Retention Proposals


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What Goes into a Retention Proposal?

A retention proposal is one of the hardest proposals. When notice of a competitive bid is given, the service team immediately begins to feel like all eyes are on them and that they did something wrong. A retention situation is a good opportunity to take a hard and honest look at where your service shortcomings are and correct them. A retention proposal should focus on three things:

1.What service or team changes have been or will be made and an open discussion of why

2.Examples of how you have served the client in the past and what they got as a result

3.The minimal firm credentials necessary to stand up against the competition.

It is important to discuss openly and frankly any past problems and the changes the firm has made in order to serve the client better. Keep the focus positive and acknowledge that there were problems in the past, but that you took steps to correct them when you understood there was a problem. This includes any team changes due to service issues, turnover or incompatibilities. Do not include routine descriptive information about the firm or bios of the existing service team (but do include bios for any proposed new team members). They already know who you are and what the firm's capabilities are. An exception would be a new service that the firm recently started.

Give Examples!

Be careful not to provide more general information on the firm than is absolutely necessary. They already know your firm and the firm's capabilities. Focus on giving examples of what the service team has done for the client in the past. The more examples the better. You can't rely on management to remember all the instances in which you were there to help them out of a jam or came up with a good idea. And management teams often change. The people you helped out of difficult situations may no longer be around. Find a way to incorporate all those stories into your proposal. It's your most compelling selling argument against changing.

Choose 5-7 topics and tailor them with details to reflect the specifics you know about this client's business and concerns. Remember that your goal is to show you know the client's business better than any other firm. Demonstrate your knowledge, insight and experience in this discussion with details.

If you have hired new talent or plan to, discuss the details here. If possible, get the new person out to visit the prospect prior to delivering the proposal.

Use a final "In Summary" paragraph to make a strong final persuasive point or ask for the work. Use an "In Summary" at the end of the fee section and/or the last page of the document to ensure that your key selling messages have gotten through.

Discuss the history

This may well be the most important section of your proposal. It demonstrates your knowledge of the client, gained from years of service. No other firm bidding will have this inside knowledge. Show what you know. Remind them of how you have been there through difficult and interesting times and faced the issues with them. This is particularly important if there has been a management change and the current management may not be aware of all you have done for the client in the past. Proof sells. Anyone can make claims of what they ``would" do.

Provide some specific examples of things you have done or services you have provided. Each little story should include a brief background on what and why you were asked, what you did and the results the client gained as a result of your activities (important!). Did they save money, time, personnel expenses, good will, an economic disaster? Be careful not to insult any of the client's personnel, but tell the truth about your contribution.

Keep biographies short and make them specific

Narrative format resumes are superior to typical bullet-point resumes. In a retention proposal, you need not give full credentials for each service team member, unless they have acquired some significant new credential that you want to promote. Their work is already known. Feature the contribution each has made to this client's success. Give full credentials only for new people being added to the team and emphasize their expertise that made you select them for this work.

Use as many specifics as possible in each bio. A bio should include the person's role in serving the client, any firm titles or committees that are important or relevant to the client's industry, any special expertise or credentials in business areas important to the client, a sentence or two describing prior experience. Use actual names of clients in the industry that they have served, if possible.

Avoid the temptation to sell new services

In a retention situation it can be risky to try to promote or sell additional services, particularly if you have not offered those services previously. Be sensitive to the possible reaction of people who will review your proposal. They may wonder why you never got around to offering this great service before, if they need it. List additional services only if they will indicate additional strengths or expertise that members of the decision making unit may not realize the firm offers or to offset a specific service a competitor is featuring.

Write up short stories about your experiences with this client. Remember, any firm can make claims. Only you can provide the proof that you can deliver because you have already done it. Weave these examples throughout your document to support your selling messages or points. In each retention proposal, determine the most important criteria in the decision and let your examples emphasize different service aspects.

In retention proposals, use very little of what you might normally put into a proposal about your services. Whatever information you include should emphasize how you have tailored your approach to their specific needs in the past. Use examples to remind them. Focus on the benefits they have received as a result of your services or features. Avoid the temptation to tell them more than they need or ask for.




		Page last updated: January 4, 1999