How to Write

Winning Proposals

Using the Science of Persuasion

to Win More Business
Dr. Tom Sant
www.santcorp.com

When the economy slows down,

selling becomes more difficult

People pull back from

completing “transactions.”
Selling products is transactional.
But they are eager to find
solutions.
Selling solutions is consultative.
Selling solutions requires:
– broad business perspective
– alignment with the customer’s
objectives
– an ability to demonstrate value that
matters to the customer

©Copyright 2002
2001 The Sant Corporation

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 Why do solution-oriented
proposals and presentations fail?
Because they are NOT…
• Client centered
– Sales people resort to “clone and go” proposals
– Boilerplate, “checkbox” proposals
– Focus on the vendor or the product
• Value based
– No value proposition
– No differentiation
• Decision oriented
– Wrong structure
– Wrong emphasis

©Copyright 2002
2001 The Sant Corporation

Agenda

• Assumptions and observations

– What makes for a good proposal or presentation?
– The seven worst mistakes you can make
• Five principles to improve your win ratio:
– The persuasive paradigm
– Client-centered persuasion
– Value proposition
– The Cicero principle
– Automation

©Copyright 2002
2001 The Sant Corporation

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 Assumptions and
Observations

What’s a proposal?
And why are they
usually so bad?

www.santcorp.com

The function of sales proposals

The proposal is
• NOT a “checkbox” item in the sales process
• NOT a price quote
• NOT a technical specification
• NOT a bill of materials
• NOT a company overview or history

The proposal is a sales document.

Its purpose is to move the sale toward closure.

©Copyright 2002
2001 The Sant Corporation

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 What is an effective proposal?

t h a t
One
w i ns !
©Copyright 2002
2001 The Sant Corporation

The most effective content

• Clear understanding of the client’s problems,

needs, issues
• A recommendation for a specific solution
• Evidence you’re competent to deliver on time
and on budget
• A compelling reason to choose your
recommendation over any others

©Copyright 2002
2001 The Sant Corporation

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 Why do these elements matter the most?

• Because evaluators are looking for

three general criteria:

– Responsiveness: Am I getting what I need?

– Competence: Can they really do it?

– Rate of return: Does the pricing represent

good value?

©Copyright 2002
2001 The Sant Corporation

The bad news:

Most people hate writing them

So they start
looking for
escape routes…

and it shows!

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2001 The Sant Corporation

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 Escape Route #1:

Cloning
previous proposals.

Cutting and pasting can result in embarrassing

errors!
©Copyright 2002
2001 The Sant Corporation

Escape Route # 2:

“Data Dumps” or “More is Better!”

Nobody buys based on the “thud factor.”

If it’s not meaningful to the customer,
leave it out!
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2001 The Sant Corporation

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 Escape Route #3:

Talking about what we know and love best.

Focus on your prospect, not on yourself!

©Copyright 2002
2001 The Sant Corporation

The “Seven Deadly Sins”

…that destroy proposals and presentations

1. Fail to focus on the client’s business problems

and payoffs
2. No persuasive structure
3. No clear differentiation
4. Fail to offer a compelling value proposition
5. Key points are buried--no highlights, no impact
6. Difficult to read--full of jargon, too long, too
technical
7. Credibility killers--misspellings, grammar
errors, wrong client name, inconsistent
formats, etc.
©Copyright 2002
2001 The Sant Corporation

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 Five Principles

Using best practices to

create proposals and
presentations that win
more frequently.

www.santcorp.com

Doctor, Doctor, give me the cures!

1. Use the persuasive paradigm

2. Create client-centered
messages
3. Focus on the decision-
maker’s hot buttons
4. Personalize the message
5. Automate and standardize
information management

©Copyright 2002
2001 The Sant Corporation

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 Principle # 1

Use the persuasive

paradigm
to support decision
making.

www.santcorp.com

How Do People Make Decisions?

The modern assumption:

– Decision making is a rational
process
– Involves systematic weighing
of the evidence
– Franklin’s “moral or prudential
algebra”

©Copyright 2002
2001 The Sant Corporation

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 The problem: nobody does it that way

Making decisions in
the real world
– Complex
– Confusing
– Huge amounts of
information
– Conflicting evidence
– Tremendous time
pressure

©Copyright 2002
2001 The Sant Corporation

How People Actually Make Decisions

The process:
– Quick
– Uses a the least amount of evidence
possible
– To an outside observer, seemingly
impulsive or irrational

©Copyright 2002
2001 The Sant Corporation

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 How quickly do people decide?

Q: How long does it take, on average, for

a person to decide if a proposal is
worth looking at in detail?
1. Less than 5 minutes
2. Between 10 and 15 minutes
3. About half an hour

©Copyright 2002
2001 The Sant Corporation

How quickly to people decide?

Q: How long does it take, on average, for a

person to decide if a proposal is worth looking
at in detail?
1. Less than 5 minutes
2. Between 10 and 15 minutes
3. About half an hour

A: Less than 5 minutes! And for presentations,

an audience member will decide to tune in or
tune out even faster.

©Copyright 2002
2001 The Sant Corporation

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 Heuristics of Choice

• The recognition heuristic

– Recognition is assumed to be a positive value

©Copyright 2002
2001 The Sant Corporation

Heuristics of Choice

• The recognition heuristic

– Recognition is assumed to be a positive value
• Single factor decision making
– Use any criterion and select the first option it fits
– Use the last criterion that worked when making a similar decision
– Use the criterion that has produced the best results in previous
circumstances

©Copyright 2002
2001 The Sant Corporation

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 Heuristics of Choice

• The recognition heuristic

– Recognition is assumed to be a positive value
• Single factor decision making
– Use any criterion and select the first option it fits
– Use the last criterion that worked when making a similar decision
– Use the criterion that has produced the best results in previous
circumstances
• Estimation heuristic
– Estimate the probable rate of return and choose the option giving
the best ROI

©Copyright 2002
2001 The Sant Corporation

What Are the Implications?

1. Persuasion is a process, not an event

– Continuous messaging is more effective than isolated documents
– Importance of branding, advertising, repetitive contacts
2. Structure is more important than style
– Using the right cognitive structure will produce the right results
– Put the important points up front
3. Show compliance with the customer’s requirements and
values
– This will facilitate selection when it’s “take the best”
4. Demonstrate a high rate of return
– With no value proposition, there may be no persuasion

©Copyright 2002
2001 The Sant Corporation

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 Personalize the communication

The eCommerce revolution :

– Mass customization
– Collaborative filtering
– Directly addressing the customer
– Permission marketing

©Copyright 2002
2001 The Sant Corporation

Why Is This the Best Order?

Because of the
Primacy Principle:
What I experience first, I assume
to be normative of all future
experiences
What you say first, I assume
reflects your primary interests and
values
For most decision makers, the most
important criteria relate to the
needs of the business.
©Copyright 2002
2001 The Sant Corporation

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 The Trust Equation

Rapport x Credibility
Trust =
Risk

©Copyright 2002
2001 The Sant Corporation

What should you work on first?

Q: Of the three elements of trust, which

one should you focus on first?
1. Rapport
2. Credibility
3. Risk

©Copyright 2002
2001 The Sant Corporation

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 What should you work on first?

Q: Of the three elements of trust, which one

should you focus on first?
1. Rapport
2. Credibility
3. Risk

A: Rapport. People won’t listen to people

they can’t connect with at some level.

©Copyright 2002
2001 The Sant Corporation

The fallacy of the familiar

Information Evaluation Persuasion

Expert Comfort
Zone
Highly
informed

Somewhat
informed

Lay

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2001 The Sant Corporation

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 Moving to the persuasion zone

Information Evaluation Persuasion

Expert Comfort
Zone
Highly
informed

Somewhat
informed Persuasion
Zone
Lay

©Copyright 2002
2001 The Sant Corporation

The Persuasive Paradigm:

The Key to Persuasive Structure

• Needs: Demonstrate an
understanding of the customer’s key
business needs or issues
• Outcomes: Identify meaningful
outcomes or results from meeting
those needs
• Solution: Recommend a specific
solution
• Evidence: Build credibility by
providing substantiating details

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2001 The Sant Corporation

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 Principle # 2

Create client-
centered
proposals

www.santcorp.com

Your proposals should be

client centered, not self centered

Client-Centered Self-Centered

¾Focuses on client’s ¾Focuses on products,

needs technology, etc.
¾Presents solutions to ¾Presents information in
business problems reaction to a request
¾Looks toward long-term ¾Short-term focus
relationships ¾Vendor/buyer
¾Partnership orientation orientation
¾Analyzes payback, ROI, ¾Builds on profit margin
impact on business
¾Integrates value-added ¾No controlling strategy:
offerings into strategy line-item selling
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2001 The Sant Corporation

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 Seven Questions
to Keep You Client-Centered

1. What is the customer’s problem or need?

2. Why is this problem a problem?
3. What outcomes or results do they want?
4. Which results have the highest priority?
5. What solutions can we offer?
6. What results will each solution produce?
7. Which solution is best?

©Copyright 2002
2001 The Sant Corporation

The Best Place to Use

Your Client-Centered Insights

• The cover letter

• The title page
• The executive summary
• Case studies

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2001 The Sant Corporation

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 Effective Cover Letters

• Make them persuasive and brief

• Highlight a couple of the key points from the
proposal
♦The customer’s most important need or issue
♦The solution in extremely high level
♦A couple of key competitive advantages
• Ask for the business
♦Avoid closing with “If you have any questions, please
feel free to call.”

©Copyright 2002
2001 The Sant Corporation

The Title Page:

Say Something Meaningful

• State a benefit to the client in

your main title
• Use an action verb
• Put the decision maker’s name on
the title page
• Avoid letting your logo dominate
the title page

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2001 The Sant Corporation

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 Which one would you read first?

Opening New
Proposal
Markets through for
eCommerce American Biotech

A Recommendation
for
American Biotech, Inc.

©Copyright 2002
2001 The Sant Corporation

Proposal titles

Q: What is the most frequently used

title for proposals in the English-
speaking world?

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2001 The Sant Corporation

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 Proposal titles

Q: What is the most frequently used title

for proposals in the English-speaking
world?

A: Proposal
Or sometimes
“Proposal for <<customer name>>”

©Copyright 2002
2001 The Sant Corporation

The Executive Summary:

Keep It Brief and Relevant

• Write simply and clearly

– The readability index should be no higher than 8
• Focus on bottom-line issues and outcomes
– Unless the buyer is strictly technical
• Keep it short!
– 2 pages is plenty for most proposals

©Copyright 2002
2001 The Sant Corporation

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 Effective Case Studies

• Tips:
– Keep them short
– Use the PAR format:
•Problem
– Business problems, not software requirements
•Action
– Focus on your unique delivery process
•Results
– Quantify results if possible
– Use a quote from the key decision maker

©Copyright 2002
2001 The Sant Corporation

Principle # 3

Focus on the decision

maker’s
hot buttons

www.santcorp.com

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 FACT: If you don’t show value,
winning is a game of chance

You must establish superior

value

based on technical,
contractual, managerial,
quality, or service
differentiators,

or the customer will choose

based on price or on
maintaining the status quo.

©Copyright 2002
2001 The Sant Corporation

Maintaining the status quo

Q: How frequently do incumbent

vendors win on re-bids?
1. 50%
2. 66%
3. 75%
4. 90%

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2001 The Sant Corporation

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 Proposal titles

Q: How frequently do incumbent vendors win

on re-bids?
1. 50%
2. 66%
3. 75%
4. 90%

A: 90%!
In government bidding, the success rate for
incumbents is over 90%. Even if a vendor has
major problems, they win 50% of the time.
©Copyright 2002
2001 The Sant Corporation

Showing value is always important,

but sometimes it’s REALLY important.

• Your value superiority must be greater when—

– You are displacing an accepted incumbent
• Better the devil you know than the devil you don’t
– You are changing a process
• People resist changing the way they earn their living
– You are relocating control of a valuable process or asset
• Control = power, prestige, and job security
– Doing nothing is a viable alternative
• Inertia and passivity sometimes seem safer than taking action

©Copyright 2002
2001 The Sant Corporation

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 The Basic Value Proposition

(Values - Costs) > (Valuea - Costa)

where:
Values = the value of your offering
Costs = the cost of your offering
Valuea = the value of the next best alternative
Costa = the cost of the next best alternative

©Copyright 2002
2001 The Sant Corporation

Value: improving performance

or eliminating pain where it matters

• Financial gain: lowest price, highest total value, lowest total

cost of ownership
• Quality: TQM, maintainability, ease of use, fewest
problems/rejects
• Infrastructure improvement: the most flexible, most
advanced, most open solution; automating a labor-intensive step
• Industry trends: keeping up with market leaders
• Minimizing risk: financial stability, solid management plan,
relevant experience, high ethical standards
• Competitive advantage: simultaneous improvements
across the organization
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2001 The Sant Corporation

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 Creating the Value Proposition

Four basic principles:

1. The payback measurements must be client-focused
If the client doesn’t care about it, it has no value.
2. The presentation of payback is more persuasive if it’s quantified
Show me the money!
3. The value proposition is more likely to be noticed and
remembered if it’s graphical
Most decision makers don’t read; they skim.
4. To bullet-proof your value proposition, you must base it on your
differentiators
Otherwise, your competitor just says, “Me, too.”

©Copyright 2002
2001 The Sant Corporation

Principle # 4

The Cicero Principle

www.santcorp.com

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 Good Advice from a Noble Roman

“If you wish to

persuade me, you
must think my
thoughts, feel my
feelings, and speak
my words.”
Cicero

©Copyright 2002
2001 The Sant Corporation

Getting Out
of the Comfort Zone

Information Evaluation Persuasion

Expert Comfort
Zone
Highly
informed

Somewhat
informed

Lay

©Copyright 2002
2001 The Sant Corporation

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 …and into the Persuasion Zone

Information Evaluation Persuasion

Expert Comfort
Zone
Highly
informed

Somewhat
informed Persuasion
Zone
Lay

©Copyright 2002
2001 The Sant Corporation

Cicero’s Three Points

Audience Level – Expert

(Speak my words) – Highly informed
– Acquainted
– Uninformed

Audience Type – Analytical

(Think my thoughts) – Pragmatic
– Consensus-seeker
– Visionary

Audience Role – Check signer

(Feel my feelings) – User
– Gatekeeper

©Copyright 2002
2001 The Sant Corporation

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 Personalize the buying experience

The eCommerce revolution :

– Mass customisation
– Collaborative filtering
– Directly addressing the customer
– Permission marketing

©Copyright 2002
2001 The Sant Corporation

Boilerplate proposals may do

more damage than good

• How many times does your name

appear in the Executive Summary?
• How many times does your
customer’s name appear?

• Are your product’s features linked to

specific customer needs?

• Have you used the customer’s

terminology?
“Don’t waste my time with a • Have your eliminated your own in-
bunch of boilerplate!” house jargon?

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2001 The Sant Corporation

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 Clear Messages = Convincing Messages

• Use the KISS principle:

– Keep It Short and Simple
– Simple words and short sentences
• Use their name throughout
• Refer to the customer as “you,”
never as “it” or “they”
• Avoid using your jargon
• Aim for the right level of expertise
• Provide content specific to their
vertical market
• Use lots of graphic illustrations
• Use proven structural patterns
• Highlight the text so your key points
JUMP off the page
©Copyright 2002
2001 The Sant Corporation

Principle # 5

Automate

www.santcorp.com

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 Proposal automation:
Closing the productivity gap
Automated Manual Automated
• Contact management • Order entry
• Account • Customer service
Proposals
tracking • Inventory control
• Account Presentations • Distribution
planning • Billing
• Forecasting

©Copyright 2002
2001 The Sant Corporation

Assess your current ability to automate

proposals and manage information
How far has your organization evolved?
Content Configuration

Simple Tools
Cut and Paste

Boilerplate

©Copyright 2002
2001 The Sant Corporation

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 It’s survival of the fittest!
Create a Winner Automatically with Sant

9ProposalMaster builds client-

centered proposals and letters
based on the persuasive paradigm
9RFPMaster automates your
response to complex RFPs
9PresentationBuilder turns your
proposal into a PowerPoint
presentation automatically
9All 3 products are Microsoft-centric
in design

©Copyright 2002
2001 The Sant Corporation

Summary: Key Messages

1. Using the right structure produces the right results

2. Client-centered proposals are more effective than
self-centered proposals
3. Selling solutions requires clear and compelling value
propositions based on your differentiators
4. Personalizing the proposal to the audience helps get
your message across
5. Automating with Sant increases both your effectiveness
and your efficiency

©Copyright 2002
2001 The Sant Corporation

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 What Next?

Visit our Web site for more tips and

presentations (www.santcorp.com)

Download this presentation from the

Sant Web site

Subscribe to Messages that Matter, our

on-line newsletter for bi-weekly quick
tips

©Copyright 2002
2001 The Sant Corporation

Good luck with your

proposals and
presentations!

www.santcorp.com

[email protected]

www.santcorp.com

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