How to Write Winning Proposals

1. How to Write Winning Proposals Using the science of persuasion to win more business Our goal is to help you write more effective proposals. By definition an effective proposal is one that wins. We are going to look at specific techniques to make sure that your proposals have the best chance of winning. Which is particularly important right not, because as everybody know right now, the economy is still in a slump.Our goal is to help you write more effective proposals. By definition an effective proposal is one that wins. We are going to look at specific techniques to make sure that your proposals have the best chance of winning. Which is particularly important right not, because as everybody know right now, the economy is still in a slump.

2. People pull back from completing �transactions� But they are eager to find solutions Selling solutions requires: broad business perspective alignment with the customer's objectives an ability to demonstrate value that matters to the customer When The Economy Slows Down, Selling Becomes More Difficult We need to figure out ways to sell more effectively because in this kind of environment, most of our customer�s are pulling back from engaging in what they perceive to be transactions. A transaction is buying a product, replenishing a stock pile. It�s engaging in the exchange of money for goods and service, which don�t necessarily benefit their organization. However, in this kind of economy, people are very eager to find a solution. A solution is more of a consultative kind of offering. And the difference is it helps the customer achieve their objectives. It helps them gain some competitive advantages. So what we have to do, if we are going to write proposals that position us as solution providers, is we need to show that we understand their business, we understand their objectives and we can deliver significant value.We need to figure out ways to sell more effectively because in this kind of environment, most of our customer�s are pulling back from engaging in what they perceive to be transactions. A transaction is buying a product, replenishing a stock pile. It�s engaging in the exchange of money for goods and service, which don�t necessarily benefit their organization. However, in this kind of economy, people are very eager to find a solution. A solution is more of a consultative kind of offering. And the difference is it helps the customer achieve their objectives. It helps them gain some competitive advantages. So what we have to do, if we are going to write proposals that position us as solution providers, is we need to show that we understand their business, we understand their objectives and we can deliver significant value.

3. Why Do Solution-oriented Proposals and Presentations Fail? Because they are NOT� Customer centered Sales people resort to �clone and go� proposals Boilerplate, �checkbox� proposals Focus on the vendor or the product Value based No value proposal No differentiation Decision oriented Wrong structure Wrong emphasis Most of you already know this. You know how to position what you have as a solution to your customer�s needs or problems. Why is it then, given the fact that we have all been trained, why do our proposals fail to do this�to position us as solution providers? It seems that there are three fundamental problems that we have seen time and time again. Proposals fail when they are not client centered, when they are not value based and when they are not supportive of the decision process our customers use. A customer centered proposal is one that focuses on what the customer cares about. Many proposals are what we call �clone and go�. The sales rep walks into the office, after his customer has said �give me a proposal on that�, and the sales rep says �Who�s got a proposal I can use.� His approach is to go in and use that magical Word �find/replace�, type in the old client�s name, type in the new client�s name and zip�new proposals. Trouble is, it�s boilerplate. It may contain information that isn�t relevant. Value based proposals demonstrate clear ROI. That which, ideally, is based on differentiators. And the, fundamentally, if we are going to help people make decisions, we have to present our information and our recommendations in a sequence that matches the way that they think when they are trying to make a decision.Most of you already know this. You know how to position what you have as a solution to your customer�s needs or problems. Why is it then, given the fact that we have all been trained, why do our proposals fail to do this�to position us as solution providers? It seems that there are three fundamental problems that we have seen time and time again. Proposals fail when they are not client centered, when they are not value based and when they are not supportive of the decision process our customers use. A customer centered proposal is one that focuses on what the customer cares about. Many proposals are what we call �clone and go�. The sales rep walks into the office, after his customer has said �give me a proposal on that�, and the sales rep says �Who�s got a proposal I can use.� His approach is to go in and use that magical Word �find/replace�, type in the old client�s name, type in the new client�s name and zip�new proposals. Trouble is, it�s boilerplate. It may contain information that isn�t relevant. Value based proposals demonstrate clear ROI. That which, ideally, is based on differentiators. And the, fundamentally, if we are going to help people make decisions, we have to present our information and our recommendations in a sequence that matches the way that they think when they are trying to make a decision.

4. Agenda Assumptions and observations What makes for a good proposal? The seven worst mistakes you can make Four principles to improve your win ratio Persuasive structure Customer-centered persuasion Value proposal Personalize the message Summary So our agenda today will be to look at what makes a good proposal, what makes a bad one, and more constructively, the four principles that will help you sell more effectively and have a higher win ratio.So our agenda today will be to look at what makes a good proposal, what makes a bad one, and more constructively, the four principles that will help you sell more effectively and have a higher win ratio.

5. Assumptions and Observations What�s a proposal? And why are they usually so bad? Let�s start with what is a proposal and why is it that so many of them are really bad.Let�s start with what is a proposal and why is it that so many of them are really bad.

6. The Function Of Sales Proposals A proposal is NOT: A price quote A bill of materials A technical specification Your company overview or history When you understand the function of a proposal you can begin to see why so many fail. The function of a proposals is to move the deal toward closure. It�s not enough to give a price quote, unless you and your customer both agree that what you have to offer is a pure commodity and that there is no difference between you and your competition but price. It�s not enough to give them specs or a bill of materials. And if you don�t walk away with much else, remember this pint. A proposal is not your company history. A company history may be useful, but it�s not the first thing your customer wants to see.When you understand the function of a proposal you can begin to see why so many fail. The function of a proposals is to move the deal toward closure. It�s not enough to give a price quote, unless you and your customer both agree that what you have to offer is a pure commodity and that there is no difference between you and your competition but price. It�s not enough to give them specs or a bill of materials. And if you don�t walk away with much else, remember this pint. A proposal is not your company history. A company history may be useful, but it�s not the first thing your customer wants to see.

7. What is a Good One? Evidence that you understand the customer�s problems, needs, issues A recommendation for a specific solution Evidence of the ability to deliver on time and on budget A compelling reason to choose your recommendations over any others So, what�s effective? As we stated earlier, an effective proposal is one that wins. If you are putting them on the backs of grocery bags and writing them in crayon, and closing a high percentage of deals, more power to you. Keep it up. But if that is not the case, there are four specific kinds of content that will improve win ratios. First, you need to demonstrate to you customer, a clear understanding of their problems, needs, issues, opportunities. This is what drives the opportunity. This is why they are interested in spending money. Because they need to close a gap, solve a problem. They need to address an issue that is troubling them or preventing them from being as successful as they want to be. Why do you need to start with this kind of content in your proposal? The answer is pretty straight forward. It�s not because they need to know they have a problem. They already know that. What they need to know is whether or not you get it. The concern they have is that they may end up wasting their money or their time. These are obviously bad things and nobody want to be in that position. Most of those kinds of problems, failure to have a successful solution delivered, stems not from vendor incompetence, but form a failure to communicate accurately. But by feeding back to your customer, your understanding of what they are trying to deal with, right away the anxiety level goes way down. And they are more interested in seeing what you are recommending because the assumption is because you got the problem right, you are likely to get the solution right. That�s point number two. Your proposal needs to contain a clear recommendation or specific solution. To which you might say, �Duh, that�s a proposal�. But the problem is that most proposals don�t� do that. Most proposals don�t recommend anything. They don�t contain the words �we recommend�, �we urge you�, �we believe�. They are not saying, in a language that expresses conviction, what they want the customer to do. And that is an important component. Secondly, they don�t offer solutions. Instead, they describe products or services. A solution had to link back to your customers problems. Third, a good proposal contains evidence which indicates that you are competent to deliver on time and on budget. That evidence ranges from case studies, to references and testimonials, to project plans. Most people do a pretty good job of providing evidence. The forth element is one that is very difficult for most of us. And that�s to provide a compelling reason, a value proposal, why they should choose you instead of any other vendor. Without that compelling reason, it comes down to price. So, what�s effective? As we stated earlier, an effective proposal is one that wins. If you are putting them on the backs of grocery bags and writing them in crayon, and closing a high percentage of deals, more power to you. Keep it up. But if that is not the case, there are four specific kinds of content that will improve win ratios. First, you need to demonstrate to you customer, a clear understanding of their problems, needs, issues, opportunities. This is what drives the opportunity. This is why they are interested in spending money. Because they need to close a gap, solve a problem. They need to address an issue that is troubling them or preventing them from being as successful as they want to be. Why do you need to start with this kind of content in your proposal? The answer is pretty straight forward. It�s not because they need to know they have a problem. They already know that. What they need to know is whether or not you get it. The concern they have is that they may end up wasting their money or their time. These are obviously bad things and nobody want to be in that position. Most of those kinds of problems, failure to have a successful solution delivered, stems not from vendor incompetence, but form a failure to communicate accurately. But by feeding back to your customer, your understanding of what they are trying to deal with, right away the anxiety level goes way down. And they are more interested in seeing what you are recommending because the assumption is because you got the problem right, you are likely to get the solution right. That�s point number two. Your proposal needs to contain a clear recommendation or specific solution. To which you might say, �Duh, that�s a proposal�. But the problem is that most proposals don�t� do that. Most proposals don�t recommend anything. They don�t contain the words �we recommend�, �we urge you�, �we believe�. They are not saying, in a language that expresses conviction, what they want the customer to do. And that is an important component. Secondly, they don�t offer solutions. Instead, they describe products or services. A solution had to link back to your customers problems. Third, a good proposal contains evidence which indicates that you are competent to deliver on time and on budget. That evidence ranges from case studies, to references and testimonials, to project plans. Most people do a pretty good job of providing evidence. The forth element is one that is very difficult for most of us. And that�s to provide a compelling reason, a value proposal, why they should choose you instead of any other vendor. Without that compelling reason, it comes down to price.

8. 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? Those are the four kinds of content. Why do they matter? Because your decision maker is probably looking to answer three key questions. Am I really getting what I need from these people? Do they understand our needs? Do they understand our problems? Secondly, can they really do it? Do I believe they are competent? And finally, does this pricing represent good value? Is there a significant ROI here that makes it possible for us to justify going forward?Those are the four kinds of content. Why do they matter? Because your decision maker is probably looking to answer three key questions. Am I really getting what I need from these people? Do they understand our needs? Do they understand our problems? Secondly, can they really do it? Do I believe they are competent? And finally, does this pricing represent good value? Is there a significant ROI here that makes it possible for us to justify going forward?

9. The Bad News:Most People Hate Writing Proposals So they start looking for escape routes� and it shows! Well, that�s what we need to do. The bad news is, for most sales people, they hate doing it. Here we have a couple of sales people. The fellow on the left just found out that he spent the whole weekend writing a proposal only to forget to delete the old clients name. So the new client is not going to buy from him because they think he�s incompetent. The man on the right is the sale manager who just realized that his salespeople are spending 3-4 hours in front of a computer cutting and pasting, putting out mediocre proposals. When they should be spending those hours in front of the customer or on the phone with customers. In both cases, the temptation is to find an escape rout. And you know what? Most escape routes don�t work.Well, that�s what we need to do. The bad news is, for most sales people, they hate doing it. Here we have a couple of sales people. The fellow on the left just found out that he spent the whole weekend writing a proposal only to forget to delete the old clients name. So the new client is not going to buy from him because they think he�s incompetent. The man on the right is the sale manager who just realized that his salespeople are spending 3-4 hours in front of a computer cutting and pasting, putting out mediocre proposals. When they should be spending those hours in front of the customer or on the phone with customers. In both cases, the temptation is to find an escape rout. And you know what? Most escape routes don�t work.

10. Escape Route #1 Cloning previous proposals The first escape route involves sheep. With sheep, what we are talking about is cloning. It�s a matter of trying to get old proposals that we can cut and paste into a new proposal. The problem is we end up with embarrassing errors.The first escape route involves sheep. With sheep, what we are talking about is cloning. It�s a matter of trying to get old proposals that we can cut and paste into a new proposal. The problem is we end up with embarrassing errors.

11. Escape Route #2: �Data Dumps� or �More is Better� Escape route #2: Delivering tons of paper under the theory that people but from who ever provides the most paper. The fact is nobody buys on the thud factor. If you can produce the most concise proposal, that had the four key types of content in it, you have a better shot at establishing a base line by which you competitors will be judged. Think thin to win!Escape route #2: Delivering tons of paper under the theory that people but from who ever provides the most paper. The fact is nobody buys on the thud factor. If you can produce the most concise proposal, that had the four key types of content in it, you have a better shot at establishing a base line by which you competitors will be judged. Think thin to win!

12. Escape Route #3: Talking about what we know and love best Escape route #3: Well, that is to focus on the tings that we know and love best, ourselves. Unfortunately, that�s not what the customer wants to hear. Think about it. We don�t win people over and make them feel comfortable and trust us, by talking endlessly about ourselves. We need to focus on them.Escape route #3: Well, that is to focus on the tings that we know and love best, ourselves. Unfortunately, that�s not what the customer wants to hear. Think about it. We don�t win people over and make them feel comfortable and trust us, by talking endlessly about ourselves. We need to focus on them.

13. Common Writing Errors�That Can Destroy Your Proposal Failure to focus on the customer�s business problems and payoffs No persuasive structure No clear differentiation Failure to offer a compelling value proposal Key points are buried�no highlights, no impact Difficult to read�full of jargon, too long, too technical Credibility killers�misspellings, grammar errors, wrong customer name, inconsistent formats, etc. When we take these escape routes, we can end up with various writing errors. Here are the seven worst: This is a problem for the obvious reason that if your proposal is not based on a clear understanding of their problem/payoff, they may not see it as a solution. More like just information. The goal of a good proposal is to help the decision maker reach a decision. That means organizing our content in a way that matches the way he or she, or the team, will think through the issues to reach some kind of conclusion. We will go into persuasive structure in more detail later in the. Tell me what makes you different or better than your competition. Why should I buy from you? What�s my ROI? What�s the total cost of ownership> Show me the payback period. Give me a reason to feel good about spending this money. Make me feel confident that in spending this money I am actually investing in my business and will gain much more back than I am laying out. In a word, the document is not skimmable. Most executives don�t read, they skim. Now most of them know how. The problem is that they don�t have the time. So what do they do? The typical pattern is to glance at the opening page or two, then flip to the back to look for pricing, or action steps, and then skim the rest. If you key points are not highlighted with bold bas type, color, underlined, something�chances are they are not going to be seen. Use graphics. Graphics will cause a skimmer to stop that process and look at the message. The proposal is just hard to read. Full of our own in house jargon. Or too long. Or maybe it�s pitched at eh wrong level of technical competence for the decision maker. Anytime something is not clear, people don�t immediately want to reach for their wallets and say �Here, let me pony up.� Instead they make noises like �Um, we�re going to need one more meeting�, �We would like you to come in and present again�. And those statements may mean � we don�t know what you are talking about. The last one, credibility killers. The misspellings, the grammar mistakes, having a wrong customer�s name. Those are the kinds of mistakes we all make because we are cutting and pasting at the last second. But they undercut our credibility. We can do better.When we take these escape routes, we can end up with various writing errors. Here are the seven worst: This is a problem for the obvious reason that if your proposal is not based on a clear understanding of their problem/payoff, they may not see it as a solution. More like just information. The goal of a good proposal is to help the decision maker reach a decision. That means organizing our content in a way that matches the way he or she, or the team, will think through the issues to reach some kind of conclusion. We will go into persuasive structure in more detail later in the. Tell me what makes you different or better than your competition. Why should I buy from you? What�s my ROI? What�s the total cost of ownership> Show me the payback period. Give me a reason to feel good about spending this money. Make me feel confident that in spending this money I am actually investing in my business and will gain much more back than I am laying out. In a word, the document is not skimmable. Most executives don�t read, they skim. Now most of them know how. The problem is that they don�t have the time. So what do they do? The typical pattern is to glance at the opening page or two, then flip to the back to look for pricing, or action steps, and then skim the rest. If you key points are not highlighted with bold bas type, color, underlined, something�chances are they are not going to be seen. Use graphics. Graphics will cause a skimmer to stop that process and look at the message. The proposal is just hard to read. Full of our own in house jargon. Or too long. Or maybe it�s pitched at eh wrong level of technical competence for the decision maker. Anytime something is not clear, people don�t immediately want to reach for their wallets and say �Here, let me pony up.� Instead they make noises like �Um, we�re going to need one more meeting�, �We would like you to come in and present again�. And those statements may mean � we don�t know what you are talking about. The last one, credibility killers. The misspellings, the grammar mistakes, having a wrong customer�s name. Those are the kinds of mistakes we all make because we are cutting and pasting at the last second. But they undercut our credibility. We can do better.

14. Four Principles Using best practices to create proposals that win more frequently Now, we are going to review the four principles that will help you do better.Now, we are going to review the four principles that will help you do better.

15. Doctor, Doctor Give Me the Cures! Use persuasive structure Create customer-centered proposals Focus on the decision maker�s hot buttons Write to the audience Automate There are five specific tips: The persuasive structure is an organizational pattern that governs the way we present information to help people make decisions. Make sure we are addressing the things the customer cares about. What are the points of value they care about? What do they want to see in ROI? Personalize the message. Don�t give them boilerplate. Save time and improve your efficiency and build in these effective concepts by automating the way you handle proposals, the way you manage information. Let�s look at each of these.There are five specific tips: The persuasive structure is an organizational pattern that governs the way we present information to help people make decisions. Make sure we are addressing the things the customer cares about. What are the points of value they care about? What do they want to see in ROI? Personalize the message. Don�t give them boilerplate. Save time and improve your efficiency and build in these effective concepts by automating the way you handle proposals, the way you manage information. Let�s look at each of these.

16. Principle #1 Build your proposals on persuasive structure The first one is the persuasive structureThe first one is the persuasive structure

17. How Do People Make Decisions? The modern assumption Decision making is a rational process Involves systematic weighing of the evidence Franklin�s �moral algebra� This is a structural pattern that matches the way people actually think when they are trying to make decisions. Until recently, the assumption was that when people are trying to make an important decision, they gathered all the evidence, they weighed it, and they analyzed it, and they very carefully thought about it. And at the end of this very careful process they would come to some kind of logical conclusion. Franklin wrote that de used a �moral algebra� to make important decision, which really didn�t amount to much more than a �T� chart. The problem is Franklin, and probably nobody else, ever makes decision that way.This is a structural pattern that matches the way people actually think when they are trying to make decisions. Until recently, the assumption was that when people are trying to make an important decision, they gathered all the evidence, they weighed it, and they analyzed it, and they very carefully thought about it. And at the end of this very careful process they would come to some kind of logical conclusion. Franklin wrote that de used a �moral algebra� to make important decision, which really didn�t amount to much more than a �T� chart. The problem is Franklin, and probably nobody else, ever makes decision that way.

18. The Problem: Nobody Does It That Way Making decisions in the real world Complex Confusing Huge amounts of information Conflicting evidence Tremendous time pressure Why? Because it�s too hard. There�s too much information, it�s often confusing and conflicting, and we don�t have that kind of time to go through the detailed process. Instead, what people do is they make decision very quickly.Why? Because it�s too hard. There�s too much information, it�s often confusing and conflicting, and we don�t have that kind of time to go through the detailed process. Instead, what people do is they make decision very quickly.

19. How People Actually Make Decisions The process Quick Using the least amount of evidence possible Seemingly impulsive or irrational, to an outside observer They come to conclusions quickly and they do it using the least possible amount of evidence. We only look for tow or three bits of criteria. To someone from the outside, it may seem impulsive or even irrational, but to the person making the decision, it makes perfect sense. Most business decision makers use one of four specific kinds of decision processes. They come to conclusions quickly and they do it using the least possible amount of evidence. We only look for tow or three bits of criteria. To someone from the outside, it may seem impulsive or even irrational, but to the person making the decision, it makes perfect sense. Most business decision makers use one of four specific kinds of decision processes.

20. How Quickly Do People Decide? Question: How long does it take, on average, for a person to decide if a proposal is worth looking at in detail? Here�s a questions for you: How long does it take, on average, for a person to decide if a proposal is worth looking at in detail? Research had found that they are able to make that decision in less than five minutes. And for presentations, an audience member will decide to tune in or out even faster. The bottom line is this: We need to understand what are the critical decision patterns and use these I our proposals to make sure we are addressing the thinks that matter the most . If you are submitting a proposal, you may not get more than five minutes, so what appears up front in your proposal had better be what matters.Here�s a questions for you: How long does it take, on average, for a person to decide if a proposal is worth looking at in detail? Research had found that they are able to make that decision in less than five minutes. And for presentations, an audience member will decide to tune in or out even faster. The bottom line is this: We need to understand what are the critical decision patterns and use these I our proposals to make sure we are addressing the thinks that matter the most . If you are submitting a proposal, you may not get more than five minutes, so what appears up front in your proposal had better be what matters.

21. Factors of Choice Recognition Recognition is assumed to be a positive value Single factor decision making Use any criterion and select first options 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 Estimate the probable rate of return and choose the option giving the best ROI So what are the patterns of choosing that people use? The fist is the simplest, recognition. Often, when we are given a choice, if have heard of one option and never heard of the other, we assume the fact that since we have heard of the one, it is a positive value and we go with that. If you have a choice between a Dell computer or an IBM ThinkPad or an Acme millennia, I don�t think the Acme is going to make it. One of the earliest forms of decision making is recognition. Now another one is to pick up one or two key criteria and use that to make a decision. Sometimes it�s arbitrary. A more intelligent way of using single factors is to think about what we did the last time we made this type of buying decision. What did we do? Did it work? Or the last several times, what seemed to produce the best outcomes. Those are the kinds of insights that will help us understand what our customer is looking for. Now once we get beyond single factor making, we get into a more sophisticated process. Estimation is a built in capacity that we have to estimate the probable rate of return of a given coarse of action. A smart buyer wants to look at the options he or she has, and choose the one that has the biggest ROI for their organization. That means that we need to provide them with the information they need.So what are the patterns of choosing that people use? The fist is the simplest, recognition. Often, when we are given a choice, if have heard of one option and never heard of the other, we assume the fact that since we have heard of the one, it is a positive value and we go with that. If you have a choice between a Dell computer or an IBM ThinkPad or an Acme millennia, I don�t think the Acme is going to make it. One of the earliest forms of decision making is recognition. Now another one is to pick up one or two key criteria and use that to make a decision. Sometimes it�s arbitrary. A more intelligent way of using single factors is to think about what we did the last time we made this type of buying decision. What did we do? Did it work? Or the last several times, what seemed to produce the best outcomes. Those are the kinds of insights that will help us understand what our customer is looking for. Now once we get beyond single factor making, we get into a more sophisticated process. Estimation is a built in capacity that we have to estimate the probable rate of return of a given coarse of action. A smart buyer wants to look at the options he or she has, and choose the one that has the biggest ROI for their organization. That means that we need to provide them with the information they need.

22. What Are the Implications? Persuasion is a process, not an event Continuous messaging is more effective than isolated documents Importance of branding, advertising, repetitive contacts Structure is more important than style Using the right cognitive structure will produce the right results Put the important point up front Show compliance with the customer�s requirements and values This will facilitate selection when it�s �take the best� Demonstrate a high rate of return With no value proposal, there may be no persuasion What does all of this mean to us? As proposal writers, there are four specific implications: First of all, we need to see that persuasion is a process, not an event. If the customer had never heard of us by the time we get to the proposal stage, we have very little chance of winning. This is not a proposal problem, it�s a sales process. But it does imply that continuous and frequent messaging can help establish recognition in the mind of the customer. Secondly, structure is more important than style. The goal is to organize your content in a way so that the decision maker wants to buy from you. You can say it in bullet points as long as you say it in the right order. Third, we need to show compliance. We mentioned this earlier. They want to see who matches up to their requirements. And fourth, we have to show a high rate of return. We have to be able to support the estimation factor. What does all of this mean to us? As proposal writers, there are four specific implications: First of all, we need to see that persuasion is a process, not an event. If the customer had never heard of us by the time we get to the proposal stage, we have very little chance of winning. This is not a proposal problem, it�s a sales process. But it does imply that continuous and frequent messaging can help establish recognition in the mind of the customer. Secondly, structure is more important than style. The goal is to organize your content in a way so that the decision maker wants to buy from you. You can say it in bullet points as long as you say it in the right order. Third, we need to show compliance. We mentioned this earlier. They want to see who matches up to their requirements. And fourth, we have to show a high rate of return. We have to be able to support the estimation factor.

23. 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 To make sure we have organized our content correctly, and to leverage our understanding of the our customers use when they are making decisions, there is a persuasive structure. Use this in your proposal, sales letters, and presentations. You will see that the impact , your win ratio success, is tremendous. First, start out any proposal or presentation by addressing the customers needs, problems, or issues. Show them that you understand. We are getting their attention and focusing it on our message by showing them that: We�ve done our homework and we have actually listened We have correctly identified the pain that need to be relieved. We have established what the need is. Now we have to show them that this need should, in fact, be addressed. Show them that there are important outcomes, or results, for the organization, that will result from solving the problems or meeting the need. How do we do that? If you thing about it, in most organizations these are plenty of needs, plenty of problems. Not all of them are going to get addressed. You want to make sure that the problems, needs or issues that you are addressing are seen as being worth it. And that�s why we show the outcome. Don�t confuse these with benefits of your solution. Here we are talking about the organizational impact. The third step is to present your solution. But don�t just present it as information, commit to it, recommend it. Tell them that you really believe in it. And the final step is to give them the evidence to establish that you can do this job on time and on budget. Why does this sequence work? What you say first in your proposal, the customer will assume reflects your interest and your value. And for almost all decision makers, the most important criteria are those that address the needs of the business.To make sure we have organized our content correctly, and to leverage our understanding of the our customers use when they are making decisions, there is a persuasive structure. Use this in your proposal, sales letters, and presentations. You will see that the impact , your win ratio success, is tremendous. First, start out any proposal or presentation by addressing the customers needs, problems, or issues. Show them that you understand. We are getting their attention and focusing it on our message by showing them that: We�ve done our homework and we have actually listened We have correctly identified the pain that need to be relieved. We have established what the need is. Now we have to show them that this need should, in fact, be addressed. Show them that there are important outcomes, or results, for the organization, that will result from solving the problems or meeting the need. How do we do that? If you thing about it, in most organizations these are plenty of needs, plenty of problems. Not all of them are going to get addressed. You want to make sure that the problems, needs or issues that you are addressing are seen as being worth it. And that�s why we show the outcome. Don�t confuse these with benefits of your solution. Here we are talking about the organizational impact. The third step is to present your solution. But don�t just present it as information, commit to it, recommend it. Tell them that you really believe in it. And the final step is to give them the evidence to establish that you can do this job on time and on budget. Why does this sequence work? What you say first in your proposal, the customer will assume reflects your interest and your value. And for almost all decision makers, the most important criteria are those that address the needs of the business.

24. The Trust Equation Trust = Rapport x Credibility Linked with this is the trust equation. Trust is a function of three components: Rapport: are they comfortable with us? Do they feel good about working with us? Multiplied by our Credibility: Do we seem to be competent? Divided by the percentage of Risk Linked with this is the trust equation. Trust is a function of three components: Rapport: are they comfortable with us? Do they feel good about working with us? Multiplied by our Credibility: Do we seem to be competent? Divided by the percentage of Risk

25. What Should You Work on First? Question: Of the three elements of trust, which one should you focus on first? Of these three elements of trust, which one do you believe you should work on first? This is particularly critical if you are giving an oral presentation but it�s pertinent to the sales process and it even applies to your proposal. Do you think it�s: Rapport: establishing some kind of connection with the customer Credibility: proving that you know what you are talking about Risk: minimizing their perception of doing business with you. The answer is rapport. People just won�t listen to people they can�t connect with. If you can�t demonstrate an understanding of their core issues, they won�t listen to you. Of these three elements of trust, which one do you believe you should work on first? This is particularly critical if you are giving an oral presentation but it�s pertinent to the sales process and it even applies to your proposal. Do you think it�s: Rapport: establishing some kind of connection with the customer Credibility: proving that you know what you are talking about Risk: minimizing their perception of doing business with you. The answer is rapport. People just won�t listen to people they can�t connect with. If you can�t demonstrate an understanding of their core issues, they won�t listen to you.

26. Principle #2 Create customer-centered proposals Moving ahead, let�s go to principle #2Moving ahead, let�s go to principle #2

27. Proposals Should Be Customer-centered, Not Self-centered Customer-Centered Focuses on customer�s needs Presents solutions to business problems Looks toward long-term relationships Partnership orientation Analyzes payback, ROI, impact on business Integrates value-added offerings into strategy How do we make sure we get customer centered? How do we establish rapport? We want to be addressing things that matter to the customer as opposed to the things that matter to us. If our proposal focuses on the customer's needs, they are interested. If it focuses on our products, our technology, our company, they�re not. If we are addressing their business problems and showing how our solution works, they are interested. The key differences here are whether or not we are giving the customer what they want to hear or what is convenient for us.How do we make sure we get customer centered? How do we establish rapport? We want to be addressing things that matter to the customer as opposed to the things that matter to us. If our proposal focuses on the customer's needs, they are interested. If it focuses on our products, our technology, our company, they�re not. If we are addressing their business problems and showing how our solution works, they are interested. The key differences here are whether or not we are giving the customer what they want to hear or what is convenient for us.

28. Seven Questions to Keep You Customer-centered What is the customer�s problem, need, or opportunity? Why is this problem a problem? What outcomes or results do they want? Which results have the highest priority? What solutions can we offer? What result will each solution produce? Which solution is best? Here are the seven questions that you need to be able to answer if you are going to be able to write a customer centered proposal. Many of us will ask this question at first. The mistake we make is that we stop asking as soon as we get an answer. We have to act like we are four year olds. We have to keep saying �Why?� Why is that a need? Why is that a problem? What is that a concern? The second question is the one where we begin to peel back the layers of the onion. You are looking for insights into exactly where the pain is. Keep asking, �Is there anything else?� Are there any other areas where this causes a problem? We keep peeling it back. Once we feel like we have an insight to what the problem is we then move on and ask �How will you measure success?� �This is something we can do for you.� �We can probably solve this problems for .� But as in any business, there are usually choices to be made, trade-offs. Make sure we make the right choices and trade offs by asking what is your customer looking for that will spell out a successful outcome. What they probably want to hear are the kinds of outcomes that can be measured financially � improved profitability, reduced cost, greater market share. Or outcomes that effect the infra-structure � automating something that is labor intensive, better reporting. Another type of outcome is social relationships. They want to have happier employees, reduced absenteeism. Having probed for those, the next questions is �And which of those matters the most to you and your organization?� You want to know for two reasons: #1 � You want to put that up front in your calculations of payback. Show the thing that matters most to your customer. #2 � You want to use that for you basis, if you can, for your ROI calculation.. Now we move on to issues that are more focused internally. How are you going to do it? What have you got? What are the options? What solutions can you offer? Given the various options that you have, what results will each one produce? How do those results match up with question #4, the results the customer is looking for. That should give you the answer to question 7. Which approach is best? If you can answer these seven questions, you are ready to develop an effective proposal or sales presentation. If you can�t, you are lacking vital information.Here are the seven questions that you need to be able to answer if you are going to be able to write a customer centered proposal. Many of us will ask this question at first. The mistake we make is that we stop asking as soon as we get an answer. We have to act like we are four year olds. We have to keep saying �Why?� Why is that a need? Why is that a problem? What is that a concern? The second question is the one where we begin to peel back the layers of the onion. You are looking for insights into exactly where the pain is. Keep asking, �Is there anything else?� Are there any other areas where this causes a problem? We keep peeling it back. Once we feel like we have an insight to what the problem is we then move on and ask �How will you measure success?� �This is something we can do for you.� �We can probably solve this problems for .� But as in any business, there are usually choices to be made, trade-offs. Make sure we make the right choices and trade offs by asking what is your customer looking for that will spell out a successful outcome. What they probably want to hear are the kinds of outcomes that can be measured financially � improved profitability, reduced cost, greater market share. Or outcomes that effect the infra-structure � automating something that is labor intensive, better reporting. Another type of outcome is social relationships. They want to have happier employees, reduced absenteeism. Having probed for those, the next questions is �And which of those matters the most to you and your organization?� You want to know for two reasons: #1 � You want to put that up front in your calculations of payback. Show the thing that matters most to your customer. #2 � You want to use that for you basis, if you can, for your ROI calculation.. Now we move on to issues that are more focused internally. How are you going to do it? What have you got? What are the options? What solutions can you offer? Given the various options that you have, what results will each one produce? How do those results match up with question #4, the results the customer is looking for. That should give you the answer to question 7. Which approach is best? If you can answer these seven questions, you are ready to develop an effective proposal or sales presentation. If you can�t, you are lacking vital information.

29. The Best Place to Use Your Customer-Centered Insights The Cover Letter The Title Page The Executive Summary Case Studies Where do you use these insights that you�ve gained from these questions? You want to work it through the entire proposal, obviously, but the four areas where it is most important are the cover letter, title page, executive summary and the case studies.Where do you use these insights that you�ve gained from these questions? You want to work it through the entire proposal, obviously, but the four areas where it is most important are the cover letter, title page, executive summary and the case studies.

30. Effective Cover Letters Make them persuasive and brief Highlight 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�. Good cove letters should be brief, just a page of so. They should follow that basic persuasive structure. Start it out with the customers most important need or issue, give them a one or two sentence definition of how your going to solve that problem. And give them one or two key reasons why they should be choosing you to provide their solution. What is it that differentiates you? Please make sure that you never end a cover letter by stating �If you have any questions, please feel free to call.� That clique does you no good at all. It doesn�t ask for the business and it implies that you have somehow confused them. And it turns over control of the sales process to the customer. This is not what you want. Instead close with something like �I will call you on Tuesday to discuss the next steps.� �We are eager to work with you to implement this exciting solution.�Good cove letters should be brief, just a page of so. They should follow that basic persuasive structure. Start it out with the customers most important need or issue, give them a one or two sentence definition of how your going to solve that problem. And give them one or two key reasons why they should be choosing you to provide their solution. What is it that differentiates you? Please make sure that you never end a cover letter by stating �If you have any questions, please feel free to call.� That clique does you no good at all. It doesn�t ask for the business and it implies that you have somehow confused them. And it turns over control of the sales process to the customer. This is not what you want. Instead close with something like �I will call you on Tuesday to discuss the next steps.� �We are eager to work with you to implement this exciting solution.�

31. The Title Page:Say Something Meaningful State a benefit to the customer 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 What about the title page? Does it really matter? Remember this may be the first thing anyone sees. What does it say? Does it really address the key concerns of the customer? Use as your title, a benefit to your customer and make that your main message on the title page. Rather than letting your logo dominate, try putting your logo and the customer�s logo more or less in graphical balance.What about the title page? Does it really matter? Remember this may be the first thing anyone sees. What does it say? Does it really address the key concerns of the customer? Use as your title, a benefit to your customer and make that your main message on the title page. Rather than letting your logo dominate, try putting your logo and the customer�s logo more or less in graphical balance.

32. Which One Would You Read First? If you got these two proposals, which one would you want to read? Assuming that you were trying to expand your market reach through Reman parts, you would probably pick up the one on the left.If you got these two proposals, which one would you want to read? Assuming that you were trying to expand your market reach through Reman parts, you would probably pick up the one on the left.

33. Proposal Titles Question: What is the most frequently used title for proposals in the English-speaking world? Here�s an easy question, and you probably already can guess the answer. What�s the most frequently used title for proposals in the English speaking world? The answer is proposal. What we are doing is telling the customer the obvious. If your proposals are titled proposal, you�re not doing a good job. You�re not differentiating yourself and you are not stating a benefit to the customer. Here�s an easy question, and you probably already can guess the answer. What�s the most frequently used title for proposals in the English speaking world? The answer is proposal. What we are doing is telling the customer the obvious. If your proposals are titled proposal, you�re not doing a good job. You�re not differentiating yourself and you are not stating a benefit to the customer.

34. The Executive Summary:Keep It Brief and Relevant Write simply and clearly Readability should be easy Focus on bottom-line issues and outcomes Unless the buyer is strictly technical Keep it short Two pages is plenty for most proposals What about the executive summary? Keep it short, about one or two pages. Keep it simple�and clear Make sure it�s highly readable. In Microsoft Word, you can check the readability level. What you are looking for is something along the lines of time Magazine, or Newsweek. Something that is appropriate for adults, but easy to digest. Focus it on the business issues, the bottom line impact. Because this is the area that the senior executives will look at. Don�t make the executive summary into a total summary of the whole proposal. It doesn�t need to cover every issue in the proposal. It�s really more of an executive briefing or overview. Focus on the issues that matter to that senior economic buyer. What about the executive summary? Keep it short, about one or two pages. Keep it simple�and clear Make sure it�s highly readable. In Microsoft Word, you can check the readability level. What you are looking for is something along the lines of time Magazine, or Newsweek. Something that is appropriate for adults, but easy to digest. Focus it on the business issues, the bottom line impact. Because this is the area that the senior executives will look at. Don�t make the executive summary into a total summary of the whole proposal. It doesn�t need to cover every issue in the proposal. It�s really more of an executive briefing or overview. Focus on the issues that matter to that senior economic buyer.

35. 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 Case Studies? They are a great way of demonstrating confidence. They have a lot of creditability. They give you the chance to demonstrate that you can deliver a significant ROI. But keep them short. People don�t want to read lengthy project summaries. What they want is basically three bits of information: What problem did this client have?, Was is similar to what we have? What did you do? What action did you take? Ideally, your case study should show that you provided a solution similar to the solution that you are recommending in this proposal. What exactly happened? What were the results? Quantify them if you can. This format will create a compelling and interesting case study and give you a chance to establish that you can deliver good results.Case Studies? They are a great way of demonstrating confidence. They have a lot of creditability. They give you the chance to demonstrate that you can deliver a significant ROI. But keep them short. People don�t want to read lengthy project summaries. What they want is basically three bits of information: What problem did this client have?, Was is similar to what we have? What did you do? What action did you take? Ideally, your case study should show that you provided a solution similar to the solution that you are recommending in this proposal. What exactly happened? What were the results? Quantify them if you can. This format will create a compelling and interesting case study and give you a chance to establish that you can deliver good results.

36. Principle #3 Focus on the decision maker�s hot buttons Where should these results be showing up? That�s our next principle � focusing on the decision maker�s hot buttons.Where should these results be showing up? That�s our next principle � focusing on the decision maker�s hot buttons.

37. 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. Otherwise the customer will choose based on price or maintaining the status quo. The reality is, if you don�t take the time to show value, you�re just playing a game of chance. You have to establish superior value, in some area that the customer cares about, or it becomes a price purchase.The reality is, if you don�t take the time to show value, you�re just playing a game of chance. You have to establish superior value, in some area that the customer cares about, or it becomes a price purchase.

38. Maintaining the Status Quo Question: How frequently do current vendors win on re-bids? Here�s another questions: The answer is based on research that was done on government contracting. And the answer is 90%. This may not reflect the commercial sector. Nine out of ten times, in government bidding, the incumbent will win. What if the incumbent had done a poor job? What if they are in trouble? They still win half of the time! What does that mean?Here�s another questions: The answer is based on research that was done on government contracting. And the answer is 90%. This may not reflect the commercial sector. Nine out of ten times, in government bidding, the incumbent will win. What if the incumbent had done a poor job? What if they are in trouble? They still win half of the time! What does that mean?

39. 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 Inactivity and passiveness sometimes seem safer than taking action Well, two things: First, if you are trying to displace an incumbent, you have to do a careful bid/no bid analysis to decide if this is work you want to go after. But secondly, what it means is you've really got to displace that incumbent by demonstrating significant, superior value. Even if the incumbent had done a poor job, many customers figure they are better off with the devil they know than the one they don�t�. Unless you can show a real compelling ROI, they may not make the change. Other flags that tell you you should spend extra time on ROI value is if you are changing the way people work. If you are relocating control of something valuable, like money or information. Or if doing nothing is a reasonable choice. For example, if your proposal is for the customer to outsource to you. You�re trying to get them to outsource a key function (service). They already have that function in place so doing nothing makes sense.Well, two things: First, if you are trying to displace an incumbent, you have to do a careful bid/no bid analysis to decide if this is work you want to go after. But secondly, what it means is you've really got to displace that incumbent by demonstrating significant, superior value. Even if the incumbent had done a poor job, many customers figure they are better off with the devil they know than the one they don�t�. Unless you can show a real compelling ROI, they may not make the change. Other flags that tell you you should spend extra time on ROI value is if you are changing the way people work. If you are relocating control of something valuable, like money or information. Or if doing nothing is a reasonable choice. For example, if your proposal is for the customer to outsource to you. You�re trying to get them to outsource a key function (service). They already have that function in place so doing nothing makes sense.

40. Value: Improving Performance or Eliminating Pain Where It Matters Financial gain lowest price, highest total value, lowest total cost of ownership Quality maintainability, ease of use, fewest problems/rejects Infrastructure improvement 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 What does value mean? Where do we look for value? One of the most common is financial gain Quality is another one that is extremely important Infrastructure: make my systems work better, add flexibility Keeping up with the industry Minimizing risk Or just gaining competitive advantage. Improving the organization. Any of these may be appropriate. And there may be others.What does value mean? Where do we look for value? One of the most common is financial gain Quality is another one that is extremely important Infrastructure: make my systems work better, add flexibility Keeping up with the industry Minimizing risk Or just gaining competitive advantage. Improving the organization. Any of these may be appropriate. And there may be others.

41. Creating the Value Proposal The payback measurements must be customer-focused The presentation of payback is more persuasive if it�s quantified The value proposal is more likely to be noticed and remembered if it�s graphical To bullet-proof your value proposal, you must base it on your differences from the competition Make sure when you present your value, you do four things: Show the value in the terms that the customer can appreciate and value Quantify it. Numbers are more convincing than words Show it graphically. Give them a bar chart, a pie chart�something simple but shows improvement. Something that shows gain for the organization. And finally�Base the value that they get on something unique about the way you do business. Something about the way you provide service, about the way you implement. Something that your competitors cannot easily duplicateMake sure when you present your value, you do four things: Show the value in the terms that the customer can appreciate and value Quantify it. Numbers are more convincing than words Show it graphically. Give them a bar chart, a pie chart�something simple but shows improvement. Something that shows gain for the organization. And finally�Base the value that they get on something unique about the way you do business. Something about the way you provide service, about the way you implement. Something that your competitors cannot easily duplicate

42. Principle #4 Personalize the Message Finally, our fourth principle�personalize the messageFinally, our fourth principle�personalize the message

43. Good Advice From a Noble Roman �If you wish to persuade me, you must think my thoughts, feel my feelings, and speak my words� Cicero We need to talk in language that the customer understand. This is the Cicero principle. What was he talking about?We need to talk in language that the customer understand. This is the Cicero principle. What was he talking about?

44. Get Out of the Comfort Zone� He was talking about the fact that for most of us, when we communicate, these is a comfort zone. Usually, that comfort zone is were we present information to somebody who knows as much as we do. Unfortunately, that is not where persuasion occurs.He was talking about the fact that for most of us, when we communicate, these is a comfort zone. Usually, that comfort zone is were we present information to somebody who knows as much as we do. Unfortunately, that is not where persuasion occurs.

45. �And Into the Persuasion Zone Persuasion is using the persuasive structure and simplifying the content, so a non-expect understands our message.Persuasion is using the persuasive structure and simplifying the content, so a non-expect understands our message.

46. Cicero�s Three Points Audience Level - Expert (Speak my words) - Highly informed - Acquainted - Uninformed Audience Type - Analytical (Think my thoughts) - Pragmatic - Consensus-seeker - Visionary Audience Role - Check signer (Feel my feelings) - User - Gatekeeper Going back to Cicero�s three points: Speak my words addresses levels of expertise. How much do they know? How much do the know about our stuff? Audience type is a matter of personality. Some people like a lot of detail, some want you to be brief. Understand your customer. Finally, what is your audiences role? What do they do in the organization? That will help define what they care about.Going back to Cicero�s three points: Speak my words addresses levels of expertise. How much do they know? How much do the know about our stuff? Audience type is a matter of personality. Some people like a lot of detail, some want you to be brief. Understand your customer. Finally, what is your audiences role? What do they do in the organization? That will help define what they care about.

47. 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 you eliminated your own in-house jargon? The point here is this: boilerplate proposal may do more damage that good. People don�t want to deal with boilerplate and they don�t have to. So, check your own proposals How many times does your name appear in the Executive summary? How many times is the customer�s name mentioned? The customer�s name should appear 2-3 times more frequently than yours. Have you linked your service or product�s features to the customer�s needs or are you just giving them a list? Can they see the connection? Are you using their terminology?The point here is this: boilerplate proposal may do more damage that good. People don�t want to deal with boilerplate and they don�t have to. So, check your own proposals How many times does your name appear in the Executive summary? How many times is the customer�s name mentioned? The customer�s name should appear 2-3 times more frequently than yours. Have you linked your service or product�s features to the customer�s needs or are you just giving them a list? Can they see the connection? Are you using their terminology?

48. Clear Messages = Convincing Messages 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 market or industry Use lots of graphic illustrations Highlight the text so your key points JUMP off the page A few more tips to make sure your messages are clear, because when a message is clear, it�s more convincing. Keep it short and simple One or two syllable words 17-18 word sentences Use the customer's name throughout the proposals Refer to them as you Avoid jargon Aim for the right level of expertise Use plenty of graphics Finally, highlight text so it pops off the page A few more tips to make sure your messages are clear, because when a message is clear, it�s more convincing. Keep it short and simple One or two syllable words 17-18 word sentences Use the customer's name throughout the proposals Refer to them as you Avoid jargon Aim for the right level of expertise Use plenty of graphics Finally, highlight text so it pops off the page

49. Summary Customer-centered proposals are more effective than self-centered proposals Selling solutions require clear and compelling value proposals based on your differentiators Personalizing the proposal to the audience helps get your message across So what have we learned?So what have we learned?

50. Our Understanding of the Issues You Face Respond effectively to RFP�s Increasing sales force productivity Improving the quality of your proposals Doing all of this take a lot of time. So we urge you to look at automating the process with BPR. Visit our website for more tips, tools and proposal template. Step by step you will learn how to create winning proposals that cause the decision maker to say �Yes!�Doing all of this take a lot of time. So we urge you to look at automating the process with BPR. Visit our website for more tips, tools and proposal template. Step by step you will learn how to create winning proposals that cause the decision maker to say �Yes!�