ROI - Return On Investment
The key idea here is that you communicate Return on Investment by looking at your value proposition through your customers' eyes. In other words, why should they spend their scarce money with you, versus using the funds in some other way?

Creating Value with Your Product or Service:
First, list all the ways that you create value for your customers. Does your product or service,
  • Help clients increase their revenues? Does your product/service increase their sales? Create more leads? Increase their competitiveness in their market? Shorten the sales cycle? Get repeat and referral business?
  • Allow them to raise prices, or at least hold price level? Does the value you create allow your customer to charge higher prices for their offering?
  • Reduce expenses? Does it reduce initial or ongoing cost? Does it reduce overhead such as utilities and rent or carrying charges? Does it save money on materials, equipment, staff, and outside services? Does it provide a more economical installation or a longer life span? Does it reduce error rate?
  • Allow them to replace some existing expense at a lower cost?
  • Enable staff headcount reductions? Does it allow your customer to make headcount reductions in staff or support personnel?
  • Avoid impending or predicable expenses? Does it help avoid expenses altogether?
  • Increase their products' and services' perceived value. Does it increase the perceived value of your customer's offering?
  • Increase productivity? Does it increase your customer's productivity or the productivity of his staff? Does it increase manufacturing production or throughput?
  • Give them greater control? Does it offer some way for your customer to track results, lead generation, sales, profitability, productivity, or any other key success factor?
Next, review the list and for each of the ways you create value, figure what each is worth. This could be in terms of absolute amounts of money, some percentage of revenues, or some percentage of expense reduction.

Create proof for each of your value assertions. Proof can be in the form of worksheets, testimonials, case studies, success stories, printed statements or even survey results. Add up each of the value elements to come up with a total value, combining earnings and savings into one number. Again, the total value can be an absolute money number, such as $645,000, or it can be a percentage of sales.

Lastly, calculate your return on investment by comparing the total value to the cost of your product. You may come up with either an ROI (return on investment) or a "payback period." Either way, you've quantified your product's value in concrete terms, justified your price, and made it far, far easier for your prospects to make a buying decision. We provide value proposition to clients by distinctive software development methodology, lesser cost in development, quality process in software project management, technological competency, effective customer service & communication. FlexOrbits communicate Return on Investment (ROI) by looking at our value proposition through customers' eyes.

Require more information about how our Value Proposition and Software Development Services would raise ROI in your Business? Fill the Free Project Evaluation Form, to reach us.
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