If you’re in the market for sales enablement software, chances are you’ve noticed that any good solution includes a mobile sales tool that brings sales and marketing closer.
This technology has the potential to simplify how things are done, save time, and make selling a lot easier. Still, it takes time and money to implement a new piece of software, and you want to show ROI. Not every sales enablement solution is created equal.
So how do marketing teams go about measuring the ROI? Read on to learn how to calculate ROI for sales enablement.
1. The basic elements of ROI for sales tools
Let’s examine the ways your organization will profit from the decision to implement sales enablement software with a mobile sales component.
Sales enablement software done right creates real ROI in multiple ways:
- It eliminates wasted time, allowing salespeople to spend more time closing deals
- It yields greater sales effectiveness by ensuring salespeople have quick access to current information and tools, producing higher win rates and faster cycles
- It shortens training time for new sales reps
Let’s take a look at how you can start to calculate ROI for your mobile sales software.
2. Eliminate wasted time
According to a report by Gartner, sales people spend on average in excess of four hours per week looking for digital assets. Sales enablement software with embedded digital asset management functionality can reduce that wasted time.
For example, what if you could save a salesperson just one hour a week? That translates into about fifty hours in a year. Ten sales people? Five hundred hours. A hundred sales people? Five thousand hours. You get the idea. The larger your sales organization, the more impact even a single hour per rep will make.
Value driver: saving an hour or two will give back 3-5% of a sales reps total working time to be rededicated to more fruitful pursuits. If a rep is spending 10 hours a week prospecting, however, an hour or two added to it could produce 10-20% more prospecting time, which will result in fuller opportunity pipelines and ultimate translate into more won deals.
3. Produce Better Sales Outcomes
Ineffectiveness causes as much trouble for sales professionals as inefficiency, if not more. Do the current product informational materials resonate with prospects and customers? Are you getting the right message across, telling the right story? Beyond features and benefits, are you really helping to guide the customer to an informed decision that wins your organization the business?
Mobile sales tools link marketing and sales – as a digital platform, there is built-in feedback (analytics) to marketing to help optimize sales content for the sales team. Evidence showing what material is most helpful to selling the product provides crucial information to marketing that will inform future content development efforts.
Value driver: mobile sales enablement software can often improve close rates by 3%, conservatively. Look at your win/loss ratio across your sales organization and calculate the difference in sales revenue with if the win rate was higher by 3%.
4. Shorten Training Time for New Sales Reps
Training is a major cost for sales teams. While each organization is unique, it usually takes between three and six months for a new sales rep to understand their customers and their products well enough to be truly effective.
Mobile sales tools greatly shorten sales ramp-up time in two key ways. First, the sales rep in training can explore the product mix at his or her own speed. Second, the rep gets to see the interactive mobile sales tool with the fresh eyes a prospect would.
Value driver: manufacturing clients who sell through dealer channels see at minimum a 50% reduction in sales staff training time. This means a well-designed mobile sales tool directly creates a faster path to productivity.
Putting It All Together
Let’s look at an example of the ROI calculation for a mid-sized manufacturer:
- Number of sales reps (including dealer channel): 100
- Sales per rep avg. (all reps): $1,000,000
- Sales rep attrition rate (annually): 20%
- Ramp up duration new reps: six months at 50%
- Wasted time recovered 1 hrs. / rep / week: 5,000 hours per year
- Additional sales with 2.5% effectiveness increase: $2.5M
- Increased sales from heightened productivity of new reps: $2.5M
With the above (conservative) assumptions, the manufacturer stands to realize $5M in additional sales revenue while recovering 5,000 hours wasted to inefficiency.
For a modest up-front investment, and the ongoing annual licensing of a SaaS product, any way you slice it, that is an appealing return on investment.
If you would like to see how our mobile sales tool, BAM!, can deliver ROI to your organization, contact us for a demo.
Or, start out by learning more about how BAM! works.