image
image

Ten Dirty Little Secrets About ROI Analysis

Have you noticed that ‘ROI’, a term formerly reserved for the outcome of an in-depth investment analysis, has evolved to a catch-all buzzword used by sales and marketing people?  Everyone touts ROI to the point it has become meaningless noise to most buy-side executives.  ROI has morphed into another financial benefit waste word along with efficiency, effectiveness, and productivity.  Many sales professionals pull out the ROI wand as if the mere mention of the word carries some magical influence over their customer’s investment analysis.

I’m not suggesting that discussing ROI with your customers is inappropriate.  But I am suggesting that you stop using the R-word if you can’t say something more substantive and quantitative about the financial benefits of your solution.   If you want to improve your relevancy with customer executives, you better be able to engage them in a dialog about the financial impact your solution will have on their business.  This goes way beyond throwing out a ROI number.

Read More »

Catch The First FinReg Waves Washing Up On Investment Banks

Hang ten in the financial services industry and catch some of the first waves of business model changes washing up on the investment banking shores … dude. As I advised in a prior blog post, Selling Into FinReg, NOW is the time to sell the financial value of your solutions. Catch the wave! SeeWSJ article.

The regulatory sea change, that is andwill be (with 243 rules remaining to be written) the Dodd-Frank Wall Street Reform and Consumer Protection Act (HR 4173), has begun to upend business models across the financial services industry. And Basel III, the global bank reform standards issued last month and scheduled to be finalized next month, has raised the wind speed and accelerated the pace of structural changes.

Read More »

How To Break Open The Corporate Piggy Bank

In business, cash is king; but the king is starting to hoard his riches. Sales professionals better get a big hammer to break open this bulging piggy bank.

By now you’ve probably heard that companies around the world, particularly in the U.S., are building up record cash piles. U.S. corporations hold more cash on their balance sheet than at any point on record. Nonfinancial companies in the S&P500 stock index are sitting on a record $2 trillion, according to FactSet. S&P reports the average company in its flagship index is carrying cash in the bank equal to 11.6% of their stock market value compared to less than 3% a decade ago. According to J.P. Morgan Chase, if cash balances for the companies in the S&P500 index returned to normal levels (about 7% of assets from the current 11%), it would result in spending of $428 billion!

Read More »