Software as a service (SaaS) products can provide a lot of value to businesses looking for more flexible ways to scale their operations. However, private companies aren’t the only ones benefiting from these types of tools and services. Government organizations are also in regular need of SaaS solutions to help modernize their infrastructure and provide more enhanced services to their local citizens.

As an SaaS provider, there are plenty of opportunities you can explore when venturing into the Business-to-Government (B2G) sector. However, before you start planning your outreach program, it’s important to note that B2G selling is very different from traditional sales formats.

To make sure your sales pitches stand out and you’re able to close more government contracts, there are some important steps you should follow.

What Makes Government Agencies More Challenging to Pitch to?

Government sales can be highly lucrative for SaaS companies. Often, government organizations enter into multi-year contracts with their vendors, generating recurring revenue streams and providing opportunities for vendors to compete for renewals.

However, selling to governments can also bring with it a number of challenges you’ll need to navigate. Some of these include:

• Longer Buying Process: Government procurement processes are typically much longer compared to business-to-business (B2B) sales cycles. Most of the time, government agencies will have various rules in place for pre-qualifying vendors and require multiple stakeholders to be involved in the decision-making process.
• Strict Data Security Requirements: Government technology, such as Computer-Aided Dispatch (CAD) systems, websites, and citizen databases, all contain incredibly sensitive information. Because of this, governments are extremely strict about the security requirements for any new piece of technology that integrates into their current infrastructure. This often means vendors need to ensure their solutions pass certain security certifications or are built on compatible compliance frameworks.
• Restricted Budget Approvals: Government agencies have a lot of pressure to ensure they’re making the best use of taxpayer dollars. This means they work off of restricted budgets and can have lengthy approval processes before moving forward with a new vendor. 

6 Tips for Improving Your B2G SaaS Sales Pitches

To help you get more value from the B2G sales pitches you put together, here are some important steps you’ll want to take:

Research the Organization’s Underlying Needs

Before you can draft a compelling pitch, you first need to understand exactly what agencies are looking for. Take the time to research their website or explore related community discussion boards to discover new initiatives the agencies are championing. This can give you some important perspective on the primary goals of the organization.

After conducting some preliminary research, craft your pitch around their primary goals, ensuring you provide a solution that stands out from others. For example, Record Management System (RMS) tends to be an important topic for many governments, especially as they continue to adopt more digital tools. In this situation, you should center your pitch around features like strong security protocols or seamless integration with existing systems.

Prepare for Procurement Complexities

If your business is just transitioning its market approach over to the B2G sector, it can take some time to adjust to government buying cycles. Landing successful government contracts can take time, and it requires a fair amount of due diligence when identifying and responding to new Request for Proposals (RFPs).

RFPs are created by government organizations to allow vendors to submit bids on various open contracts. These typically involve several prequalification steps that you should be aware of before submitting a response to be considered. It’s essential to carefully review each RFP and ensure your business is capable of meeting the necessary requirements. 

Focus on Meeting Compliance Regulations

Compliance is a critical element for all government agencies. Most organizations must comply with stringent governance requirements regarding the safety and security of public records. This applies to the vendors they choose to work with as well.

For your business to be seriously considered, you’ll want to verify all security requirements the agencies you’re pitching have. In many cases, these requirements are outlined in federal programs like the Federal Risk and Authorization Management Program (FedRAMP) or may be relevant to other, broader compliance standards like HIPPA or GDPR.

You should make data compliance a core part of your pitching process, highlighting your business’s focus on keeping your SaaS products secure at all times. 

Network With Relevant Stakeholders

As with all sales approaches, relationship management is a key part of closing more opportunities. There are plenty of opportunities to connect with key government stakeholders at trade shows or governments centered around new technologies or ongoing community project updates.

While having a great relationship with certain government contacts won’t necessarily improve your chances of closing a deal, it can help you to be more informed about if and when new RFP opportunities may be coming down the pipe.

Be Authentic and Transparent

When submitting a B2G pitch, be prepared to answer a lot of questions centered around more than just your product features. Government organizations may want to know about certain business infrastructure elements you have in place, sustainability practices, pricing details, and other detailed information.

It’s important not to knowingly or unknowingly make false claims about your business or the information they’re requesting. This not only causes issues with the procurement process, but can also damage your reputation with the agency before a relationship has even begun.

Suggest a Pilot Program

A great way to increase responses to your sales pitches is to offer the organizations you pitch to free demos or pilot programs of your software. This can be a really effective way to let organizations trial run your SaaS products without worrying about a long-term commitment.

While you could list out all the features and benefits of your solution on an RFP, the best way for these organizations to experience it is by seeing it in action. This approach can add more credibility to your claims and help to expedite the decision-making process.

Make Your B2G Sales Pitches More Successful

The B2G sectors can be highly profitable for SaaS companies that know how to position their brand successfully. By following the guidelines discussed, you create more compelling sales pitches that increase your chances of landing new government contracts.