Stop bidding on jobs. Start winning accounts. This is a continuation of an earlier blog on chasing accounts. I see it happen all the time: a sales rep rushes to put together a competitive bid for a new prospect, asking everyone to sharpen their pencils to squeeze out every dollar, hoping to edge out the competition on price. What do they really know about the account and how has that information been shared with the team – crickets.
From what I see, they’re winning maybe 20-30% of those opportunities. Often times less. Think about it. When you focus on winning this job, this transaction, you’re setting your sights too low. You’re competing on specs that the incumbent probably created, often against competitors who might be willing to go lower just to get a foot in the door or to keep you out.
Here’s what I see strategic sales reps do: they’re not just bidding on this project. They’re positioning for the longer-term relationship – trying to win an account. Review what you really know about this account. Who are the major influencers that have a voice when the client brings on a new supplier? How do they win? What’s in it for them? These are just some of the things that strategic sales reps work really hard at trying to find out. You won’t find these things out on your first call. You’ll uncover things through the time you invest in having meaningful and relevant conversations with the people you are in contact with. And yes, I know, it’s harder and harder these days to have those conversations, but the alternative is to start throwing numbers on the wall only to be told that there’s either no budget or no appetite for change.
But when you shift your lens to the account – the potential for ongoing work, the lifetime value of that account and the problems you could help to solve over the next 2-3 years, and the value you bring beyond this single set of specs – everything changes. Your proposal tells a different story. Your pricing reflects long-term partnership, not a short-term transaction. Your conversation with the prospect goes deeper. No doubt, this is hard work with no immediate paybacks. But take a look at the time and resources you put into one of these prospects: is it in proportion to the value of the job, or is it in proportion to the value of the account? Something to think about.
The math is simple but powerful. If your data shows that you’re currently winning 25% of your competitive bids and you move that to 35%, you’ve just increased your win rate from competitive opportunities by 40%. Same effort, smarter strategy. So, before you respond to the next RFP, ask yourself: am I bidding to win a project, or am I positioning to win an account?
What percentage of your competitive bids are you winning today – and what would a 10-15% increase in win rate mean for your business? If you want better results, start by using a better strategy. Try segmenting your accounts by win rate. Come up with a strategy to increase the win rate on jobs you’re already looking at, with people who you already want to do business with.
Mike Philie helps owners and CEOs in the Graphic Communications Industry validate what’s working, identify what needs to change, and create a practical path forward.
PhilieGroup | mphilie@philiegroup.com | LinkedIn
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