Discussing an investment with your managers can be a tough call. Why should they spend their limited budget on analytics? Telling them “it will increase revenue” won’t be enough. You need to present a strong business case.
So, how to prepare well for your meeting? Here’s a list of 5 crucial topics, and how to address them to successfully stand your ground.
1. “Why do we need this?”
Your management is preoccupied with the company’s short and long-term goals. Any tool that contributes to achieving these goals, will grab their attention. So, make it extra clear how integrated dashboards blend with the company’s strategic goals. To give you some examples:
1. “By the end of this year, we need to grow revenue with 25%.” (short-term)
Explain how you’ll increase revenue thanks to integrated analytics. For example, by offering the dashboards to users in premium pricing tiers.
2. “We want to increase our market share by 10% in the next 5 years.” (long-term)
For managers, the price tag is one of the first things on their mind. So when they ask you, don’t try to shift the conversation. You may be sure that the return will be much higher, but there’s still an initial cost to be bridged. So, just be honest about the costs first.
By being open, you gain their trust. Then, you can put the costs in perspective:
Total Cost of Ownership (TCO) is very low: although a software integration may seem like a big cost at first, it really isn’t. Remind your management that in-house development would cost much more. You won’t have to pay for set-up, server maintenance, and you’ll save countless hours of scarce & expensive development time.
The return on investment will cover the costs, which brings us to the next topic!
3. “What’s the ROI?”
The return on investment? This is where you focus on the big bets. Make it very clear what the business advantages are. We’ll sum up a few to get you started.
From a product development point of view:
Give valuable time back to your developers. Let them focus on your core platform, instead of building a new feature they may not be comfortable with.
Much faster implementation than traditional BI. Get your product to the market faster, with full analytics functionalities.
Much cheaper than traditional BI solutions
Low Total Cost of Ownership
No server & maintenance cost
Software costs are lower than development costs when developing the feature yourself
From a sales point of view:
Offer analytics as a premium feature
Boost retention, as users will spend more time on your platform
Attract new clients because of an exclusive offering
But… as mentioned before, saying “you’ll increase revenue” will be too vague as an argument. So, be as specific as possible. For example, prove how other companies became more successful thanks to analytics. And since you’re trying to convince your management of adding analytics, include some numbers in your plea! Make a forecast of the possible impact on revenue, retention rates,… It will strengthen your story and make it more tangible.
Also, think of other business areas that may be affected positively by the investment. For example in marketing, integrated analytics could be one of your product’s USPs.
4. Anticipate on your manager’s fears
Once the management is aware of the benefits, it’s time to create urgency. Show which risks they take when they are holding back to add dashboards to their SaaS app or platform.
The biggest risk? Lagging behind, and being crushed by the competition. So, investigate how your competitors are taking their first steps towards offering user analytics. If your management understands the positive effects for competitors, your case will be even stronger.
You couldn’t find any competitors who are adopting an analytics component? Even better! Because then, you’ll have a true competitive advantage. To strengthen your case, look for examples in other sectors where a company was able to gain market share thanks to analytics.
The biggest fears? At first, management may not be convinced of the ROI unless they see actual proof. Therefore, you may suggest to start with a pilot project. In that way, they will get a clearer idea of the perks, while not committing directly to the full investment.
5. “What about the impact on internal resources?”
The implementation of new software costs time. Managers will worry that the impact on internal resources may be too high. Especially on the IT department. Here are a few arguments to counter their worries:
No in-house development. The initial set-up period will ask much less time of your employees, than asking them to develop the feature themselves. Typically, you’ll integrate a dashboard in less than 100 lines of code.
Self-service. With intuitive analytics tools like Cumul.io, you won’t need help from IT to create new dashboards. Any team member can do it, whether it’s sales, marketing, customer support,…
No maintenance. When choosing the right vendor, server maintenance will fall completely in their scope. Again, your IT department will gain valuable time.
All set to add analytics to your product?
With this guide, you’ll convince your management in no time! You’ll be able to set the right expectations, while highlighting the advantages for your business. Would you like some more information about Cumul.io’s integrated analytics offering? Feel free to contact us, so we can help you prepare the conversation even better!