listening to what we were saying,” which established
instant credibility.
Recommendations
Based on what you present in the Situation Analysis,
deliver broad recommendations for improving the
client’s situation. Provide any new ideas that the client
may not have expected here to add value and
differentiate.
About the Firm
While not always necessary, it may be helpful to
include information about your organization depend-
ing on the proposal requirements. This could include
history, service philosophy, processes, case studies,
client lists, and references.
Project Summary
Describe the project in discussion at some level of
detail, how you are going to accomplish the project,
what the success criteria area, and assign respective
responsibilities.
Staffing
Depending on your organization’s service delivery
model, be as specific or vague as necessary. Smaller
firms can differentiate here by incorporating exactly
who will be working on the project, especially when it
involves experienced staff.
Costs and Payment Terms
Specify project/engagement costs and payment
terms, billing information (purchase orders, ID codes),
billing contact.
Conditions
Specify unique arrangements such as bonus terms,
guarantees, stock grants, confidentiality, termination
rights, and so on.
Engagement Agreement
Provide a separate page to accept and execute the pro-
posal, by signing and mailing and/or faxing to your firm.
Exhibit 7.2
The Professional Services Sales Process
Proposal and Reference Management
167
often request e-mailed versions of proposals, and though their requests should be honored, that doesn’t preclude firms from sending hard copies along as well. Remember that every step along the way to successfully landing a new client is meaningful, and none should be minimized.
Exhibit 7.2 illustrates the key components of a professional services proposal and their respective roles, taking into consideration that the target audience is both individuals closely involved in the vendor selection process, as well as peripheral executives with a vested interest in its outcome, who may not be familiar with your firm. Also, keep in mind that some components illustrated may be extraneous if the sales process has been lengthy and the information has been presented thoroughly in other forums.
To promote user friendliness, longer proposals should contain a table of contents. Almost without fail, prospects immediately f lip to the costs section and then make their way through the entire document. It’s human nature and unavoidable. As we’ve discussed, once the proposal has been submitted, there should be no surprises because discussions have occurred along the way, so sticker shock should not be a problem.
Qualifications and References
In the services business, qualifications (including the firm’s brand, which should play a significant role in the selling process) and references go a long way. They address risk management and can support premium pricing if used effectively. “When I was at Goldman Sachs, I was never asked even once by a prospect for a reference. Now that I’m out on my own, I’ve never landed a new client without being asked to provide references,” says one money manager with an Iv y League education.
If you’re a graduate of a top-20 law school working at a big firm, that means you’ll be billing out at $300 per hour during your fifth or sixth year; that’s the price the market is willing to pay as it’s willing to pay $250 per hour for an established art director who consistently generates good advertisements that sell products. The same goes for the hot architect who has designed the latest-and-greatest building in town—premium pricing is justified if the services are presented and sold effectively.
As a professional services business developer, using qualifications and references in the selling process is a fundamental technique. These aspects of the firm should be promoted throughout the entire selling process and incorporated into proposals as necessary.
PRESENTING QUALIFICATIONS AND CLIENTS.
Qualifications include
anything about your organization and its staff that is relevant to the buyer(s), may persuade the buyer ’s decision to hire your organization, and /or establish common ground with him or her for future discussions (e.g., alma maters), including:
168
The Front Office: Driving Sales and Growth
Company-Specific Information
• History
• Services
• Processes and /or methodologies
• Clients and specific client work
• Research, articles
Staff-Specific Information
• Background
• Project work
• Previous employers
• Education
• Nonprofit work
• Research, articles
For professional services with more than a handful of people, the most important qualification presented usually has to do with clients—a comprehensive list and what you did for them. The premise is obvious: If some other respected company thought enough of your organization to hire you, then we should be okay with it, too. Or, if you’ve completed a task successfully somewhere else, then it’s likely you can do it for us, too.
The role of qualifications in proposals depends on what the prospect is looking for in the document and where you are in the sales process. In an ideal selling situation, the proposal will be a straightforward document that simply summarizes and documents what has already been agreed on verbally. Because this is not always possible, qualifications may play an active role in many of your proposals and should be well-crafted and compelling; professional services firms don’t have clear features and benefits as products do, so they always need to reinforce their expertise and experience. Regardless of the role of qualifications in the proposal itself, this information should be presented and reinforced in all of the firm’s collateral as appropriate: web sites, newsletters, postal mail correspondence, and so on.
MANAGING REFERENCES. Referencing clients can be tricky business. However, most clients that are being served well are happy to serve as references.
There are legal issues to consider, though, and you want to make sure that formal permission is obtained. There are three ways to acquire permission: 1. Using a separate, stand-alone request document (see Exhibit 7.3 for an example)
2. Requesting permission as part of a broader document that governs the terms of the relationship, such as a master services agreement
Proposal and Reference Management
169
March 28, 2002
John Smith
Chief Operating Officer
Acme Manufacturing
72 Main Street
Boston, MA 02210
RE:
Reference Permission
Dear John:
Thank you very much for allowing Pixel Bridge Inc to include your organization on our website client list, along with your testimonial. I would like to take this opportunity to confirm your quotation and the ways in which they may be used in the future.
You have offered the following quotation to be used in Pixel Bridge marketing collateral:
• “Pixel Bridge Inc has been a reliable Web development partner and I’m looking forward to a long and successful relationship with the organization.”
We may use this quotation, fully attributed with your name, title, and company name and logo, in our current and future marketing activities, including but not limited to:
• In a case study appearing on the Pixel Bridge website
Your assistance will be invaluable to our own marketing efforts and will also reflect highly on the professionalism of your organization. Allowing us to review your organizations’ use of the Internet should enhance Acme Manufacturing’s image as an innovative, cutting-edge company that embraces leading Web technology to achieve its customer and business goals.
If you are in agreement with your quotation as reiterated here, as well as its uses outlined, please sign the attached authorization and return the signed original to my attention at the address below. If you have any questions regarding this matter, do not hesitate to give me a call.
Thanks again for your help.
Sincerely,
Tim Bourgeois
CEO
Exhibit 7.3
Example of a Request Document
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The Front Office: Driving Sales and Growth
3. Using less formal means, such as e-mail correspondence, to document the authorization
Pixel Bridge, a firm that provides marketing advisory services, includes the request in the following extract as a clause in its master services agreement, the document it executes with new clients after the proposal has been authorized:
PERMISSION FOR USE
Acme Manufacturing, by its duly authorized representative hereby irrevocably grants to Pixel Bridge Inc, its subsidiaries and affiliates, permission to use the Acme Manufacturing logo, name, and other promotional materials including testimonials as supplied by Acme Manufacturing, in whole or in part, in the Pixel Bridge Inc marketing programs and other programs described in the attached letter dated March 25, 2002. Use shall include but not be limited to reproduction, transmission, broadcast, publication and distribution in all present and future human or machine readable forms and media, provided that Pixel Bridge Inc shall not have the right to alter, edit or modify the Acme Manufacturing logo, name or other materials including testimonials without the prior written consent of Acme Manufacturing, except to size them for inclusion in the programs. Acme Manufacturing releases Pixel Bridge Inc from any liability in connection with these matters.
Acme Manufacturing
Signed:
Printed Name:
Title:
Date:
While obtaining the necessary client reference authorization is a straightforward task, managing the soft side of client references is a delicate process, especially for newly founded firms that heavily depend on a handful of clients to repeatedly act as references. Therefore, unless the individual is a good personal friend, the firm should be judicious about going back to the well. The best way to thank clients or partners for their help is by sending a referral their way, and that should be given the proper amount of consideration as well. “ Whenever we have the opportunity to refer a client to one of our partners like a tax attorney or estate planner, we think long and hard about it,” says a senior partner at a boutique money management