Why ROI is a bad idea

Today’s issue demonstrates why using ROI (return on investment) is a bad idea, at least compared to COI (cost of inaction).

There are a few reasons you should stop using ROI language in your emails:

1. Everybody does it

The last thing you want to do is throw yourself in what I call the “95% bucket.”

Each time you send an email to a targeted prospect, you should ask yourself:

• Does this sound like an email that 95% of reps would send, or more like one that only 5% of reps would send?

If your honest answer is 95%, re-write your copy.

That said, you can safely assume your email falls into the retched “95%” if you’re talking about anything related to ROI. Unfortunately, most sales reps (due to poor sales training) are convinced that prospects actually find value in ROI-speak.

Turns out, they don’t.

Also, if we’re being honest, ROI is kind of gimmicky.

We all know (buyer and seller) that gaining a real return on investment is entirely dependent on implementation, change management, leadership, product efficacy, and overall adoption. ROI has almost nothing to do with the product itself.

It isn’t something that just happens, which mean you shouldn’t promise it in a sales email.

2. The data says it doesn’t work

Okay, we’ve established talking ROI in email isn’t best practice. But, even more compelling is the data from Gong’s recent research.

According to Gong, emails that use ROI in their language see a 15% decrease in response rate.

Why?

Well, you’ve heard it a million times and it still rings true - people buy based on emotions and justify with logic.

Guess what doesn’t drive any emotion at all?

Pie in the sky ROI. It’s just not that compelling.

And ultimately, this boils down to the way buyers and execs read emails.

They’re scanning as quickly as they can any sort of relevance. Anything that doesn’t stick out like a sore thumb is getting deleted immediately. As your buyer is scanning their email, they’re asking themselves one question: “can this help me right now?”

If the answer is no, you get no play. It’s tough out here.

ROI isn’t relevant. Gain isn’t relevant. These things are potential futures that take a lot of work and are unlikely to actualize.

So, if ROI/gains/making more money isn’t relevant, then what is?

Answer: the exact opposite.

COI, or Cost of Inaction.

You’re likely familiar with loss aversion - a well-known and data-backed concept stating that humans are far more afraid of loss than they are interested in potential gains.

When we talk about people acting on emotions, taking action to prevent ourselves from experiencing loss is something we all do every day.

But here’s what I find most interesting: even if you act on something framed as ROI, the COI-related outcomes outweigh the ROI stuff that peaked interest in the first place.

Let me explain:

You might go to the gym to gain muscle (ROI), but more importantly you’re staying fit/mobile/flexible which prevents your body from deteriorating more quickly (COI). The outcome tied to the loss prevention here is a longer life, which is a far better return than larger muscles.

Am I explaining that well?

It makes total sense to me, hopefully it’s landing for you too.

Why it Works (in business)

It’s difficult to get buyers to move, especially in today’s market.

And one thing is for sure - making a promise on potential future dollars after implementing your product/service isn’t going to result in a signed contract.

To be clear - this isn’t about “selling into fear”

This is about sharing real stories from real customers that demonstrate your ability to add to their bottom line simply because your solution cuts costs, time, or inconvenience somewhere across the business.

Wondering how to apply COI in email?

Let’s do a quick exercise.

• Target prospect: Cybersec/Privacy Leader at a $100M company

• Product: Anti-hacking/anti-malware

Email:

“Hey (Prospect), familiar with (Company name)’s recent data breach?

Because of all the sensitive information that’s been exposed, they’re fielding new lawsuits left and right.

After implementing (product name), they realized they could’ve completely avoided the breach and saved $2M+ and a ton of headache.

Mind if I share a bit more in a short video?”

Framing the email in terms of loss aversion is much more compelling to an exec than if it were framed in ROI.

For instance, something like:

“Hey (Prospect),

When companies implement (product name), they a see a 10x increase in data and privacy protection…”

The return/increase on protection isn’t nearly as compelling as sharing how to successfully avoid spending $2M and a ton of stress.

Main takeaways:

• Think in terms of Cost of Inaction

  • What will happen if they do nothing?

  • And what proof do you have to support doing nothing is a costly decision?

• Even if you get a bite on ROI-speak, play hard into COI throughout the conversation. Loss prevention will get a signed contract, not potential future dollars.

That’s it for today’s issue, let me know what you think.

Are you using COI in your outreach right now?

When you’re ready, here are three ways I can help you:

1. One-on-One Coaching (for individual contributors)

2. Cohort-based Enablement (for leaders, owners, and founders)

3. Premium Ghostwriting (for anyone who wants to build a brand)

Until next Tuesday ✌️