Overcoming the Struggle with RFPs Part 3: It's not about resources, it's about resourcefulness – New Client RFP

Late inclusion in the buying process with a new client is arguably one of the most challenging of all selling scenarios.

This typically means the seller is receiving the RFP without influencing the buying criteria, It limits the seller’s ability to demonstrate their capabilities and differentiation [beyond products and services].

This is why win rates of RFPs are so low.

Sellers have to apply the same success principles discussed in part 1 and 2; engage early and try to influence the buying criteria. However, this is more challenging if there are only superficial relationships with buyers.

With new customer RFPs there is no account perspective and so sellers have to broaden their view to the market. Sellers need market intelligence to understand trends and events impacting potential buyers in key target industries. This can yield information to help sellers engage earlier.

The objective again is to get out in front of formalised buying processes whenever possible.

If sellers operate in markets where RFPs and tenders are prevalent, then this has to be addressed at an organisational level. Individual sales reps and managers need support to pre-empt these challenges. This is because, from the buyer’s perspective:

• The effort required to change partner always favours the incumbent.
• In a new buying scenario, the high perceived risk of changing the status quo may lead to doing nothing.

The takeaway: when a seller who is new to a buyer is engaged late in the buying process; the risk of choosing that seller may be too high for the buyer. They are likely to prefer sticking with what they know.

Buyers will engage earlier when the buying situation is new to them and/or perceived high risk. However, the seller has to be visible to them. This is the job of marketing - to build awareness to create a platform for sellers to engage earlier with relevant market insights.

Needless to say, the qualifying process for pursuing new opportunities should be rigorous. Understanding the different buyer types can help with qualification and can also provide a strategic advantage to the seller. Below is a table listing the traits of the four different types of buyers.

Knowing these decision-maker types is important in modern Business-business selling because it can help:

• Sellers plan and shape the conversation with specific buyer types
• Understand where the buyer is in their buying process
• Determine who sellers have not identified or met
• Focus energy on engaging with key buyer types

When sellers engage at the point of RFP/tender, the probability is they will be speaking with Commercial Technical buyers such as supply chain and procurement – possibly User Buyers.

When responding to RFPs beware; Commercial Technical buyers (like procurement) may say they have the final say - but they do not. They are a function of the buying process and can qualify sellers in or out by saying no to specifications. They don't have the final say. They have to go to the Economic Buyer for that.

Building advocacy before the RFP release across all decision-makers is strategically critical. 

User Buyers make strong advocates if they believe a seller can solve their issues best. They own the problem to be solved. Understanding whether they advocate for one seller or another is key to predicting the chances of winning.

By the time the RFP is released all these roles will be firmly identified in the decision-making committee. The seller’s job is decision making cartography i.e. understand who wears which cap and to build a strategy to understand and engage with them all.

If left to the late stages of the buying process, then building a meaningful strategy can be limited by the RFP/tender terms of engagement - this is why engaging as early as possible is so important.

Summary

Navigating buying processes is always a tricky business. They are not all the same and sellers should evaluate each buying situation on its own individual merit.

Sellers should not to pre-judge; instead ask how do they buy in this buying situation? Sure, there will be trends and similarities, but no two sales are the same, they are all different in ways big and small.

The cardinal sin in modern-day sales is to sit and wait for the RFP to drop into your mailbox. Sellers should seek to engage at the earliest possible convenience.

Overcoming the struggles with RFP has been authored in response to the challenges I see sellers embrace daily. Here are the links to Part 1 and Part 2 if you are reading this first.

Your comments and feedback are most welcome, as are any ideas you would like me to write about for future editions.

Please like and share to fellow sales professionals who you think this would help. The objective as always is to help us all get better and stronger to improve commercial performance. Contact me at [email protected] for a further discussion about support and help.