Three years ago when traveling in another city, you most likely hopped in a taxi. You had to flag it down, or wait for one to show up, and then pay a $40 fair for a 15-minute ride. Today, you whip out your phone, use the Uber app and watch the driver on the map as he/she picks you up in a matter of seconds for far less than what a taxi costs you. Taxis profited on the status quo and now Uber is giving them a run for their money.
Think about your sales enablement strategy. Is it a taxi of yesterday, or a viable alternative for results? As we discussed in the first part of our 3-part series on justifying the cost of sales enablement, doing nothing is always an option, but it too comes at a cost. If you missed it, check it out here. When it comes to enabling your sales force to drive revenue and be more effective, there is an alternative option: purchasing a sales enablement technology solution.
In this second edition, we’ll be walking through the cost of purchasing a dedicated sales enablement solution and the impact that potentially has on revenue. But, just in case you’re like me, and would prefer to just click a button and have this calculation stuff done for you, I’ve included a link to the free sales enablement ROI calculator.
The Purchase Cost
The cost of having a sales tool, which for a sales enablement tool like RO Innovation, is roughly about $300 per salesperson per year. (Note: Pricing depends on multiple factors, and is used here for ease of this example. Please contact RO Innovation sales for price quote for your company.)
The Sales Enablement ROI
To REALLY determine the value of what that “cost” is really affecting, let’s take it one step further. You need to equate that $300 to costs in terms of sales rep time (remember, one of the reasons you want a sales enablement tool is to decrease that 65% non-selling time, right?) To calculate what it costs to have a sales enablement solution in terms of time, you take that $580 they’re generating per hour and divide it by the cost of having the sales tool, $300, and you get 30 minutes per year.
In other words, to make back the money it costs you to have a sales enablement solution in place, you need to make up 30 minutes of your sales rep’s time over the course of the year…or framed another way: if the tool can save just 10 seconds a day on collateral searches for your sales rep, it pays for itself. When an individual sales rep is spending 1,118 hours per year not selling, here’s clearly room for improvement when it comes to productivity. That’s where a sales enablement solution, like RO Innovation, comes in to play.
By centralizing content and customer references in one place, and making it super fast and easy to search for the right information and voice of the customer content for the right prospect at the right time…heck…even doing it for them and basically “goof proofing” it in Salesforce…sales reps don’t have to “waste time” searching for stuff, and can spend time doing the real money-making stuff instead…like selling!
And your peers agree. The value of the right sales enablement platform not only improves sales productivity, but it can also have other effects on important sales metrics as well. A large enterprise customer of RO Innovation (who’s name I cannot reveal because they don’t contractually let any vendor mention it in public use, and I could get in a lot of trouble if I do) said using RO’s sales enablement tool has helped decrease the length of their sales cycle by 10%.
So, what if you could free up just 10% more time for selling by using a tool like RO?
Next in this Series: Calculating the revenue impact when you return 10% more selling time to your reps
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