- What is Data Analytics?
- How can contractors use DA to help PTW?
- How can R&C help with your PTW?
The Data analytics process examines raw data to uncover useful insights, patterns, and trends that can aid in decision-making and problem-solving. How can you apply the concepts of Data Analytics to Price-to-Win to help your company win more business? Data Analytics in regard to Price-to-Win and Competitive Analysis could mean collecting and maintaining a database of information on your competitors and customers. The goal would be to take this data and intelligence and turn it into actionable intelligence that would help you increase your P-Win for future bids.
Ideally, you should have a good dataset on your main competitors and their past behaviors. How aggressive are they? Do certain companies win even though they have slightly higher prices? How much higher? How do they do this? Do other companies frequently submit a Total Evaluated Price that is almost unrealistically low? How can you quantify this data?
One key component is to have a lessons-learned meeting after receiving a debrief. Can you use the winning price to reverse-engineer the winning bidders’ pricing strategy or aggressiveness level in comparison to yours? Quantifying this with actual numbers will allow you to make use of this data for future bids.
You should also have a dataset on customer behavior. Some customers are more “incumbent-friendly” while others are fine to replace contractors with each contract expiration. Some customers are more price-sensitive than others.
Analyzing these two datasets in combination can help influence “Bid or No-Bid” decisions for Business Development. This could also influence potential solutions and pricing strategies. If you know that a particular competitor beat you on price by 4% and 6% respectively on your last two bids, you can use that knowledge to adjust your future bids based on that competitor’s “aggressiveness level.” Is this competitor becoming more or less aggressive recently? What is their trend? Are there other factors affecting their behavior, like mergers or acquisitions?
Some employees try and keep this information in their heads. But this doesn’t help other colleagues when that person is not involved or leaves the company. Capturing this data in a central location is the only way to utilize it going forward.
At Richter and Company, we have a vast database of contractor and customer behaviors that helps steer our clients in the right direction for winning new work or keeping their current contracts. Reach out to us! We would love to use our past experiences to help you reach your business goals.