations through video conferencing rather than in person. For one thing, it’s always easier to establish rapport with your prospect if you’re able to have a face-to-face interaction. Video conferences offer the benefit of visuals, so you and your prospect can read one another’s body language and visual cues, but this is not a complete substitute for sitting in the same room with someone. Additionally, since the presentation relies entirely on technology—both on your end and on the prospect’s end—there is a greater chance that a technological malfunction could prevent the presentation from working.
In-person presentations are still the most effective and personal method, so whenever you are able (and when it is practical) to give a face-to-face presentation, this is your best option. However, technology keeps improving, and online meetings and video teleconferences are becoming more successful as an alternative method all the time.“Sales Trends: Electronic Sales Presentations,” KnowThis.com, http://www.knowthis.com/principles-of-marketing-tutorials/personal-selling/selling-trends-electronic-sales-presentations (accessed May 16, 2010). Depending on your selling situation, this is something you might consider. As online sales strategist Joanna Lees Castro points out, video conferencing can be almost as effective as an in-person meeting in a number of selling situations, and it is certainly a better, more personal approach than e-mail or telephone.Joanna Lees Castro, “Using Video Conferencing to Host an Effective Online Sales Presentation—6 Best Practice Tips,” EzineArticles, http://ezinearticles.com/?id=1316495 (accessed May 16, 2010).
Even though video conferencing feels different from in-person communications, you should essentially treat your online meetings the way you would treat any sales call. Keep in mind that nonverbal communication has a strong influence on interactions—and, especially with good technology, your customer can see you clearly. Pay attention to your body language and facial expressions, and avoid personal gestures (like playing with your hair or scratching an itch).“Video Conferencing Etiquette Checklist,” Manage Smarter, June 8, 2009, http://www.presentations.com/msg/content_display/training/e3i0fe06f39ca140432cc75be4595e2c6e1 (accessed May 16, 2010). Dress professionally, plan your agenda carefully, and make sure to prepare and get your materials set up ahead of time. If you are conferencing from a location other than your office, arrive early to make sure the technology is set up to run smoothly for your presentation.
It is also important to resist the temptation to multitask during your video conference. Close down any other applications you might have open on your computer, clear off your desk, and make sure you will not be interrupted until the call is over. Mute any cell phones and close the door to the room in which you are presenting. Give your customer your full attention. While this level of focus is a given on your end, unfortunately, you can’t always be certain that your prospect will give a video conference meeting his full attention by minimizing distractions. For this reason, it is especially important to have a clear agenda that you follow closely. Keep your presentation brief, and be aware that you will have to work harder to hold your prospect’s attention. Live interaction from your audience is critical to make sure your participants are engaged.
Besides a greater likelihood of distraction, there are a few other extra considerations to keep in mind in a video conference situation. Sales and Management magazine notes that privacy is expected during a video conference, so if you want to record part of your presentation, it is important to ask your prospect for permission.“Video Conferencing Etiquette Checklist,” Manage Smarter, June 8, 2009, http://www.presentations.com/msg/content_display/training/e3i0fe06f39ca140432cc75be4595e2c6e1 (accessed May 16, 2010). When the presentation is over, Joanna Lees Castro suggests closing the meeting with a clear call to action in which you include a wrap-up and well-defined next steps that you and your prospects should take. At the end of a conventional sales presentation, Lees Castro points out, next-step discussions can happen more organically, as the customer is walking you to the door, but this is obviously impossible in an online situation.Joanna Lees Castro, “Using Video Conferencing to Host an Effective Online Sales Presentation—6 Best Practice Tips,” EzineArticles, http://ezinearticles.com/?id=1316495 (accessed May 16, 2010).
In the best sales presentations, the product or service comes alive. Try to see the presentation through your prospect’s eyes. What is the best way to capture his imagination? How will you tell the story that will make your product or service compelling? In what ways can you delight or surprise your customer? Few people know how to do this better than Dann Ilicic, CEO of Wow Branding. Wow, a small start-up, frequently outperforms big name competitors when vying for a prospect. Ilicic approaches each presentation with the same mind-set: you can’t bore your customer into buying from you, so why not dazzle them? One customer said the presentation Ilicic put together for his company couldn’t have been better: “Dann unquestionably knocked it out of the park compared with the other firms, and they were really high-end firms with spectacular portfolios.”Stephanie Clifford, “Fasten Your Seatbelts,” Inc., February 1, 2007, http://www.inc.com/magazine/20070201/features-sales-performance-ilicic.html (accessed May 16, 2010).
So how does Wow Branding wow its prospects? Ilicic’s approach offers three lessons:
So what techniques can you use to achieve these goals in your sales presentations? The tools you choose will depend on the situation and your presentation style. As Ilicic demonstrates, the possibilities are almost endless, but whatever tool you use, it is important to carefully consider your choice and how you can maximize its effectiveness.
PowerPoint slides provide an easy way to organize your presentation and add helpful visuals. For many salespeople, PowerPoint is one of their go-to presentation tools. It can be an especially helpful tool for salespeople who are starting out and want the security of a clear framework from which to present. An added benefit is that it doesn’t take much technological know-how to put together a clean-looking PowerPoint demonstration.
PowerPoint presentations can be an effective way to get your message across during a presentation.
© 2010 Jupiterimages Corporation
On the other hand, not all presentation situations lend themselves to PowerPoint (e.g., conference rooms with no wall space on which to project or presentations given in the field), so if you plan to use this tool, make sure that you will be presenting in a space where you can make it work. Additionally, be aware of—and avoid—a number of common mistakes salespeople make when using PowerPoint that can ruin a presentation. As sales coach and author Anne Miller says, “Putting PowerPoint into the hands of some sales reps is like putting matches into the hands of some children.”Anne Miller, “Death by PowerPoint,” Sales and Sales Management Blog, February 22, 2008, http://salesandmanagementblog.com/2008/02/22/guest-article-death-by-powerpoint-by-anne-miller (accessed May 16, 2010). To maximize PowerPoint as a tool to successfully sell your story, use the tips in Figure 10.5 "Guidelines for PowerPoint Visuals".Anne Miller, “Death by PowerPoint,” Sales and Sales Management Blog, February 22, 2008, http://salesandmanagementblog.com/2008/02/22/guest-article-death-by-powerpoint-by-anne-miller (accessed May 16, 2010).
Figure 10.5 Guidelines for PowerPoint Visuals
The following dos and don’ts can also be helpful as you are creating a PowerPoint presentation.
10/20/30 Rule(click to see video)
Guy Kawaski, best-selling author, venture capitalist, and entrepreneur, created this rule and describes it in this video.
It is usually expected that you will have printed material to give your audience during a presentation. In addition to a printed supplement to your PowerPoint presentation (i.e., something that conveys the same information as your slides and on which your audience can take notes), you might decide to bring along brochures with information about your company, products, and services. What are the benefits of brochures? According to sales expert and author Geoffrey James, in some situations you need a brochure to make your firm look serious. However, James lists “I promise to read your brochure” as one of the top ten lies customers tell sales reps. His conclusion: the brochure might gain you credibility, but it probably won’t get read.Geoffrey James, “Top 10 Lies Customers Tell Sales Reps,” BNET, April 23, 2009, http://blogs.bnet.com/salesmachine/?p=2323&page=2 (accessed May 16, 2010). Don’t rely completely on brochures because they won’t be a focal point of your presentation.
Sometimes a brochure can work as a reminder about you and your company after you’ve left, but this is assuming your customer doesn’t throw the brochure away. When it comes to reminders, a better bet is leaving something functional that your customer will actually use regularly. These reminder objects—calendars, refrigerator magnets, pens, or mouse pads labeled with your company name—are called premium leave-behinds and are a proven method of reminding customers you exist.Brad Sugars, “Building Repeat Business from Day 1,” Entrepreneur, May 22, 2007, http://www.entrepreneur.com/startingabusiness/startupbasics/startupbasicscolumnistbradsugars/article178724.html (accessed May 16, 2010). Almost all salespeople bring some sort of brochure or premium leave-behind on their sales calls.
There is almost no better way to make your story come to life for your customer than letting him experience it for himself. Think of television courtroom dramas: when the lawyer is making her final statement to the jury and she wants to pull out all the stops, what does she do? She doesn’t just give the jury the facts or tell them the version of the story she wants them to believe—she brings the story to life; she puts the gun in the defendant’s hand; she brings out the pictures of the stab wounds. Think about this when you plan your sales presentation. During the presentation, you can bring your story to life by offering product samples for your prospects to try or by running demonstrations that let them see for themselves what your product can do. When winemakers sell their products to large distributors, they don’t just bring in descriptions of their wines for the buyers to read; they offer tastings so buyers can experience the product. When caterers want to sell their services to someone who is planning a wedding, they bring in samples from their menus, so the customer can say, “Wow this pasta really is delicious!” Or think of Keith Waldon of Earth Preserv who didn’t just tell JCPenney, “We can make displays of our environmentally friendly products for your store windows;” instead, he set up a real shop window display so his prospects could see their place in his story.
Sell to Someone Unexpected
For the founders of Cranium, Inc., maker of the popular Cranium board game, playing is believing. When the company first launched in 1998, they knew that 50 percent of board games failed in their first year. Cranium’s strategy? Avoid the traditional board game buyers—toy stores—and sell to someone unexpected. Cranium’s founders managed to get an introduction to Howard Schultz, CEO of Starbucks, and they arrived at his office with a game board and challenged him to a match. After playing a few rounds, Schultz decided this was just the game Starbucks had been looking for—something that would support coffeehouse culture—and Cranium, Inc., had its first major sale.
Next on Cranium’s list? Barnes & Noble Booksellers. The company’s founders scheduled a meeting with Terese Profaci, the bookstore’s director of gift merchandising, whose boss told the sales reps on the way in, “I don’t know why you’re here. We don’t sell games.” Still, Profaci’s boss had her play a round of the game with some employees at corporate headquarters, and in the end, Barnes & Noble was won over.Julie Blick, “Inside the Smartest Little Company in America,” Inc., January 1, 2002, http://www.inc.com/magazine/20020101/23798.html (accessed May 16, 2010).
Besides bringing your story to life, there are a number of other good reasons to use demonstrations:
When you present your solution to the customer, especially in B2B sales, closing the sale usually depends on whether the cost of your solution is offset by the value it delivers.Gerald L. Manning and Barry L. Reece, Selling Today: Creating Customer Value, 9th ed. (Upper Saddle River, NJ: Prentice Hall, 2004), 256. If you can quantify your solution using cost-benefit analysis and ROI (return on investment) analysis, you can help your customer determine whether a project or purchase is worth funding.
A cost-benefit analysisQuantifies the costs of a purchase in relationship to the benefits it provides. asks the question “Will this purchase save more money in the long run than it costs?”David H. Miles, The 30 Second Encyclopedia of Learning and Performance (New York: AMACOM, 2003), 139–40. Imagine you are selling an energy-efficient commercial dishwasher to a pizza kitchen. The dishwasher costs $3,000, but average cost savings per year are $800 in energy bills and $200 in water usage: a total of $1,000.Energy Star, “Commercial Dishwashers for Consumers,” U.S. Environmental Protection Agency and U.S. Department of Energy, http://www.energystar.gov/index.cfm?c=comm_dishwashers.pr_comm_dishwashers (accessed May 16, 2010). Your dishwashers are guaranteed to last a long time; in fact, you offer a five-year warranty on any purchase. At a savings rate of $1,000 each year, your customer will have saved $5,000 in energy and water expenses by the time his warranty expires. Based on this information, you present this cost-benefit analysis to your prospect:$3,000 = cost (initial investment) cost savings – initial investment = benefit $5,000 – $3,000 = $2,000
In this case, the cost savings is $1,000 per year times five years for a total of $5,000, minus the initial investment of $3,000, means that there is a benefit of $2,000.
In other words, the dishwasher has a three-to-two cost-benefit ratio over five years ($3,000 in cost to $2,000 in benefit). You can tell him, “This purchase will save you money in the long run. After you make back what you spent on the dishwasher in cost savings, you will continue to save $1,000 each year.” Similarly, you can show your customer a return on investment (ROI) analysisShows the return (profit or cost savings) as a percentage of the initial investment.. ROI shows the customer the return (profit or cost savings) compared to the investment he will make. In the case of the dishwasher, the ROI would be calculated by dividing the benefit (in this case $2,000) by the cost of the product or initial investment (in this case $3,000), then multiplying the result by 100, which would yield a 66 percent ROI after five years.$2000 (savings over five years) ÷ $3,000 (initial investment) × 100 = 66% ROI
You can maximize ROI by cutting costs, increasing profits, or accelerating the rate at which profits are made.“Cost of Ownership, ROI, and Cost/Benefit Analysis: What’s the Difference?” Solution Matrix, http://www.solutionmatrix.com/tco-roi-cba-difference.html (accessed May 16, 2010). Some businesses have a minimum ROI that must be met before a purchase can be approved. While you might be able to learn this information in your preapproach, it is more likely that you will have to discuss minimum ROI with your customer during the sales presentation. You might present your solution and find out more about your customer’s specific needs (including budget constraints and minimum ROI) during the first sales presentation and then write up a proposal in response to your findings, which you deliver during a second presentation.