SMEs often wonder how to maximise their chances of success when responding to private sector tenders. What strategies work? Focus with Alain Wolgensinger, specialist in optimising sales performance.
Do the test and you'll be edified: if you type the expression "calls for tenders" on the Internet, almost all the responses will concern public calls for tenders. Yet the private sector's weight in the economy exceeds that of the public sector. That's why it's so important to hone your strategy for responding to private tenders, after perhaps doing the same for the public order.
First observation: without direct contact, calls for tender from the private sector are a pipe dream. Contracts of this kind are "chased". So how does an SME go about convince a major account ?
Calls for tender won by SMEs: proof by example
The experience of several SMEs in industry and services is edifying. They have succeeded in convincing major companies to place their trust in them. Here are a few examples:
- Buracco (manufacture of butterfly valves and flap valves) for TotalEnergies (a world leader in oil extraction and refining)
- Filhet-Allard Maritime (insurance broker) for CMA CGM (one of the world leaders in maritime transport and logistics)
- Laulagun Bearings (design/manufacture of large bearings) for Siemens Gamesa (a world leader in the manufacture of wind turbines)
- Systech (manufacture of assembled electronic boards and wired cabling) for Airbus (world-leading aircraft manufacturer)
What we can read/hear about it in specialist press articles or interviews on television or radio has value as an example.
I will summarise their O-ABCD-W strategy.
The first stage in a strategy for responding to private tenders
O like Dare
- First of all, it means daring to rub shoulders with other companies, often larger in size, resources, network, references, etc.
Before reaching its incredible size, a baobab is first and foremost small.
- But also, to dare to confront the standards of this major account prospect: conformity, quality and reliability, technical and customisation requirements... Standards that are undoubtedly varied and strict because we are not leaders without a reason (durability, performance, operating conditions...).
- Finally, it means daring to face up to the scepticism in the prospect's eyes (Goliath facing David). This scepticism is inevitable, but logical when a customer is considering placing his trust in a new supplier, and an SME at that!
Many consultants will say that this last point is undoubtedly the most differentiating. Few SMEs believe they are capable of convincing others, because they think they are too small.
They can keep in mind this phrase from Franck Riboud (CEO of the Danone Group from 1996 to 2014) during an interview given at a business school:
"We're always someone's dwarf: our competitor Nestlé has four times as much turnover.
The ABCD approach to winning private tenders
Expectations
A thorough understanding of the customer's needs is essential: why is this tender being issued? You need to invest time in understanding their specific expectations and analysing their technical specifications:
- what are the expected performances?
- what kind of sustainability?
- What level of quality?
To remember:
Deadlines and budget will be useful, as they can be used to assess the cut-off points:
- the financial limit
- the deadline for deciding
It is essential to pull out all the stops at this stage. As part of a business intelligence approach, it is wise to :
- scrutinise articles and reports in the media
- ask the sales team for feedback from the field
- ideally, organise at least one exploratory meeting with the customer's team
- take advantage of a company visit (offered by your professional organisation or CCI)
- meet at a trade show
- enjoy/arrange a meeting at a forum, around a golf course, etc.
This is the perfect opportunity to clarify the customer's expectations and detail their priorities. Better still, to reveal their deepest fears: price wars, new technology, societal change, etc. Allaying these fears can help to convince the customer.
B-benefits
This is the value proposition phase, ideally unique because it is personalised.
It will obviously be adapted to meet or exceed the expectations identified!
C-characteristics
How can the promised benefits be realised?
This is the time to list all the arguments to convince people of their relevance and feasibility:
- Regular deliveries to remote areas?
- Real-time services (remote maintenance, remote repairs, etc.)?
- Highly flexible customer service (24/7 hotline, multilingual) ?
- Standard solutions for everyday use or tailor-made solutions for exceptional cases (3D printer at the customer's premises to create an emergency replacement part)?
- Stocks of critical items on consignment to guarantee the customer against downtime?
- And so on.
The example of Stéphane
Stéphane* is a young CEO and designer of specific e-commerce solutions based on the SalesForce environment (a benchmark). A former consultant, he believes he can target major CAC40 groups.
But he soon realised that he absolutely had to present himself as a structured company to be credible. So it was his mother (under her maiden name) who helped him as official HR Director. His sister would be his consulting engineer. His father organised the logistics.
To show that it is an ambitious SME, every year it takes part in the industry's leading trade show in Las Vegas.
Gradually, this strategy bore fruit with its target audience. Today, his company employs over 150 people in the USA and France.
*First name changed
D-demonstrating your expertise/mastery
This is a crucial stage in the process of convincing your customer and ensuring that they don't dismiss your proposal as "too good to be true" or "they're too small to do it". Don't skimp at this stage! Remember that it's hard for a giant to believe that the small company in front of him can do it (and sometimes even better than him).
Present all your elements:
- detailed case studies and experience of similar successful projects
- presentation of a visual: prototype, 3D plan, complex parts produced in the past, diagram, Gantt chart demonstrating control and projection by stage
- labels and certifications (ISO type and similar)
- quantitative data and impact measurements (e.g. increased performance of wind turbines)
- reminders of employees' skills and backgrounds (such and such a person has worked on such and such a project, in such and such a country, using such and such a technology)
- references and customer testimonials on the subject and/or on the company's commitment (sense of quality, service, country versatility, etc.)
The objective? Zero objections from the customer: he needs to be reassured.
The end result was W: the W-aouh effect. In other words, it should come as a positive surprise to the customer that they can trust this new supplier. In short, you've won!
Calls for tender: long-term benefits
All your efforts upstream have a triple benefit. Indeed, such a victory is transformative because of its profound and long-term impact:
1. Accelerated growth
- Significant increase in sales through your new customer
- Opening the door to new contracts by playing on this customer reference
2. Improved capacity
The demands of a major account mean that we have to refine our internal processes and improve our technical and organisational skills.
Trust: a question of time and space
This is the story of a French automotive supplier who tried to work for a car manufacturer in Japan. To no avail. So he thought all his efforts were wasted. But one day the Japanese manufacturer decided to expand into Europe. The logical choice was to turn to local equipment suppliers, including a Frenchman... whom he trusted.
3. Market recognition
- Thanks to a stronger reputation in your sector
And if all else fails, remember Nelson Mandela's words: "I never lose: either I win, or I learn".
