Pravda Media Group papers

9 | The Total Economic Impact™ Of SalesLoft Impact risk is the risk that the business or technology needs of the organization may not be met by the investment, resulting in lower overall total benefits. The greater the uncertainty, the wider the potential range of outcomes for benefit estimates. › The organization increases total net-new closed business following the adoption of SalesLoft; this can be found row A7. Given the composite organization offers a software-as-a-service (SaaS) offering under a subscription model, net-new business generated in the prior year carries over to the following year, as seen in row A8 below. › The composite organization has an average transaction size of $20,000 and maintains a gross profit margin of 15%. Uplifts in sales activity will vary significantly depending on the specific capabilities of existing sales staff and the presence of productivity- and efficiency-enhancing sales tools and technologies prior to the adoption of SalesLoft. In addition, total addressable markets, conversion rates, average transaction sizes, and profit margins will vary widely by industry, region, and company. To account for these risks, Forrester adjusted this benefit downward by 20%, yielding a three-year risk-adjusted total PV of more than $1.4 million. Profit Growth From Improved Sales Effectiveness Interviewed organizations saw significant improvements in down-funnel sales efficiency and effectiveness metrics following the adoption of SalesLoft. Interviewed companies shared specific impact examples that SalesLoft produced on sales performance, including: › When describing open rates, one interviewee explained: "For our inbound team, open rates are close to 40% today, which to me is outstanding. . . . And our outbound open rates — and now I'm talking about reaching out to cold contacts — are now close to 30%. [Prior to SalesLoft,] we were happy if we got 10% [open rates]." › When explaining his organization's conversion rates, the marketing operations and analytics manager at a security company remarked: "Our sales efficiency did improve. Prior to SalesLoft, our conversion rate was about 6% to 7%. Now, we're actually seeing our conversion rate in the 12% to 14% for the year." Profit Growth From Increased Sales Activity: Calculation Table REF. METRIC CALC. YEAR 1 YEAR 2 YEAR 3 A1 Sales activities before SalesLoft 225,000 225,000 225,000 A2 Sales activities after SalesLoft 310,500 345,000 345,000 A3 Increase in sales activities/interaction with SalesLoft A2-A1 85,500 120,000 120,000 A4 Post-SalesLoft response rate 25% 25% 25% A5 Post-SalesLoft conversion rate to opportunity 9.6% 9.6% 9.6% A6 Conversion rate from opportunity to closed business 5.0% 5.0% 5.0% A7 Increase in net-new closed business from SalesLoft A3*A4*A5*A6 103 144 144 A8 Cumulative increase in business due to SalesLoft (rounded) A7 PY +A7 CY 103 247 391 A9 Average deal size $20,000 $20,000 $20,000 A10 Profit margin 15% 15% 15% At Profit growth from increased sales activity A8*A9*A10 $309,000 $741,000 $1,173,000 Risk adjustment ↓20% Atr Profit growth from increased sales activity (risk- adjusted) $247,200 $592,800 $938,400

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