In ninety days, Inforonics — a Managed Services Provider — recovered sales that had been lost to “no decision” or to in-house alternatives, by aligning its team around the value of its offerings and adopting value-based selling into account strategy.
Headquartered in Littleton, Massachusetts, Inforonics maintains, supports and enhances existing custom-developed software systems under a specified service level agreement for a fixed monthly fee. It has been recognised by Inc. as one of the fastest-growing privately held companies in the U.S., and by Deloitte & Touche as one of the fastest-growing technology companies.
Inforonics' managed services offered strong value, but feature-function-benefit selling failed to convey the comprehensive ROI those services generated for customers.
“There are many nuances of a managed service business case that make it
difficult to express in spreadsheets. We start with a consulting engagement, then offer a variety
of managed services. We needed a single solution that could create business cases for any
solution and business model.”
— Mike Medaglia, VP of Sales and Alliances,
Inforonics
Working with Inforonics' subject matter experts, the ROI models quantifying the value of its managed application services were completed in a matter of days.
By applying the ROI Framework™, Inforonics generates business cases for any solution from a single application. Preparing a proposal now means walking the customer through a simple process to gather their assumptions, so that every proposal carries a CFO-certifiable ROI analysis.
In one account the sales team was told the project could only proceed if a three-month payback could be proven. The team demonstrated the accelerated payback of their services, and showed how Inforonics would deliver the additional functionality the prospect's application needed to reach market faster — realising additional revenue.
As often happens in large organisations, the true financial buyer was shielded from the sales team. Inforonics' account team worked with a senior manager to craft a business case that credibly quantified the value of the engagement. Beyond a lower total cost of ownership, service quality and 24/7 help desk support settled the familiar in-house-versus-outsource debate.
| Earned in the first 90 days | Value |
|---|---|
| Consulting engagement (one-time) | $57,000 |
| Application maintenance (annual) | $48,000 |
| Hosting (annual) | $60,000 |
| Managed service contract (annual) | $48,000 |
| Three-year projected value | $489,000 |