BY Jessica Helinski
Are you using sales proposals effectively? Smart sellers know that even after the prospect indicates purchase intent, the work is not done. The ultimate “secret weapon” must still be presented: The sales proposal.
What is a sales proposal?
According to John Doerr, RAIN Group, a sales proposal “outlines why a buyer should purchase from you and what you're specifically proposing to do.”
It is meant to persuade prospects and clearly lay out why they should buy your specific solution. A good proposal isn’t a breakdown of everything you offer.
Instead, it focuses on and is tailored to the buyer and demonstrates value that will resonate with their specific preferences.
SalesFuel research reveals that buyers aren't looking for a salesperson who simply knows their product. They want someone who understands their business (cited by 29%), provides relevant ideas (24%) and knows how their solution can help the buyer (30%).
A well-crafted sales proposal can reinforce those qualities by showing that the salesperson listened, tailored the recommendation to the buyer's needs and clearly documented what they are prepared to deliver.
What are the essential elements of a sales proposal?
Doerr shares what he believes are key components of a winning proposal. Sellers should try to include these components for maximum impact.
Demonstrate understanding
A seller can’t craft an effective sales proposal if they don’t fully understand the prospect’s pain points. This fundamental understanding is needed in order to formulate how the solution can actually help. And this knowledge should be clearly outlined in each proposal.
“You can use prose or bullets, but the goal is to show you ‘get it’,” Doerr explains.
“This section reminds the buyer why they're taking action and sets the foundation for everything that follows.”
Now vs the future
In a good sales proposal, a seller outlines where the prospect is and where they could be if they adopt the seller’s solution. This tactic shows the impact your product or service can have and makes it seem more tangible to the buyer. Storytelling can be especially helpful for this purpose.
Solution and impact
Next, Doerr shares that a proposal needs to include a description of how your solution takes the prospect from their current state to that desired future. It can be easy to get caught up in the details but keep it concise.
Follow it up with the impact that the solution will have.
As he explains, this is where you will highlight the benefits, increasing revenue to capturing market share and improving their productivity.
Credibility
Another key element of a winning sales proposal? Substantiation. You should always include evidence of success to boost credibility.
“Buyers need to believe your solution will work for them,” Doerr points out.
“Back up your claims with case studies, representative results, team bios, and industry experience.”
Schedule
Sellers need to let their buyers know how the purchase process looks, from pricing to delivery. Prevent any confusion and support realistic expectations by clarifying what they can expect when they buy.
Agreement and appendix
Finally, you should close every sales proposal with a clear agreement section that gives the buyer a place to sign, followed by an appendix for any supporting information that doesn’t need to be in the main proposal.
What should you avoid when writing proposals?
It’s important to be aware of what you should avoid when writing a sales proposal.
For example, Doerr cautions against sending a proposal too early in the process, even if a prospect asks for one. Sellers should only send a proposal when they can effectively include all of the aforementioned components.
Creating one too soon likely won’t allow for enough time to “fully understand their needs, explore different approaches, and understand what they're willing to invest…”
By following these practices and crafting each proposal thoughtfully, you’ll guide prospects through the final sales stage and give them the confidence to make the purchase every time.
Photo by Vitaly Gariev on Unsplash
