Proactive Proposals engine – An extra wheel to your sales acceleration!
“Creating or controlling a situation rather than just responding to it after it has happened” is the meaning of the word Proactive – courtesy Google. Taking help of this definition, we are here referring to the pre-empt process of generating Proactive Proposals for product or service companies.
Statistics indicate that the win-ratio of these proposals are more than the solicited or reactive proposals. It is also learnt that less than 10% of companies adopt this mode for sales acceleration.
The existing wheels for growth are typically the Front-Line sales, Inside Sales, Account Mining at incumbent or exiting customer and reactive Presales (also referred to as submitting Proposals to competitive RFPs). A Proactive Proposals team can accelerate your sales.
What are Proactive Proposals? Among the many types of business proposals, the reactive (or solicited) and proactive (or unsolicited) are the two major types.
Reactive proposals, also known as solicited responses, is the standard way businesses buyers acquire services or products from sellers. In this case the buyers know exactly what they want – requirements, T&Cs, price, conditions to supply etc.
Proactive proposals are pre-empted exercise where companies are identifying hidden or latent needs, solution for those needs or desires and submit proposals. Remember there are no solicited RFPs here. Sellers create a Proposal with a quick overview of the problem statement and a probable solution, all on their own initiative.
“Proactive Proposals are the creative exercise of crafting solutions to an unmet or latent need, which customers themselves may not be aware of”
Situations or circumstances where you can gather momentum to generate Proactive Proposals: There are several ways to get the cues or tips to create Proactive Proposals. An example can be an informal discussion with a client where a need / want is discussed. After the requirement is discussed a pre-emptive proposal is submitted to demonstrate your understanding and capability to deliver a winning solution for this need.
A few other triggers to create proactive proposals are:
- New Services or Product or Technology introduction or even new market introduction (NSI/NPI/NTI/NMI)
- Mergers and Acquisitions, de-mergers or spinning off business units
- Senior leaders’ movements – lateral or external movements
- Disruption or thought leadership – a pre-empt profitable business case about a new insight or even showcasing thought leadership around the informal need
- Extension to current services or products – product or service diversification, enhancing service or product features, or even sun-setting a product or a service line
- Press releases indicate where companies would invest or divest in the coming quarters
- Quarterly statement can also be good indicator as it lets you patter or trajectory of P&L for a particular product or service line
Win ratio for Proactive Proposals are far higher than Inside Sales and Account Mining put together.
Benefits of Proactive Proposals
I have always practiced this art of Proactive Proposals and have seen significant results.
- Removes Wired-ness
- Perceived proactive and problem solver
- Less or no competition
- Removes or reduces incumbent competitors in multi-vendor scenario
- Precedent for upcoming difficult situations
Framework to generate Proactive Proposals
Proactive Proposals Framework = {Trigger(s) + Stake holder’s details + Value Proposition. This is something similar to When + To Whom + What to Propose.
Triggers is discussed earlier. We need the Stakeholder and the contact details. Your CRM or your Sales Force Automations (SFA) should have all the customer or stakeholder details.
The last section is the most important, the What part, which should go into the proposal. Let us now assume a discussion with a stakeholder, during which you discussed a latent need or the problem-solving issue or desired state efficiency. One of these can be the “What” part of your proposal. Discuss internally, solution and craft a Proactive Proposal, what best can be done to ensure customers’ future desired state.
Not all companies may have these enablement, leverage whatever you have. This framework can be achieved in two different scenarios: 1. Leveraging your company’s existing or past customers – Almost all companies has some kind of CRMs or Sales Force Automations (SFA). 2. Leveraging market or competitor intelligence or #DatabaseMarketing company like #DiscoverOrg, #ZoomInfo, #InsideView, #SalesLoft, #HubSpot, #Owler etc. Since these companies have the first two elements the third element is a solution engineer’s creativity towards problem solving.
Proactive Proposals can be a very strong wheel for growth. If there exists a disciplined processes, practices and right monitoring, it can create another parallel track of revenue.
Products and Services companies should adopt #ProactiveProposals mechanism to accelerate #sales and ensure #growth. Statistics indicate that the #win-ratio of these proposals are more than the solicited or reactive proposals. It is learnt that less than 10% of companies adopt this mode for sales acceleration.
Besides your traditional existing wheels of growth which are front-line sales, inside sales, account mining at incumbent or exiting customer and reactive Presales (also referred to as submitting Proposals to competitive RFPs), a Proactive Proposals engine is a sure way to accelerate your sales.
Proactive Proposals are not just for small or tiny companies, even large corporations can leverage this.
Call us at +91 7259 343 992 for an in-depth discussion on how to create a Proactive Proposals engine for your company.
