6 Positioning Strategies That Can Win an RFP
Before the RFP: Key Messages That Position You for Success
Winning a contract comes down to finding mutual value between you and the client. The concept of value goes beyond the financial numbers, though, and is really a combination of price, product, services and trust. When you receive a Request for Proposal (RFP) from a client, how do you demonstrate the value you can bring when the only thing they may see is what you include your written proposal? How can you make your small business stand out against the competition, when all there is to go on is a written proposal? The simple answer here is something called market positioning, or those marketing and early engagement activities that can influence a decision-maker even before the RFP is issued. To illustrate this, we wanted to explore some of the key messages you should send to your client that will compliment what will eventually be your RFP response and commercial proposal.
What is Market Positioning? A Simple Definition
Market positioning is the process by which you formulate an image of your brand in the eyes of the customer, as a result of your marketing efforts. As a basic level, this can be your relative quality and price as compared to your competitors. For example, by simply mentioning brand names like Mercedes and Ford, you will immediately equate one with luxury, and the other with affordability. This association is the result of marketing efforts of both companies. However, we can take this beyond just price and quality, and look at market positioning in terms of overall value.
As you conduct your marketing efforts before the customer issues an RFP, there are several key messages you can send to a client help position your firm in a favorable way. As we go through each of the following positioning techniques, think about each one in terms of how they add value to the customer.
1. Focus on Capability
When interacting with a potential client, the first message you want to send is Yes, we have the capability. Even if you immediately recognize there are better ways of doing something, or that the customer’s desire is expensive, making it clear you can perform the work requested is critical. The goal of your early interaction with a client you are courting is to get past the “interview” phase and to begin discussing details. Thus, highlighting your capabilities is your top priority for early customer engagement.
Why Focus on Capability?
Clients and customers often hire out work because they lack the skill set or internal ability to do it themselves. By showing them your capabilities, it gives the client confidence you can bring the skills they need to the table.
2. Highlight Experience
Recognize that capability and experience are not the same thing. While capability means you have the skills to do something, having the experience means you have actually done it before. Therefore, after you outline your capabilities, you can further position your offering by demonstrating your experience. Listing similar projects you have completed will serve as evidence you have done what the client seeks and have experience that can benefit them.
What Experience Means To Clients
By highlighting your relevant experience, you are indirectly selling your client on the idea that you have been down this road before. Clients often place value your ability to draw upon your knowledge to highlight details that they may have overlooked.
3. Offer Alternatives and Options
Despite the old saying, the customer does not always know what is best, nor do they always know what they really want. Additionally, the mere fact that they are issuing an RFP often indicates that they are not the experts and need outside expertise. Therefore, once you have clearly demonstrated you have the capability and experience, it is time to put that experience to work by presenting options. As you further engage the client during your pre-RFP meetings, presenting them with options and alternatives can build further confidence in your organization as potential partner.
Why Options Matter
Clients often have the big picture and end game in mind, but may lack the knowledge to understand tradeoffs and the various ways of getting to their goal. By presenting options and alternative solutions, your prospective client will see you can bring fresh ideas to the table.
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4. Demonstrate Flexibility
Another way to position your firm as part of an RFP capture campaign is to be flexible in how you engage with the client. Whether it be flexibility in terms of schedule, or in the ways you accommodate customer requests, clients always appreciate working with companies that are there to help and support. Going out of your way to show this willingness on your part can help bolster your RFP response when it comes time for the client to make the final selection.
How Flexibility Adds Value to a Capture Campaign
The client’s working experience before awarding you the business is often an indicator of what it’s like to work with you after they’ve awarded the contract. A positive experience is one you want to leave them with before submitting your RFP response.
5. Responsiveness
Everyone values responsiveness. Whether it is from the plumbing company to come out and fix a small leak, or your doctor calling you back to answer a question, all customers place value on how well their product and service providers respond to their needs. Should you be sluggish in your communication, the only message it sends your potential client is that you’ll likely be just as slow if hired, which can hurt your chance of winning the contract.
The Hidden Message in Responsiveness
When something is important, responsiveness is high. When something is not important, lack of response is telling. Potential clients know that if you’re slow to answer questions that they may be in better hands with a competitor who is more engaged.
6. Ability to Manage Risk
After you’ve demonstrated you have the ability, the experience and are responsive to their needs, it is time to demonstrate your ability to manage risk. Whether hiring a contractor to remodel a home or hiring an IT firm to develop custom software, every client has an interest in your ability to manage the unexpected. Taking the time to explain how you do this for your clients helps reassure them that you know what you are doing.
Risk Management Can Be a Winning Proposition
Your total value proposition includes your ability to manage risk and to effectively protect the customer from those risks. This ability to manage risk – in terms of cost, schedule or quality – may even command a higher price.
Why Is Positioning Important Before Making a Proposal?
At first glance it make seem like going out of your way before making your proposal is a lot of work, and may feel like a waste of time. However, collaborating with your client before you even make a proposal offers three distinct advantages, particularly when it comes to dealing with a new client.
First, pre-RFP market positioning gives you a chance to influence a client’s view of your organization and the type of value you can add to them, far more than a written proposal can. Early engagement also allows you to showcase what you can do for the customer, and may help bridge or overcome any shortfalls in your RFP response.
Second, engaging a client before they issue an RFP gives you a chance to possibly influence and shape type of content they include in the scope. For example, knowing your competition, you may be able to convince the client to include scope that your competitor cannot perform, giving you a distinct advantage.
Third, the efforts you make to position your brand in front of the customer also turns the tables on them, giving you important insight into how well the work aligns with your ability and interests. It is better to learn that you cannot deliver to what the client wants or learn the opportunity may not really be as lucrative as you hoped before you are under contract to deliver.
The Goal of Market Positioning and Early Engagement
The goal behind all of this work is to have the customer select your products or services in their mind before they even receive your proposal. By engaging them early, you can show them what you can do to a far greater extent than a written proposal can do. Ultimately, you want the potential client to be convinced you bring the best value to them even before they see the price.
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