Mini sales Tool kit - Answer key questions mathematically

Introduction

As a provider of solutions for businesses, we understand that three of the most common questions that sales personnel face are, "How soon will I become profitable if I buy your solution?", "When will I be able to see returns on my investment?" and "What is the rough payback period if I buy your solution/product?"

In response, we have developed a mathematical approach to help our clients answer these questions quickly and accurately. We have created a toolkit with two calculators that can be used by sales personnel during their calls with customers.

The objectives of the tool kit are:

🎯 Empower sales personnel to answer these questions within 15 seconds simply by whipping out their smart phones or tablets!

🎯 Build trust with your clients by mathematically answering those three questions.

🎯 Provide a DIY/Self-Service possibility to your clients.

Our goal is to simplify the process of answering these questions and provide confidence measures supported by mathematics to help sales staff become more proficient and confident. The calculators are also available for embedding on websites, allowing customers to try them out themselves.

Simply shoot an e-mail to hari.iyer@innoapex.com , if you would like to embed these calculators onto your applications or websites. These tools are simple in nature and are suitable for any company or individual with entrepreneurial spirit.

So, here we go!

Monthly Recurring Revenue (MRR) ROI Calculation for SAAS clients

Monthly Recurring Revenue (MRR) Growth Calculator

Input:

Initial MRR: This is the current monthly recurring revenue generated by your business.

Monthly Growth Rate: This is the percentage by which you expect your monthly recurring revenue to grow each month.

Number of Months: This is the number of months over which you expect your monthly recurring revenue to grow.

Output:

Projected MRR: This is the estimated monthly recurring revenue that your business can generate based on the inputs you provided.

Example:

Let's say your business currently generates Eur 50,000 in monthly recurring revenue, and you expect that revenue to grow by 8% each month for the next 12 months. Here's how you would use the calculator:

Initial MRR: EUR 50,000

Monthly Growth Rate: 8%

Number of Months: 12

According to the MRR calculation, your projected monthly recurring revenue after 12 months would be EUR 125,909, assuming a 8% monthly average growth rate.

This calculator can help SAAS companies demonstrate the potential value of their product to clients by showing them how much their monthly recurring revenue could grow over time. By providing a concrete example with specific values and based on a mathematical formula, clients can see the potential benefits of investing in the SAAS product.

Choose the calculation and input Criteria

Financial Investment Return/Payback timeline and percentage ROI calculator

Payback Period Calculator :This calculator helps you estimate the payback period for your investment in a SAAS product, which is the amount of time it takes to recover your initial investment.

Example 1

Let's say you invested Eur 50,000 in a SAAS product that saves you Eur 5,000 per month, and you used the product for 12 months. During that time, you saved a total of Eur 60,000 in costs. The total cost of using the product was Eur 50,000 in upfront investment plus Eur 1,000 in monthly subscription fees, for a total cost of EUr 62,000. Here's how you would use the calculator:

Initial Investment: Eur 50,000

Monthly Savings: Eur 5,000

Total Benefit: Eur 60,000 (Total savings annually)

Total Cost: Eur 62,000

Payback Period = 10 months

According to this calculation, your payback period is 10 months, meaning it will take you 10 months to recover your initial investment.

ROI = -3.23%

According to this calculation, your ROI is -3.23%, which means that the total cost of using the SAAS product exceeded the total benefit by 3.23%.

This calculator can help SAAS companies determine whether the investment in a product is worth it by providing concrete figures on the payback period and the ROI. If the payback period is too long or the ROI is negative, it may be time to re-evaluate the investment and consider alternative options

Try it yourself!

Example 2

Initial Investment: Eur 100,000

Monthly Savings: Eur 15,000

Total Benefit: Eur 200,000

Total Cost: Eur 145,000

Payback Period = 6.67 months

According to this calculation, the payback period for this investment is 6.67 months, meaning that it will take approximately 6.67 months to recover the initial investment.

ROI = 37.93%

According to this calculation, the ROI for this investment is 37.93%, which is considered a good return on investment. This means that the total benefit of using the SAAS product exceeded the total cost by 37.93%.

By using this calculator, SAAS companies can help their clients evaluate the ROI and payback period of their investment in a SAAS product. This information can be helpful in making informed decisions about whether to invest in a product and in identifying areas where the investment can be optimized for maximum return.

We've got some more like the above in our Product Creation Stash bag! Simply Ask!

Here is a list of a few of Them!

Cloud energy consumption calculator: Quite Self explanatory! :)

Cloud Resource Utilization Calculator: This calculator could help cloud engineers estimate the optimal amount of resources (e.g. CPU, memory, disk space) needed for a specific application or workload. It could also help project managers estimate the cost of running the application/workload based on the resource utilization.

Migration Planning Calculator: This calculator could help project managers plan and estimate the cost and time required for migrating an application from on-premise to the cloud. It could take into account factors such as the complexity of the application, the amount of data to be migrated, and the required downtime.

Cloud Security Risk Assessment Calculator: This calculator could help cloud engineers and project managers assess the security risk of a particular application or workload in the cloud. It could take into account factors such as the type of data being stored/processed, the access controls in place, and the compliance requirements.

Multi-Cloud Cost Comparison Calculator: This calculator could help project managers compare the cost of running an application/workload on different cloud providers (e.g. Google Cloud, AWS, Azure). It could take into account factors such as the resource utilization, data transfer costs, and any discounts/offers available.

Cloud SLA Calculator: This calculator could help project managers estimate the uptime and availability of an application/workload in the cloud, based on the service level agreement (SLA) offered by the cloud provider. It could also help them estimate the cost of any downtime or service disruptions.

Customer Acquisition Cost (CAC) Calculator:This calculator helps you estimate your customer acquisition cost (CAC) based on your marketing spend and the number of new customers you acquire.

Lifetime Value (LTV) Calculator: This calculator helps you estimate the lifetime value (LTV) of a customer, which is the total amount of revenue you can expect to generate from a customer over their lifetime.