Webinar: Smarter ways to respond to bids and RFPs

Transcription

1 Webinar: Smarter ways to respond to bids and RFPs 1. Probability of winning unsolicited bids and RFPs 2. How to win before public solicitation 3. Q&A Our featured experts: Frank Visgatis: Co-author of CustomerCentric Selling Steve Tran: Sales Manager, Onvia

2 ABOUT FRANK VISGATIS Customer Centric Selling Co-author, of CustomerCentric Selling Co-founder, President & Chief Operating Officer of Customer Centric System 20 years of leadership experience Personally trained thousands of sales people in North America, Latin America, Europe and Asia. Companies he and CCS have worked with: 2

3 ABOUT STEVE TRAN Onvia Government Sales Expert Helps thousands of clients to identify agencies contract needs and is recognized for his focus on solution selling 5+ years of leading a team of sales executives at Onvia Sectors in which Steve has expertise include: Architecture/engineering Building supplies Construction 3

4 THE BUYER S DEVELOPMENT OF NEEDS 3 phases Phase 1 Solution Development Phase 2 Evaluation Phase 3 Commitment Needs Cost Solution Risk Time R F P I s s u e d Price People Product Company

5 WHERE DOES THE VISION COME FROM? The way people buy is changing 59% engaged with a peer who had addressed the challenge (LinkedIn, etc.) 48% followed industry conversations (blogs, LinkedIn, etc.) on the topic 44% conducted anonymous research on a short list of vendors 41% followed industry thought leaders 37% posted questions and sought input via social networking 20% contacted a potential vendor via social networking Once interested, today s buyers demand relevant, consistent communication from both sales and marketing Source: Breaking Out Of The Funnel, Genius.com

6 WINNING UNSOLICITED BIDS AND RFPS It s costly and probability is low The Probability of winning is low: Win ratio for unsolicited bids is 1.6% The cost on you is high: $1.1M cost to win a $175,000 in revenue 6

7 MAXIMIZE UNSOLICITED BIDS AND RFPS Create conversation opportunities Private Sector: offer an RFP response in exchange for interviews with 3 key players Public Sector: ask questions at a pre-bid meeting If their response is No Yes 1. Send a letter stating that it s impossible to respond without the interviews 2. Consult with your manager about pursuing it anyway 1. Conduct the interviews to create or enhance the solution 2. Respond to the RFP as agreed 3. Create a cover letter with an executive summary for the RFP controller 4. Highlight key requirements 5. Send a copy of the letter and response to a key player 7

8 WINNING UNSOLICITED BIDS AND RFPS However, IF you can get access or influence the RFP The Probability of winning is significantly BETTER! 38% vs. 1.6% 8

9 CCS CORE CONCEPTS Summary of Customer Centric Selling 1. People buy from people who are sincere and competent and who empower them to see a vision of how they can achieve their business goals, solve their problems and satisfy their needs (not demos, brochures or proposals) 2. Bad news EARLY is good news 9

10 THREE TYPES OF GOVERNMENT PURCHASES Only 20% is through formal purchases 10

11 THE REALITY OF PURSUING GOVERNMENT BUSINESS You have to get in early! When a bid and RFP comes out, it s often too late to pursue Examples: You need to stay top of mind when agencies are purchasing at the informal and micro level Get ahead of the curve during the phase 1 of their buying cycle Spend time to build relationships to fulfill the gap in the buyers needs 11

12 GETTING IN EARLY Client Example- Yearbook Publisher Their Problem: Responding to bids a year with low win ratio Respond to bids 4-5 weeks after they re published Our Solution: Decrease the bid responses significantly by only going after agencies who are unsatisfied with their current incumbent Hone in on targeted opportunities coming up between 6-24 months 12

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14 THE REALITY OF PURSUING GOVERNMENT BUSINESS Develop triggers for change Changes impact agencies environment and therefore drive customer centric conversations Examples: New state laws and/or new federal regulations New industry trends such as green initiatives and cloud computing Utilize existing agency relationships and initiatives 14

15 TRIGGERS FOR CHANGE Agency Example: Large metropolitan airport authority Q: What s an example of a sales person that was able to trigger you to change? The majority approaches this way: Hi, my name is, my company s product is the best and it can do x, y, z. The only one who stands out says: Hi Joe, in 2002 I found that your airport purchased xyz building automations system. In your state, the 2015 energy standards require that you reduce your energy consumption by 15% from the baseline, and your county s CIP list its top initiative is to reduce the use of fossil fuels and become more sustainable. Currently you re about 7% short of states energy standard and based of your budget documents it doesn t look like you can afford any new expenses this year.

16 THE REALITY OF PURSUING GOVERNMENT BUSINESS Build the right relationships A big part of relevance is about finding the right contact Examples: Who are the right targets and when is the right time to approach? At what level is your product purchased? 16

17 BUILD THE RIGHT RELATIONSHIPS Local Example: Purchasing in Seattle Painting the bike lane: Purchased by the Mayor Seismic building testing: Purchased by individual building engineers

18 Q&A QUESTIONS? 18

19 THANK YOU! Frank Visgatis, CustomerCentric Selling Web: Steve Tran, Sales Manager Onvia Web: Copyright: This document is copyrighted by CustomerCentric Systems, LLC. All rights reserved. No part of this document may be reproduced, modified, or transmitted in any form or by any means, electronic, mechanical or otherwise without prior written permission. 19 Not Legal Advice: The opinions, information, and interpretations provided in this document are the personal opinions of Frank Visgatis, are for educational and informational purposes only, and do not represent legal advice. When appropriate, readers of this document are encouraged to consult with an attorney to obtain legal advice.