Early engagement is one of the most important stages in strategic procurement. Very simply, it’s when suppliers in the public sector connect with government contracting authorities before contract requirements are created. The objective is to establish open lines of communication with key people and lay the foundations for a strong professional relationship.
The upshot of an early market engagement strategy for suppliers is the increased chance of winning contracts within the sector. The upshot for buyers is a pool of suppliers they’re familiar with and who they trust to achieve the objectives set out in the tendering process.
An effective customer engagement strategy, which emphasises understanding buyers’ specific needs, makes processes like Invitation to Tender (ITT) and Request for Proposal (RFP) easier and more successful.
Now, let’s take a closer look at why early contractor engagement is so important to your company’s success.
Public Sector Buyer Challenges
The pressure on public sector buyers to meet high expectations is growing all the time, while the resources required to achieve the objectives diminish.
Here are four of the primary challenges buyers must overcome to succeed in public procurement.
1) Do more with less
SMEs are being encouraged to join the public sector marketplace, but buyers are bound by limited procurement resources and smaller procurement teams, making it difficult to effortlessly carry out procurement-related activities.
Engagement strategies help secure the best possible value from the procurement cycle, effectively mitigating the challenge.
2) Meet objectives
The Procurement Act 2023 has brought about many changes in public procurement. There is now legislation and new objectives related to social value, sustainability, and market engagement. Contracting authorities must include these initiatives in their procurement decisions and processes.
An early engagement strategy gives buyers the assistance they need to identify suppliers who are most likely to help meet their business goals.
3) Support the economy
Bringing more SMEs into the procurement marketplace can have a significant impact on the UK’s economy. This is why buyers are under pressure to grow their portfolio of SME suppliers, primarily through early supplier engagement.
4) Innovate and engage
There’s a lot of emphasis on innovation in the public sector. The current nature of the marketplace places pressure on suppliers to develop ever more innovative solutions to add extra value for buyers.
Buyers are expected to find these new solutions and technologies through the procurement process, ensuring contracts are awarded to suppliers that go above and beyond the specific needs detailed in tenders.
How A Successful Customer Engagement Strategy Benefits Buyers
One of the great things about an early supplier engagement strategy is that it can help overcome buyers’ challenges and provide many other benefits, such as collecting data to gain insights, which aids in making informed decisions.
A successful engagement strategy enables buyers to understand the customer journey, which is crucial in this context because they get a clearer picture of how suppliers progress through the process. They can then adapt their procurement methods to remove many of the barriers that discourage suppliers, especially SMEs, from entering the tender process and submitting bids.
Here are four more primary benefits of early engagement activities.
1) Saves time
The onus isn’t on buyers to find perfect suppliers because suppliers have already done their research and tagged contracting authorities as their perfect fit.
2) Diversifies supplier portfolio
Early market engagement introduces new and diverse suppliers to contracting authorities, giving them a wider supplier pool with more diversity and relevant niche services.
A wider supplier pool also enables buyers to better compare services and products and choose suppliers who have the resources to provide the most value.
3) Supports objectives
Compliance with the new Act demonstrates buyers’ commitment to social value initiatives. Advertising this commitment with examples of existing projects is like a beacon to suppliers with similar objectives because they know a partnership will help them meet their goals.
4) Presents solutions
Early engagement puts new suppliers with fresh solutions front and centre, where buyers can’t help but see them and recognise their potential.
A successful engagement strategy ensures buyers realise they have more options and don’t have to stick with the same old suppliers who can’t quite meet contract criteria.
How Can Early Market Engagement Benefit Suppliers?
Currently, all we’ve done is talk about early engagement and its benefits for buyers. It’s time to apply the same focus to suppliers.
Improving customer engagement is a goal that enhances brand awareness and cultivates a loyal customer base.
Here we’re going to provide five benefits that help suppliers increase their presence in the public sector and build strong customer relationships with buyers.
1) Build rapport and relationships
Successful long-term business relationships rely largely on customer engagement, which is achieved through rapport, communication, and connection.
The foundations for deep customer engagement have to be laid somewhere, and that somewhere is early engagement.
Early engagement establishes direct connections with key-decision makers, which are then nurtured until they bloom into mutually beneficial partnerships.
2) Influence contract requirements
Early engagement is not about getting an unfair advantage over competitors for specific contracts. However, as relationships develop, buyers become familiar with suppliers’ services and products, especially their quality and ability to provide extra value.
It’s this that influences the tender process and gives you a leg up when new contracts are published.
3) Understand buyers
Successful relationships work because all parties contribute similar engagement efforts to keep them going. In this context, it means that buyers and suppliers learn a lot about each other, which, as we’ve seen, is mutually beneficial.
A specific benefit for suppliers is the insight into their target market, which significantly influences their strategic planning and market engagement.
4) Discover hidden opportunities
Local councils aren’t required to advertise contracts below a certain threshold, which means that most low-value contracts don’t go through the formal procurement process. Relationships with buyers borne of early engagement can give suppliers the inside track, enabling them to capitalise on opportunities a smidge ahead of their competitors.
5) Build brand awareness and a loyal customer base
The impact of brand awareness on success in the public sector is often underestimated. The truth is that brand awareness has a positive effect on brand perception and credibility. As a result, it’s one of the most important features included in engagement strategies.
The increase in trustworthiness is invaluable to success in the public procurement market and increases the chances of winning contracts.
Enhanced brand awareness also plays a crucial role in cultivating loyalty among buyers who not only trust but also advocate for the brand, further amplifying its reach and impact in the market.
How Do I Engage Early and Collect Customer Feedback?
We’ve spoken about the importance of early engagement in successful strategic plans, but not how to go about developing and implementing a strategic early engagement plan that incorporates customer engagement strategies.
Without a strategy, it becomes very difficult to correctly identify and engage key people early.
This is because early market engagement needs a degree of finesse so suppliers don’t come off as too aloof, or worse, shameless sycophants.
The ability to implement engagement strategies that align with buyers’ interests and create opportunities for suppliers to achieve their procurement goals comes with years of experience in the sector.
Cadence Marketing has decades of experience in public procurement marketing. This, along with our solutions, including email campaigns, webinars, market research, and events ensures we have the skills and quality services to develop the best early engagement strategy for your business.
Contact us, book a free consultation, and talk to one of our experts to discover exactly how we can help your business progress in the public sector marketplace, attracting new loyal customers and ensuring existing customers have compelling reasons to stick around
