Contracting Officer Podcast Slides Knowledge & Insights From Contracting Officers

Targeting 201 – Why Targeting Matters Episode 068 Targeting 201 – Why Targeting Matters Original Air Date: 28 February 2016 Hosts: Kevin Jans & Paul Schauer

Formatting notes Hyperlinks: Blue font indicates hyperlinks – presentation must be in ‘Slide Show’ mode to activate the link Red bold font indicates a point of emphasis Green bold font indicates CO’s personal comment or perspective

Introduction If you’re not winning contracts, my money is on your lack of proper targeting as the cause We all know we are supposed to target, but in such a huge market like the government, how do you know that you’re targeting enough? This episode continues our conversation from Podcast 016 - The Importance of Targeting.

When does Targeting happen? Acquisition Time Zones (from Podcast Episode 003) Requirements Zone Market Research Zone RFP Zone Source Selection Zone (or sole source) Execution Zones: Kick Off, Transition (Ramp Up), Performance, Re-compete

What do we mean by ‘Targeting?’ Recap from Episode 16: Reachable market – Everything in your NAICS code… Target Market – What you can win.. Weight class – Work you can realistically perform without derailing your company… For example, Skyway targets companies that: Are already in the government market Earn at least $500k in revenue per year Have at least 5 employees Are looking for help – most important!

What do we mean by ‘Targeting?’ What does next level of targeting look like? These are the customers who inherently seek what you do Not because you TELL them, but because they seek it Ex: for Skyway it’s the value of the Contracting Officer’s viewpoint

What do we mean by ‘Targeting?’ OPEN from Ray Edwards (on the Smart Passive Income Podcast with Pat Flynn): The four stages of customer needs (for example, your dishwasher at home): O – Those who are Oblivious of whether they need what you have: Everything is fine, no problems P – Those who are Pondering getting what you have: Considering possible breakdowns due to age, condition E – Those who are Engaged in looking for a solution: Observing signs of failure (noises, leaks, etc.) N – Those who have a Need! I need it! (And will be seeking to repair/replace it) Target the customers who are SEEKING your help. Those who have a NEED! You are the PRIZE – be exactly who or what they are looking for because they have a need.

Why is Targeting important? It’s easy to chase everything “Activity” is seductive: It feels like you’re moving forward BUT… bidding is not winning…. Many people go out of their way to ignore the benefits of targeting The news is full of stories of people who have won all kinds of stuff (10%-ers) What you don’t hear is how many of them did not make it You see the press release by the winner, but not by those who lose!

Why is Targeting important? The government market is SOOOOO big that it’s easy to target There are data everywhere to help you pinpoint your high-value targets The more you target, the less you have to compete on price alone. Without targeting, you are allowing yourself to be a commodity. Government should help companies to effectively target by making the requirement painfully clear to everyone This reduces proposals that can't win, saving time and money for everyone

Why Should Government Care? You may get better companies Companies with a higher likelihood of solving your problem However, they may still be problem companies .... targeting doesn't fix that You should get better proposals Proposals with a higher likelihood of meeting your needs However, proposals may still be weak... targeting doesn't fix that, either You’re likely to find the Prize! Better chance of getting the companies who can meet your requirements if you help them self-eliminate (target) through open communication of your clearly written requirements

Why Should Industry Care? You’re more likely to win The more you target, the less you spend on marketing (B&P) And the less you spend on B&P, the more you can target, and so on… The government market is MADE for this hyper-targeting because this ‘customer’ buys everything Ask yourself: how annoying is it when people who sell to you don’t target? That’s how the CO sees it too. Bulk mailers: Compare this to what you can get in USASpending.gov for free TV Commercials - visual spam

Summary Government: Give them the specificity to target Don’t mash all the requirements into one homogenized contract What if you thought of the contractor as the Prize? You’ve know what the prize looks like right? Low maintenance, deliver on time, easy to work with, responsive, experts… Companies have a limited capacity to deliver, if you want the best, you have to differentiate. Make it easy for them to find you and easy to do business with you.

Summary Industry It’s THE best way to increase your wins It’s the hard way - most people won’t take it It’s easy to say no It’s either “heck yeah or heck no!”

Contact us We are on LinkedIn, Twitter and Facebook We also started the Government Contracting Network Group on Facebook. Join us there! Send your topics to paul@Contractingofficerpodcast.com For Community support, contact Shelley Hall at shelley.hall@skywayacquisition.com