ROI vs. TCO Calculations: Pros, Cons, and Best Practices

ROI or TCO—which do you need for your sales effort? They are two terms that cannot be used interchangeably. Using TCO during your sales effort will help a prospect better understand the long-term cost of solution A versus solution B. Whereas, ROI measures the long-term value delivered over time. The main difference is cost versus value delivered.

Use ROI when…

• Value is a key success factor in the buyer's journey
• You're not comparing status quo to a replacement solution
• You're presenting the value you're going to deliver to executives