Writing a sales proposal is really not that difficult if you keep these 5 key tips in mind. A winning business proposal is one that is concise, and focuses on the customer's pain point, value proposition and ROI.
Many sales people encounter writer's block when they sit down to write a sales proposal. It really is not that difficult if you keep these 5 key tips in mind. A winning business proposal is one that is concise, and focuses on the customer's pain point, value proposition and ROI.
The pace of business is changing in today’s global marketplace. With that the sales proposal becomes ever more important. A strong business proposal can shorten the sales cycle and increase the perceived value of your service or product to the customer (and therefore increase your price). The key thing to remember is to keep it focused. If you take too long getting to the customer’s pain points and your value proposition to them, you may find your client making a buying decision with your competitor before you even have put the proposal in front of them!
A winning business proposal should focus on five key elements:
1. Timeliness!
In many services arenas sales cycles are shortening as business moves to a more services-oriented, subscription-based model (for example, in the software industry as it moves toward a Software-as-a-Service or SaaS model). It used to take 6-12 months or longer to sell software into an enterprise environment. Now business customers can make a software service buying decision in less than three months (often much less). You need to be able to very quickly identify enough requirements and client customization needed to put that proposal together as quickly as possible.
2. Price your Product or Service Correctly
If you're trying to sell the customer on a million-dollar perpetual server software license, and what they're looking for is a hosted web service with a low monthly subscription fee on a per-user basis... you're going to lose the deal, no matter how well your proposal is written. Make sure you're on the same page as your customer on the type of service they need to meet their requirements, and price/position your offering accordingly. You may want to provide a menu of separately-priced services, perhaps on a subscription basis, rather than a more traditional all-in-one option.
3. Speak to Your Customer's Pain Point
Your business proposal must answer a question or address a concern that is top of your customer's mind. Otherwise it will just gather dust on their "things I should read when I have time" pile (we all have them, don't we?). Pick a pain point (if possible, put it in your customer's own words) and specifically address how your product or service will solve their problem. Tie it into your value proposition below. Come back to the pain point when you close with tangible ROI and metrics/benefits at the end.
4. Include a Strong Value Proposition for All Stakeholders
What is the biggest benefit of your product or service to this customer? What is your main advantage against your competition? That is your value proposition. Keep it simple, and make sure it is prominent in the executive summary of your proposal (your proposal does include an executive summary, right?). If you can quantify it (eg, with some ROI messaging) then do so. The more hard benefits you can articulate in the beginning of the proposal, the more likely your customer will keep reading.
Your value proposition must clearly differentiate your product or service from your competition, whether they have a similar business model to you or not. Sometimes the customer may have different types of solutions that could solve the same pain point. Each requires a different value proposition for you to show your product as the best choice.
Finally, make sure you have a value proposition clearly articulated in that executive summary that speaks to each stakeholder in the purchase decision. Make a list of the stakeholders within the client company, and put yourself in each one of their shoes in turn. Read the sales proposal with them in mind. Have you included a benefit statement that speaks directly to them?
5. Reinforce your Value Proposition with ROI and Client Examples
So you've included a strong value proposition and benefits to each of your stakeholders in the executive summary of the business proposal. Good! That means they will keep reading.
But that is not enough for them to take the next step and buy. Your proposal must clearly identify how each benefit is going to be achieved by your product or service, and how you will quantify or measure the outcome (metrics!).
Hopefully you can communicate a strong and convincing ROI, taking into account both hard ($) and soft benefits. A strong ROI methodology is critical to your sales proposal's success. Unless, of course, you have such a stunning value proposition that customers are willing to pay for it regardless. And you should include customer examples or case studies that reinforce your value proposition and ROI message also. Even better if you can include some client references that your customer can speak to directly if they wish to.
If you keep these five points in mind, you will be able to write a winning business proposal for your product or service. Without explicitly focusing on these five areas it is easy to waste your time putting together proposals that don't get read. Always stand in your customer's shoes, and lead them through the proposal thought process from beginning (their needs/pain, and value proposition) to end (tangible ROI and results).
