How to Write Winning Proposals€¦ · The “Seven Deadly Sins” …that destroy proposals and presentations 1. Fail to focus on the client’s business problems and payoffs 2

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How to Write Winning Proposals

Using the Science of Persuasion to Win More Business

Dr. Tom Sant

©Copyright 2001 The Sant Corporation©Copyright 2002 The Sant Corporation

When the economy slows down, selling becomes more difficult

People pull back from completing “transactions.”

Selling products is transactional.

But they are eager to find solutions.

Selling solutions is consultative.

Selling solutions requires:– broad business perspective– alignment with the customer’s

objectives– an ability to demonstrate value that

matters to the customer

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Why do solution-oriented proposals and presentations fail?

Because they are NOT…• Client centered

– Sales people resort to “clone and go” proposals– Boilerplate, “checkbox” proposals– Focus on the vendor or the product

• Value based– No value proposition– No differentiation

• Decision oriented– Wrong structure– Wrong emphasis


Agenda

• Assumptions and observations– What makes for a good proposal or presentation?– The seven worst mistakes you can make

• Five principles to improve your win ratio:– The persuasive paradigm– Client-centered persuasion– Value proposition– The Cicero principle– Automation

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Assumptions and Observations

What’s a proposal? And why are they usually so bad?


The function of sales proposals

The proposal is• NOT a “checkbox” item in the sales process• NOT a price quote• NOT a technical specification• NOT a bill of materials• NOT a company overview or history

The proposal is a sales document.Its purpose is to move the sale toward closure.

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What is an effective proposal?

One that

wins!


The most effective content

• Clear understanding of the client’s problems, needs, issues

• A recommendation for a specific solution• Evidence you’re competent to deliver on time

and on budget• A compelling reason to choose your

recommendation over any others

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Why do these elements matter the most?

• Because evaluators are looking for three general criteria:

– Responsiveness: Am I getting what I need?

– Competence: Can they really do it?

– Rate of return: Does the pricing represent good value?


The bad news:

Most people hate writing them

So they start looking for

escape routes…

and it shows!

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Cloningprevious proposals.

Escape Route #1:

Cutting and pasting can result in embarrassing errors!


Escape Route # 2:

“Data Dumps” or “More is Better!”

Nobody buys based on the “thud factor.”If it’s not meaningful to the customer,

leave it out!

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Escape Route #3:

Talking about what we know and love best.

Focus on your prospect, not on yourself!


The “Seven Deadly Sins”…that destroy proposals and presentations

1. Fail to focus on the client’s business problems and payoffs

2. No persuasive structure3. No clear differentiation4. Fail to offer a compelling value proposition5. Key points are buried--no highlights, no impact6. Difficult to read--full of jargon, too long, too

technical7. Credibility killers--misspellings, grammar

errors, wrong client name, inconsistent formats, etc.

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Five Principles

Using best practices to create proposals and presentations that win

more frequently.


Doctor, Doctor, give me the cures!

1. Use the persuasive paradigm2. Create client-centered

messages3. Focus on the decision-

maker’s hot buttons4. Personalize the message5. Automate and standardize

information management

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Principle # 1

Use the persuasive paradigm

to support decision making.


How Do People Make Decisions?

The modern assumption:– Decision making is a rational

process– Involves systematic weighing

of the evidence– Franklin’s “moral or prudential

algebra”

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The problem: nobody does it that way

Making decisions in the real world

– Complex– Confusing– Huge amounts of

information– Conflicting evidence– Tremendous time

pressure


The process:– Quick– Uses a the least amount of evidence

possible– To an outside observer, seemingly

impulsive or irrational

How People Actually Make Decisions

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How quickly do people decide?

Q: How long does it take, on average, for a person to decide if a proposal is worth looking at in detail?

1. Less than 5 minutes2. Between 10 and 15 minutes3. About half an hour


How quickly to people decide?

Q: How long does it take, on average, for a person to decide if a proposal is worth looking at in detail?

1. Less than 5 minutes2. Between 10 and 15 minutes3. About half an hour

A: Less than 5 minutes! And for presentations, an audience member will decide to tune in or tune out even faster.

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Heuristics of Choice

• The recognition heuristic– Recognition is assumed to be a positive value




• Single factor decision making– Use any criterion and select the first option it fits– Use the last criterion that worked when making a similar decision– Use the criterion that has produced the best results in previous

circumstances

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• Single factor decision making– Use any criterion and select the first option it fits– Use the last criterion that worked when making a similar decision– Use the criterion that has produced the best results in previous

circumstances

• Estimation heuristic– Estimate the probable rate of return and choose the option giving

the best ROI


What Are the Implications?

1. Persuasion is a process, not an event– Continuous messaging is more effective than isolated documents– Importance of branding, advertising, repetitive contacts

2. Structure is more important than style– Using the right cognitive structure will produce the right results– Put the important points up front

3. Show compliance with the customer’s requirements and values– This will facilitate selection when it’s “take the best”

4. Demonstrate a high rate of return– With no value proposition, there may be no persuasion

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The eCommerce revolution :– Mass customization– Collaborative filtering– Directly addressing the customer– Permission marketing

Personalize the communication


Why Is This the Best Order?

Because of the Primacy Principle:What I experience first, I assume to be normative of all future experiences

What you say first, I assume reflects your primary interests and values

For most decision makers, the most important criteria relate to the needs of the business.

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The Trust Equation

Trust = Rapport x Credibility Risk


What should you work on first?

Q: Of the three elements of trust, which one should you focus on first?

1. Rapport2. Credibility3. Risk

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What should you work on first?

Q: Of the three elements of trust, which one should you focus on first?

1. Rapport2. Credibility3. Risk

A: Rapport. People won’t listen to people they can’t connect with at some level.


The fallacy of the familiar

Information Evaluation Persuasion

Expert

Highly informed

Somewhat informed

Lay

Comfort Zone

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Moving to the persuasion zone


Expert

Highly informed

Somewhat informed

Lay

Comfort Zone

Persuasion Zone


The Persuasive Paradigm:The Key to Persuasive Structure

• Needs: Demonstrate an understanding of the customer’s key business needs or issues

• Outcomes: Identify meaningful outcomes or results from meeting those needs

• Solution: Recommend a specific solution

• Evidence: Build credibility by providing substantiating details

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Principle # 2

Create client-centered proposals


Your proposals should be client centered, not self centered

Focuses on client’s needsPresents solutions to business problemsLooks toward long-term relationshipsPartnership orientationAnalyzes payback, ROI, impact on businessIntegrates value-added offerings into strategy

Focuses on products, technology, etc.Presents information in reaction to a requestShort-term focusVendor/buyer orientationBuilds on profit margin

No controlling strategy: line-item selling

Client-Centered Self-Centered

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Seven Questions to Keep You Client-Centered

1. What is the customer’s problem or need?2. Why is this problem a problem?3. What outcomes or results do they want?4. Which results have the highest priority?5. What solutions can we offer?6. What results will each solution produce?7. Which solution is best?


The Best Place to Use Your Client-Centered Insights

• The cover letter• The title page• The executive summary• Case studies

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Effective Cover Letters

• Make them persuasive and brief• Highlight a couple of the key points from the

proposal♦The customer’s most important need or issue♦The solution in extremely high level♦A couple of key competitive advantages

• Ask for the business♦Avoid closing with “If you have any questions, please

feel free to call.”


The Title Page:Say Something Meaningful

• State a benefit to the client in your main title

• Use an action verb• Put the decision maker’s name on

the title page• Avoid letting your logo dominate

the title page

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Proposalfor

American Biotech

Opening New Markets through

eCommerce

A Recommendationfor

American Biotech, Inc.

Which one would you read first?


Proposal titles

Q: What is the most frequently used title for proposals in the English-speaking world?

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Proposal titles

Q: What is the most frequently used title for proposals in the English-speaking world?

A: ProposalOr sometimes “Proposal for <<customer name>>”


The Executive Summary:Keep It Brief and Relevant

• Write simply and clearly– The readability index should be no higher than 8

• Focus on bottom-line issues and outcomes– Unless the buyer is strictly technical

• Keep it short!– 2 pages is plenty for most proposals

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Effective Case Studies

• Tips:– Keep them short– Use the PAR format:

•Problem– Business problems, not software requirements

•Action– Focus on your unique delivery process

•Results– Quantify results if possible– Use a quote from the key decision maker

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Principle # 3

Focus on the decision maker’s

hot buttons

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FACT: If you don’t show value, winning is a game of chance

You must establish superior value

based on technical, contractual, managerial, quality, or service differentiators,

or the customer will choose based on price or on maintaining the status quo.


Maintaining the status quo

Q: How frequently do incumbent vendors win on re-bids?

1. 50%2. 66%3. 75%4. 90%

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Proposal titles

Q: How frequently do incumbent vendors win on re-bids?

1. 50%2. 66%3. 75%4. 90%

A: 90%!In government bidding, the success rate for incumbents is over 90%. Even if a vendor has major problems, they win 50% of the time.


Showing value is always important,

but sometimes it’s REALLY important.

• Your value superiority must be greater when—– You are displacing an accepted incumbent

• Better the devil you know than the devil you don’t– You are changing a process

• People resist changing the way they earn their living– You are relocating control of a valuable process or asset

• Control = power, prestige, and job security– Doing nothing is a viable alternative

• Inertia and passivity sometimes seem safer than taking action

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The Basic Value Proposition

(Values - Costs) > (Valuea - Costa)

where:Values = the value of your offering Costs = the cost of your offering Valuea = the value of the next best alternativeCosta = the cost of the next best alternative


Value: improving performance or eliminating pain where it matters

• Financial gain: lowest price, highest total value, lowest total cost of ownership

• Quality: TQM, maintainability, ease of use, fewest problems/rejects

• Infrastructure improvement: the most flexible, most advanced, most open solution; automating a labor-intensive step

• Industry trends: keeping up with market leaders

• Minimizing risk: financial stability, solid management plan, relevant experience, high ethical standards

• Competitive advantage: simultaneous improvements across the organization

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Creating the Value Proposition

Four basic principles:1. The payback measurements must be client-focused

If the client doesn’t care about it, it has no value.2. The presentation of payback is more persuasive if it’s quantified

Show me the money!3. The value proposition is more likely to be noticed and

remembered if it’s graphicalMost decision makers don’t read; they skim.

4. To bullet-proof your value proposition, you must base it on your differentiators

Otherwise, your competitor just says, “Me, too.”

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Principle # 4

The Cicero Principle

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“If you wish to persuade me, you must think my thoughts, feel my feelings, and speak my words.”

Cicero

Good Advice from a Noble Roman


Getting Out of the Comfort Zone


Expert

Highly informed

Somewhat informed

Lay

Comfort Zone

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…and into the Persuasion Zone


Expert

Highly informed

Somewhat informed

Lay

Comfort Zone

Persuasion Zone


Audience Level(Speak my words)

Audience Type(Think my thoughts)

Audience Role(Feel my feelings)

– Expert– Highly informed– Acquainted– Uninformed

– Analytical– Pragmatic– Consensus-seeker– Visionary

– Check signer– User– Gatekeeper

Cicero’s Three Points

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The eCommerce revolution :– Mass customisation– Collaborative filtering– Directly addressing the customer– Permission marketing

Personalize the buying experience


Boilerplate proposals may do more damage than good

• How many times does your name appear in the Executive Summary?

• How many times does your customer’s name appear?

• Are your product’s features linked to specific customer needs?

• Have you used the customer’s terminology?

• Have your eliminated your own in-house jargon?

“Don’t waste my time with a bunch of boilerplate!”

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Clear Messages = Convincing Messages

• Use the KISS principle:– Keep It Short and Simple– Simple words and short sentences

• Use their name throughout• Refer to the customer as “you,”

never as “it” or “they”• Avoid using your jargon• Aim for the right level of expertise• Provide content specific to their

vertical market• Use lots of graphic illustrations• Use proven structural patterns• Highlight the text so your key points

JUMP off the page

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Principle # 5

Automate

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Proposal automation:Closing the productivity gap

• Contact management• Account

tracking• Account

planning• Forecasting

• Order entry• Customer service• Inventory control• Distribution • Billing

Automated Manual Automated

Proposals

Presentations


Assess your current ability to automate proposals and manage information

BoilerplateBoilerplate

Simple ToolsSimple Tools

Content ConfigurationContent Configuration

Cut and Paste Cut and Paste

How far has your organization evolved?

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It’s survival of the fittest! Create a Winner Automatically with Sant

ProposalMaster builds client-centered proposals and letters based on the persuasive paradigmRFPMaster automates your response to complex RFPsPresentationBuilder turns your proposal into a PowerPoint presentation automaticallyAll 3 products are Microsoft-centric in design


Summary: Key Messages

1. Using the right structure produces the right results2. Client-centered proposals are more effective than

self-centered proposals3. Selling solutions requires clear and compelling value

propositions based on your differentiators4. Personalizing the proposal to the audience helps get

your message across 5. Automating with Sant increases both your effectiveness

and your efficiency

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What Next?

Visit our Web site for more tips and presentations (www.santcorp.com)

Download this presentation from the Sant Web site

Subscribe to Messages that Matter, our on-line newsletter for bi-weekly quick tips

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Good luck with your proposals and presentations!

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[email protected]

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How to Write Winning Proposals€¦ · The “Seven Deadly Sins” …that destroy proposals and presentations 1. Fail to focus on the client’s business problems and payoffs 2