No matter the industry, the bare bones of pitching a product or service are mostly the same. Who you’re pitching to, however, can be quite different – especially if you’re trying to sell your product as a startup to a government client.
The government is more traditional and moves much slower through the sales funnel than other market. They’re not on the cutting-edge of innovation, so selling a tech product can be a challenge – more so if you’re a new player in the industry. If they do make the leap, they’re more likely to choose what’s familiar and established.
To make things more challenging, the person you’re pitching to may not have the ultimate decision-making power. It’s up to them to take your pitch and sell it to those above them, so you have to make it count.
What’s Different About B2G Pitches?
The art of the pitch is the art of the pitch, but things get complex when you’re communicating with a government client.
When you pitch to a B2B client, you’re creating a transaction between two business – you, the software vendor, and them, the manufacturer, law firm, hospital, or any other business. This involves a longer sales cycle with multiple stakeholders weighing in on the transaction.
This upfront time and money pays off in a long-term relationship, however. Businesses aren’t making low-involvement impulse purchases. They’re investing in something that they intend to keep for a long period of time, giving you long-term value out of the relationship.
B2G is not unlike B2B in this sense, but there are some important differences. B2G sales are between you as a software vendor and a government organization or an organization in the public sector. These clients are seeking solutions to improve operational efficiency, such as automation and CAD integration, or services that help with public service, such as Next Generation 911.
In addition, the B2G market has regulatory requirements you need to consider with your pitch. You’re not only selling to multiple stakeholders with different motivations and interests, but you’re dealing with government lenders, compliance, and request for proposals (RFPs).
B2G contracts often come through competitive bids, instead of pricing that’s negotiated like B2B sales. The public sector is looking for the best value for their investment, so you have to demonstrate that in your pitch.
How to Pitch to Government Clients
Wondering how to tailor your pitch to a government client? Here are some tips:
Understand the Government Audience
All sales rely on an in-depth understanding of the audience, and it’s no different for government pitches. Government clients appreciate when you understand the jargon and acronyms of the sector, and more importantly, how it affects the sales cycle.
Make sure you understand common terminology like invitation for bid (IFB) and request for proposal (RFP). Using them confidently shows that you’ve done your homework about the sector.
Government clients also expect you to know the regulations they must abide. You must ensure that your product or service complies with all the laws and regulations, such as data privacy laws.
Identify the Decision Makers
Like B2B, B2G sales involve a lot of people making purchasing decisions. If you use a boilerplate pitch across the board, you won’t effectively sell to individual stakeholders with their own concerns and interests.
For example, procurement teams often handle the purchasing in the public sector, including IFBs and RFPs. They are tasked with making sure the products or services are compliant with their legal and regulatory requirements.
In some cases, you may pitch to an agency lead, such as program directors or department heads. They have a keen understanding of what the organization needs from a solution, so it’s an opportunity to show your product or service’s value.
Similarly, senior managers may have purchasing influence. However, they are concerned with overall impact, performance, and return on investment, so speak in those terms. Often, the purchaser will be a chief information officer (CIO). They understand the technical aspects of your product and how it can translate to real-world value.
Prepare for a Long Sales Cycle
Public sector sales cycles are long and tedious. Some deals may take years from start to finish, so don’t expect a quick close. Your sales team needs to be patient and persistent with follow-ups to keep the buyer’s attention.
Public sector procurement stages may include:
- Needs assessment to identify the needs and possible solutions.
- Budget approval for the procurement process.
- RFP issuance to invite vendors to submit their bids.
- Bid evaluation to consider all the bids and narrow down possible vendors.
- Contract negotiation to establish the terms of the contract with a few top vendors.
Another key factor is the budget cycle for government agencies. These budgets are typically annual, so make sure your sales align with the budget planning period. Some agencies may have a budget surplus at the end of the fiscal year, which may be a good time to get them to increase spending on a new technology solution.
Keep Up with the Relationship
The relationship between your business and a government agency begins at the very first touchpoint, not the sale. You have to nurture the relationship throughout the long sales cycle to truly understand what they’re looking for, what problems they have, and what solutions they’ve considered.
Shift your focus from selling a product to helping them and providing value. If you keep their needs in mind every time, it’s much easier to find opportunities to interact and share regulation updates, industry news, and other relevant topics that build your relationship.
Your work isn’t done once they’re onboarded, either. Contracts come up for renewal, so you want to make sure you’ve built a positive relationship during the time that they’re your client. If you fail to meet their expectations, they may choose not to renew the contract and look for other solutions.
Master the Art of the Government Pitch
Sales in the public sector can be unique and challenging – especially for an SaaS startup. Understanding what makes the government different and how you can provide real value in your sales pitch is the key to winning these sales.
