How do you build a business case or ROI model for a prospect?
What the interviewer wants to hear
- Use the buyer's own numbers from discovery
- Quantify current costs, risks and missed revenue
- Estimate realistic improvement with evidence
- Include full costs, not just licence price
- Validate with the champion and economic buyer
Model answer
The business case starts in discovery. I ask for the buyer's own numbers: how many hours a process takes, error rates, lost sales or penalties. I calculate the current cost with them, then estimate the improvement using conservative figures backed by similar customers. I include the full cost of our solution: licence, implementation, training and internal time, because finance teams notice when these are missing. The output is simple: annual benefit, total cost, payback period and ROI, plus non-financial benefits like reduced risk. I review it first with my champion so the assumptions are theirs, not mine, then present it to the economic buyer. A business case built on their data is far more persuasive than our marketing claims.
Can you answer it under time pressure?
Take a timed medium round and get scored on every answer.
More medium Business Development Manager questions
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- How would you identify and launch a new strategic partnership?
- A prospect says a competitor offers the same thing for less. How do you respond?
- You are given a new territory with 500 accounts. How do you plan your first 90 days?
- What goes into a strong business proposal?
- A prospect on a cold call says, "Just send me some information." How do you respond?
- How would you work with marketing on an account-based campaign for 30 target accounts?
- What are the key terms you would negotiate in a reseller or referral agreement?
- How do you make sure your forecast is accurate?