The Secret to Effective Sales Proposals

An effective sales proposal is less about what it includes and more about what the end result is supposed to achieve. In fact, many sales proposals are delivered much too soon and inappropriately, often generated because the prospect asked to “see what you can do.” If a banker follows a stage-based sales process, they know that a proposal only comes after the prospect has hit certain milestones in the discovery process and will be ready to give an answer, whether yes or no, at the time of presentation.

It’s undeniable that most lenders feel pressure when it comes to the actual presentation, the “show.” But there are specific steps they can take—and managers can help with—to prepare more fully, boosting their confidence in the presentation. So, here is the secret to effective sales proposals: present only to fully qualified prospects. To clarify, a fully qualified prospect is defined as follows:

They have shared specific compelling issues that must be addressed.
They have the capacity to invest the appropriate amount of time, money, and resources.
They have provided clarity on the decision-making process.
The banker can deliver exactly what the prospect needs to solve their problem.

The parameters above are actually the stages of a milestone-centric sales process and, when followed, will prevent a lender from jumping from first base (uncovering compelling reasons) straight to the proposal stage. If time, money, and resource issues have not been uncovered in the discovery process, they will likely arise during the presentation, causing delays in decision-making.

Here is another key to helping bankers make effective sales proposals: Secret #2 is to review closing ratios. Why? So that a banker can identify choke points in their qualifying process. To discover these choke points, they should reflect on recent presentations. What exactly did they hear from their prospect? What objections were raised? If the prospect said they wanted to think it over, what specifically did they need to consider? How often does the lender lose to the incumbent, fail to engage the decision maker, or encounter a budget objection? By identifying and addressing these choke points earlier in the sales process, they can improve their sales presentations and close more business.

Here’s a tool for bankers and their managers to help determine if they have enough information to create and deliver truly effective sales proposals:

As this scorecard indicates, a lender actually starts preparing for their presentation while qualifying the prospect. Effective sales proposals begin at the very start of the process.

Next, bankers must prepare their solution based on what the prospect needs rather than what they currently have. If they try to match what someone else is doing, they are already in second place. Instead, they need to do a masterful job of uncovering exactly what features, benefits, terms, coverages, and service plans the prospect needs to mitigate risk or maximize opportunities. This allows them to present precisely what the prospect asked for and needs. The scorecard can help accomplish this.

The final secret to creating more effective sales proposals lies in the setup. To set up the presentation meeting for a decision, the banker should review everything discussed and outline what they are prepared to deliver. Here is a sample setup discussion:

“Joe and Mary, this is what I believe I heard today” – repeat everything heard – “Did I get that right?” Good.
“Here’s what I will be prepared to do during my presentation:
- I will present a solution to address the problems we discussed today.
- I will provide a solution that meets your specifications and fits within the terms, conditions, and budget.
- I will be in a position to answer all of your questions.”
“When I’m finished, I will ask you three questions:
- Do you feel like I understand your business and what you are trying to accomplish?
- Do you believe I can help you achieve your goals?
- Do you want my help?

When I ask the last question, you’ll be in a position to say yes or no. Either one is okay. I’d prefer yes, but no is okay. Do you have any objections to this process?”

To recap, the secret to more effective sales proposals is for bankers to fully qualify the prospect from the beginning and set up the proposal so that a decision will be made—yes or no. No more secrets!