The ROI Convo -BIG 2024 UPDATE!

Original Post (7/21/2023on LinkedIn) - Update at the end...

Could an organization really save a staggering $664,000 in time and productivity with some relatively basic ChatGPT training and expertise? I wholeheartedly say yes.

Let's delve into this compelling proposition.

With ChatGPT Plus, we bid farewell to hours spent on research. According to the McKinsey Global Institute, ChatGPT reduces research time by up to 50%, empowering our sales reps to focus on core tasks, nurture client relationships, and close deals. The enablement provided has automated research steps that previously took 20 minutes, now accomplished in under 5.

The real showstopper, though, lies in analyzing 10K reports. What was once an arduous 60 to 120-minute task is now completed astonishingly fast in 1-2 minutes, enabling our sales team to dive into data-driven insights without being bogged down by tedious processes.

But the magic doesn't end there. We can harness ChatGPT's prowess to infuse personalization into our outreach efforts. Reports from Experiments with AI reveal that these tools can boost email response rates by a substantial 36%. By crafting emails that deeply resonate with our clients, we enhance communication and forge stronger connections, leading to more successful deals. Mastering this with the right AI workflow and understanding of the tool can turn this into a matter of minutes.

Okay, but how does this translate to $664,000?

The reduction in time I calculate spent per task amounts to approximately 175 minutes, or just under 3 hours, saved per account. With salespersons managing at least 50 accounts annually, this results in a remarkable annual time saving of about 150 hours per salesperson. Expanding this to a team of 100 salespeople, we're looking at an impressive 15,000 hours saved annually.

From a financial standpoint, these time savings convert to $6,975 saved per salesperson per year, based on an average hourly rate of $46.50 per hour (as stated by Comparably). For a team of 100, that totals an annual saving of $697,500. The ChatGPT Plus subscription for 100 salespeople costs $24,000 per year, and considering an upfront training cost of $9,300 in the first year, the total initial investment stands at $33,300. Therefore, the net saving for the first year would amount to an astonishing $664,200.

Investing in ChatGPT Plus is more than just adopting an innovative AI tool; it's a bold move to empower our sales force and unleash their true potential. By freeing our reps from tedious research tasks and supercharging their email communication, ChatGPT Plus allows them to focus on what they do best - building relationships and closing deals. With an efficient and empowered sales team, we set the stage for unprecedented growth and success. So, let's take the leap together, equip our sales team with the latest AI technology, and pave the way for a brighter future.

2024 UPDATE!

Exciting developments in our sales process suggest not only promising results but also potentially conservative estimates when it comes to productivity gains. However, the challenge lies in making these benefits more tangible.

Over recent months, a dedicated group of power users have piloted a bespoke tool and process, yielding impressive results:

• Prospecting time cut by 80%, allowing for a swift and scalable 30-minute routine across the Americas.

• Enhanced outcomes and a 25% increase in seller confidence.

• More time allocated for revenue-generating activities and critical deal-closing insights.

While the initial focus was on early-stage sales activities, this tool has proven beneficial throughout the entire sales cycle, uncovering additional time-saving opportunities that suggest our estimates might be on the conservative side.

We're thrilled to announce that ChatGPT for Enterprise is now available at $60 per user per month, with a minimum requirement of 150 users ($108K/year). In upcoming posts, I'll delve deeper into why this upgrade is essential for a robust GPT strategy and how, despite the increased cost, the return on investment remains outstanding.

Revisiting our initial figures: with each salesperson saving an estimated 150 hours annually, we're looking at a collective 22,500 hours saved across the team. Financially, this translates to an annual saving of $1,046,250, based on an average hourly rate of $46.50. When balanced against the annual ChatGPT subscription cost and factoring in training expenses, I anticipate a net saving of $928,950 per year.

Yet, time-saving alone isn't always enough to justify a significant investment. The last six months have demonstrated that with the mandated use of this tool and process, sales representatives can potentially triple their prospecting efforts. But the key challenge remains: how do we ensure that this saved time is reinvested effectively? It's crucial to integrate this tool into our core processes and secure managerial support to ensure scalability and optimal use in the field.

The conclusion is indisputable: leveraging this tool not only saves considerable time but also elevates performance and confidence in customer interactions. The ROI is undeniable. The next step? Crafting an ironclad business case backed by executive sponsorship to seal the deal. Stay tuned for more insights on building that case.