It’s extremely difficult to cover every business opportunity in today’s customer-driven, competitive environment. Responding to a request for proposal (RFP) that is on the fringe of your company’s area of expertise is costly and likely to be inefficient. Blindly replying to every RFP is a foolhardy endeavor because it will sink countless hours into developing a proposal for opportunities that have little chance of closing. A better strategy is to selectively develop a proposal after evaluating the opportunity's suitability.
Professionals must target the appropriate market segment and develop proposals only for potential customers who are a good fit for an ongoing working relationship. The best potential customers in order of preference are:
- An existing customer with a new need that’s closely identified with the products and services you are already providing.
- An existing customer with a need in a department not previously serviced by your company but with needs related to your core competencies.
- A potential customer whose needs are well aligned with the core competencies of your company.
- A potential customer who has come to you in the context of a systematic solution worked out by one of your strategic allies.
Two considerations can help you determine whether to develop a proposal in response to a particular RFP. First, identify the real needs and problems addressed in the RFP. Second, evaluate the degree of fit between the needs of the customer and the genuine expertise of your company relative to the competitors who would also be bidding for the contract. The question you need to answer is whether the expertise and product line you bring to the situation can be placed at a competitive advantage relative to the competition. And, if the answer to that is yes, you need to determine how you can position yourself relative to the competition.
Formal proposals can be costly in time and resources. Targeting the right audience enables you to avoid many of the pitfalls of the proposal process. Professionals –along with the marketing department – must constantly monitor the RFP process to curb the tendency to pursue poorly suited prospects with time-consuming and costly proposals. When the wrong opportunity is targeted the proposal will be unsuccessful at best and successful but unprofitable at worst.
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Only the best sales reps can consistently navigate the "last mile" of the sale. They ensure ahead of time, that the customer has a problem their solution can solve, a budget they are willing to spend, and a decision-making process within which they can succeed. |
