When it comes to making investments for your business, it is essential that you measure the success of these investments in terms of return on investment (ROI). This way, you will know what is and is not working for your business, and you can make informed decisions about where to allocate your resources. The same logic rings true for any business process that involves the expenditure of time and money – including your CPQ and sales process, and the way that you use business software and digital tools.
In this article, we present three tips on how to measure and improve the success of your business investments, with a focus on improving the efficiency and productivity of your sales process for better results, faster turnaround times, and lower overheads.
1) Define What You Want Your Return To Be
There are several ways to improve your ROI. One way to do this (easier said than done) is to increase the volume of sales while keeping your costs the same. This can be done through adding new and less resource-intense products or services to your portfolio, expanding into new markets, or shortening your sales cycle to allow greater output for each sales representative.
Another way is to reduce expenses while keeping your sales volume approximately the same, so that you obtain a higher margin for each sale. This can be accomplished by streamlining operations through automation (e.g. by implementing a new CPQ software solution), negotiating better rates with suppliers, targeted outsourcing, or reviewing your sales procedures to improve efficiency.
Finally, you may also see an improvement in your ROI through intangible benefits such as improved customer satisfaction or employee morale that leads to better customer retention or staff productivity. By clearly defining your goals and taking targeted and measurable steps to achieve them, you can improve your return on investment and grow your business.
2) Set Multiple Benchmarks For Your ROI Goals So You Can Measure Progress
When it comes to financial planning, setting goals is essential. However, it is also important to ensure that those goals are realistic and attainable with your current resources and processes. One way to do this is to set multiple benchmarks or intermediate KPIs for your ROI goals. This way, you can measure progress and make micro-adjustments as needed without overhauling your entire strategy. For example, if your goal is to achieve a 10% uptick on return on investment over the next financial year, you might set benchmarks at 5%, 7%, and 9%. This will give you a better idea of how your process is performing and whether or not you need to make improvements in order to reach your ultimate goal. By taking a practical and incremental approach to goal setting, you increase your chances of achieving success with more ambitious strategic goals.
3) Know The Return You’re Currently Getting
It’s important to know what kind of ROI you’re currently getting on processes and operations in your business. ROI could be delivered in the form of products sold, machinery or software used, or employees retained. By understanding where you stand at present, you can make informed decisions about where to allocate your resources for a better ROI in specific areas.
For example, if you’re selling a product or subscription service for £100 and it costs you £60 to produce, your current ROI is 40%. This means that for every pound you spend, you’re getting 40p back. Alternatively, if you’re using CPQ software that costs £1,000 and it generates £2,000 worth of output (through productivity or efficiency savings), your ROI is 100%. In this case, you’re getting two pounds back for every pound you invest in software infrastructure. Understanding ROI can help you make better and more intelligent decisions about where to allocate your resources for the best possible return.
Project Implementation Support From Quintadena
Whatever your business goals, our experienced team can help you optimise your sales process to leverage more success and better sales conversions from your quoting and estimation process. We offer full tailored project implementation for Quotewerks and ITQuoter, personalising your build to make it easier for you to achieve your strategic goals and improve your ROI. For more information, please contact our sales team today on 01216 691111.
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