To paraphrase Mark Twain\u2019s comment about the weather, everyone talks about value, but very few people actually do something about it. Clearly value is important: The lack of a clear value equation lengthens or kills sales cycles and is one of the main reasons for \u201cNo Decision\u201d outcomes.<\/p>\n
So, let\u2019s explore how to make uncovering and communicating value an advantage for you!<\/p>\n
Hope you find this article valuable!<\/p>\n
Compare the following exchanges:<\/p>\n
Scenario One:<\/strong><\/p>\n \u201cIf you use our product, you\u2019ll save time and money\u2026!\u201d offers the vendor rep. Scenario Two:<\/strong><\/p>\n \u201cIf you use our product, you\u2019ll save time and money\u2026!\u201d says the sales rep. Scenario Three:<\/strong><\/p>\n \u201cIndustry averages show savings of a half a million dollars a year\u2026!\u201d declares the rep. Scenario Four:<\/strong><\/p>\n \u201cOther customers in the same space, similar to you, enjoyed savings of $400,000 per year,\u201d offers the vendor rep. Scenario Five:<\/strong><\/p>\n \u201cWhen we spoke last week, I believe you said you hope to recover $275,000 annually as a result of addressing your problem,\u201d says the vendor. In the first case, the vendor sounds like they are reciting from a marketing brochure, and it clearly doesn\u2019t connect with the prospect (sorry, marketing folks\u2026!).<\/p>\n In the second scenario, the rep has offered the same unhelpful value statement, unintentionally contributing to a No Decision outcome!<\/p>\n The third case shows some improvement, but value numbers from Gartner and other industry analysts are still insufficient to support prospects\u2019 needs to build compelling business cases.<\/p>\n The fourth scenario is even better, and can be helpful for the prospect, but it still<\/em> lacks the required specifics for prospects\u2019 business cases.<\/p>\n In the fifth scenario, the rep had done sufficient discovery<\/a> to uncover the prospect\u2019s <\/em>perception of the value of the solution, and the deal is moving forward nicely!<\/p>\n With these five examples, we can quickly understand three key ideas about value and value communication:<\/strong><\/p>\n That\u2019s clear, but how do you uncover specific value numbers for your prospects?<\/p>\n Value can be easily defined as, \u201cThe difference between the way things are done today vs the way they could be done or need to be done with a solution in place, expressed in terms of tangible<\/em> numbers.\u201d<\/p>\n In the Great Demo! and Doing Discovery methodologies<\/a>, this difference is called the Delta, the tangible assessment of the value of making the change, expressed in terms of specific units of time, people or money. For example:<\/p>\n While value can include both tangible and intangible elements, the tangible elements of value are much more important in sales and buying processes and are much more convincing. Very simply, the prospect cannot use intangible aspects of value to persuade senior management to invest in purchasing software. A reasonable ROI or business analysis is required to make a purchase happen. Numbers drive purchases, not platitudes!<\/p>\n So, how do you gather these Deltas?<\/p>\n Many Deltas are easy to uncover and communicate. Consider the following portion of a conversation with a prospect, in this case the prospect is the head of sales of a mid-size SaaS company:<\/p>\n You ask, \u201cSo tell me, please, where are you with respect to your quota this year?\u201d<\/p>\n The reply, \u201cI\u2019m currently at 72% of quota \u2013 $7.2 million out of $10 million \u2013 and we\u2019ve got about 125 more days in the year\u2026 I must<\/em> find a way to get that $2.8 million gap closed!\u201d<\/p>\n You smile, quietly, to yourself: The Delta is $2.8 million, a very tangible, compelling number! Even better, this Delta is also<\/em> tied to the head of sales\u2019 Critical Business Issue<\/a>, which is to achieve or exceed quota.<\/p>\n This is, for you, the best-case scenario, as it incorporates three key elements of a Great Demo!<\/a> Situation Slide:<\/p>\n Critical Business Issue : Achieve or exceed annual quota.<\/p>\n Delta : $2.8 million gap<\/p>\n Critical Date : End of the head of sales\u2019 fiscal year<\/p>\n Here are a few more examples of easy-to-uncover Deltas:<\/p>\n The two types of questions to ask in these cases are:<\/p>\n You simply need to subtract the current state from the desired future state to calculate the Delta. Easy!<\/p>\n Those are simple situations; you only need to ask the two questions and do the math. Let\u2019s now look at slightly more complex scenarios.<\/p>\n Many operations-oriented and workflow-based Deltas can be uncovered during discovery, conversationally.<\/p>\n For example, your prospect says, \u201cIt takes us way too long<\/em> to complete this process today\u2026!\u201d<\/p>\n You respond, \u201cSorry to hear this. On average, how much time does it currently take for each person to complete the process?\u201d<\/p>\n \u201cHmmm \u2013 I\u2019d say about one and a half days, on average,\u201d is your prospect\u2019s response.<\/p>\n You continue with another factor, \u201cAnd how often does this process take place for each person?\u201d<\/p>\n \u201cEvery week \u2013 it\u2019s a major portion of our jobs,\u201d says your prospect.<\/p>\n \u201cSo that\u2019s about fifty times a year,\u201d you comment. \u201cTell me, how many people are executing the process today?\u201d<\/p>\n \u201cTwenty folks,\u201d is the reply.<\/p>\n Now let\u2019s do the math: 20 people x 50 times per year x 1.5 days each time = 1500 person-days.<\/p>\n You summarize and then query, \u201cSo, it looks like this is currently consuming 1500 days each year of your team\u2019s time. What would you like<\/em> it to be, or what does it need<\/em> to be, to feel that you have solved the problem?\u201d<\/p>\n Your prospect replies, \u201cGood question \u2013 if I could just reduce this to a half-day per person, I\u2019d be a hero to my team, and I know I\u2019d meet my objectives.\u201d<\/p>\n Ah ha! Just two more calculations yield this Delta:<\/p>\n 1000 person-days. That\u2019s the difference between the way things are today and the desired future state. Best of all, the numbers came from your prospect\u2019s <\/em>lips!<\/p>\n Three notes on this:<\/p>\n OK, so uncovering the value by calculating a Delta can be done conversationally, with sometimes surprising results for your prospect when large numbers emerge from the discussion!<\/p>\n When many vendor team members hear their prospect admit pain in a discovery conversation, the sales team thinks, \u201cAh ha \u2013 we have uncovered their problem<\/em>, so now we can present a solution<\/em>\u2026!\u201d Truly great sales teams hold back at this point and, instead of leaping to offer a solution, they ask a few more questions about the value of making the change.<\/p>\n When you hear any of the following phrases from your prospect, consider each as an opportunity to explore the Deltas:<\/p>\n Prospect says, \u201cIt takes us forever<\/em> to get this done today\u2026!\u201d<\/p>\n You should ask, \u201cHow many people are involved, how often do you do this, and how long does it currently take? What would you like it to be?\u201d<\/p>\n Prospect notes, \u201cWe have too many people focused on this\u2026\u201d<\/p>\n You should enquire, \u201cHow many people, how often, how long? What would you like it to be?\u201d<\/p>\n Prospect admits, \u201cWe have considerable project overruns\u2026\u201d<\/p>\n You should explore, \u201cHow many projects, how many overruns, and by how much? What reductions are needed?\u201d<\/p>\n Prospect realizes, \u201cI can\u2019t get this done with the current staff.\u201d<\/p>\n You should pursue with, \u201cHow many staff today, how many extra team members are needed?\u201d<\/p>\n Any time you hear your prospect admit pain it represents an opportunity to explore and uncover one or more Deltas for that pain. Don\u2019t let those opportunities escape uncaptured!<\/p>\n \u201cAnd if you use our tool,\u201d said the salesperson, \u201cyou\u2019ll save millions every year!\u201d<\/p>\n The response from the prospect team was indifferent, even quietly hostile. Why?<\/p>\n The group were all individual contributors, and in response to the salesperson\u2019s claim they<\/em> were thinking, \u201cSure, and we\u2019ll <\/em>never see any of that money\u2026!\u201d<\/p>\n There are three interchangeable expressions of value: time, people and money. These are simply three ways of expressing the consumption, redeployment or liberation of resources associated with solving a problem. Generally speaking, people at different levels of an organization perceive value through different filters, aligned with these three parameters:<\/p>\n So, when discussing value, we need to articulate it in alignment with the person we are speaking with.<\/p>\n (It is even worse when the salesperson says to lower-level folks, \u201cAnd if you use our AI<\/em> tool, you\u2019ll save millions every year!\u201d<\/p>\n Now, not only is the group thinking, \u201cWe\u2019ll never see any of that money\u2026!\u201d but they are also worrying, \u201cAnd that AI may be taking our jobs<\/em>!\u201d)<\/p>\n Returning to our earlier operational example, we uncovered the following information in discovery:<\/p>\n So, enabling our prospect to solve their workflow problem will save them 1000 person-days per year. But most people can\u2019t visualize \u201c1000-person-days,\u201d so we need to translate that quantity into the corresponding numbers for money, people, and time.<\/p>\n But to do this we need two more pieces of information:<\/p>\n Our prospect tells us it is 250 days per year (tough company!).<\/p>\n Now we can complete the translation from \u201c1000 person-days\u201d to money, people, and time:<\/p>\n Now, your communication of value, via Deltas, is both precise and<\/em> in alignment with your prospect\u2019s job levels!<\/p>\n Let\u2019s revisit the five scenarios at the start of this article. If a vendor doesn\u2019t uncover the prospect\u2019s numbers when discussing value, what happens? What is the effect?<\/p>\n \u201cIf you use our product, you\u2019ll save $500,000 a year\u2026\u201d says the vendor to the prospect.<\/p>\n The prospect looks skeptical but doesn\u2019t say anything.<\/p>\n Have you ever seen this happen in a meeting with a prospect? Very simply, vendors\u2019 numbers are not believable and aren\u2019t helpful in moving the buying process forward.<\/p>\n There are normally four categories of Value Numbers (OK, five if you count \u201cNo numbers!\u201d):<\/p>\n Whose numbers are most believable? Your prospect\u2019s <\/em>numbers, of course.<\/p>\n \u201cI believe you said you are looking to save $400,000 a year \u2013 is that still correct?\u201d You gathered this information during your explorations of specific Deltas in your discovery conversation with this prospect. Your prospect\u2019s own numbers are the most compelling and most believable.<\/p>\n But what if you were unable to get specific numbers from your prospect, because they don\u2019t know them? Whose numbers are next<\/em> best?<\/p>\n Other, similar<\/em> customers. That is, organizations that are perceived as peers to your target prospect. Their numbers are next best and can be very compelling, particularly for Vision Generation<\/a> demos and to help discovery conversations more forward. For example:<\/p>\n You say, \u201cOther<\/em> customers that we\u2019ve worked with, who are very<\/em> similar to what you\u2019ve outlined to us so far, reported that they were able to save $200,000, $300,000 and sometimes as much $500,000 each year\u2026\u201d<\/p>\n \u201cVery interesting,\u201d responds your prospect, \u201cI think we are likely in that same range.\u201d<\/p>\n This sets you up to explore your prospect\u2019s specific situation in more detail.<\/p>\n What if you have no reasonable starting point with existing customers and the value they have enjoyed? Whose numbers are next on the list?<\/p>\n Industry and analyst numbers: Gartner, for example. Prospect perception of the relevance of these numbers is pretty low, however, since they represent broad swaths of customer types, sizes, and geographies. These estimates are not particularly compelling or believable for an individual prospect.<\/p>\n For example, the average height of an American male today is 5\u2019 9\u201d (1.77m). If you are 6\u2019 3\u201d (1.91m) you would be skeptical of the claim, \u201cPerfect size for the average man\u2026\u201d<\/p>\n And while these industry number might serve as a starting point for a discussion, they are rather weak. (If you currently lack specific numbers for your current customers, here\u2019s<\/a> a solution!)<\/p>\n And whose numbers are at the very bottom of the list? (Let\u2019s all say it together!) The vendor\u2019s<\/em> numbers. These are, without question, the least<\/em> believable by prospects:<\/p>\n \u201cYou\u2019ll save $500,000 each year\u2026\u201d\u00a0 The result? Disbelief and skeptical looks.<\/p>\n Note also that vendor-generated \u201cROI Calculators\u201d and \u201cValue Calculators\u201d suffer a similar fate. Even though the prospect may plug in their own numbers, the calculations are done by the vendor, which makes the results suspect!<\/p>\n Next, is there a way to elegantly close the loop regarding value expected and value enjoyed? Yes, indeed \u2013 and this can be a huge<\/em> differentiator in your favor!<\/p>\n Have you ever made a major software purchase?\u00a0If you have, you\u2019ll recognize the following; if you haven\u2019t, be aware that the following is what your buyer or buying committee is going through!<\/p>\n The moment you signed that license agreement and issued that purchase order, immense pressure descended heavily onto your shoulders: The pressure of the responsibility of realizing the ROI, the return on your investment.<\/p>\n When was that pressure released?<\/p>\n Was it released when implementation took place? Likely not. What about after initial roll-out? Maybe, but only for solutions that yield immediate returns. In most cases with large software purchases it can take a while before customers begin to enjoy their desired gains.<\/p>\n Accordingly, the pressure begins<\/em> to be lifted when the person or team who made the purchase enjoys a Value Realization Event<\/a>: An early victory when a small, but relevant portion of value is realized. A small, but important \u201cwin.\u201d This is not<\/em> when the full ROI of the solution is enjoyed, which might take months or even years, it is a small, but important success along the way towards full ROI.<\/p>\n Consider the following vendor actions:<\/p>\n The discussion of an implementation timeline and Value Realization Events establishes a \u201cTransition Vision,\u201d your prospect\u2019s vision of how they will move from their current painful situation through \u201cGo Live\u201d all the way to achieving key Value Realization Events enroute to their full ROI. This is a key element of Doing Discovery<\/em><\/a>, and the vendor that does this well enjoys a distinct competitive advantage over vendors who do not!<\/p>\n That suggests a few additional discovery questions, such as:<\/p>\n Note also that the point in time when initial Value Realization Events are achieved is\u00a0also<\/em>\u00a0the point in time when your customer will be open to becoming a reference and paves the way for renewals! Intrigued? If you haven\u2019t done so already, read more about Value Realization Events here<\/a>!<\/p>\n So, everyone talks<\/em> about value, but very few vendors actually do<\/em> something about it. Most vendors fail to adequately uncover and communicate value, and they suffer slowed sales processes and high No Decision rates as outcomes.<\/p>\n You and your organization can join the select few who do <\/em>uncover tangible expressions of value, right from your prospects\u2019 lips, and enjoy crisper sales and buying processes, markedly reduced No Decision rates, accelerated renewals, expansion, and delighted customers!<\/p>\n Copyright \u00a9 2014-2025 The Second Derivative \u2013 All Rights Reserved.<\/p>\n To learn the methods introduced above, consider enrolling in a Great Demo! Doing Discovery or Demonstration Skills Workshop<\/a>. For more demo and discovery tips, best practices, tools and techniques, explore our blog and articles on the Resources pages of our website at https:\/\/GreatDemo.com<\/a> and join the Great Demo! & Doing Discovery LinkedIn Group<\/a> to learn from others and share your experiences.<\/p>\n","protected":false},"excerpt":{"rendered":" Let\u2019s Talk About Value \u2013 Uncovering the Delta A Never Stop Learning! Article To paraphrase Mark Twain\u2019s comment about the weather, everyone talks about<\/p>\n","protected":false},"author":2,"featured_media":42459,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[8],"tags":[6],"class_list":["post-42446","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-great-demo-blog","tag-articles"],"acf":[],"_links":{"self":[{"href":"https:\/\/greatdemo.com\/wp-json\/wp\/v2\/posts\/42446","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/greatdemo.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/greatdemo.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/greatdemo.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/greatdemo.com\/wp-json\/wp\/v2\/comments?post=42446"}],"version-history":[{"count":3,"href":"https:\/\/greatdemo.com\/wp-json\/wp\/v2\/posts\/42446\/revisions"}],"predecessor-version":[{"id":42460,"href":"https:\/\/greatdemo.com\/wp-json\/wp\/v2\/posts\/42446\/revisions\/42460"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/greatdemo.com\/wp-json\/wp\/v2\/media\/42459"}],"wp:attachment":[{"href":"https:\/\/greatdemo.com\/wp-json\/wp\/v2\/media?parent=42446"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/greatdemo.com\/wp-json\/wp\/v2\/categories?post=42446"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/greatdemo.com\/wp-json\/wp\/v2\/tags?post=42446"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\n\u201cBlah blah blah blah blah blah blah\u2026\u201d thinks the prospect.<\/p>\n
\n\u201cThat isn\u2019t particular compelling,\u201d thinks the prospect, \u201cwe\u2019ll revisit this project next year\u2026\u201d<\/p>\n
\n\u201cBut we\u2019re not \u2018industry average,\u2019\u201d thinks the prospect, \u201cwe\u2019re not even the same size as the average company in our space.\u201d<\/p>\n
\n\u201cWell, that\u2019s better,\u201d thinks the prospect, \u201cthat\u2019s a good datapoint, but I need our own<\/em>, specific numbers to get this project approved!\u201d<\/p>\n
\n\u201cThat\u2019s right,\u201d replies the prospect, \u201cthat\u2019s the kind of change I need to meet my objectives.\u201d<\/p>\nWhich approach is more compelling?<\/h5>\n
\n
The Delta<\/h3>\n
\n
Easy Deltas<\/h3>\n
\n
\n
Operational and Workflow Deltas<\/h3>\n
\n
\n
When Should You Explore the Delta?<\/h3>\n
Communicating Value<\/h3>\n
\n
\n
\n
\n
\n1000 person-days \/ 250 working days per year = 4 FTE; 4 FTE * $100K = $400K
\nThe Delta for the senior management is: $400K annual savings<\/li>\n<\/ul>\n\n
\n1000 person-days \/ 250 working days = 4 FTE
\nThe Delta for the middle managers is: 4 FTEs who can be redeployed to other, more productive tasks<\/li>\n<\/ul>\n\n
\nThis one is straightforward: \u00bd day each time the workflow is executed
\nThe Delta for each staff member is: \u00bd day each week<\/li>\n<\/ul>\nWhose Numbers?<\/h3>\n
\n
\n\u201cThat\u2019s right,\u201d replies your prospect, \u201cThat\u2019s exactly our situation.\u201d<\/p>\nValue Realization<\/h3>\n
\n
\n
Back to Twain<\/h3>\n