Today’s business environment has changed. It has become more exacting. A “new norm” has emerged whereby businesses are benchmarking, calculating costs and evaluating ROI more precisely than ever before. Consequently, customers are demanding more from their business partners.
Customers buy any product/service for one or more of the following economic reasons, also known as the economic drivers:
- Cost / Expense Reduction – Causing a decrease in a company’s bottom-line spend on existing budget-line
- Cost Avoidance – Minimizing or preventing a company’s spend on extraordinary or unexpected cost items
- Revenue / Profit Improvement – Causing an incremental gain in a company’s top-line as well as bottom-line
The Value Proposition is the sum of the expected monies saved and/or earned from the “Economic Drivers” (features and benefits) of the “total solution” as anticipated and validated by the Customer – i.e., the financial impact of the supplier’s products and solutions to the customer.
The Chapman Group has an established process and methodology for capturing and delivering the Value Proposition to the customer. The ROI Calculator is a tool that is based upon a defined set of “Business Drivers” (what we as suppliers impact) and “Business Metrics” (how we impact them). It documents and validates (for the customer and supplier) the Economic Value Proposition and effectively conveys the value proposition in economic terms by quantitatively demonstrating expected financial gains from investing in a supplier’s given product / solution.
When choosing to invest with The Chapman Group, we will partner with your organization to develop the economic drivers relative to your unique Value Proposition. This methodology will then be implemented in an Excel-based or online tool for your sales and account management teams to utilize with customers. We will also work with you to make sure your sales and account management teams are educated on how to complete and present the ROI Calculator / Value Proposition as part of their “Value-Selling” process to a customer and/or prospect, ensuring that it is a collaborative effort – and proposed economic impacts are documented as well as validated by the customer.