Using Data to Measure Sales ROI

the CFO walked into our biggest client meeting with a spreadsheet. every vendor was about to get audited. our stakeholder looked terrified. this was the moment i'd been preparing for. six months earlier, i'd started tracking something other vendors ignored: our key stakeholders internal reputation. while competitors focused on product features, i focused on career protection. because i'd learned the hard truth: in a tight market, my champion's job security was my job security. sarah had been our internal advocate for two years. strong relationship. budget approval authority. genuine belief in our solution. but when the CFO announced budget cuts, everything changed. "every tool needs to justify its existence," he said. "show concrete ROI or it gets eliminated." i watched vendor after vendor present their value: "improved user satisfaction" "enhanced team efficiency" "better collaboration metrics" all impossible to verify and subjective. then it was our turn. i opened a different kind of presentation: "sarah approved our tool 18 months ago. here's exactly how that decision performed." slide 1: cost savings documented by your finance team. slide 2: revenue increases tracked in your CRM. slide 3: time savings verified by your operations data. numbers were independently verifiable. metrics came from their own systems. all claims could be audited. the CFO leaned forward. "this is the first presentation that uses our own data," he said. "how do you track all this?" "we built measurement into the implementation," i explained. "before sarah approved the purchase, we agreed on success metrics. then we tracked them religiously." sarah's relief was visible. the CFO made his decision on the spot: "this tool stays. full renewal." after the meeting, sarah pulled me aside. "you just saved my career," she said. "half the vendors couldn't prove their value. their champions are getting blamed for bad decisions." that's when i realized the fundamental shift: B2B sales isn't about convincing buyers anymore. it's about protecting champions. champions who can't prove ROI become cautionary tales. vendors who can't provide proof become liabilities. the market divided into two camps: tools that make champions look smart. tools that make champions look stupid. your champion's reputation is your retention rate. in a world where every expense gets scrutinized, champion protection is the only business. when your champion gets fired for buying tools that can't prove value, you lose credibility in the entire market. build for champion success. not just product success.

Now is the time for $25MM+ ARR B2B companies to conduct a split the funnel analysis to help surface key insights that will impact your 2025 plan We know not all leads are created equal and we use a split the funnel analysis to help identify which pipeline sources are contributing most to pipeline creation and closed won revenue Through the analysis, you will be able to identify which programs are creating demand and driving revenue and which ones are not Here’s how you do it: 1. Data collection including advertising spend, leads, opportunities by stage, average sales cycle 2. Data analysis including lead > opportunity conversion rates, lead > win rates, pipeline velocity and Ad CAC payback period 3. Extract insights from analysis to highlight programs driving majority of closed won revenue and programs that are not driving revenue at all Compile insights and data into executive summary presentation to share with the CEO You have an opportunity to meaningfully change the trajectory of your revenue forecast by deciding to stop programs that are not effective and to invest more programs that drive revenue Running a split the funnel analysis will help: - Surface infrastructure gaps in your CRM and MAP that are creating blind spots to measure ROI of your marketing programs - Identify which marketing programs are contributing the most to pipeline and revenue - Highlight inefficient programs that should be stopped for cost savings or a reallocation of budget to invest more in programs that are working Does this mean all marketing programs can be perfectly measured? No Does this mean we shouldn’t invest in brand marketing programs that we know are effective but are difficult to tie to pipeline and revenue? No This means that you should be taking an analytical approach and a common sense approach to your entire strategy to make the best possible decisions and investments #marketing #b2b #demandgeneration

Let's calculate the ROI of your data 🧮 We all know data is valuable—but how do you actually quantify the business impact? It’s not just about tools and infrastructure. It’s about how data helps your business make better decisions, save money, and drive growth. So, how can you do it? 1. Tie Data to Revenue 💰 Identify current and past initiatives where data drove the business forwards. This is likely happening all the time, but it isn't well-documented and thus not communicated. This can be both an evergreen data product (ex: enhanced customer profiles that improve ad targeting by 10%) or tools used for point-in-time decisions (ex: insights uncovered by an analyst led to expansion in a new market that is extremely profitable). 2. Measure Cost Savings 💳 Data can streamline processes and reduce waste. Maybe more detailed, realtime inventory data allowed the business to optimize logistics and save money on shipping. Or what used to be done by a costly external vendor can now be done internally for a fraction of the cost. 3. Calculate Time Saved ⏳ Employee time is the most valuable time of all. Catalog all the tools and datasets that are saving other teams hours of time. Now that those folks aren't wasting time trying to corral files or wrangle spreadsheets, how are they spending their time doing higher value tasks? Don't be afraid to get specific and break it down by how much an hour of each person's time is worth. 4. Factor in Risk Mitigation 🚫 This can be the hardest to calculate, but is also likely the biggest value that isn't being considered. Did data help avoid costly mistakes or fines? Every time data is used to back up a hypothesis or justify a business decision, that should be counted as part of your ROI too. Tracking the ROI of data can feel tricky, but when you connect it to revenue, savings, and time, it’s easier to show the value. Remember, data isn’t just a tool — it’s an investment in your company’s growth 📈

Is anything measured as a % of sales actually useful??? In this article, Doug Hicks, CPA explores this question. He notes "If I’m not mistaken, the overall financial goal of a for-profit organization is to generate the best possible return on investment (ROI) for its owners." With ROI being the appropriate measure of an organization’s overall “value,” wouldn’t it follow that the “value” of any segment of that organization’s business (e.g., customer, product, market) also be measured by its ROI? " In our PACE poll, 81% indicated that their organization’s measure of business segment profitability IS based on a percentage of sales, not ROI. He then walks through the problematic math of two products, each consuming different amounts of materials and activity costs, but both making sales of $10 million. Consider the case of a manufacturer with a $9 million investment that manufactures two products; Product A and Product B. Both have sales of $10 million. Product A’s cost is made up of $7 million of material and $2 million of activity costs – the costs of running the business to convert the material into the product. As a result, it has a 10% profit as a percentage of sales. Product B’s cost consists of $4.5 million of material and $4 million of activity cost. Its profit as a percentage of sales is 15%. Based on the profit as a percentage of sales measure, it would appear that Product B is more valuable to the company than Product A. But how about the investment? Since two-thirds of the company’s resources are dedicated to the production of Product B, isn’t it reasonable to assume that two-thirds of its investment is also dedicated to Product B? If that’s the case, Product A’s ROI is 33% ($1 million /$3 million) while Product B’s ROI is 25% ($1.5 million/$6 million). Product A is actually more valuable to the company than Product B. Considering the cost of capital is critical to getting a good picture of ROI, this article goes into more detail on possible methods to accomplish this. Please like/repost or comment to share it with your followers. --------------- ▪ Follow me🚶♂️🚶♀️for more insights ▪ Join 🤝 the PACE forum for discussion - (click the link in my profile) ▪ Click the 🔔 to get notified of new posts (top right of my profile) ▪ Subscribe 🖊 to my monthly newsletter #roi #measuringsuccess #accountingandaccountants Dudy Weizman Gustavo Oseliero Kadir Tas