FutureSight Value Report

Prepared For :

President

[email protected]

2066865800

Bruce Scheer

ROI-SellingAssessment & Financial Justification

TM

FutureSight Inc. | 206-686-5800 | 1-888-517-5338 | www.gofuturesight.com

INTRODUCTIONROI-Selling can increase demand and move prospects through their buying process faster and thus accelerate your sales pipeline. With the right tools, your organization can uncover more leads and close more deals. This assessment identifies what tools fit your situation and quantifies how they can impact your bottom line.

Introduction ............................................................................................................... 2

Key Financial Metrics ................................................................................................ 3

Best Case – Worst Case Scenarios .......................................................................... 4

Benefits & Investment Explanation ............................................................................ 5

Benefits Overview ...................................................................................................... 6

Strategic Benefits ....................................................................................................... 8

Glossary of Financial Terms ...................................................................................... 9

Inputs ......................................................................................................................... 10

Benefit Claims ............................................................................................................ 10

About Futuresight ....................................................................................................... 10

CONTENTS

2FutureSight Inc. | 206-686-5800 | 1-888-517-5338 | www.gofuturesight.com

206-686-5800 | 1-888-517-5338 | www.gofuturesight.com

KEY FINANCIAL METRICS

This analysis covers a 1 year period. The estimated financial results are:

The chart shows that the cumulative net benefit is $302,520

CUMULATIVE BENEFIT

Cost to Delay per Month

Payback Period Return on Investment (ROI)

Net Present Value (NPV)

1,776,532 776 2 29,609



BEST CASE – WORST CASE SCENARIOS

The best case and worst case scenarios provide a range of possible outcomes. Although actual results may fall outside this range, these scenarios help better define the probable results.

Metric Best Expected WorstNet Present Value (NPV) $375,177 $282,128 $189,079

Return on Investment (ROI) 417% 313% 210%

Payback Period (months) 2 2 3

Cost to Delay per Month $31,265 $23,511 $15,757

BEST/WORST CASE



BENEFITS & INVESTMENT EXPLANATION

Sales IncreasesAdditional Qualified Leads

Increase in your qualified leads attributable to prospects using assessment surveys, value calculators and TCO calculators to assess the cost of their problem and estimate the value they could receive from deploying your product/solution

Higher Sales Close Ratio

Increase in your sales close ratio attributable to your sales representatives using sales tools such as value calculators, TCO calculators and ROI calculators to focus the sales dialog with buyers on the value they could receive from your product/solution and from prospects using similar tools and assessments to self qualify themselves before they enter your sales pipeline

Higher Average Selling Price

Increase in your average selling price attributable to your sales representatives using sales tools such as value calculators, TCO calculators and ROI calculators to estimate your product/solution's value to a prospect and selling based upon that value and not on features/functions and from prospects using similar tools and assessments to understand the value or your solution before they enter your sales pipeline

Cost SavingsSelling Cost Savings

Decrease in selling cost (e.g., travel, campaign material and telecommunications expenses) due to a shorter sales cycle attributable to your sales representatives using sales tools such as valuecalculators, TCO calculators and ROI calculators to present buyers with a quantified business case early in the sales process and from prospects using similar tools and assessments to self qualify themselves before they enter your sales pipeline

Sales/Marketing Labor Savings

Decrease in time spent preparing a business case attributable to using value calculators, TCO calculators and ROI calculators to produce the business case

InvestmentTool deployment

One time tool development cost; this cost will vary depending upon the combination of assessment tools, value calculators, TCO calculators and ROI calculators that are deployed.

Tool subscription

Recurring annual tool subscription cost; this cost will vary depending upon the combination of assessment tools, value calculators, TCO calculators and ROI calculators that are deployed.

Demand generation campaign

One time and recurring costs to launch and manage a demand generation campaign; costs will vary depending upon the nature of the campaign elements

Internal time

One time and recurring cost of time spent to launch and manage a value-based sales and marketing program

Other One time and recurring costs miscellaneous costs (e.g., sales rep training)



BENEFITS OVERVIEWSales Increases YEAR 1

Additional Qualified Leads $46,313

Higher Sales Close Ratio $182,813

Higher Average Selling Price $56,400

Total Sales Increases $285,525Cost Savings YEAR 1

Selling Cost Savings $42,210

Sales/Marketing Labor Savings

$60,785

Total Cost Savings $102,995Investment YEAR 1

Tool deployment $30,000

Tool subscription $36,000

Demand generation campaign $0

Internal time $10,000

Other $10,000

Total Investment $86,000Benefits YEAR 1

Total Gross Benefits $388,520

Cost of Capital 8%

Confidence Adjustment 100%

Total Benefits $388,520Net Confidence-Adjusted Benefits YEAR 1

Net Confidence Adjusted Benefits

$302,520

Total Net Confidence-Adjusted Benefits

$302,520



ANNUAL BENEFIT

BENEFIT BREAKDOWN



STRATEGIC BENEFITS

Aside from the tangible benefits that can be quantified, clients can expect to receive several strategic benefits as well. These intangible benefits can be just as important to a client but are more challenging to quantify. In fact, these strategic benefits are often aligned to some of our client’s corporate goals and objectives. Our demand generation and sales enablement tools contribute to the following strategic benefits:

1. Higher Customer SatisfactionSales team can more legitimately point out the value-enhancing benefits to customers and increase the customer's confidence that they are receiving great value from your offer, and hence grow their satisfaction and loyalty towards your company.

2. Increased Competitive AdvantageA value-based marketing and sales program can be a key differentiator in the sales process and create barriers to entry for your competitors.

3. Better Sales Force Morale & ConfidenceSales representatives become excited about a new tool in the toolbox and that enthusiasm and confidence propels them to open more doors with more senior economic buyers.

4. Enhanced Online ExperienceAttract new Web site visitors, engage them with an interactive business value proposition and convert them to a qualified lead once they understand the value of your offering.

5. Improved Employee Staff Utilization & Faster Time-to-BenefitOur consultants are experienced and highly skilled in developing and implementing marketing and sales tools and programs, which accelerates your results and frees up marketing and IT resources for other initiatives.



GLOSSARY OF FINANCIAL TERMS

Net Present Value (NPV)The value in today's dollars of all cash benefits received at a future date given a discount rate (cost of capital), less the present value of any expenses. CFOs want to see all of the future net cash flows associated with the investment, discounted by an appropriate interest rate, in order to determine the present value of future cash flows, and compare this with other potential investments.

Return on Investment (ROI)The net present value derived from an investment, divided by the present value of the investment (i.e., associated startup and ongoing costs). ROI is a metric CFOs use in evaluating decisions; enabling them to determine the true economic worth of the investment.

Payback PeriodThe point in time (sometimes referred to as breakeven point) where a company recoups its costs for a particular investment. It is a good measure of risk, letting the company know how long it is going to take to recoup an investment outlay.

Cost to Delay per MonthThe net present value divided by the number of months in the analysis. This shows the opportunity cost (amount forfeited) of waiting to make an investment decision.

Cost of CapitalThe rate of return that could be earned at the same risk level as the investment that has been selected. It is used as the interest (discount) rate to determine the present value of future cash flows. The default value used in this analysis is eight percent.



INPUTS

BENEFIT CLAIMS

INPUT YEAR 1

Sales revenue $7,500,000

Sales close ratio 20%

Gross margin 65%

Average selling price $40,000

Variable monthly selling cost per sales opportunity $100

Months in sales cycle 6

Sales opportunities requiring a business case 70%

Hours spent preparing one business case 4

Average fully loaded hourly sales/marketing compensation rate $65

Productivity capture 75%

BENEFIT CLAIM YEAR 1

Decrease in the length of the sales cycle 10.0%

Decrease in time spent preparing a business case 50.0%

Increase in average selling price 1.0%

Increase in qualified leads 1.0%

Increase in sales close ratio 5.0%

FutureSight infuses fresh, insightful thinking into your market message and sales strategy that speeds the buying process and helps close more deals. We help you establish a compelling positioning and messaging strategy that connects with your customers and inspires action, and then translate it into sales messaging, content marketing and sales enablement tools that “hit it out of the park” in terms of relevance and messaging.

ABOUT FUTURESIGHT



FutureSight Inc. | 206-686-5800 | 1-888-517-5338 | www.gofuturesight.com

Documents

FutureSight Value Report