webinar: smarter ways to respond to bids and rfps...48% followed industry conversations (blogs,...
TRANSCRIPT
Frank Visgatis: Co-author of CustomerCentric Selling®
Steve Tran: Sales Manager, Onvia
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:
ABOUT FRANK VISGATIS Customer Centric Selling®
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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:
ABOUT STEVE TRAN Onvia Government Sales Expert
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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
THE BUYER’S DEVELOPMENT OF NEEDS
Needs
Solution
Risk
Phase 1 Solution Development
Phase 2 Evaluation
Phase 3 Commitment
Time
People Product Company
Cost Price
RFP Issued
3 phases
WHERE DOES THE “VISION” COME FROM?
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
The way people buy is changing
WINNING UNSOLICITED BIDS AND RFPS It’s costly and probability is low
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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
MAXIMIZE UNSOLICITED BIDS AND RFPS Create conversation opportunities
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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. 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
1. Send a letter stating that it’s impossible to
respond without the interviews
2. Consult with your manager about pursuing it
anyway
WINNING UNSOLICITED BIDS AND RFPS However, IF you can get access or influence the RFP
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The Probability of winning is significantly BETTER!
38% vs. 1.6%
CCS ™ CORE CONCEPTS Summary of Customer Centric Selling
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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
THREE TYPES OF GOVERNMENT PURCHASES
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Only 20% is through formal purchases
THE REALITY OF PURSUING GOVERNMENT BUSINESS
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“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
You have to get in early!
GETTING IN EARLY
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Client Example- Yearbook Publisher
Their Problem:
Responding to 200-300 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
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THE REALITY OF PURSUING GOVERNMENT BUSINESS
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“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
Develop triggers for change
TRIGGERS FOR CHANGE
Q: What’s an example of a sales person that was able to trigger you to change?
Agency Example: Large metropolitan airport authority
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.”
THE REALITY OF PURSUING GOVERNMENT BUSINESS
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“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?
Build the right relationships
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
Q&A
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QUESTIONS?
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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.
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.
THANK YOU!
Frank Visgatis, CustomerCentric Selling® Email: [email protected] Web: www.customercentric.com
Steve Tran, Sales Manager Onvia Email: [email protected] Web: www.onvia.com