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© Copyright CDC Software 1 Calculating Return on Investment.

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1 © Copyright CDC Software 1 Calculating Return on Investment

2 © Copyright CDC Software 2 Ideas For Marketing ROI  Create Your ROI with a “Low” and a “High” ROI –Single Numbers are inherently wrong. Ranges are safer and more accurate.  Always Present An ROI In Person Throwing a document is a recipe for failure  Don’t just throw out figures Tie the figures to the reasons they are there. To the reasons they are true. Each figure-area should have an explanation Discuss the risks with each figure. If some are a bit iffy, say so.  Don’t Show All The Figures All At Once –Build through the calculations so that the final ones make sense –Usual Low First. Then the Low ROI Final Figure –Then go through the High Calculations. Then the High ROI Figure  Create Your ROI with a “Low” and a “High” ROI –Single Numbers are inherently wrong. Ranges are safer and more accurate.  Always Present An ROI In Person Throwing a document is a recipe for failure  Don’t just throw out figures Tie the figures to the reasons they are there. To the reasons they are true. Each figure-area should have an explanation Discuss the risks with each figure. If some are a bit iffy, say so.  Don’t Show All The Figures All At Once –Build through the calculations so that the final ones make sense –Usual Low First. Then the Low ROI Final Figure –Then go through the High Calculations. Then the High ROI Figure

3 © Copyright CDC Software 3 Create Low To High ROI Range  Low will often be very low…and high will often be very high.  Expect and explain before presenting figures that there is a significant difference between the two figures… and there should be!  “Low” is often based on hard cost savings… –Personnel Salaries, Reduced Systems Savings, Lower Outsourcing Costs, –Often “Low” will be a 1-2 year ROI  “High” is often based on revenue increases –Increases in Leads –Increases in Conversion Ratio –Increases in Contract Renewals, Customer Retention, etc. –Increases in Deliverability –High will often indicate a 1-2 month ROI  Best to submit when both are above your target ROI range  Low will often be very low…and high will often be very high.  Expect and explain before presenting figures that there is a significant difference between the two figures… and there should be!  “Low” is often based on hard cost savings… –Personnel Salaries, Reduced Systems Savings, Lower Outsourcing Costs, –Often “Low” will be a 1-2 year ROI  “High” is often based on revenue increases –Increases in Leads –Increases in Conversion Ratio –Increases in Contract Renewals, Customer Retention, etc. –Increases in Deliverability –High will often indicate a 1-2 month ROI  Best to submit when both are above your target ROI range

4 © Copyright CDC Software 4 Independent Facts On Which To Base Your ROI Fact You Can Use  Over 2/3rdsd of companies currently using an automated lead management solution have seen a 10%+ improvement in lead to sales conversion rates. –Aberdeen Group March 2007 Sales BenchMark Report  95% of Best-in-class companies integrate their marketing campaigns into their marketing automation solution for lead management. –Aberdeen Group March 2007 Sales BenchMark Report Fact You Can Use  Over 2/3rdsd of companies currently using an automated lead management solution have seen a 10%+ improvement in lead to sales conversion rates. –Aberdeen Group March 2007 Sales BenchMark Report  95% of Best-in-class companies integrate their marketing campaigns into their marketing automation solution for lead management. –Aberdeen Group March 2007 Sales BenchMark Report Value To Your ROI Using a figure of a 10% improvement in conversion rates is reasonable. To be a Best In Class Company we need to do this. See the comparative performance of BIC companies on upcoming graph.

5 © Copyright CDC Software 5 Independent Facts On Which To Base Your ROI

6 © Copyright CDC Software 6 Independent Facts On Which To Base Your ROI 1: Determine what your current percentages are for each of the three categories and where you currently fall around the Average or even Laggard category. Internal measurements don’t need to be exact. The very fact that you don’t have exact figures can be part of the argument.

7 © Copyright CDC Software 7 Independent Facts On Which To Base Your ROI 2: Determine how close you expect to come to the BIC figures. Know exactly why and how MarketFirst will enable you to accomplish these BIC goals. Now you have the key figures on which to base your ROI.

8 © Copyright CDC Software 8 Annual ROI Falls Out Year by Year Determine ROI based on any combination of: Additional Lead Gen Customer Claw Back Up Sell/Cross Sell Additional Campaigns

9 © Copyright CDC Software 9 Consider all Risk Factors with appropriate mitigation plan in place.

10 © Copyright CDC Software 10 Summarization Page Graphs: Year by Year ROI Cost Savings Additional Revenue Risk Factors


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