Why you're losing proposals

They take a lot of time. You lose sleep over it. And many account to nothing.There are 9 reasons which are costing your business hundreds of thousands of dollars in annual revenue. Here’s how to increase your conversion and get better outcomes from the proposal process in your business so get a pen take note, and ensure you aren't making these mistakes;

1. You didn’t qualify the prospect. Sometimes, a client will never be the right fit. And sometimes, it just isn’t the right time. Don’t ruin your chances by sending an unsolicited proposal that reveals your agency and doesn’t understand the client’s current and future needs – including their financial constraints – particularly when there is a pandemic around
2. You lack credibility. Do you have the testimonials, case study's, quotes and comments that back up your business claims of how beneficial your product or service will be for your prospective target? If not; get it front and centre.
3. You didn’t develop a relationship. It's really simple. People buy from people they like. But how do you build rapport when you are included in an RFP process? The fact you have been included means they’ve done the research on you or they know about you. So do the research on everything you can about their company, values, mission, vision, CEO, COO, etc. Then strategically weave commonalities in to the RFP.
4. You don’t act like a partner. The problem is that the client doesn’t always know best – even if they think they do. And if you truly want to be a partner, not an order taker, you need to understand if what the client wants will get them the results they need. These are obviously two very different things. You need to challenge the client by showcasing not why he is wrong, but why another way is actually more efficient and effective for their business goals. Don’t be afraid to bring new suggestions/models to the table in an RFP outside of the scope. It shows innovation/creativity and a business that is prepared to evolve. And everyone wants to have someone like this on their team.
5. You frame your pricing in the wrong way. Consider this: which of the following statements is most impactful? "You’ll save $1,000 if you buy marketing automation software" or "You’ll lose 100 clients if you don’t buy marketing automation software." People feel much stronger about the thought of losing something. When you set up your proposal, emphasise the possible losses if the client does not take action now. In addition, set up your proposal so that the right package is presented first. Then, if necessary, outline what a stripped down version of this would cost. Also, emphasise how much more difficult, time consuming, or unattainable achieving the client’s goals will be if he or she chooses this version. You’re not really changing anything about what you do. You’re just re-framing the conversation.
6. You don’t have a sound process in place. Your company must have a repeatable, defined selling process, meaning that your team asks similar questions to every prospect. You need to know: the goals, plans, and challenges of the client, current customer metrics and key company information and the cost to the client of not doing anything to meet its goals. From there, your proposal should include a few key items; Campaign goals, Scope of services and benefits, Reporting mechanisms, Success Metrics, Timeline, Budget. With this framework in place and a defined process for gathering information, it will be much easier to put together a winning proposal and do so quickly when requested.
7. You didn’t set expectations. Re-frame how you think about a proposal. The proposal should be a step in the commitment process on the part of the client. It should confirm everything you have already spoken about – either by phone or in-person. It’s not a magic trick for selling. There shouldn’t be some big reveal. It’s not a tool for convincing and impressing. This has already been taken care of, right? The proposal is a confirmation – in writing – of what your company can do, how it will do it, when it will be completed, and why the client specifically needs your services. Use this language when following up in that this is the final step before the contract is signed. If you give them a call and say – “I just wanted to gather some feedback on the proposal” – it means they have full control. Instead – if you say – “I was just chatting with my operations team and looking at next months schedule – when do you think you would want the first delivery to happen?” Vary the language.
8. You weren’t persistent. Persistence is key. Understand your buyers journey, the time it takes and the key steps he/she goes through to get sign off on your product/service. You’ve got this far – don’t fail in the follow up and leave the decision up to the gods.
9. You focus on cost, not value. If your product or service is based upon your pricing, then sure, make that the focus of your proposal. But most organisations don’t want to just take the low-cost alternative. They want to find a partner. GO into explicit detail about how your business will help your prospect acquire more of their own customers, how it will make them more efficient, more refined, more confident, more, more, more. That’s the key to selling your product on proposal – telling them what this purchase will bring into their life (emotion) and then back that in with case studies/data (logic).

Ensure that when you get to the proposal stage, firstly ensure you are well prepared to showcase your product and service in all its glory and, secondly, and probably more importantly - know your prospect as well as you know your own company. Know what drives their business goals and where their motivation lies. Talk their language and they'll soon become a strong partner of yours.

Happy selling.

K.