How to Start Calculating ROI From Your Sales Stack

The decision to invest in a sales stack can be a game-changer. It promises to enhance sales performance, streamline processes, and boost revenue generation. However, understanding and quantifying the Return on Investment from your sales tools is not a straightforward task. In this blog post, we'll delve into the intricacies of calculating ROI from your sales stack and the crucial considerations that should guide your approach.

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Define, Measure, Take Action

Before you can gauge ROI, it's essential to have a clear understanding of how your organization categorizes productive or direct selling activity. What tasks and actions do you consider as contributing directly to revenue generation? Establishing this baseline is the foundation of ROI calculation. These will generally be activities where they are actually speaking to a prospect or customer, or attempting to. 

Measuring productive activity is the next critical step. How are you currently tracking and quantifying these activities? Accurate measurement provides the data necessary to assess the impact of your sales stack. Most tools have this in built, but it’s nothing without insight.

While tools can measure productivity, true efficiency and ROI are achieved when these measurements translate into action. 

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More Time Selling vs. Higher Skilled Sellers

Consider the outcome of increased efficiency. Does it result in more time for your sales team to focus on selling, or does it allow for higher-skilled salespeople to emerge? Both scenarios contribute to ROI, as they enhance your team's effectiveness. Depending on ability to hire, speed of hiring and onboarding, existing coaching and training of sellers you may need to consider which of these two avenues to ROI is best. More time selling does not work if they are not skilled sellers, but it will quickly reveal true skill levels.

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The Ultimate ROI: Higher Revenue

ROI, in its essence, is measured by higher revenue—whether through increased deal sizes, greater sales volume, or a combination of both. Your sales stack's success is determined by its ability to deliver these tangible financial benefits.

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Consider All Of The Costs

Calculating ROI isn't just about measuring gains; it's also about considering the costs involved. Account for the expenses associated with your sales stack, including the cost of the tool itself. Additionally, factor in potential downtime during implementation and any temporary dips in productivity as your team adapts to new processes.What cost to pipeline or revenue might that have on top of the cost?

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The Grass Isn’t Always Greener - The Best ROI Might Be In Front Of You…

Before rushing into acquiring new tools, take a step back and look inward. Evaluate your team and existing processes thoroughly. Are there internal optimizations that could enhance efficiency without adding new tools?

Review your current toolset. Are these tools fully utilized, or are there untapped functionalities that could be leveraged to boost productivity? Sometimes, optimizing existing resources can be just as impactful as introducing new ones.

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New Tools as a Strategic Move

Consider new tools or sales stack changes as strategic moves. They should align with your organization's goals and complement your existing resources. Assess if these additions genuinely address specific pain points or opportunities for improvement.

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Calculating ROI from your sales stack is a multifaceted process that goes beyond mere measurement. It hinges on understanding productive activity, translating metrics into actionable improvements, and, ultimately, driving higher revenue. Costs and internal considerations play a pivotal role in this evaluation. Remember that ROI can manifest in various ways, whether through more time selling or the emergence of highly skilled sales professionals. By carefully analyzing your team, processes, and existing tools, you can make informed decisions that lead to tangible ROI and, ultimately, a more successful sales operation.

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