The key to success in Business-to-Government (B2G) sales is understanding your:
The last point is really what differentiates the Commercial Enterprise Market from the Federal Market when it comes to sales. The Federal Market, and ultimately the buying cycles Federal customers follow, have many quirks and these quirks can make or break a sales rep. Below, we outline the 8 general steps in the Federal Buying Cycle and how you can prepare for them when building out your sales strategy.
Finally, when it comes to a Federal Sale there are a few regulations that you need to be aware of:
This step is fairly similar across all markets, you simply need to understand your customer. As a customer yourself at various points in your life, you understand that your need for a product or service can stem from a number of sources:
If you have developed the relationship properly, you become aware of these needs in conversation with the customer and you can help them make sense of their different solutions, pricing elements, technical requirements, etc. Otherwise, your customer does all of this research internally and then issues an RFI to further develop their understanding.
No matter your role in developing or gaining access to the technical requirements, the next step is to develop a technical presentation, demonstration and proof of concept. To do this you need to:
Now if you weren't able to influence the requirements planning in step 1, don't be discouraged. You can know influence the requirements at a more concrete level. After you have developed your understanding of your customer's needs and presented your solution, you should have an opportunity to assist the customer in developing the Statement Of Work (SOW) or Performance Work Statement (PWS) that will be submitted to the Contracting Officer. This is a key opportunity to ensure your solution is viewed as the best solution and you can help influence the opportunity through the remainder of the buying process. You do this by ensuring you include technical capabilities only your product can attain so competition is minimal. While this can still be protested through the Contracting Officer (KO), you are managing expectations to align with the solutions only you can provide successfully.
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Now that the customer has a detailed understanding of the work and the solution requirements they need, it is time for the customer to request preliminary quotes. Again, this is an opportunity to work with your customer so that you have the best chance of winning the business. During this stage you should:
Before a formal acquisition process can begin, the KO needs to obtain funding. The preliminary quotes are used to secure the funds needed for the project. Unfortunately, many customers are not involved in the funding process once all of the documents are sent over to the KO. While the customer often understands the requirements and nuances of the project, they often cannot plead their case for funds. Rather all of the documentation provided needs to be able to do the talking. This is why it is key to offer clear requirements and solutions during the planning phase so that the need and, specifically, the solution you offer are best conveyed.
Once the requirements are developed in the SOW and funding is secured, the formal acquisition process begins. The Contracting Officer has many procurement methods at their disposal
The KO also dictates the timing of response from companies and award dates and the specific contract vehicle used, such as:
This is often the submit and see step of the buying cycle for you. Customers are not always involved in the funding and procurement process. Additionally, you may not even be able to speak with your customer for updates during the period that proposals are being accepted and reviewed by the KO.
Once you know that you will be awarded the opportunity, this is the time to use the relationship you or your Federal reseller has built. If the Federal reseller has a good relationship with the KO, request that they:
The answerers to these questions can help you accurately forecast the opportunity to your company and prepare for a win.
It is important that you work with your Federal reseller to obtain a purchase order as quickly as possible so you can begin to fulfill the request.
Then request a FREE Consultation from Sanctum Federal! Our team has successfully built several Federal sales startup practices and secured millions of dollars of revenue directly from the Federal market and our mission is to help other organizations do the same!
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