Not Your Father’s ROI?

Nxt Generation ROI

 

 

General Motors ran an ill-fated ad campaign in the late 80’s and early 90’s about The New Generation of Oldsmobile with a tag line “Not your Father’s Oldsmobile”*. They used hip music and video and got famous fathers like Ringo Starr, William Shatner and Leonard Nimoy with their daughters while promoting an imminently forgettable line of automobiles.

It was only about a decade later that Oldsmobile became a brand of the past.
“Dead’er than a beaver hat” I heard someone say.

NXT-GEN ROI cannot be a rehash of OLD-GEN ROI that companies have tried to use for the past 20 years. OLD-GEN ROI has the following characteristics with terrible consequences:

– Limited almost exclusively to the last ½ of a sales cycle
– Limited almost exclusively to a handful of a company’s largest deals
– Limited almost exclusively to skilled “value engineers” and “business value consultants”.

OLD-GEN ROI is like driving a 1989 Olds Calais with the terrible Quad 4 engine (oft thought to resemble Offenhauser’s design of the 1930’s) versus a brand-new, top of the line Tesla Model S.

In practice OLD-GEN ROI looks like this, limited to the bluish area in the top right. Perhaps the worst part is that OLD-GEN ROI is only practiced this “well” by about 9% of today’s companies:

The pain associated with OLD-GEN ROI is real. Low effectivity in marketing, lack of buyer connection and business alignment in early sales stages, forecasts vulnerable to losses as well as deal slippage and margin erosion for deals that are won, and churn with price pressure within the existing customer base. All because Value Selling is not a part of a company’s DNA.

Here’s what NXT-GEN ROI should look like, impacting the entire Customer Journey:


Over the next several posts, I’ll talk about the Identification, Position, Proposition and Realization impacts of NXT-GEN ROI across Marketing, Sales and Customer Care.  Read here for a Harvard Business Review Study of business impact.

OLD-GEN ROI won’t go away anytime soon, but companies utilizing it will fail to achieve peak performance and be at a competitive disadvantage compared to those using NXT-GEN ROI.

*FWIW, if Olds and GM in general had stayed out front in the 80’s and 90’s with cars like the ‘58 Buick Roadmaster, ’66 Pontiac GTO, ’68 Chevy SS396 and ’72 Olds 442, they wouldn’t have gone through the 25 year hard times they did.

 

 

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Supercharge Sales Effectiveness – Harvard Business Review Study

Super Charged Sales Effectiveness

For the first post in this series, (Click Here), I made this claim:

Sales Effectiveness is super-relevant for the Executive Suite and Board of Directors because there is no more significant way to impact an organization’s financial performance than by improving Sales Effectiveness. And there is no more significant way to impact Sales Effectiveness than by “Value Selling”.  

That’s a pretty big claim, and I want to provide a research data point to substantiate it. Harvard Business Review’s analysis of 3 “levers” vividly illustrates, and substantiates, this claim:

While Sales Effectiveness is a meaningful avenue to “Increase Sales Volume”, it is NOT an avenue to “Decrease Discount”. That is the near exclusive domain of Value Selling. By the way, Value Selling impacts and enhances virtually every area of Sales Effectiveness. Value Selling is the avenue to both “Increase Sales Volume” and “Decrease Discount”.

See this Value Selling Success Story for a prime example of what I’m talking about.

Value Selling as a part of an organization’s DNA is the sure-fire avenue to Increased Sales Volumes, Decreased Discounts and higher corporate performance.

Since we’re talking about roadways, the avenue to world-class Value Selling as part of an organization’s DNA is a NXT-GEN ROI system. You can read more about that in general here and specifically what a NXT-GEN ROI system should enable. (Click Here)

The next post in the Supercharge Sales Effectiveness series will be about the “elephant in the room”, AKA CRM.

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