Interactive ROI Modelling

When engaging in building a business case for a high-value solution, calculating and validating the Return on Investment (ROI) is key. A clear ROI calculation can help the seller defend value over price and counter deal slippage, by agreeing with the buyer a measurable Cost of Delay related to a timely buying outcome. The basic ROI Formula is:

This simple calculation can of course, be based on any number of measurements or metrics that make-up the total for Gain from Investment and Cost of Investment. However, what's key here is the word 'Interactive': where Interactive ROI Modelling requires a truly open, iterative dialogue between buyer and seller, delivered as a series of Mutual Value Discovery workshops.

Since buying is based on both an Economic Basis of Decision and an Emotional Basis of Decision, the ROI Model should include value measurements from both explicit financial metrics and implicit factors that require important, if somewhat less tangible metrics. This applies to both the Gain from Investment and the Cost of Investment for the ROI Formula.

The Mutual Value Discovery process can start from the very beginning of the opportunity cycle, where the seller can create a series of stimulating 'what-if' ROI Models as Interactive ROI Calculators, published online and marketed through micro-blogs via Twitter. This can direct the prospective buyer to a microsite, where they can explore the different ROI outcomes.

The big challenge here, of course is this: how can the seller (often an unknown challenger) gain meaningful traction with an empowered buyer (often a hard-to-reach executive-level decision-maker)? The answer is Gamification and applying Gaming as a Business Platform: using stimulating games in a business context of the high-value, ROI-led sell. 

To achieve meaningful engagement between buyer and seller, introduce Gamification into the ROI Modelling Microsite. In this context of Interactive ROI Modelling, make it a game - challenge the buyer to something stimulating and worthwhile - breaking down the classic barriers between buyer and seller, leveraging a meaningful Social Interaction.

Then creating Game Analytics delivers key insights to both buyer and seller in different ways. By introducing Gamification externally to the ROI-led sell, this also enables the application of different games to increase sales effectiveness and sellside team collaboration. This is integral to driving both sides of a Customer-Employee Dynamics equation. 

By combining Twitter, blog and Web design, Interactive ROI Calculators can be used to attract hard-to-reach, empowered decision-makers with relevant ROI models and the ability to save calculations as PDF documents for sharing among colleagues. These Interactive Decisioning Tools become the foundation for subsequent Mutual Value Discovery workshops.

The Economic Basis of Decision can be calculated by considering the explicit financial metrics that generate the Gain from Investment numbers against a given pricing model that provides the Cost of Investment. The Emotional Basis of Decision can provide additional multipliers for ROI, derived from implicit value metrics, such as risk, compliance, etc.