In B2B sales, effective proposals close deals, plain and simple.
A well-crafted proposal summarizes the client’s problems, highlights an understanding of their needs, and positions your company as the ideal solution provider.
While each proposal should be tailored to the individual client, certain key elements are universal to all winning bids and emphasize the importance of a compelling presentation.
Here are ten vital elements of a proposal that will nudge your potential customers toward saying “yes.”
1. Personalized cover letter
Many B2B salespeople might overlook a personalized introduction to a proposal via a cover letter. This is a mistake.
The cover letter in a sales proposal is akin to a welcoming handshake before the meeting — it sets the tone for the entire document. When the cover letter captures your prospect’s attention, they want to read on.
There is nothing quite like personalization. Here are some simple tips to help you write an engaging cover letter:
- Start by restating your customer’s goals to demonstrate that you understand their needs. Use bullet points when presenting details about your company and solution (two or three compelling reasons why prospects should choose you).
- Always include a reference to the prospect’s account number, document number, or project title.
- Use your prospect’s name more frequently than your company’s name.
- Offer details on how prospects can easily connect with the principal point of contact (POC) in your company.
- Use your company’s branded letterhead to strengthen the presentation.
- Help your prospect quickly digest vital information by keeping your letter to a single page.
2. Know your prospect’s motivations
Every successful relationship is founded on understanding and trust, and you need to know precisely what drives your customers’ buying decisions.
Identify the buying team
Map out the prospect’s buying team, roles and responsibilities within this team, and what level of influence the members have within the organization.
Understand stakeholder values
Stakeholders have different priorities: some of them focus on cost savings, while others favor innovations or risk mitigation.
Delve into the details of what each stakeholder values most to tailor a proposal that will address varying perspectives.
Align your messaging
Zero in on how your solution addresses stakeholders’ pain points and clearly delivers on the priorities and values you’ve elicited.
3. Executive summary
Use the knowledge uncovered in your research to craft a concise executive summary of your proposal, highlighting the value and outcomes of your solution.
Start with a strong statement that outlines the expected results for your prospects.
In this section, focus on detailed implementation plans rather than the general insights of a cover letter.
You want your prospect engaged above all else, envisioning how you may just be the one that solves their problem — and therefore interested in reading your proposal all the way through.
Keep these tips in mind:
- Focus on how you can solve prospects’ problems and reduce pain points, NOT the products or services you’re selling
- Include a timeline and details about the resources needed to succeed
- Steer clear of buzzwords and industry jargon
- Act as a partner and educator rather than a seller and supplier
In sum, you should concisely lay out the problem, propose a solution, and explain how you’ll overcome risks to achieve particular outcomes.
4. Outcomes
Make sure your prospects understand the specific outcomes your solution offers and the methods used to achieve those outcomes.
Be very specific, detailing the work scope and steps to minimize misunderstandings.
Highlight your unique value clearly, focusing on what differentiates you from competitors and addresses specific needs.
Take a look at the examples below:
Generic: “Our software improves efficiency.”
Specific: “With our software, you’ll improve your team’s close rates by 30%, just like our 40,000 clients.”
Generic: “We offer excellent customer service.”
Specific: “Our dedicated team will provide 24/7 support, making sure you get personalized assistance.”
Generic: “Our product is a market leader.”
Specific: “Supported by glowing five-star reviews 99% of the time, our product will help streamline your workflow and boost productivity.”
Instead of just naming what you offer, tell prospects why it matters and how it benefits them, and hold off on revealing prices too early — keep it for the next section.
5. Interactive pricing tables
If the previous steps went well, your prospects may already be ready to buy, even before seeing the price.
Now you can lay out the costs and payment terms within easy-to-follow pricing breakdowns for your solution.
Keep everything to the point and use interactive pricing tables that let your prospects customize item quantities, select the products or services that best fit their needs, and choose from included optional items.
How much you charge is less important than the reasoning behind it.
For example, if you’re promoting a document management solution, instead of simply stating the final monthly rates for subscriptions, highlight what value-adding features prospects will get to meet their needs and then lay out how you arrived at the price (licensing costs, work phases, support costs, and so on).
6. Compelling visuals
Visuals in proposals boost the chance of closing by 32%, so don’t underestimate them.
Powerful imagery is more than just a gimmick — you transmit an actionable message in an easily digestible form.
Utilize infographics and flowcharts to break up the flow of the text in your proposal. Doing so captivates prospects with visually stimulating insights that accompany text.
For example, you can use team images to introduce your prospects to those they will work with. You can also use stats and customer reviews on your product or service to draw up an infographic showing the value of your solution.
7. Action plan
B2B solutions often have learning curves. Include an actionable plan in your proposal to introduce your customer to the solution.
Use this section to highlight a strategic plan that maximizes customer value, covering the following aspects:
- Present a clear, step-by-step strategy for adoption and onboarding the solution you’re presenting
- Stress how simple this transition from the existing solution to the new one will be, emphasizing client goals that will be met and KPIs you expect to improve
- Highlight ongoing support and assistance with client-specific needs
8. Social proof
You want your prospects to believe you set realistic expectations and deliver real-world results.
Strengthen your proposal with evidence — case studies, testimonials, references, etc. — and third-party reviews that highlight your achievements with clients who had similar objectives.
Keys to doing it right:
Have several case studies ready to go
Regularly debrief clients after each project and assign a team to develop and write them between proposals.
Make sure everything you present is relevant
Ideally, you want to have results-focused shows of credibility that reflect what you’re bidding on in the proposal.
Only use fairly recent data
Depending on your industry and solution, two to three years (max) is a good life cycle for case studies.
Always get client permission upfront
Since some clients don’t want their business challenges or practices publicized, be sure to get permission from the customer to feature them.
9. Make it easy to close and sign
Once your prospect is ready to move forward with your solution, it’s time to sign the deal and move on to a legally enforceable contract.
Make sure to set a deadline by which your prospect has to make the buying decision. Communicate with your prospects upfront and agree upon a reasonable decision date.
The most convenient way to put a signature on the dotted line is to use a simple e-signature tool on desktop or mobile — you can join 99,0000 PandaDoc accounts currently closing deals faster with this tool.
10. Usability and accessibility
The final piece of the puzzle is to go through the proposal from beginning to end, checking for intangible elements that contribute to its professional look and feel.
With dozens of proposal templates perfectly suited for all business scenarios, PandaDoc is ready to help you put your best foot forward from the get-go.
Templates are a huge ally in making sure your sales proposals nail the following attributes:
- Aesthetics. Your proposal should look organized and be simple to understand.
- Flexibility. Make your proposal responsive, which means adapted for various devices and screen sizes.
- Security. Sales proposals contain confidential information for you and your prospect’s eyes only, so having a secure document is a must.
- Trackability. Allow your prospects to track sales proposals in real-time and sign them on the go to speed up the closer.
Craft a winning sales proposal
An effective sales proposal addresses your prospect’s needs and outlines solutions to their pain points.
To craft a winning proposal, understand your prospects’ goals and clearly demonstrate how your product or service can help them succeed. PandaDoc offers customizable templates that enable you to create engaging and succinct proposals with confidence.
It’s easy to get your first proposal completed by signing up for a free trial. And after sending out your proposal, utilize document tracking software to monitor engagement and gain insights into prospect interactions.
With a sales proposal incorporating the 10 elements above and tailored to meet your prospect’s specific needs, you’re well-prepared to close the deal successfully. Good luck!
Disclaimer
PandaDoc is not a law firm, or a substitute for an attorney or law firm. This page is not intended to and does not provide legal advice. Should you have legal questions on the validity of e-signatures or digital signatures and the enforceability thereof, please consult with an attorney or law firm. Use of PandaDoc services are governed by our Terms of Use and Privacy Policy.
Originally published April 10, 2019, updated August 15, 2024
