INVESTMENT RETURN ANALYSIS
In our class on Traction I emphasize the importance of analyzing your return on the different marketing methods you are using. By testing the results we can tell if a particular method is worth the time and money expended.
Today I want to look at the concept of Investment Return Analysis, not from your benefit point of view, but from the point of view of your potential customer. Somewhere in most business transactions, the economic benefit of a product or service becomes an important consideration in the buy or no-buy decision.
The concept of return on investment is simple, and it is the basis for nearly every business purchase decision. The greater the customer’s return on investment, the more compelling it is for the customer to purchase – that is, make the investment.
There is an important factor to consider at this point: there are many possible returns on investment. Money as a return, although it seems to be the most focused on return, is not always the return that a potential customer is looking for.
Whatever our product or service, to be successful, we first have to sell the return that our product or service offers the investor. (I like the word investor as used in conjunction with a potential client.) The return on investment can be measured as:
- Increased quality of life.
- The precious gift of additional time.
- Increase in the bottom line.
- Better understanding of a certain aspect of business, i.e. marketing, finance, etc.
- Becoming a leader in your industry.
- Name recognition.
- Embracing new technology.
This is only a very short list of possible investor benefits.
Each and every product or service that is offered has to have a return on investment in the mind of the purchaser. Your job is to understand the needs of your target market and then to demonstrate the value of the investment in your product or service. Next time you talk to a prospect, concentrate on introducing the investment value you are offering.
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