Value propositions are statements used throughout your tender response to, as the name suggests, propose the value of your product or service. They can outline specific costs, benefits to the buyer, and any improvements in efficiency and timing. Value propositions can also describe your business credentials: your skills, reputation, and experience. These statements, tailored to the buyer’s specifications, can help give you a competitive advantage and position your tender as the winning solution.
So, how do you go about preparing value propositions and successfully integrating them throughout your tender submission? Continue reading for three simple steps to writing a value proposition.
Step 1: Develop an objective
The first step is to develop an objective. Yes, your ultimate objective is to win the contract, but what about the buyer’s ultimate objective? Think about the specifics of your solution, and how will it meet the buyer’s requirements; they are your target audience after all!
An objective might be to:
- Reduce buyer expenses on X request
- Speed up implementation times
- Deliver a standard of service that improves the buyer’s overall business output
- Improve customer experience for the buyer’s customers
Offer as much detail as you can. If you know you can provide a specific cost decrease, then state it.
Check out this example of a strong value proposition:
Buyer A will receive a 10% cost reduction for its annual IT technology spend on support services by engaging Supplier B. Supplier B will deliver this cost reduction in the first year of the five-year contract by using its existing technology assets to manage the service and support coverage requirements outlined by Buyer A.
Step 2: Identify the buyers
The second step is to identify the unique buyers within the organisation and establish what will motivate them to choose you as the preferred tenderer. Typically, there are three types of buyers involved in the tender evaluation process:
- The economic buyer
- The technical buyer
- The users of the final product
Each will have different expectations and requirements, so you need to think about how to expand your proposition to target these specific individuals.
The economic buyer is the person who will approve the purchase, so they will be focusing on the cost of your solution and the trade-off between price and performance.
The technical buyers will focus on the features of your solution and its ability to address the specification. They will be looking for gaps or weaknesses in your proposal as they will be evaluating how well you can deliver against their criteria.
The users are those who will judge the potential impact of your product or service on their job performance. They will want to see how it can improve their role, their efficiency and productivity, and the reliability and ease of use of your solution.
For more information on understanding buyers and their expectations, check out our article What is a Buyer Looking For?
Step 3: Integrate into your tender submission
The third step is to identify where you can integrate your value propositions into your tender submission. Most of the time, the buyer will have a specific tender response format that must be addressed. This format might include sections such as:
- Executive summary
- Organisational overview
- Service delivery approach
- Key resources
- Past experience
Each of the above is an area where you can integrate a value proposition; however, you will need to tailor these statements to the specific section and ensure they have a logical connection. In the key resources section, you might provide details on the individuals who will be looking after the buyer, their level of experience, knowledge and skills in meeting the buyer’s needs. For past experience, you could include a statement about the cost reduction you provided another client with similar requirements to the current buyer.
Summary
A value proposition is a way for you to demonstrate to the buyer how you will meet their specifications. Developing focused objectives, identifying the buyers and their individual needs, and effectively integrating your propositions into the relevant sections of the tender response will help position your product or service as the winning submission.
