Module 5: ROI Methodology & Business Case Development

Translab Sales Academy

⏱️ Duration: 45 minutes | 6 micro-lessons

1. The Credibility Principle ⏱️ 8 min

🎯 Learning Objective

Build credibility by calculating ROI transparently WITH your customer, not AT them.

💡 "Show Your Work, Don't Just Show Your Answer"

When you claim "Tantor saves ₹45 Cr/year," the CFO's first thought is: "Prove it."

Instead of defending your number, invite them to build it with you. Collaborative business cases create partnership, not skepticism.

The Tale of Two Approaches

❌ The Defensive Approach

Scenario: Presenting to IndiaFirst Bank's CFO

"Our fraud detection agent will save you ₹45 Crores per year. Here's a slide showing the savings."

CFO's Internal Reaction:

"That number sounds made up. How did they get ₹45 Cr? What assumptions?"

Why This Fails:

  • You declared the number—CFO didn't participate
  • No visibility into calculation methodology
  • Feels like vendor pitch, not partnership

✅ The Collaborative Approach

Same Scenario: IndiaFirst Bank CFO meeting

You: "Let's calculate your fraud exposure together. What's your daily transaction volume?"

CFO: "About 50,000 transactions per day."

You: "What percentage are flagged for manual review?"

CFO: "Roughly 2%—that's 1,000 transactions daily."

You: "What does manual review cost per transaction?"

CFO: "₹240 per transaction."

You: "So 1,000 × ₹240 = ₹2.4L per day, or ₹87.6 Cr annually. With Tantor at ₹12 per decision, that's ₹43.8L annually. Net savings: ₹86.76 Cr. Does that align with your reality?"

CFO's Internal Reaction:

"I gave the inputs. These are MY numbers. This is credible."

Why This Works:

  • CFO provided assumptions—they OWN the business case
  • Calculation is transparent and auditable
  • Creates partnership: "We built this together"

2. The ROI Calculation Framework ⏱️ 7 min

🎯 Learning Objective

Master the standard ROI formula and apply it to Translab products.

Standard Formula

ROI = (Current State Cost - Future State Cost) - Implementation Cost

Breakdown:

  • Current State Cost: What they're spending today (manual processes, legacy systems, inefficiencies)
  • Future State Cost: What they'll spend with Tantor (subscription + operating costs)
  • Implementation Cost: One-time cost to migrate, train, integrate
🎯 Pro Tip: Always ask the customer to validate each component. "Does ₹240 per manual review sound accurate for your ops team?" builds credibility.

Common ROI Scenarios for Translab Products

Use Case Current State Cost Tantor Cost Annual Savings
Fraud Detection
Manual review → AI detection		 1,000 tx/day × ₹240
= ₹8.76 Cr/year		 1,000 tx/day × ₹12
= ₹43.8 L/year		 ₹8.32 Cr/year
Credit Decisioning
Manual underwriting → Automated		 200 apps/day × 2hr × ₹500
= ₹5 Cr/year		 200 apps/day × ₹50
= ₹25 L/year		 ₹4.75 Cr/year
Customer Churn Prevention
Reactive → Predictive		 5% churn × ₹200 Cr portfolio
= ₹10 Cr/year		 2% churn × ₹200 Cr
= ₹4 Cr/year		 ₹6 Cr/year
Data Quality Issues
Bad data → Clean data		 Avg loss per Gartner
= ₹12 Cr/year		 Residual issues
= ₹2 Cr/year		 ₹10 Cr/year

⚠️ Critical Rule: Never Round in Front of Finance

Bad: "You'll save about ₹5 Crores."

Good: "Based on your 200 daily applications at ₹500 per hour for 2 hours, that's ₹50 million annually. Tantor brings that to ₹2.5 million—a net reduction of ₹47.5 million."

Why: Precision signals you did the math. Rounding signals you're guessing.

3. Interactive ROI Calculator ⏱️ 10 min

🎯 Learning Objective

Practice calculating ROI collaboratively using real scenarios.

🎮 Exercise: Build the Business Case Together

Scenario: You're meeting with a bank's CFO. They process credit applications manually. Calculate the ROI.

Given Information:

  • Daily loan applications: 200
  • Manual processing time per application: 120 minutes
  • Credit analyst hourly cost (loaded): ₹500/hour
  • Tantor cost per decision: ₹50
  • Working days per year: 250

Calculate the Annual Savings:

Step 1: Current State Cost

200 apps × 120 min × (₹500/60 min) × 250 days

Step 2: Future State Cost

200 apps × ₹50 × 250 days

Step 3: Annual Net Savings

Current State - Future State

4. Real-World Scenario Practice ⏱️ 10 min

🎯 Learning Objective

Apply ROI methodology to different customer situations and objections.

Scenario 1: The Skeptical CFO

Situation: You've calculated ₹8.32 Cr savings from fraud detection. The CFO says: "That's too good to be true. Where's the catch?"

What's your response?

Option A

"These are industry-standard benchmarks. Other banks have achieved similar results."

Option B

"Let me show you our case studies proving these numbers."

Option C

"You're right to be skeptical. Let's revisit each assumption. Which number feels off to you—the ₹240 manual cost, or the 1,000 daily flagged transactions?"

Option D

"We can guarantee these savings. If you don't achieve them, we'll refund the difference."

Scenario 2: The Assumptions Challenge

Situation: Mid-presentation, the CFO interrupts: "Wait—you said ₹240 per manual review. Our ops head says it's closer to ₹150."

How do you respond?

Option A

"₹240 is the industry average. Your ops head might be underestimating."

Option B

"Great catch—let's use ₹150. That changes our savings from ₹8.32 Cr to ₹5.1 Cr annually. Still a strong business case. Should we continue with ₹150?"

Option C

"Let's table this and I'll reconcile the numbers offline with your ops team."

Option D

"₹240 includes loaded costs—salary, benefits, overhead. ₹150 might be just base salary."

5. Knowledge Check Quiz ⏱️ 8 min

🎯 Learning Objective

Validate your understanding of ROI methodology and collaborative business case development.

Question 1: What's the primary goal of collaborative ROI calculation?

A) To defend your initial savings estimate
B) To make the customer co-author the business case
C) To prove your product is better than competitors
D) To close the deal faster with compelling numbers

Question 2: A CFO corrects your ₹240 assumption to ₹200. Your ROI drops from ₹8 Cr to ₹6.5 Cr. What should you do?

A) Defend ₹240 using industry benchmarks
B) Accept ₹200, recalculate to ₹6.5 Cr, and ask if that's still compelling
C) Split the difference and use ₹220
D) Ask to verify the number offline before continuing

Question 3: What's the formula for calculating net annual savings?

A) Current Cost - Tantor Cost
B) (Current State Cost - Future State Cost) - Implementation Cost
C) ROI = Savings / Investment × 100
D) Total Benefits - Total Costs over 3 years

Question 4: Why should you never round numbers in front of finance teams?

A) They prefer exact figures for accounting purposes
B) Precision signals you did the math; rounding signals you're guessing
C) Rounded numbers violate GAAP standards
D) CFOs always catch rounding errors

Question 5: What's the best opening line when presenting ROI to a CFO who says "I have 15 minutes"?

A) "Let me start with our company background and product features"
B) "Your fraud provisions cost ₹38 Cr last year. We can reduce that by 30%—let me show you how in 10 minutes"
C) "I'll walk through our ROI methodology framework first"
D) "What would you like to cover in our time together?"

6. Key Takeaways ⏱️ 2 min

🎯 What You've Learned

  • The Credibility Principle: Show your work, don't just show your answer. Invite customers to build the business case WITH you, not defend it AT them.
  • ROI Formula: (Current State Cost - Future State Cost) - Implementation Cost. Always validate each component with the customer.
  • Precision Matters: Never round in front of finance. ₹47.5 million signals rigor; "about ₹50 million" signals guessing.
  • Welcome Corrections: When a CFO corrects your assumption, they become co-author of the business case. Accept it, recalculate on the fly, and continue.
  • Assumption Sheets: Create transparent one-page documents listing every assumption. Share BEFORE the meeting to build trust.
  • Common Scenarios: Fraud Detection (₹8.32 Cr), Credit Decisioning (₹4.75 Cr), Churn Prevention (₹6 Cr), Data Quality (₹10 Cr)—memorize these for quick reference.
  • The Power of "Does this align?" This phrase invites scrutiny instead of fearing it. It transforms vendor pitch into partnership.

📋 Next Steps: Practice Plan

  1. Pick an upcoming sales conversation and build an Assumption Sheet before the meeting
  2. Practice the collaborative dialogue: "Let's calculate this together..."
  3. Role-play with a colleague: have them challenge your assumptions
  4. Memorize the 4 common ROI scenarios for quick reference in calls
  5. Create a simple Excel calculator for real-time ROI adjustments in meetings

🎉 Module Complete!

You've mastered collaborative ROI calculation. You're now ready to build transparent, credible business cases that make customers co-authors—not skeptics.

Next: Apply this in your Module 7 Capstone where you'll defend your ROI under panel questioning.