Worcester Business Journal

wbjournal.com | September 3, 2018 | Worcester Business Journal 17 The Rainmaker BY KEN COOK How to stand out in an RFP situation H ave you ever responded to an RFP? A tedious process, to put it mildly. A customer, through a very structured buying process, is attempting to gather as much information as possible about the var- ious vendors they are evaluating. ey want to know whether the vendor can meet their requirements. Vendors are required to share extensive amounts of data about their capabilities, resources and costs. Ven- dors frequently question the necessity of all of the information. Responding to an RFP is a lot of work; you would hope the work is important and relevant. When you think about it, an RFP is an interesting tool for examining buying processes and what factors are import- ant to the customer. An RFP is a bit like an insurance policy. It exists to: • Ease anxiety - extensive RFPs cover all the bases • Assist in making the right decision - compare apples to apples • Most importantly, the RFP helps avoid the wrong decision. Customers begin with project definitions. ey oen prepare scope documents that detail all aspects of their needs. Facts, figures, configurations, requirements, costs, they're all in there. What is not spelled out in a scope document or RFP is anxiety level. Customers are not inclined to share the degree of perceived risk. e perceived risk factor is the most important element to understand. Risk is not defined solely by the data. Risk is a series of interconnected circumstances, and the vulnerability of those circum- stances depend on decisions made. For example, a customer is contem- plating buying an enterprise resource planning soware system. e risk factor and anxiety associated with this project is probably high. An ERP system is the data foundation for an organiza- tion. It holds great promise for efficien- cy, coordination, collaboration, cost control, etc. It has a risk for shutdowns, lost data, incompatibilities, lost custom- ers and lost jobs. e scope document and RFP for an ERP purchase would be extensive. It's a many-month if not many-year process. In this situation, a successful vendor realizes they need to understand more than the system requirements. e best vendors seek to understand the anxiety and risks of the project. Customers are not inclined to share their emotional anxieties with someone they do not know. Sharing goals and desired solutions is easy. Sharing fears is another matter. at's a matter of open- ing up and trusting someone. Build a relationship founded on trust, and the customer will be more inclined to share the ramifications of a bad decision. In other words, what they are really worried about. To build strong relationships, you need two things: 1. Strong communication skills – Strong communication skills foster clarity and understanding. Clarity and understanding build trust. 2. Demonstrable expertise – Show the customer you understand the personal, personnel, operational and financial ramifications of their project. Demonstrate how your solution fits. Proving your expertise builds trust. Building trust builds a stronger rela- tionship. A stronger relationship frees the customer to share their anxieties and their perception of risk. Knowing this separates you from the masses. The Bottom Line – Ask yourself, on a scale of 1-5, how well you understand the customer's anxieties. If you score a 1 or 2, work on the relationship. If you don't, your RFP response will be a commodity offering and the only thing the customer will look at is price. Ken Cook is the co-founder of How to Who, a program on how to build strong relationships and how to build business through those relationships. Learn more at www.howtowho.com. Build a relationship founded on trust, and the customer will be more inclined to share the ramifications of a bad decision. In other words, what they are really worried about. W Don't miss this opportunity to network with the Central Mass business community! To register or find out more about these events visit www.wbjournal.com/event Worcester Business Journal WBJ Our annual Health Care Forum is designed for business owners and executives, health-care providers, clinicians, human resource professionals, benefits specialists, and others interested in hearing first hand how the industry is evolving its services while prioritizing cost containment for its customers. OCTOBER 12, 2018 Beechwood Hotel, Worcester 7:30 - 10:30AM A special seminar for family businesses and owners of privately held enterprises. This session will focus on the critical steps that you can begin to take today to make any future transition a success. OCTOBER 25, 2018 Beechwood Hotel, Worcester 3:00 - 6:00PM Corporate Sponsors CENTRAL MASSACHUSETTS HealthCare FORUM A Worcester Business Journal Event CENTRAL MASSACHUSETTS HealthCare FORUM A Worcester Business Journal Event Corporate Sponsor BUILDING BU $ INESS VALUE WBJ A SPECIAL FORUM WBJ A SPECIAL FORUM BUILDING BU $ INESS VALUE Presenting Sponsor Make connections at one of our upcoming events! Presenting Sponsor Supporting Sponsor

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